Sabien Technology Group PLC (AIM:SNT), the energy efficiency technology company, has abandoned its proposed strategic investment and financing framework.
The decision means a planned senior secured convertible loan note financing of up to £2 million will no longer proceed.
A secondary transaction involving the proposed sale of shares held by Executive Chairman Richard Parris and associated parties has also been cancelled.
Under the proposed framework, any proceeds would have been payable to the selling shareholders rather than to Sabien.
Parris Group Limited (PGL) will retain its existing shareholding in the company, ensuring the chairman remains materially aligned with shareholders.
The proposed restructuring and refinancing of debt and invoice-financing arrangements with PGL have also been terminated under the framework.
PGL continues to provide financial support to Sabien under existing agreements and has indicated its present intention to maintain that support for the foreseeable future, though no new binding funding commitment has been entered into.
The company confirmed that discussions regarding a commercial distribution deal are not conditional on the cancelled financing arrangements.
Sabien remains in active talks with Haydale and Intelligent Resource Management Limited, trading as SaveMoneyCutCarbon (SMCC), to agree a definitive UK distribution and implementation contract for its M2G intelligent boiler optimisation platform.
The parties have exchanged detailed contractual proposals and are working towards terms capable of approval by their respective boards.
Notwithstanding this, no definitive agreement has as yet been reached, with material commercial and legal terms remaining under negotiation.
Sabien stated that its principal strategic focus remains the commercial deployment of M2G alongside the development of recurring software revenues.
Meanwhile, a planned transition for Richard Parris from Executive Chairman to Non-Executive Chairman remains subject to future board determination.
The company also confirmed that its strategic review of its interest in b.grn Group Limited and the City Oil Field (COF) opportunity remains ongoing.
Sabien retains its economic rights in the project while b.grn funds current operating expenditure, avoiding any immediate cash requirement for Sabien.
The company said it will determine in due course whether to participate in future b.grn funding rounds or allow its interest to be diluted, with no decision made regarding further investment, dilution, disposal or restructuring.
