Scandinavian EnviroSystems, a waste tire pyrolysis recycling carbon black (rCB) company based in Gothenburg, Sweden, signed a letter of intent with the French Michelin Group in April this year. Build a new long-term strategic partnership. Initially, the two sides expected to reach a final agreement before July 2020, and negotiations were delayed due to the pandemic of the new crown virus. Therefore, the two parties agreed to extend the validity period of the letter of intent to the end of October this year. At the same time, the exclusivity agreement has also been extended to October 31 this year.
According to the letter of intent, Invero's targeted placement price of bonds worth 32.5 million Swedish kronor (equivalent to 3 million euros) was subscribed by Michelin Venture Capital, a wholly-owned subsidiary of Michelin. The bond subscribed by Michelin is equivalent to 20% of Invero's equity. The strategic partnership between the two parties includes the establishment of a jointly owned waste tire recycling plant (the location of the plant is to be determined) and joint development work to expand the use of rCB materials. The original exclusive agreement signed by the two parties that Inviro cannot cooperate with other tire manufacturers or tire suppliers before July 31, 2020, has also been extended to October 31 accordingly.
