25 Feb 2010 07:00
25 February 2010
Plant Impact plc
("Plant Impact" or the "Company")
Placing to raise £2.1 million (the "Placing")
Highlights
·; Plant Impact raises £2.1 million (before expenses) through a placing of new ordinary shares.
·; Net proceeds to be invested in appointing new sales and marketing personnel to drive sales in the Company's current markets and accelerate the roll out of the Company's existing products into new markets. This will:
- significantly speed up Plant Impact's product development by increasing the number of field trials;
- increase the speed, control and breadth of Plant Impact's product demonstration to help bring present and pipeline products to commercial reality more rapidly; and
- support Arysta LifeScience Corporation in marketing and developing BugOil in its active territories.
Introduction
Plant Impact plc (AIM:PIM), a global developer of technologies that improve crop productivity, announces that it has conditionally raised £2.1 million (before expenses) through a placing arranged by the Company's joint brokers, Allenby Capital Limited and Hybridan LLP, of 14,222,006 new ordinary shares in the Company (the "Placing Shares") at a price of 15 pence per ordinary share (the "Placing Price"). The Placing Shares will represent 31.2% of the Company's enlarged issued ordinary share capital.
Business update
The Company has achieved significant progress in its strategy designed to rapidly commercialise its key products through securing significant distribution opportunities and completing independent field trials. Such trials help to validate the performance of Plant Impact's technologies and support both direct sales and the ability to secure further commercialisation agreements. As a result of pursuing this ongoing strategy, during the first six months of the financial year ending 31 March 2010 the Company reported a 330% increase in sales revenues on the corresponding period in the previous financial year.
This progress included entering into a licensing agreement for BugOil, the Company's pesticide product, with Arysta LifeScience Corporation (under which the Company has received the first regulatory milestone payment) and the signing of an extramural agreement with the United States Department of Agriculture for extensive trials on PiNT, the Company's nitrogen delivery technology.
On 8 February 2010, the Company announced that it had entered into an exclusive evaluation, development and distribution agreement with Arysta LifeScience Corporation covering the Company's InCa, Balance and Cocoa Stress Tolerance products. This agreement has expanded Plant Impact's territorial coverage from 24 countries to 52 countries and extends the Company's coverage into the southern hemisphere for the first time. This will allow the Company to grow sales in the southern hemisphere, thus allowing the Company to develop year round revenues. This agreement will also result in a significant increase in the number of field trials of the Company's products being conducted in the next 12 to 18 months.
The recognition of the contribution which the Company can make to the debate on the future sustainability of agriculture, as demonstrated by: (i) the appointment of the Company as a Member of the Parliamentary Science Committee to the House of Commons; (ii) the Company's work with the US Department of Agriculture; and (iii) the Company's pioneering InCa product being nominated as a finalist for the category of "Technical Product of the Year" at this year's Grower of the Year Awards, is part of the Company's top down approach to gaining acceptance of the benefits of Plant Impact's products from governments and food groups. The fact that a young company like Plant Impact can engage at this level gives the directors of the Company confidence that Plant Impact can play a significant role in the development of more sustainable agriculture.
The Placing
The net proceeds of the Placing, amounting to £2.0 million, will be used by the Company to: (i) invest in sales and marketing to drive sales in the Company's current markets and accelerate the roll out of the Company's existing products into new markets; (ii) significantly increase the number of field trials which it carries out which will help to speed up product development and increase the number of registrations of the Company's crop nutrients; (iii) increase the speed, control and breadth of product demonstration to help bring present and pipeline products to commercial reality more rapidly; and (iv) support Arysta LifeScience Corporation in marketing and developing BugOil in its active territories once the licence is activated following regulatory approval.
The Placing is conditional upon certain conditions, including shareholder approval at a general meeting of the Company, to be convened for 9.30a.m. on 12 March 2010 at the Company's registered office, 12 South Preston Office Village, Cuerden Way, Preston, Lancashire PR5 6BL and admission of the Placing Shares to trading on AIM. The Placing is conditional on shareholder approval to a resolution to increase the authority of the directors of Plant Impact (the "Directors") to issue and allot additional ordinary shares of 1 pence each in the Company ("Ordinary Shares") and a resolution to increase the authority of the Directors to issue and allot additional Ordinary Shares for cash other than in accordance with statutory pre-emption rights.
Application will be made for the Placing Shares (which when issued and fully paid will rank pari passu in all respects with the existing ordinary shares) to be admitted to trading on AIM ("Admission"). Admission is expected to be effective on 15 March 2010. Following Admission, the Company will have 45,654,109 ordinary shares in issue. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules.
The Notice of General Meeting will be posted to shareholders today and will be available, in electronic form, for download on the Company's website www.plantimpact.net.
Pete Blezard, CEO of Plant Impact commented, "I am delighted with the support that we have received in this equity fundraising. I firmly believe that Plant Impact can play a significant role in sustainable agriculture and these funds will help the Company to expand sales of its proven products into new and existing territories. The Board believes we now have sufficient funding to pursue our strategy."
For further information, please contact:
| Plant Impact Plc |
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| Peter Blezard, Chief Executive Officer
| +44 (0) 1772 645 164 |
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| Nominated Adviser and Joint Broker |
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| Allenby Capital |
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| Nick Naylor / Jamie Boyd
| +44 (0) 20 3328 5661 |
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| Joint Broker |
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| Hybridan LLP |
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| Stephen Austin / Claire Noyce | +44 (0) 207 947 4004
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| Financial PR/IR |
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| Conduit PR |
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| Charlie Geller | +44 (0) 20 7429 6604
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About Plant Impact plc
Plant Impact addresses the increasing global demand for effective, sustainable and ecologically-sound products to combat environmental plant stress and improve crop productivity. Common environmental plant stresses include drought, salinity, nutrient deficiencies, pests and disease. Plant Impact's advances produce practical results that reduce inputs and benefit the whole of the agricultural value chain, providing solutions for growers, food manufacturers and consumers.
A broad product portfolio has been developed using these innovative and proprietary technologies, the most advanced of which are already being marketed and sold through established agricultural distribution networks. Products for the home and garden market are also distributed direct to consumers through reputable high street stores.
For further information about Plant Impact and its products please visit www.plantimpact.com