Related Party Transaction • Jan 17, 2023
Related Party Transaction
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OSLO, NORWAY – 16 JANUARY 2023 – Circa Group AS (stock symbol: CIRCA) and OQEMA AG have signed a supply and capacity reservation agreement for the sale of Cyrene™ into Europe.
The agreement is for the market development and supply of several thousand tonnes of Cyrene™ per annum. This brings reservation commitments for Cyrene™ volumes to over 5,000 tonnes per annum, which will be supplied by Circa's ReSolute™ plant, and the following FC6 plant, now at planning stage.
"Bringing to market a safer and lower carbon solvent requires committed partners, and OQEMA is a very good match for us. Circa is changing chemistry for good and they share our vision for a more sustainable chemicals industry. Most importantly, this agreement reinforces market confidence in Cyrene™ as a credible solvent for applications that currently depend on toxic petro derived solvents," commented Tony Duncan, CEO, Circa Group AS.
OQEMA is a growing force in the EU chemicals distribution business, servicing thousands of customers across 21 countries. Their 1,300 employees cover markets that are key to the growth of Cyrene™, offering full-service capabilities including solvent recycling.
Emad Kakakhel, Group Director Sustainability said, "Circa is exactly the type of company we want to work with as we focus our strategy on sustainability. We see an appetite for bio-based chemicals and expect demand for Cyrene™ to be strong. By working closely with Circa and our customers, we are introducing a novel solvent for the first time to replace the harmful solvents currently in use today."
The agreement provides for exclusivity across EU markets, and recognises the existing agreements Circa has with Will & Co, Merck and DICHEM as well as providing channel options for specific large customers.
Established in 2006, Circa Group converts sustainable, non-food biomass into advanced bio-based chemicals with its proprietary Furacell™ process. Its developing product portfolio includes flavours, biopolymers, and bio-solvents including Cyrene™. By creating renewable chemicals from cellulose, Circa is extracting value from nonfood, biomass and addressing a gap in the market by providing bio-based alternatives contributing to a more circular economy.
The OQEMA Group is one of the leading chemical distributors in Europe. Almost 1,300 employees currently work for OQEMA at 45 locations in 23 countries. At the interface between chemicals manufacturers and chemical-processing industries, the OQEMA Group provides pan-European services along the supply chains, which includes procurement, product development, individual mixing, logistics and recycling. The Group has specific expertise in the technical and regulatory support of its customers. OQEMA is also the exclusive distribution partner of various renowned producers. OQEMA offers a highly dynamic and continuously expanding product portfolio of more than 14,000 products.
Amanda Keogh General Manager Marketing and Sustainability Circa Group AS [email protected] Tel: +61 407 275 126
Tone Leivestad Chief Financial Officer Circa Group AS [email protected] Tel: +47 406 39 455
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