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26 Nov 2008 07:00
HYDRODEC GROUP PLC ("Hydrodec" or the "Company")
£2 MILLION SHARE PLACEMENT
26 November 2008
The Company announces that it has conditionally raised £2 million, before expenses, from the placing by Numis Securities Limited of 8,000,000 new ordinary shares of 0.5 pence each in the capital of the Company ("Ordinary Shares") at 25 pence per Ordinary Share with institutional and other investors (the "Placing"). The Placing is conditional on, amongst other things, admission of the new Ordinary Shares to trading on AIM ("Admission").
Use of Placing proceeds
The proceeds of the Placing will be used to provide additional working capital for the Company, and to continue pursuing opportunities in the Japanese and hydraulic markets.
As previously announced, the Company has been working with Kobelco Eco-Solutions Co., Ltd. ("KES"), a majority owned subsidiary of Kobe Steel, and one of Japan's most respected industrial companies, in order to assess the feasibility of the Hydrodec business in Japan. Progress has been made ahead of expectations, and further investment is required in order for this to continue.
As announced in the Company's recent interim results, the treatment of specialty oils for recycling, such as hydraulic oils, is being evaluated at the request of major producers and users in this sector. Further investment is required for the Company continue to pursue significant commercial opportunities. The Directors believe that the market potential for Hydrodec in these areas is many times the size of the transformer oil market.
Chairman John Gunn commented: "This is an exciting time for the Company. With the Canton plant commencing operations, the Laurel plant, Mississippi, in planning phase and the Japanese and hydraulic oil markets opening up, it is necessary for the Company to bolster its working capital. The Board intends that all future developments of transformer oil plants will be funded via project finance debt in preference to equity."
Application has been made for Admission to trading on AIM of the new Ordinary Shares and dealings are expected to commence on 2 December 2008. The Ordinary Shares will, on Admission, rank pari passu with and will be identical in all respects to, the existing Ordinary Shares of the Company.
Following Admission of the new Ordinary Shares, the enlarged issued share capital of the Company will consist of 277,824,101 Ordinary Shares.
For further information please contact:
Hydrodec Group plc 020 7621 5774
John Gunn, Chairman
Numis Securities Limited 020 7260 1000
Nominated Adviser: Simon Blank
Corporate Broker: David Poutney / Alex Ham
Curve PR 0208 742 1597/ 07764 197003
Emma Davis
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