Update on prototype tank construction delays

Provaris Energy Ltd (ASX: $PV1) has announced proactive measures in response to the expected delays in the construction of the Prototype Tank. The delay is attributed to the bankruptcy of the appointed sub-contractor, Prodtex Industri AS, responsible for constructing the tank. The company has emphasized its commitment to developing viable plans to recommence the prototype tank program as soon as possible.

Executive Commentary on Current Challenges and Strategic Approach

Provaris Energy remains dedicated to delivering high-quality hydrogen storage solutions and maintaining its reputation for innovation and excellence. The company is actively seeking optimal solutions to minimize disruption and ensure the successful completion of the Prototype Tank. Despite the challenges, discussions held to date have left the company confident that a solution can be reached to keep tank testing on track for completion in 2024. Provaris is committed to keeping shareholders informed as matters develop.

Outlook and Share Purchase Plan Update

Provaris Energy is navigating through the challenges posed by the subcontractor's bankruptcy and remains confident in finding a solution to keep tank testing on track for completion in 2024. The company's primary focus is to minimize the overall impact of the bankruptcy on its operations. Additionally, Provaris has extended the issue date for new shares and SPP options to 11 July 2024, allowing existing applicants to withdraw their applications if they wish. The company is also in discussions with Macquarie Bank regarding the terms of the Convertible Note facility, aiming to address any potential default events triggered by the subcontractor's bankruptcy. Provaris Energy is committed to maintaining its strategic position in the restart of construction activities and future production opportunities for its proprietary tanks from an established facility in Norway.