Sabien Technology Group (AIM:SNT), the AIM-listed developer of the M2G intelligent boiler optimisation platform, has called off discussions with Haydale and Intelligent Resource Management, trading as SaveMoneyCutCarbon (SMCC), over a UK distribution and implementation agreement for M2G.
The talks had been running since the two sides signed non-binding heads of terms in May, under which SMCC would have become M2G's exclusive commercial distribution partner across commercial, industrial and public-sector markets.
The board said it had devoted "considerable time and resources" to reaching a definitive agreement in good faith, but material commercial and legal terms remained unresolved, and the length of time taken had reduced confidence a deal could be struck within an acceptable timeframe.
Sabien will now pursue its commercial strategy independently and through a wider range of potential partners, though the board said it remains open to resuming talks should circumstances change materially.
Separately, Sabien has suspended the strategic review of its interests in b.grn Group and the City Oil Field (COF) opportunity that it flagged on 2 June, citing encouraging commercial engagement around COF's Regenerated Green Oil (RGO) technology in Canada and the north-eastern United States.
The company pointed to the engagement of dedicated business development resource in North America, a visit by a prospective Canadian operator to COF's commercial RGO production facility in South Korea, and planned commercial meetings in Canada during October.
The board named Canada as one of the most attractive markets for RGO deployment, citing favourable industrial electricity economics and a regulatory backdrop supportive of diverting waste plastics from landfill.
Development costs for the North American push are being funded by b.grn through financial support from Parris Group, leaving Sabien with no additional funding exposure at this stage, though the board said it would consider whether Sabien should participate in future funding rounds should the opportunity progress to commercially attractive projects.
"Today's announcements mark the end of one chapter and the beginning of another," said Richard Parris, Sabien's Executive Chairman, adding that the board has created "the clarity needed to accelerate Sabien's strategic transition" toward an independent growth strategy.
Parris said he would set out that strategy in more detail in the company's forthcoming annual report.