AQUACAROTENE has entered into a memorandum of understanding with the Crimean Soda Plant to develop Aquacarotene’s dry marine algae product in the Ukraine.
Both parties have agreed that:
Aquacarotene will sell 26 per cent of its listed equity to Crimean Soda Plant for $1.5 million, subject to the relevant regulatory and shareholder approvals;
Crimean will seek board approval to provide $3.3 million to Aquacarotene to undertake the Stage 2 Development Program for the algae product; and
Aquacarotene and Crimean Soda Plant will enter into a joint venture to develop the product and its associated technology in Crimea.
The arrangement is subject to a formal agreement being entered into in respect to the proposed transactions contemplated by the MOU in the near future.
Aquacarotene has told its shareholders that Crimean Soda Plant employs about 3,400 people, has an annual turnover of more than $145 million and is 89 per cent owned by German interests.