PRES Pressure Technologies Plc

TIDMPRES

RNS Number : 9668R

Pressure Technologies PLC

03 July 2020

3 July 2020

Pressure Technologies plc

("Pressure Technologies" or the "Group")

Disposal of entire equity security holding in Greenlane Renewables Inc.

The Board of Pressure Technologies plc ("PT") is pleased to announce the execution of a Framework Agreement with Greenlane Renewables Inc. ("Greenlane"), Creation Partners LLP ("Creation") and Brad Douville (the "Framework Agreement"). Further details are available under Greenlane's SEDAR profile and can be accessed via this link. Link to SEDAR .

Following the execution of the Framework Agreement PT sold a total of 7,663,920 common shares and the underlying common shares of 5,094,765 share purchase warrants (the "PT Securities"). The PT Securities were issued to PT in connection with the disposal of its wholly owned subsidiary PT Biogas Holdings Limited (the "Disposal"). The Group expects to receive net proceeds of approximately GBP2.5 million upon settlement of the sale which, together with the sale of 2,525,610 shares on 10 June 2020, means Pressure Technologies will have realised cash proceeds of approximately GBP3.1 million.

Through the Framework Agreement, Greenlane's outstanding principal on the promissory note to PT (the "Promissory Note") will be reduced to approximately GBP3.1 million and the maturity date will be advanced from June 3, 2023 to June 30, 2021.

Pursuant to the terms of the Framework Agreement, PT has also agreed to transfer the balance of its securities in Greenlane following the sale, being 4,093,230 Greenlane common shares and 2,046,615 warrants, to Creation and Mr. Douville, which were previously held in escrow for their benefit pending repayment of the Promissory Note. Upon completion of these transactions, PT will no longer be the owner of any equity securities of Greenlane.

The total cash received to date of the GBP10.1 million total consideration on Disposal is approximately GBP7.3 million. The proceeds of the recent sales will be used to pay down the Group's existing debt.

For further information, please contact:

 
  Pressure Technologies plc             Tel: 0114 257 3616 
  Chris Walters, Chief Executive        PressureTechnologies@houston.co.uk 
   Joanna Allen, Chief Financial 
   Officer 
                                      ------------------------------------ 
  N+1 Singer (Nomad and Broker)         Tel: 0207 496 3000 
   Mark Taylor / Carlo Spingardi 
                                      ------------------------------------ 
  Houston (Financial PR and Investor    Tel: 0203 701 7660 
   Relations) 
   Kate Hoare / Anushka Mathew / 
   Ben Robinson 
                                      ------------------------------------ 
 

COMPANY DESCRIPTION

www.pressuretechnologies.com

With its head office in Sheffield, the Pressure Technologies Group was founded on its leading market position as a designer and manufacturer of high-integrity, safety-critical components and systems serving global supply chains in oil and gas, defence, industrial gases and hydrogen energy markets.

The Group has two divisions, Chesterfield Special Cylinders and Precision Machined Components.

Chesterfield Special Cylinders (CSC) - www.chesterfieldcylinders.com

-- Chesterfield Special Cylinders, Sheffield, includes CSC Deutschland GmbH and Chesterfield Special Cylinders Inc.

   Precision Machined Components (PMC) -   www.pt-pmc.com 

-- Precision Machined Components includes the Al-Met, Roota Engineering, Quadscot, Precision Engineers and Martract brands.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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July 03, 2020 02:35 ET (06:35 GMT)

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