VERDAL, NORWAY: Ocean GeoLoop AS, the green tech company developing multifunctional environmental technologies based on nature’s own processes, announced a NOK 100 million investment at NOK 37 per share by Chevron U.S.A. Inc., and a memorandum of understanding to identify areas of potential technical or commercial collaboration (MOU).
“Ocean GeoLoop is pleased to announce Chevron as an investor to further strengthen our financial position. We look forward to working with the Chevron team to identify potential areas of cooperation to industrialize the carbon capture technology of tomorrow,” says Anders Onarheim, Chairman of the Board of Directors of Ocean GeoLoop.
Ocean GeoLoop has entered into an investment agreement with Chevron to issue new shares in a private placement as well as an MOU to identify potential joint projects. See the attached corporate press release for further background on Ocean GeoLoop.
“We look forward to collaborating with Ocean GeoLoop on the MOU study as Chevron works to enable lower carbon solutions in the marketplace,” said Chris Powers, vice president of Carbon Capture, Utilization, and Storage with Chevron New Energies. “Chevron has a long history of supporting innovation, and we are pleased to make this investment and explore ways to potentially further develop and commercialize Ocean GeoLoop’s carbon capture and storage technology.”
Pursuant to the investment agreement, Chevron will subscribe for 2,745,656 new shares in Ocean GeoLoop, equal to approximately 5.2% of the total number of issued and outstanding shares in the company (5% on a fully diluted basis).
The subscription price is NOK 37 per share. The investment will bring total gross proceeds of NOK 101,589,272 to the company. The net proceeds from the private placement will be used to fund the company’s working capital and general corporate purposes. Following completion of the transaction, Chevron will be the company’s third largest shareholder.
The new shares will be delivered to Chevron on a delivery versus payment basis pursuant to a share lending agreement entered into between the manager (referenced below), existing shareholder Hans Gude Gudesen, and the company.
The MOU provides a framework for Chevron U.S.A. and Ocean GeoLoop to study potential joint project opportunities to advance the scale-up and commercialization of Ocean GeoLoop’s carbon capture technology.