UK-based emulsified fuel developer Quadrise is looking to raise funds from existing investors to continue in business and has said in its offer that failure to secure funds could lead to the company winding down.
Quadrise had been involved in long term trials of its MSAR – an oil-in-water emulsion fuel, made by mixing residue steam from oil refinery with water and chemicals in a proprietary production process – with Maersk but the trial ended early in 2017 when an unscheduled drydocking of the trial vessel was needed. At the time Maersk said it was satisfied with the preliminary results of the trial. Since then Maersk has terminated the tests and has recently announced a plan to decarbonise its operations.
In an offer to existing investors this week, Quadrise said it hoped to raise a further £2.16m which would allow the company to continue operations and pursue opportunities up to October 2019. It also said that ‘whilst the Company has faced a number of challenges recently, and there continues to be some way to go before the Company anticipates being able to progress to commercial projects, QFI and its clients believe that there are substantial opportunities in the power generation and marine markets for MSAR in the near term. The recently announced business development milestones are positive initiatives in this regard”.
The offer closed by saying if the offer is unsuccessful ‘the company would be compelled to seek alternative forms of finance and, without access to a form of additional funding prior to 31 January 2019, the Board considers that the company's existing cash resources will be depleted over time such that the Board would need to consider the commencement of an orderly winding down of the business at the end of January 2019”.