4 Dec 2012 07:00
4 December 2012
TyraTech, Inc.
(the "Company" or "TyraTech")
TyraTech Announces Formation of New Joint Venture
New Venture to Focus on Global Insect Control Markets
TyraTech, Inc. (AIM: TYR and TYRU), a natural life sciences company, is pleased to announce that the Company has entered into a License Agreement and Joint Venture Agreement (together the "Agreements") with Amvac Chemical Corporation ("AMVAC"), a wholly-owned subsidiary of American Vanguard Corporation (NYSE:AVD). The Agreements create a joint venture (the "Joint Venture") to develop and commercialise existing and new pesticide products featuring TyraTech's Nature's Technology™, which harnesses the synergy of natural ingredients to deliver products with market leading levels of efficacy and safety.
Under the terms of the Agreements, TyraTech will receive a significant upfront licensing fee as well as annual license payments for a period of ten years. The Joint Venture is jointly owned by AMVAC and TyraTech, with AMVAC owning a majority interest. The formation of this Joint Venture will ensure that the Company's insect control products are well funded for the foreseeable future.
The Joint Venture will develop and commercialise best-in-class pesticide technologies and products for the global consumer household and lawn and garden retail markets. Additionally, it will develop and commercialise novel technologies and products in global commercial, institutional, professional, crop protection and seed treatment markets. Using TyraTech's Extend Technology™, the Joint Venture will also develop new combinations with synthetic compounds to create solutions with improved efficacy and environmental impact on a range of crops.
The Joint Venture provides TyraTech with access to a range of new global market opportunities, working with a leading specialty and agricultural products company which develops and markets products for crop protection and management, as well as turf and ornamental management. Additionally, it will provide TyraTech with access to AMVAC's global sales, regulatory, and field R&D resources.
As part of the Agreements, the Company has agreed to issue purchase warrants over 10,000,000 of its common shares to AVD (the "Warrants"). The Warrants are exercisable at a price of 10.0 pence per share at any time prior to 31 May 2013. The advance payment which the Company announced on 30 October 2012 has been credited against the upfront licensing fee and the related non-interest bearing secured promissory note issued at the same time by the Company and is now fully discharged.
TyraTech retains all rights to use its technology in the Human and Animal Health markets together with certain other consumer markets. As part of this collaboration, TyraTech's R&D group will serve as an innovation engine for the Joint Venture.
Shayne M. Wetherall, TyraTech's current Vice President of Commercial Operations, has been appointed as Chief Executive Officer of the Joint Venture. The venture is headquartered in the Research Triangle Park area of North Carolina, giving it direct access to TyraTech's R&D, production, and supply chain teams.
Eric Wintemute, Chairman & Chief Executive Officer of American Vanguard Corporation commented: "This collaboration represents an exciting growth opportunity for AMVAC. TyraTech's technologies, products and capabilities complement AMVAC's existing product offering in crop and non-crop sectors. We are excited to work with TyraTech, a company known for its commitment to R&D which has already resulted in several state-of-the-art natural product lines.
Mr. Wintemute continued: "The opportunity to utilize TyraTech's R&D strength and proprietary screening capabilities to explore and develop new active ingredients and formulations will greatly enhance AMVAC's ability to explore new product opportunities, expedite the development process, and commercialize new pesticides."
Alan Reade, Executive Chairman of TyraTech said, "TyraTech is very excited to partner with AMVAC in this venture, as we believe it will allow both the successful commercialization of a number of our current products in addition to developing new opportunities in areas such as Lawn and Garden and Seed Treatment. The upfront license fee which the Company is receiving will support the retail launch of the Company's insect control products and also provides TyraTech with additional working capital."
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For further information please contact:
TyraTech Inc.Alan Reade, Executive ChairmanTel: +1 919 415 4310
Peter Jerome, Chief Financial OfficerTel: +1 919 415 4280
N+1 Singer, Nominated Adviser and Joint BrokerAubrey Powell / Alex WrightTel: +44 20 7496 3000
First Columbus LLP, Joint BrokerChris CrawfordTel: +44 20 3002 2070
About AMVAC
AMVAC Chemical Corp. is a wholly owned subsidiary of American Vanguard Corporation (NYSE:AVD), a diversified specialty and agricultural products company that develops and markets products for crop protection and management, turf and ornamentals management and public and animal health.
About TyraTech
TyraTech, Inc., established in 2004, utilizes its proprietary novel technology to fill the unmet and increasing global demand for effective, safe, and natural pesticide technologies for human and animal health.
TyraTech's products incorporate a unique blend of potent natural active ingredients and have applications in a number of markets including consumer, commercial, professional pest control, agriculture, human and animal health, and vector control markets.