Quadrise leaps after partnering with Aleph for Kuwait expansion

Quadrise Fuels International's shares racked up solid gains on Tuesday after it entered into a services agreement with Aleph Commodities to pursue opportunities on behalf of Quadrise for the use of its MSAR emulsion technology in Kuwait.

The emulsion technology and fuels supplier said that the contract provides Aleph with a chance to be awarded up to a total of 40m warrants over shares in Quadrise if certain key milestones are achieved courtesy of a reward system that focuses on "near-term delivery", with the first tranche of 5m warrants to be awarded upon signature of a relationship with a local partner in Kuwait.

A second tranche of 10m warrants will be awarded upon completion of a commercial MSAR trial or study in Kuwait, while the final third tranche of 25m warrants is conditional upon signature of contracts for a commercial MSAR project in Kuwait.

In addition, royalties will be payable to Aleph from any project for the supply and use of MSAR in Kuwait.

Mike Kirk, executive chairman of QFI, said: "Entering into this services agreement with Aleph is an important milestone for Quadrise in the Middle East. Kuwait is a market in which we have undertaken substantial work over the past 18 months and where we have made good progress to establish a firm understanding of our technology in country."

Aleph is a UK company that has been recently established by a small group of commodities traders with significant experience in the Middle East.

"Quadrise's engagement in Kuwait will continue to be coordinated with Freepoint in connection with the CMPDA announced last November, and such engagement will now be enhanced by our new relationship with Aleph. We believe Aleph's strong relationships in the Middle East, and Kuwait in particular, will be instrumental in enabling practical delivery of domestic MSAR projects," said Kirk.

Quadrise Fuels International's shares were up 11.25% at 3.58p at 1639 GMT.