Last checked at 28 May 2010 07:00
28 May 2010
Plant Health Care plc
("Plant Health Care" or "the Company")
SALE OF PHC RECLAMATION, INC.
-Sale of non core business-
Plant Health Care (AIM: PHC.L), a leading provider of natural products to the agriculture and landscaping industries, announces that it has completed the sale of its wholly-owned subsidiary PHC Reclamation, Inc. ("PHC REC") to RE/SPEC, Inc. for a total, maximum consideration of $0.385 million to be satisfied in cash. $0.225 million is payable on completion with the balance of $0.160 million payable over a twelve month period. An interest rate of 7 per cent per annum will apply to the balance.
For the year ended 31 December 2009, PHC REC, Inc. made a revenue contribution to the Company of $1.3 million and a $0.111 million contribution to operating profit. As a result of this sale, PHC REC will make a contribution to revenue and profits for approximately four months of the 2010 financial year.
Under the terms of the sale agreement, all eleven PHC REC staff, together with net assets totaling $.235 million will be transferred to the new owners.
Commenting on the sale, John Brady CEO of Plant Health Care said, "Over recent years, our focus has shifted away from the reclamation industry and towards agriculture where there are very substantial commercialisation opportunities for our key technologies, Harpin and Myconate. By unlocking the value in PHC REC we have realised equity which can be reinvested in our core activities and ensured that our efforts are concentrated on our opportunities within agriculture and landscaping."
-Ends-
For further information please visit www.planthealthcare.com or contact:
| John Brady | Evolution Securities Limited | Tavistock Communications |
| Chief Executive | Tim Worlledge/Tim Redfern | Jeremy Carey/Matt Ridsdale |
| Tel: +1 603 525 3702 | Tel: +44 (0) 20 7071 4300 | Tel: +44 (0) 20 7920 3150 |
Notes to Editors:
About Plant Health Care
About Plant Health Care plc: Plant Health Care plc ("PHC") is a leading provider of naturally derived products for plants and soil. Established in 1995 in Pittsburgh (Pennsylvania) in the United States, PHC currently has approximately [90] employees and has operations in the United States, Mexico, the United Kingdom, Spain, and the Netherlands. The Company's ordinary shares have been quoted on the Alternative Investment Market ("AIM") of the London Stock Exchange since July 2004 and listed on the Official List of the Channel Islands Stock Exchange ("CISX") in February 2010 (ticker symbol/ mnemonic: PHC).
PHC's products are aimed at the agriculture and landscape industries and are environmentally beneficial. Through the commercialisation of these products, PHC is capitalising on current long-term trends toward natural systems and biological products for plant care and soil and water management. Further information is available at: www.planthealthcare.com.
About PHC REC
PHC REC specialises in mining, environmental and reclamation consulting services. It provides biological and engineering based solutions for land reclamation and revegetation projects. As a leader in the use of mycorrhizal fungi, PHC REC utilises its expertise for the successful establishment of vegetation on lands distressed by earthwork activities, such as mining and construction work, and by natural processes, such as extreme climatic and geographic location conditions found in arid and semi-arid regions.