11th Mar 2014 12:59
LONDON (Alliance News) - Velocys PLC Tuesday said it has cemented a key partnership with Shiloh Industries Inc through a new agreement and share issuance.
The gas-to-liquids technology company said Shiloh bought 601,326 shares at Velocys at a price of 200 pence per share, representing a 32% premium to its closing share price on Monday.
Velocys shares were up 5.4% to 159.88 pence Tuesday afternoon.
The company said that, together with Shiloh, Velocys' supply chain can support annual Fischer-Tropsch reactor orders sufficient for 10,000 barrels per day of production, and plans are in place enabling expansion to 40,000 barrels per day in time for order growth.
Velocys said that the parties have agreed to preferentially work together to continually improve the reactor manufacturing and to enhance the effectiveness of the whole gas-to-liquids plant, along with exploring other opportunities in the oil and gas market.
NASDAQ-listed Shiloh is a major supplier of engineered metal products and technology to the automotive industry in North America.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
VLS.L