TEG.L Regulatory News (TEG)

23 May 2006 07:01

TEG Environmental Plc23 May 2006 For release 07.00am 23 May 2006 Enquiries to: TEG Environmental Group Plc Michael Fishwick, Chief Tel: 01772 314 100 Executive Canaccord Adams Limited Robert Finlay Tel: 020 7518 2775 Chris Bowman Tel: 020 7518 2791 Peter Binns/ Tarquin Edwards Tel: 020 7786 9600 TEG ENVIRONMENTAL PLC ("TEG" or "the Company") RESULT OF PLACING & OFFER FOR SUBSCRIPTION Offer for Subscription was over subscribed and the target met in full TEG Environmental Plc, ("TEG" or "the Company"), the cutting edge greentechnology company, which converts organic wastes into natural organicfertiliser, is pleased to announce that following the passing of all resolutionsby shareholders at TEG's EGM on 19 May 2006, the Company's Placing and Offer forSubscription has become unconditional in all respects, subject to the admissionof the New Ordinary Shares ("Placing Shares") to trading on the AIM Market ofLondon Stock Exchange plc ("Admission"). Application has been made for Admissionof the Placing Shares and it is expected that Admission will become effectiveand dealings in the Placing Shares will commence on 23 May 2006. The PlacingShares, when issued, will rank pari passu, with the Existing Ordinary Shares,including the right to receive all dividends and other distributions, thereafterdeclared, made or paid. Accordingly, TEG is delighted to announce the successful placing and raising ofapproximately £8 million before expenses by way of a Placing of 10,730,000 NewOrdinary Shares and Offer for Subscription of up to 770,000 New Ordinary Sharesat a placing price of 70 pence per New Ordinary Share, by Canaccord AdamsLimited. The Company is pleased to confirm the Offer for Subscription was oversubscribed and the target therefore met in full. The Company also announces the successful completion of its acquisition of theTodmorden site near Manchester, which it intends to develop as a Build Own andOperate project ("BOO") using the Company's Silo Cage composting system. The proceeds of the fundraising will be used together with a proposed additionalbank facility in order to primarily fund the Todmorden BOO with the balanceremaining allocated to the Clayland's Corner BOO, the upgrade to the KildarePlant and the Company's working capital requirements during the developmentphase of these opportunities. Mick Fishwick, Chief Executive of TEG, commented: "On 26 April 2006, TEG announced its proposed acquisition of the Todmorden sitenear Manchester and a placing to raise up to approximately £8 million beforeexpenses. This is a very exciting opportunity and I am delighted by the verypowerful endorsement we have received from shareholders with regards to the fundraising. Once the project is complete, TEG will be able to offer a processingservice and gain revenues from gate fees for waste and sales of compostproducts,generating long term sustainable revenues continuing the strong growthof the business". "I believe we are making tremendous progress with the business and areestablishing a strong foundation on which we can build further. By doing so, weintend to continue to strive to maximise shareholder value. 2005 was thebreakthrough year we had expected and as stated in our final results, the Boardexpects to achieve further significant growth in 2006. I look forward to thefuture with excitement and confidence". ENDS Editor's Notes: TEG provides an in-vessel composting technology, which is one of the fewapproved technologies capable of treating animal by-product waste. Planteconomics are driven by the gate fees charged, rather than the value of the endproduct (compost). The TEG process is an economic alternative to landfill. The Silo Cage system, one of the few technologies in Europe capable of treatingthis waste, is a natural process producing compost as an end product, used as anexcellent soil conditioner that fertilizes, retains moisture, provides structureand reduces the incidence of plant disease. TEG's Silo-Cages will be housed in aself-contained building, are not unsightly and are environmentally friendly. Potential customers include local authorities, waste management companies, foodprocessors, farmers and landowners. The Company's expanding market is driven byincreasingly stringent EU and UK legislation regulating the treatment anddisposal of organic This information is provided by RNS The company news service from the London Stock Exchange