4th Feb 2021 16:23
Hydrodec Group PLC - London-based cleantech industrial oil re-refining - Gets agreement in principal with "one party" for up to USD6.8 million in funding and is in advanced negotiations with its existing US to bank to conclude arrangements. Hydrodec has been reliant on its major shareholder, Andrew Black, for funding while it has worked on the refinancing, with Black providing USD200,000 in cash since the company's last update on October 1.
Hydrodec also says it has made progress on the US joint venture announced in October, expecting to sign the operating agreement, subject to the resolution of its funding. The JV with a US industrial recycling company aims "to create a market leading re-refining business in the US". The JV will use part of Hydrodec's Canton, Ohio facility and take advantage of the unnamed partner's access to utilities.
Less positively, says an Australian court judgement has been made in favour of Southern Oil Refining, Hydrodec's previous partner in Australia, over SOR's claim for USD1.3 million from Hydrodec for capital works SOR says were carried out for the Hydrodec plant there, which has since been sold. Hydrodec says it is reviewing its options including its rights to appeal.
Also "regrets" that due to the virus pandemic and its financial constraints, it has been unable to complete the audit of its results for the 18 months to June 30, 2020. Hydrodec aims to publish the audited accounts as soon as possible. Its shares are suspended from trading on AIM, and they will be cancelled from trading if Hydrodec is unable to published the accounts by March 31.
By Tom Waite; [email protected]
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