Anaergia Announces Interim Arbitral Award
Anaergia Announces Interim Arbitral Award
BURLINGTON, Ontario–(BUSINESS WIRE)–Anaergia Inc. (“Anaergia” or the “Company”) (TSX: ANRG) is pleased to announce that its subsidiary, Anaergia B.V. (“ABV”), has received an interim award from the Dutch Arbitration Board (“Tribunal”) for the Construction Industry in the Netherlands against Blue Sphere Brabant B.V. (“BSB”) relating to its previously disclosed dispute concerning the turnkey agreement for engineering, procurement, and construction of a biogas installation for the biogas plant (the “Project”) in Sterksel, Netherlands (the “Arbitration”).
The Tribunal issued interim awards that are enforceable regardless of any interim appeal of approximately € 3.5 million plus statutory interest in favour of ABV and € 98,000 plus statutory interest in favour of BSB, resulting in a net award of approximately € 3.4 million in favour of ABV, adjusted for statutory interest. ABV intends to pursue the collection of its interim award and is exploring its options to do so. However, at this time, the Company cannot provide an estimate as to when ABV will collect such interim award.
Additionally, the Tribunal stayed other claims of ABV and BSB pending submission by each party of proposals for procedural steps due in March 2024. The aggregate amount of the stayed ABV and BSB claims, as determined by the Tribunal, are approximately € 16.7 million and € 17.0 million, respectively. ABV believes strongly in the merits of its position and seeks a final determination of the pending claims in the Arbitration.
The Tribunal also expressly rejected a number of BSB counterclaims.
Pursuant to a coordinated handover agreement between ABV and BSB that provided for control and custody of the Project by BSB starting in September 2022, BSB delivered to ABV a bank guarantee and a parent guarantee, totaling approximately € 3.3 million to secure payment of obligations resulting from a final determination of the pending claims in the Arbitration.
Anaergia was created to eliminate a major source of greenhouse gases (“GHGs”) by cost effectively turning organic waste into renewable natural gas (“RNG”), fertilizer and water through the use of proprietary technologies. With a track record of delivering innovative projects, Anaergia is uniquely positioned to provide solutions to today’s most pressing resource recovery challenges using a broad portfolio of proven technologies and multiple project delivery methods. Anaergia is one of the world’s only companies with a proprietary portfolio of end-to-end solutions that integrate solid waste processing as well as wastewater treatment with organics recovery, high efficiency anaerobic digestion, RNG production and recovery of fertilizer and water from organic residuals. The combination of these technologies enhances carbon-negative biogas, clean water and natural fertilizer production, utilizes a minimized footprint and lowers waste and wastewater treatment costs and GHG emissions.
For further information please see: www.anaergia.com
This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects Anaergia’s current expectations regarding future events, including but not limited to, statements with respect to the collection by ABV of its interim award; and the final determination of the stayed claims. Forward-looking information is based on a number of assumptions, including, but not limited to, the expectation that the Company will be able to collect its interim award and the Company’s belief in the merits of ABV’s position in respect of the stayed claims. The Company is subject to a number of risks and uncertainties, many of which are beyond the Company’s control. Such risks and uncertainties include, but are not limited to, the risk that ABV may be unsuccessful in collecting its interim award or may be unsuccessful in respect of the stayed claims, the risk that the interim award is successfully appealed, and the factors discussed under “Risk Factors” in the Company’s annual information form for the fiscal year ended December 31, 2022 and under “Risks and Uncertainties” in the Company’s most recent management’s discussion and analysis. Actual results could differ materially from those projected herein. Anaergia does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws. Additional information on these and other factors that could affect Anaergia’s operations or financial results are included in Anaergia’s reports on file with Canadian regulatory authorities.
For media and/or investor relations please contact: IR@Anaergia.com