PACIFIC GREEN TECHNOLOGIES INC. (OTCMKTS:PGTK) Files An 8-K Entry into a Material Definitive AgreementItem 1.01
Sale and Purchase Agreement with Union Maritime Limited
Effective September 24, 2018, Pacific Green Technologies Inc. (“PGT” or the “Company”), owner of the ENVI-MarineTMExhaust Gas Scrubbing System (the “System”), through its wholly owned subsidiary, Pacific Green Marine Technologies Inc. (“PGMT”), has executed a sale and purchase agreement dated September 10, 2018 (the “Union Agreement”) with Union Maritime Limited (“Union”) to which PGTM will manufacture and install the System on up to sixteen vessels (the “Vessels”) between now and March 2020.
As at September 24, 2018, the sale values of the System for the Vessels Union currently owns, has ordered or intends to acquire, represents a total estimated value of US$29.4m. The Union Agreement provides Union with date and vessel flexibility: the ability to add, substitute and cancel on a vessel by vessel basis provided sufficient notice has been given and, for cancellations, cancellation fee provisions in favour of PGMT. The objective of the Union Agreement is to provide Union as much flexibility as possible to manage and trade its fleet while at the same time maximising its chartering opportunities.
The Company’s joint venture partner, PowerChina SPEM Company Limited, will work alongside PGMT to deliver Union a turnkey solution and to ensure that the vessels are compliant with the International Maritime Organisation’s new rules on sulphur emissions for vessels in open sea that become effective January 1, 2020 Agreement.
The first intended dry dock date for a Vessel is August 2019 and the last intended dry dock date is February 2020. The agreements provide a six-month lead time for each vessel (“Lead Time”) in terms of manufacturing the System and a 21-day installation period (“Installation”). Installation will take place at Shipyards to be agreed between Union and PGMT. Union may trigger the Lead Time by issuing notice to PGMT to the Union Agreement (on a vessel by vessel basis) following which Union is legally committed to Installation and payment of the System. To that end, Union has issued a parent company guarantee to the Company to underwrite its obligations to PGMT.
PGMT intends to make further announcements on a vessel by vessel basis, if material, once the delivery date or Lead Time for each Vessel has been confirmed by Union.
About PACIFIC GREEN TECHNOLOGIES INC. (OTCMKTS:PGTK)
Pacific Green Technologies Inc. is a development-stage company. The Company is focused on marketing, developing and acquiring technologies designed to improve the environment by reducing pollution. The Company has a network of agents to market the ENVI-Clean system. The ENVI-Clean system removes the sulfur dioxide, particulate matter, greenhouse gases and other hazardous air pollutants from the flue gases produced by the combustion of coal, biomass, municipal solid waste, diesel and other fuels. The ENVI-Clean system consists of five components: an induced draft fan; a gas conditioning chamber; the ENVI-Clean unit; a demister, and settling tanks. The ENVI-Clean system has various applications, including pulverized coal and stoker-grate boilers; heavy oil fired boilers; biomass and waste to energy boilers; lime kilns, dryers, shredders and foundries; industrial exhaust scrubbing of particulates and acid gases; diesel engines, and large marine and stationary engines, among others.