Provaris advances the Prototype Tank restart program

World

September 24, 2024

Provaris has submitted a conditional offer to the secured lenders for the acquisition of the installed prototype tank “production cell”, which includes essential material, robotic and laser welding equipment to complete and test the prototype tank.
Key terms of a lease agreement have been agreed with a party submitting an offer to purchase the Fiskå Facility. The lease includes ~2,000 m2 of the Fiskå Facility factory (the production cell area) and office space.
Acquisition of the production cell and lease agreement will safegaurd the investment already made, eliminate the need for costly relocation and expedite the completion of the prototype tank at the Fiska Facility.
Provaris continues to advance strategic collaborations with major European energy utilities, with meetings in Norway and site visits to the Fiskå Facility planned this month.Provaris Energy is pleased to provide shareholders with a progress update on the prototype tank restart program, at the Fiskå Facility, Norway.
Following the completion of the Norwegian summer holidays in early August 2024, Provaris’ management has maintained regular dialogue with the Secured Lender’s appointed Advisor regarding the sale and future use of the Fiskå Facility (land and building), which currently houses the prototype tank and its associated production equipment.

Retention of the Prototype Tank and Program Restart

Provaris has submitted a conditional purchase offer for the production cell assets, including essential materials and equipment required to complete construction of the prototype tank. This offer was based on ongoing visits to the Fiskå Facility by Provaris management and its valuer. The Production Cell remains intact and in good working order for a restart.

This strategic move would ensure full control over the robotics and laser-hybrid equipment, protecting the Company’s investments made to date and securing the future of the prototype tank program. It also allows Provaris to consider additional tank production opportunities at the Fiskå Facility.

Provaris has been informed by the Secured Lenders’ Advisor that it is the intention of the Secured Lenders to progress and complete the sale of all Prodtex Industri AS assets as soon as practical. The Board of Provaris will continue to keep shareholders informed on the status of the prototype tank restart program and expected timetable.

Provaris Managing Director and CEO, Martin Carolan, commented: “The Board understands the concerns around protecting our investment in the prototype tank program. With this recent progress we have increased certainty that our investment remains secure, and we believe that acquiring full control of the Production Cell, including all robotic laser equipment, will be invaluable as we advance the program and explore future tank production opportunities where we have seen demand for similar scale tanks.

There’ is also growing regional interest in compression for hydrogen storage and transport. Provaris remains well- positioned to capitalize on this market trends. The Company’s recent updates on term sheets for hydrogen supply, offtake, and shipping highlight the ongoing progress in its commercial activities. ”