Sabien Technology Group (AIM:SNT) shares advanced 20%, to 4.5p, after it said it would capitalise accrued directors' remuneration and use cash from its b.grn investment to reduce related-party liabilities.
Sabien, a manufacturer and provider of energy reduction technologies, received £213,708 from b.grn and intends to apply a substantial proportion of the proceeds to pay £127,500 to Parris Group by 30 June.
b.grn settled £117,494 of historical management service fees, repaid an intercompany loan of £37,000 and made a £59,214 payment in partial settlement of a fixed profit share, generating aggregate cash receipts of £213,708.
The board has agreed in principle to capitalise approximately £179,409 of FY26 directors' remuneration by issuing new shares at a deemed price of 6p per share, subject to corporate approvals.
It noted that the 6p deemed issue price is at a significant premium to the previous mid-market closing price of 3.75p and reflects confidence in the group's prospects.
AlbR Capital, Sabien's broker, has agreed in principle to accept settlement of £40,000 of accrued broker fees via the issue of new shares.
The company expects the actions and proposals will materially reduce liabilities, strengthen the balance sheet and separate Sabien's future funding needs from those of b.grn.
Sabien will retain an equity interest in b.grn, which the company describes as a development-stage special purpose vehicle pursuing the City Oil Field opportunity that remains dependent on future execution and funding.
"The Board's priority is to ensure that Sabien remains focused on accelerating the commercial deployment of its M2G technology and creating sustainable shareholder value," said Richard Parris, Executive Chairman.
