Accsys Tech Regulatory News (AXS)

26 Oct 2005 08:05

Accsys Technologies PLC26 October 2005 26 October 2005 AIM: AXS Placing and Admission to AIM Accsys Technologies PLC ("Accsys" or "the Company") was today admitted totrading on AIM following a Placing of 27 million new Ordinary Shares at a priceof €1.00 per Share to raise €27m before expenses. Collins Stewart Limited isacting as both Nominated Adviser and Broker. Key statistics Placing Price €1.00 (69p)Number of Placing Shares 27,000,000Number of Ordinary Shares in issue immediately following the Admission* 132.5mPercentage of Enlarged Share Capital attributable to the Placing 20%Market Capitalisation of the Company at the Placing Price on Admission* €132.5m (£90m)Gross proceeds of the Placing €27m (£18m)Estimated net proceeds of the Placing receivable by the Company €25m (£17m) *and completion of compulsory acquisition of Accsys Chemicals PLC On Admission, Shareholders with a disclosable interest in the Company were: Shares On Listing Number %STG Holdings PLC 20,000000 15.1 General Mediterranean Holdings SA 9,634,307 7.3Wenco Limited 8,271,220 6.2GAM Euro Select Hedge Investments Inc. 6,650,000 5.0Framlington Investment Management Limited 6,500,000 4.9 Accsys (www.accsysplc.com) is an environmental science and technology companywhose most advanced intellectual property is a process which effectivelyconverts softwoods and non-durable hardwoods into an environmentally compatible'new wood species'. This new type of wood, which has been branded 'AccoyaTM' bythe Company, has performance attributes similar to the best tropical hardwoodsand superior to many artificial material alternatives. Growing concerns about the destruction of tropical rainforests, a decliningworld stock of high quality timber and increasingly restrictive governmentregulations regarding the use of wood treated using toxic chemicals have createdan exceptional market opportunity for the Company. Accsys believes that itstechnology will transform the use of wood in existing applications wheredurability and dimensional stability are valued, both halting the decline in theuse of wood in outdoor applications and substituting plastics and metals.Accsys also expects to create entirely new product opportunities for wood inapplications which are presently entirely the preserve of unsustainablematerials. Wood acetylation is a process which increases the amount of 'acetyl' moleculesin wood, thereby changing its physical properties. The process protects woodfrom rot by making it "inedible" to most micro-organisms and insects, without -unlike conventional treatments - making it toxic. It also greatly reduces thewood's tendency to swell and shrink, making it less prone to cracking andensuring that when painted it requires dramatically reduced maintenance. Interms of these attributes, Accoya matches or exceeds the performance of the verybest tropical hardwoods and is ideally suited to use in external applicationsincluding doors, windows, decking and cladding, garden furniture and freshwatermarine applications such as canal linings. Accoya offers: • greatly improved durability (up to "Class 1" - the best available); • greatly improved dimensional stability (c.70% less swelling or shrinkage compared to untreated wood when used in climate exposed conditions); • full retention of the source wood's strength or hardness; • a completely non-toxic and 100% recyclable alternative to treated woods, plastics, metals, tropical woods or composite materials; and • a product that uses faster-growing wood species sourced from sustainable forests and plantations. Focusing on the most developed markets of Western Europe and North America, theDirectors expect that over a 10 year period a licensing volume for Accoya in theregion of 1-1.5 million m3 is possible, while globally volumes could be morethan double over a 20 year period. The Directors believe that wood acetylation will form the Company's focus in theshort to medium term with the business plan forecasting strong growth in thenext few years. This business is being pursued by Accsys' subsidiary Titan WoodBV (www.titanwood.com), which operates a large-scale pilot plant in Arnhem, theNetherlands. This plant is presently being used to supply test material tocustomers and potential licensees across the world. Accsys owns the rights to anumber of processes, including high temperature cracking and cellulosemodification. These other proprietary technologies are the responsibility ofits International Chemical Company ("ICC") subsidiary. Accsys' coretechnologies have either existing patent protection or pending patentapplications. Accsys is focusing its energies on the launch of its Titan Woodbusiness: once this business has been established, the Directors intend topursue other technologies within its portfolio. The Group's first full-scale production facility, located in Arnhem, theNetherlands, and designed to produce 30,000 m3 cubic metres of Accoya per year,is now under construction and scheduled to be mechanically completed and readyfor commissioning in Summer 2006. This plant is intended to provide full-scaletechnology validation, a showcase for potential licensees and generate anoperating profit in its own right. William Paterson-Brown, Executive Chairman of Accsys, said "We are delighted tohave been admitted to trading on AIM as it provides greater liquidity,visibility and a broader shareholder base. Admission to AIM has been anintegral part of our plans to bring Accoya to the widest possible audience andwe look to the future with excitement and confidence." ENDS For further information, please contact: Accsys Technologies PLC William Paterson-Brown, +44 (0) 20 7598 4040 Executive ChairmanCollins Stewart Limited Andrew Smith/Martin Eales +44 (0) 20 7523 8000Parkgreen Communications Simon Robinson/Ana Ribeiro +44 (0) 20 7493 3713 NOTES TO EDITORS ICC Technologies High Temperature Cracking - cracking involves the breaking down of largemolecules into more useful smaller molecules using in this case hightemperatures. Whilst this technology is applied to a wide range of chemicalprocesses, ICC is presently focused on the conversion of acetic acid into aceticanhydride; Cellulose Modification - this involves reacting certain types of chemical withcellulose molecules usually derived from wood or cotton pulp. ICC's technologyhas been particularly applied to the reaction of cellulose with aceticanhydride, a process called acetylation. The eventual output is cellulosedi-acetate flake, a non-toxic material which is used in a variety ofapplications, such as filters and film coatings. This information is provided by RNS The company news service from the London Stock Exchange