December 2018

Ladies and Gentlemen,

Back in 2014, we asked ourselves a simple question:
“As we fully commercialise the SulNOx range of Emulsifiers and Fuel Conditioners, would we be the best group to manufacture them ourselves?”
The answer was a resounding “No”.

What the SulNOx Group is commercialising today is unique in both the Heavy Fuel Oil market and now in the Diesel market as well, which is remarkable after only five years of operations.

What we are not, however, are world class chemical blenders and manufacturers. As a result, we set out to form a relationship with a prestigious company who has the provenance and excellence we need, and which are already a world respected chemical business.

Today, we are delighted to announce that the SulNOx Group has agreed in principle an Exclusive Licensing and Royalty Agreement with Nouryon (formerly known as AkzoNobel Specialty Chemicals) for them to source, blend and distribute the initial 2 products from the SulnoxEco™ range of Trade Marked products, Berol® 6446 & Berol® 6430. The paperwork is now in the hands of the lawyers for completion.

In recent months, under strict NDA’s, our teams have been working together to understand how our alliance will work and this task is now complete. I am sure that everyone will take heart from the fact that a $12 billion dollar “major” is excited to become the sole licensee to be able to produce and supply the SulNOx range of formulations and fuel conditioners. We at SulNOx are really delighted by this collaboration as it shows that our unique proprietary products are respected by the biggest and the best in the chemical industry.

In the AGM Statement a year ago, the focus was on the Power Generation Sector, with its 10,000+ facilities all of whom can benefit from the SulNOx Technology.

One year on, with the addition of the now fully developed Berol® 6430 Diesel Fuel Conditioner, we can add to that list the following – Generators, Marine engines, Locomotives, Burners, Boilers, Dryers, Commercial vehicles, Buses, Taxis and even cars.

The strategy of the Board is to find marketing partners who we can educate to sell our proprietary products throughout the world. They have the expertise and client lists to take us to a level that we could not attain by ourselves. We will either ask them to pay a cash fee to be an authorised distributor or invite them to buy some shares in the business and join the “family of SulNOx”.

Proof of this is SulNOx Management Services, which has just been incorporated at Companies House, as a standalone sales and marketing business. The executives there have bought shares in SulNOx and are excited to be part of our global growth story, as well as growing their own niche business.

Recently, we were asked if the rapid move to electric vehicle transport would erode our marketplace. On the contrary, we plan to benefit from the electric vehicle revolution which will necessitate rapid charging stations using diesel generators. Indeed, we are advancing discussions with a bus company which is planning to roll out a fleet of electric buses which will be fed by generators enjoying our fuel conditioner to keep emissions as “Green” as possible.

As we move towards listing on a suitable London Exchange, we will appoint professional advisers and a “Sponsoring Broker” to help us through the process.

We believe that we are well suited to life as a quoted company given the following set of strong investment credentials:

  • All the manufacturing and distribution will be fulfilled by Nouryon
  • Experienced investors prize Royalty companies as they have low costs. We know of only two on the London Stock Exchange and none in the Environmental Sector. This makes us very rare indeed.
  • The only risk to our royalty income stream, is that the world stops worrying about “toxic emissions” caused by the burning of hydrocarbon fuels. I hope you all agree that this is not going to happen!
  • We have “third party” test results from SGS, Hielscher Ultrasonics, Socotec and Unergy of South Africa. These important accreditations give us significant credibility.
  • Our marketing will be handled by third parties in niche areas, which we could not address ourselves.
  • Our royalties are paid directly to us by Nouryon.
  • Since we neither make nor sell anything at the Group level, our overheads will stay low.
  • In the years ahead, we wish to pay a dividend not more than twice covered. This means that, up to half of our after-tax earnings, will be retained and the other half or more will be paid out to shareholders.
  • For Stockbrokers and market followers alike, the SulNOx Group story will be easy to understand, and we have employed the services of a high-quality digital marketing company to handle all of our social media campaigns and to build a top flight website that will keep all interested parties up to date.
  • In concluding my remarks today, I would like to answer a question that the directors of the SulNOx Group are often asked and that is, “why do you want to List on the London Stock Exchange as you need so little new money and your product supply is fulfilled by Nouryon”?

Our answer is very straightforward. We now have a unique Emulsifier that when blended with Heavy Fuel Oil and an amount of water, creates a fuel that saves users money and dramatically reduces toxic emissions and the market for this product is extremely large.

In the last twelve months, we have created and tested a second unique fuel conditioner that will improve the performance of any diesel engine and virtually remove all of the smoke and soot in the exhaust. To suggest that this is a major breakthrough in dealing with air pollution is clearly important to appreciate.

The Stock Market tends to get things right in the longer term and your directors therefore think it is correct to trade our shares on the London Market. As time goes by investors of all types will have the chance to decide for themselves what our business should be worth. It is not for any of us to try and guess!

Someone in this audience today, told me that if you covered the whole of the Sahara Desert with solar panels you might just be able to power half of Italy, so renewables can only ever be a part of the solution.

Like it or not, hydrocarbon fuels are going to power our world for a very long time to come and the SulNOx business is ready to reduce the emissions from these and be a part of the solution that Governments so badly need.

The directors of the company are large shareholders in the SulNOx Group and make no apologies for being optimistic for our story. We hope that all our shareholders, who have invested their capital over the last five years, can now see how attractive the future really can be for them.

Thank you.

Stephen Bamford – Chairman
On behalf of the SulNOx Group Board of Directors