Sweden-headquartered Scandinavian Enviro Systems (Enviro) has received MSEK 17.6 in milestone compensation from its joint venture company, following significant progress in the construction of its Uddevalla plant. The payment is split evenly between cash and shares in the joint venture.
According to its CEO, Fredrik Emilson, the compensation reflects advancements on-site, as well as the completion of critical equipment procurement.
Related: Enviro receives additional payment from jv for plant
This compensation follows the achievement of the second in a series of milestones linked to the plant’s construction. As previously announced, Enviro will continue to receive payments upon reaching specific project milestones. The company has also committed to disclosing individual transactions related to these compensations.
For each milestone, Enviro’s compensation will consist of half cash and half shares until a predetermined share limit is reached. Once this limit is met, further compensation will be provided entirely in cash.
Enviro’s stake in the joint venture may fluctuate with the capitalisation process, and the current ownership level will be disclosed as required by accounting standards, at minimum once annually in the year-end report.
Additionally, Enviro holds an option to purchase an ownership stake in the joint venture, ultimately aiming for a 30% position, which it intends to fully exercise.