Graphene NanoChem wins three year palm oil contract

Graphene NanoChem has won a three year production contract with Temasek Growth, and is still negotiating its debt restructure.

The AIM-listed company announced the leasing and tolling agreement on Wednesday, for which it will produce refined bleached deodorized palm oil at its Lahad Datu Plant in Sabah, Malaysia.

The company said the arrangement will begin in the first quarter of next year and is expected to generate revenues of around £0.5m in its first year.

Chief executive Jespal Deol said he is pleased to generate a new revenue stream and leverage the Lahad Datu Plant.

Meanwhile the company said discussions with financiers on its debt restructure are progressing, with an update in due course.

It said it is still taking prudent measures to conserve the company’s cash position and it looking at all options to raise additional funds.

Shares in the company were up 1.45p (13.81%) on the news to 11.95p at 0918 GMT.