LBB.L Regulatory News (LBB)

27 Mar 2006 07:01

Greenhouse Fund Limited (The)27 March 2006 For immediate release 27 March 2006 The Greenhouse Fund Ltd. ("Greenhouse" or "the Company") Maiden Investment The Greenhouse Fund Limited ("Greenhouse") is pleased to announce it has agreedto invest in Molectra Australia Pty Ltd ("Molectra") and to work with it toenable it to develop its patented technology. The technology involves a sustainable process for the re-cycling and recovery ofmaterials used in vehicle tyres which has exciting potential commercialprospects (the "Technology"). The Technology has been developed over the last 10years and has won several international awards and prizes during this time, suchas the Global 100 Eco-tech award at the 2005 World Expo. It has also beenindependently assessed by Brown & Root in a 2001 report. The Molectra investment is Greenhouse's first investment since coming to AIM inJanuary 2006. Greenhouse believes the Technology facilitates a commercially viable process forrecovering the valuable commodity materials found within used vehicle tyres. Thedisposal of tyres is a major environmental issue as shredding and land-filling,the main disposal method currently utilised, is being increasingly banned orbecoming prohibitively expensive around the globe. Greenhouse is of the viewthat these legislative and commercial pressures present a major opportunity forGreenhouse and the Technology which should further benefit from governmentincentive schemes designed from an environmental protection perspective. Greenhouse is investing up to £750,000 to enable the existing Molectra plant andprocess to be scaled up and to provide the support and business infrastructurerequired to deliver the Technology on a larger scale. The terms of suchinvestment are summarised below. An 8 to 12 month demonstration trial will beundertaken at Molectra's plant, during which potential customers will examinethe process. Upon the successful completion of the pilot, Greenhouse willconsider further funding options for the next phase of development. It isanticipated the pilot test results will be available by the first quarter of2007. Greenhouse's investment of up to £750,000 in Molectra is structured by way of aconvertible note secured over its assets and which, upon conversion, wouldequate to an equity interest of approximately 32% of Molectra. Intellectualproperty rights in the Technology are held by Molectra Holdings, a companycontrolled by John Dobozy, the inventor of the Technology, and Molectra willhave the benefit of these rights under a licence. Greenhouse considers the Technology to have the potential to make an impactwithin the global used tyre recovery market, and will update shareholders withany further developments accordingly. For further information please contact: Paul Gazzard,Greenhouse Advisor Ltd.Email: pg@greenhousefund.co.uk Charles Ryland/Ben WilleyBuchanan Communications020 7466 5000 This information is provided by RNS The company news service from the London Stock Exchange