Eden Regulatory News (EDEN)

Eden Research plc

("Eden" or "the Company")

Half Yearly Report

Eden Research plc (AIM: EDEN), the AIM listed natural micro-encapsulation company, announces its interim results for the six months ended 30 June 2014.

Operational highlights

· Data Access Licence and Royalty Agreement signed with Daymsa

· First commercial launch of products using Eden's GO-E™ technology in the biocides sector

· Three further grants of patents strengthening Eden's Intellectual Property portfolio

· Confirmation of Completeness-Check for dossier submitted to gain approval for lead plant protection product, 3AEY, using the Company's three EU approved active substances

Financial highlights

· Revenue for the period of £0.02m (H1 2013: £0.05m)

· Operating Loss for the period, excluding amortization and share based payments, of £0.55m (H1 2013: £0.4m)Administrative expenses £0.57m (H1 2013: £0.45m)

· Cash at bank £0.08m (H1 2013: £0.40m)

Tom Lupton, Non-executive Chairman, said:

"The Operational Highlights above show the traction that Eden is rapidly gaining as it heads towards significant commercialization of products using its proprietary GO-E technology. As part of this progress, I am pleased to reiterate that, since the reporting period, Eden has strengthened its management team with the appointment of Sean Smith as Chief Executive Officer. Sean's experience in intellectual property, speciality chemicals and industrial biotechnology will, I believe, be very valuable to Eden as it advances into its next commercial phase.

"In addition to Sean's appointment, since the half year Eden announced that it has signed an exclusive evaluation agreement with Belgian speciality chemicals company Taminco BVBA for our nematicide product "B2Y". This is a potentially significant deal for Eden and is the first of a number of commercial arrangements which Eden expects to announce in the second half of 2014 in addition to news on the first EU approval of 3AEY, which will pave the way to further contractual milestone payments and royalties."

Enquiries:

Eden Research plc

Consolidated Statement of Financial Position as at 30 June 2014

Eden Research plc

Statement of Changes in Equity as at 30 June 2014

Eden Research plc

Statement of cash flows for the six months ended 30 June 2014

Cash and cash equivalents comprise bank account balances.

Notes to the Interim Results

1. The above numbers have not been reviewed by the company's auditors.

2. Nature of operations and general information

Eden is an early stage revenue company with intellectual property and expertise in encapsulation, terpenes and environmentally friendly technologies to provide naturally occurring solutions to the global agrochemicals industry, the animal health industry, and consumer products. Revenues are earned by the Company through identifying suitable industrial partners and entering into licence agreements.

The financial information set out in this interim report does not constitute statutory accounts. The company's statutory financial statements for the year ended 31 December 2013 are available from the company's website. The auditor's report on those financial statements was unqualified.

3. Accounting Policies

Basis of Preparation 

These interim condensed consolidated financial statements are for the six months ended 30 June 2014. They have been prepared following the recognition and measurement principles of IFRS. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the financial statements of the company for the year ended 31 December 2013.

These financial statements have been prepared on the going concern basis and under the historical cost convention.

These condensed consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 31 December 2013, except for the application of the following standards at 1 January 2014:

• IFRS 13 "Fair Value Measurements" (IFRS 13)

• Annual Improvements 2009-11 (Annual Improvements)

The accounting policies have been applied consistently for the purposes of preparation of these condensed interim financial statements.

4. Copies of the interim statement are available from the Company at its registered office, as well as on the Company's website.

5. Loss per share

Loss per share has been calculated on the net basis on the loss after tax of £1.30m (30 June 2013: loss £0.71m), (31 December 2013: £1.59m) using the weighted average number of ordinary shares in issue of 123,277,498 (30 June 2013 and 31 December 2013: 121,970,374).

Due to the loss for the period there is no dilution of the loss per share arising from options in existence.

6. Intangible assets

7. Share based payments

Share Options

Eden Research plc operates an unapproved option scheme for executive directors, senior management and certain employees.

The exercise price of options outstanding at the end of the period ranged between 10p and 18p (30 June 2013: 10p and 60p) and their weighted average contractual life was 1.4 years (30 June 2013: 1.8 years). None of the options have vesting conditions.

The weighted average share price (at the date of exercise) of options that lapsed during the period was 24p (30 June 2013: 60p).

The share based payment charge for the period was £nil (30 June 2013: £nil).

Warrants

The exercise price of warrants outstanding at the end of the period ranged between 13p and 30p (30 June 2013: 13p and 30p) and their weighted average contractual life was 3.4 years (30 June 2013: 0.2 years)

The weighted average share price (at the date of exercise) of warrants that lapsed during the period was 15p (30 June 2013: 14p).

8. Prior Year Adjustment - Year ended 31 December 2013

A prior year adjustment was made in the year ended 31 December 2013. Further details are available in the published 2013 Report and Accounts.

Other notes:

Eden is an early stage revenue company with intellectual property and expertise in encapsulation, terpenes and environmentally friendly technologies to provide naturally occurring solutions to the global agrochemicals industry, the animal health industry, and consumer products.

Eden's encapsulation technology harnesses the biocidal efficacy of naturally occurring chemicals produced by plants (terpenes) and can also be used with both natural and synthetic hydrophobic compounds. The technology uses yeast cells that are a by-product of numerous commercial production processes to deliver a slow release of natural compounds for agricultural and non-agricultural uses. Terpenes are already widely used in the food flavouring, cosmetic and pharmaceutical industries.

Historically, terpenes have had limited commercial use in the agrochemical sector due to their volatility, phytotoxicity and poor solubility. Eden's platform encapsulation technology provides a unique, environmentally friendly solution to these problems and enables terpenes to be used as effective, low-risk agrochemicals.

With leading consultants in their respective fields, the Company is developing these technologies through innovative research and a series of commercial production, marketing and distribution partnerships.

The Company has a number of patents and a pipeline of products at differing stages of development targeting specific areas of the global agrochemicals industry. To date, the Company has invested in the region of £12m in developing and protecting its intellectual property and seeking regulatory approval for products that rely upon the Company's technologies. Revenues earned by the Company have been modest whilst the Company has concentrated on securing patent protection for its intellectual property, gaining regulatory approvals, identifying suitable industrial partners, and entering into licence agreements.

In May of 2013, the three actives that comprise Eden's first commercial product, 3AEY, were approved as new ingredients for use in plant protection products. This represents a major milestone in the commercialisation of Eden's technology and is a significant accomplishment for any company. To illustrate this point, one should note that in all of 2013, Eden's approvals represented 3 of only 10 new active ingredients approved by the EC.

Eden was admitted to trading on AIM on 11 May 2012 and trades under the symbol EDEN.

For more information about Eden, please visit www.edenresearch.com