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(Sharecast News) - Sabien Technology said on Tuesday that it had received 213,708 in cash from b.grn Group and proposed a series of debt reduction and share-settlement measures intended to strengthen its balance sheet and sharpen its focus on commercialising its M2G energy-reduction technology.
The AIM-traded company said the receipts from b.grn comprised 117,494 of historical management service fees, repayment of a 37,000 intercompany loan and a 59,214 partial settlement of a fixed profit-share entitlement linked to Sabien's historical City Oil Field investment.
Sabien said it intended to use a substantial proportion of the proceeds to pay 127,500 in cash to Parris Group by 30 June, satisfying outstanding liabilities related to the PGL wholesale stock facility and the PGL research and development and IT support agreement announced in August 2024.
The company also said its board had agreed in principle to capitalise about 179,409 of accrued directors' remuneration for the 2026 financial year through the issue of new ordinary shares at a deemed price of 6p each, subject to the necessary approvals.
It said the price represented a premium to the previous mid-market closing price of 3.75p and reflected the board's confidence in the company's long-term prospects.
In addition, broker AlbR Capital had agreed to accept settlement of 40,000 of accrued broker fees through the issue of new ordinary shares, with a further announcement to follow.
Sabien said the actions were expected to materially reduce liabilities, improve financial flexibility and separate the future funding requirements of Sabien and b.grn.
It said b.grn had also secured additional funding to support its own ongoing activities and greater financial independence.
The company said it would continue to retain an equity interest in b.grn, a development-stage vehicle established to pursue opportunities associated with the COF initiative, while recognising that the potential value of that opportunity remained dependent on commercial execution, project milestones and future funding decisions.
Sabien said it continued to engage constructively with Haydale and associated parties after announcing proposed commercial partnership and strategic investment discussions on 21 May.
The board said those discussions had the potential to accelerate deployment of M2G, broaden market access and support long-term shareholder value.
Executive chairman Richard Parris said it had become increasingly apparent that the M2G business and the COF-related opportunity within b.grn had "materially different development and funding profiles".
"The board's priority is to ensure that Sabien remains focused on accelerating the commercial deployment of its M2G technology and creating sustainable shareholder value from that business," he said.
"At the same time, the COF opportunity remains a longer-term development project whose timing, funding requirements and commercial outcomes are inherently less predictable."
Parris said the announced actions were intended to simplify the relationship between the companies, strengthen Sabien's balance sheet and create greater transparency for shareholders, while preserving exposure to potential future value from b.grn.
At 0924 BST, shares in Sabien Technology Group were up 20% at 4.5p.
Reporting by Josh White for Sharecast.com.
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