Symphony Env. Regulatory News (SYM)

28 Feb 2007 07:03

Symphony Plastic Technologies PLC28 February 2007 28 February 2007 SYMPHONY PLASTIC TECHNOLOGIES PLC Update on placing It was announced yesterday that all resolutions were passed at the extraordinarygeneral meeting of the Company ("the EGM") in connection with the placingannounced on 6 February 2007. The directors are now in a position to provide anupdate on the placing and can confirm that a revised total of £1,122,500 will beraised and 13,885,000 shares issued. Following the trading update announced on 22 February 2007, the company has beenin contact with the placees in light of the material new information which wasdisclosed. The board has decided that in order to secure the continuedparticipation of the placees, it should revise the terms of the placing so thatplacees received shares at an effective price of 8p a share, which is around thecurrent market price, rather than 10p per share as announced on 6 February 2007.To achieve this placees have committed to subscribe for 1 share at 3p pershare for every 2.5 shares subscribed at 10p per share. On 6 February 2007, it was also announced that three directors Michael Laurier,Matthew Turner and Ian Bristow had purchased 500,000, 50,000 and 50,000 sharesrespectively in the placing. None of these directors have been given theopportunity of subscribing for additional shares at 3p and therefore thepurchase price for their shares remains 10p per share. Placees have reconfirmed their participation in respect of 10,085,000 shares at10p raising £1,008,500 and the board will issue and allot such shares to theplacees pursuant to the specific authority and power granted at the EGM. Thisincludes the 600,000 shares for directors mentioned above. The additionalplacing of 3,800,000 shares at 3p per share will raise a further £114,000,giving total proceeds of £1,122,500 and will be made pursuant to the generalauthority and power to issue up to 4,188,200 shares otherwise than on apre-emptive basis which was given at the EGM. This level of proceeds will stillenable the company to replace part of its overseas finance facilities and otherloans and further invest in the enhancement of sales and marketing, R&Dfacilities and technical support services. Related Party In the announcement dated 6 February 2007 it was disclosed that Michael Laurier,Matthew Turner and Ian Bristow had purchased 600,000 shares in the placing at10p per share. Based on the revised amount of proceeds raised from the placing,the participation of the directors amounts to more than 5% and therefore is arelated party transaction according to the AIM Rules. Having consulted with theCompany's nominated adviser, Panmure Gordon, the directors of the Company (withthe exception of Michael Laurier, Matthew Turner and Ian Bristow who are relatedparties) consider that the terms of the transaction are fair and reasonableinsofar as its shareholders are concerned. Application has been made for the 13,885,000 new ordinary shares placed at 10pper share, which will rank pari passu with the existing shares in issue, to beadmitted to trading on AIM, and admission is expected to become effective onMonday 5 March 2007. For further information, please contact: SymphonyMichael Laurier, Chief Executive Tel: 020 8207 5900Ian Bristow Citigate Dewe RogersonFreida Moore Tel: 020 7638 9571Ged Brumby Further information on Symphony Plastic Technologies plc: Symphony develops and supplies environmentally responsible pro-degradentadditives as well as plastic packaging products. The Group's main technology,marketed under the d2w(TM) registered trademark, causes plastic to degrade,leaving only water, a minimal amount of carbon dioxide and trace amounts ofnon-toxic biomass over a short time period. The d2w(TM) product range includespro-degradent additives developed for an increasing variety of applications aswell as a range of finished flexible plastic products. Symphony has a diverse and growing customer base in the UK and has successfullyestablished itself as an international business after signing distributionagreements with companies in Argentina, Brazil, Canada & USA, Chile, Colombia,India, Mexico, New Zealand, Peru, Portugal, South Africa, the Caribbean, SaudiArabia, and Qatar. d2w(TM) products can already be found in more than 40countries. Symphony is now marketing and developing innovative waste-to-energy technologyprocessing plants and is exploring various opportunities where there is a demandto increase recycling of waste plastics, tyres and other waste streams by costeffective processes. Further information on Symphony can be found at www.symphonyplastics.com andwww.degradable.net. This information is provided by RNS The company news service from the London Stock Exchange