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EnviroMission's ME solar tower development deal signed

MELBOURNE, October 12, 2015

Australia-based EnviroMission has executed a head of agreements (HOA) with Q Analytica (QA), to form a joint venture that will operate to commercialise its solar tower renewable energy technology in the Middle East and North Africa (Mena) region.
 
The joint venture will provide EnviroMission with active involvement in solar tower development in the region and earn for EnviroMission a capital injection of $1.5 million from the placement of EnviroMission shares with QA, a $3 million development rights licence fee, an annual royalty and technology fee, and equity in all entities formed by QA for Solar Tower development under the licenced development rights, said a statement.
 
QA will subscribe and pay for a placement of EnviroMission shares at a price equal to the higher of the Australian dollar (AUD) equivalent amount of $0.20 cents and the current market price, to the AUD equivalent of $1.5 million cash to EnviroMission by November 30, it said.
 
EnviroMission will grant the licence for solar tower development rights in the Mena region to QA on an exclusive basis after QA pays EnviroMission an initial, non-refundable, development fee of $3 million by December 15.
 
It will also be granted two board positions and a free, carried, 21 per cent shareholding in each joint venture ompany formed with QA for Solar Tower development in the region; this shareholding will never be diluted below 15%.
 
EnviroMission will receive an annual royalty and technology fee in US dollars of an amount equal to the greater of one per cent of the total capital expenditure (including finance and development costs) and 10 per cent of gross annual revenue earned that year. 
 
Following execution of definitive agreements, and on receipt of the $3 million development fee, EVM will issue to QA, 10 million  options for shares in EVM at a strike price of 0.30 Australian dollars per share with an expiry date of September 15 next year.
 
Roger Davey, chairman, said: "This HOA describes the terms of a Solar Tower development Joint Venture for the Middle East and North Africa that will accelerate EnviroMission's disruptive energy technology into that market to provide reward for participants while maintaining EnviroMission's proprietorship of all Solar Tower Intellectual Property." - TradeArabia News Service



Tags: tower | solar | QA |

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