Biome Tech Regulatory News (BIOM)

17 Aug 2006 07:44

Stanelco PLC17 August 2006 Stanelco PLC17 August 2006 Stanelco PLC ("Stanelco" or "the Company") 17 August 2006 Trading update The Company announced on the 14th July 2006 in its interim results for the sixmonth period ending 30 April 2006 that its closing cash position at 30 April2006 was GBP0.3m. The Company started the period with a cash balance of GBP4.4mand made investments in research and development of GBP0.6m and increased itslevels of stock from GBP2.6m at the year end to GBP3.1m. The Company alsoinvested GBP1.2m in capital expenditure in the period. Since the half year end, the Company raised GBP3.7m (net of expenses) by way ofan equity placing in June 2006 of which GBP1.6m was used to meet a stage paymentfor the acquisition of Biotec and GBP2.1m was for working capital purposes. Ofthat GBP2.1m, GBP2.0m has been used for the ongoing commercialisation of theGroup's technologies and meeting the Group's operational running expenses since1 May 2006, and GBP0.1m has been used for capital expenditure. The Company also stated in those interim results that it was considering itsfunding requirements and funding options for the next phase of its development.As at today's date the Company has cash at bank of GBP0.9m with an unusedoverdraft facility of GBP0.2m. The Company estimates that its current cash at bank of GBP0.9m, together withprojected receivables and working capital needs is sufficient to meet its cashrequirements for a further three months in the absence of further funding or newrevenue streams commencing in the period. Since 2000, Stanelco's business model has transformed from a manufacturer andsupplier of capital goods into an intellectual property company with interestsin markets with significant growth potential, which include sustainablepackaging and environmentally responsible sealing solutions for the packagingindustry. As indicated in the interim results, in order to enable the Group to move intothe next phase of the commercialisation of its intellectual property portfolioand to meet its working capital requirements, the Company is currently exploringall financing options including a public equity issue. The Company will update the market once any further information is available. Martin Wagner, Stanelco Chief Executive said: "While the Company is exploring all of its financing options, it continues toactively progress the commercialisation of its products. The Company is in advanced negotiations with a number of potential joint venturepartners in the USA to compound biodegradable resin. This is to meet thedemands currently expressed to Stanelco by major multiple retailers and globalfast food chains. Letters of intent with two of these companies have beenexchanged and the Company believes that these will lead to contracts in theshort term. We acknowledge that Stanelco has encountered delays in rolling out GREENSEAL tothe market. The delays have primarily resulted from the limitations of the foodpackaging industry to allow access to machines to test the technology in afactory environment. The Board believes that these delays will not impact onthe potential success of the project." Contact Martin WagnerChief Executive02380 867 100 This information is provided by RNS The company news service from the London Stock Exchange