Ross Group acquires Chitin developer AAG in all-share transaction

(Sharecast News) - Ross Group announced on Thursday that, subject to certain conditions, it has agreed to acquire the entire issued share capital of Archipelago Aquaculture Group (AAG) from Global Blue Technologies.The London-listed firm said AAG, including all subsidiaries, currently had nil gross assets, revenues or attributable profits.It said it planned to start producing revenue in the "near future", having already achieved proof-of-concept in its specialised extraction of Chitin, which was understood to be "one of the most environmentally-friendly and economically effective" extraction processes within its industry.Chitin is a natural biodegradable polymer involved in the plastics, agricultural, veterinary, textile, cosmetic and pharmaceutical industries.AAG intended to focus on providing the "highest possible quality" Chitin to targeted pharmaceutical customers on a very selective strategic basis, Ross explained.The consideration for the acquisition was 17,947,943 ordinary shares at a placing price of 1p per share to the current AAG shareholders , representing 10% of Ross Group's existing issued share capital.Also, as an additional consideration for the acquisition, Ross Group said it would issue 26,667,262 ordinary shares, representing an overall total 9.9% of its existing enlarged issued share capital, at a price of 1p per consideration share to the current AAG shareholders.Upon completion of the acquisition, Global Blue Technologies will own 44,615,205 ordinary shares, representing a total 19.9 % of the enlarged share capital of Ross Group."This is an excellent acquisition for Ross Group and its shareholders, which I see as being the starting point of a new development to our existing business for the group and the opportunity for Mari Signum and Prometheus to become one of the leading supply chain providers of Chitin," said Ross Group chairman and chief executive officer Barry Richard Pettitt.