XL TechGroup Announces Intention to Float on Aim
04 June 2004
XL TechGroup Plc, a newly created company seeking to raise finance for an existing business, XL TechGroup LP ("XLTG"), today announces its intention to seek a listing on AIM, the London Stock Exchange's global market for growing companies. XLTG is a limited partnership based in the US, whose business is creating and building new global companies, principally in the life sciences and technology sectors.
Code Securities Ltd. is acting as financial advisor and joint broker and Altium Capital Limited is acting as nominated advisor and broker to the company.
XLTG's strategy is to create new companies that offer 'disruptive solutions' to market needs. Once the market need has been identified, XLTG finds a suitable solution based on technology sourced from world-leading technology partners and then uses a methodology that rigorously selects only the most promising combinations of market need and technology solution for company formation. The strategy is then tested with an expanding set of potential customers and, once the strategy is fully developed, the new company is scaled up to commercially exploit the market need. The final stage in the methodology is a 'liquidity event' for XLTG's investment in the new company, either via IPO or trade sale.
This methodology has produced impressive investment returns. At XLTG's predecessor company, XL Vision, the management team invested US $157 million in the period 1993-2000 and returned over US $1.1 billion in liquid assets to shareholders, translating into an annual IRR of 148%. Liquidity events were on average achieved in less than three years from the date of creation of a new company.
XLTG was founded in 2002 to continue the business model developed by the management team at XL Vision. XLTG has so far created two new companies, AgCert International, LLC and TyraTech, LLC, with a number of others at various stages of advancement through the company's methodology.
AgCert is a business creating emission credits from farm animal waste gases, primarily methane and nitrous oxide, which are then sold to industrial companies to offset their greenhouse gas emissions ("GHGs"). The trading of credits, known as the EU Emissions Trading Scheme, is being introduced in Europe from 1 January 2005 to combat the serious threat of climate change caused by carbon dioxide and other GHGs. This is a rapidly growing market that is expected to be a multi-billion dollar industry within a short number of years and the creation of credits from farm animal waste gases, thought to be responsible for some 20% of the world's GHG's, has a clear role to play. XLTG recently completed third party financing which valued AgCert at US $83 million; XLTG retains a 46% interest.
TyraTech is developing a new class of novel, highly effective, but non-toxic pesticides, focusing initially on mosquito repellents. There are hundreds of varieties of destructive insects that cause billions of dollars of damage, disease, and illness to crops, livestock, buildings and humans each year. Insecticides and pesticides have been instrumental in the abatement of this problem but cause contamination in water systems and destroy the environment. A recent EU ban of hundreds of active ingredients used in pesticides has demonstrated the need for a novel approach in a market that is estimated to be worth some $33 billion today. BioPestTech's technology uses safe, natural oils that modulate the chemoreceptors of insects and thus inhibit their ability to function, thereby either repelling or killing them.
Behind AgCert and TyraTech, XLTG also has a robust pipeline with opportunities that include: a non-invasive diagnostic for colon cancer, a detection mechanism for unstable cardiovascular plaque, a first in class multi-mechanism cancer therapeutic, and a hand-held DNA diagnostic system. XLTG's technology partners have already invested some US $ 93 million in these technologies. Through the sale of shares in XL TechGroup Plc, which will own approximately 35% of XLTG, XLTG is seeking to raise GBP20-25 million to be invested in developing AgCert, BioPestTech and the other opportunities in the company's pipeline. The remainder of the equity share capital of XLTG is owned by the management team.
John S. Scott, Chairman and CEO of XLTG, commented: "XLTG has a proven business creation methodology, a highly successful track record and a number of exciting companies in the pipeline, with two at an advanced stage of development and offering very substantial growth potential. We believe XLTG offers investors a unique opportunity to earn multiple returns from a single investment."
About XL TechGroup
XLTechGroup, LLC (XLTG) is a unique technology business development company focused on identifying unmet market needs, creating dynamic new technology solutions, and building successful businesses that transform markets, primarily in the life sciences and technology sectors. XLTG and its companies are headquartered in the USA, Canada, Latin America and have plans for multiple offices in Europe
If you would like further information, please contact:
If you have any media enquiries, please contact:
Financial Dynamics (UK)
Disclaimer for US Site Visitors
This web site contains investor-related information that is directed only to non-US persons. The investor-related and other information provided on this web site is for use only by non-U.S persons, and is not an offer to buy or sell, or a solicitation of an offer to buy or sell, any XL TechGroup securities. Moreover, we may not offer or sell XL TechGroup securities in the U.S. absent registration or an exemption from registration. If you are a U.S. person, or a person acquiring XL TechGroup ordinary shares for the account or benefit of any U.S. person, you agree and acknowledge that XL TechGroup's ordinary shares have not been registered under the U.S. Securities Act of 1933, as amended, and any offer or sale of XL TechGroup securities by XL TechGroup or its affiliates may be made solely pursuant to an exemption from the U.S. Securities Act of 1933, as amended.