Graphene NanoChem has entered into a three-year leasing and tolling agreement with Temasek Growth Sdn Bhd for the production of refined bleached deodorised palm oil at the Lahad Datu plant in Sabah, Malaysia.
The arrangement will start in the first quarter of 2016 and is expected to generate revenues of approximately £500,000 during its first year of operation, with planned production ramp up in the second and third year of operations. This arrangement with Temasek provides the group with a predictable revenue stream for its Lahad Datu plant.
Graphene NanoChem says it has been progressing discussions with its financiers on the terms of the restructuring of its debt facilities and anticipates that it will be in a position to provide a further update shortly.
Prudent measures continue to be implemented in order to conserve Graphene NanoChem’s cash position and management continue to evaluation all options with a view to raising additional funds through a corporate exercise to further enhance the group’s financial platform.
Chief executive Jespal Deol
“We are pleased to be able to leverage on the capacity of our Lahad Datu plant to generate a new revenue stream for the group. We are also grateful for the commitment of our financiers to working with the group to achieve an acceptable terms of the restructuring of our bank debt and we are confident that the successful completion of the same will position the group well for future growth.”
Source: Graphene NanoChem
