XL TechGroup company AgCert announces its audited preliminary results
05 April 2006
XL TechGroup, Inc. (AIM: XLT), the systematic architect and builder of an ongoing stream of high value new companies, advises that XL TechGroup company AgCert International plc, a leader in the production and sale of agriculturally derived greenhouse gas emission reductions, has today issued its audited preliminary results for the period to 31 December 2005.
AgCert has also announced an important long term strategic partnership with The AES Corporation ("AES"), the global power company. The components of this partnership include the proposed placing of new AgCert shares with AES that would raise approximately €40 million and give AES a stake in AgCert of 9.9%, as well as a forward CER (Certified Emission Reduction) sales contract that incorporates a secured pre-payment to AgCert of up to €60 million.
As a pioneer in the carbon credit market, AgCert has experienced rapid growth and has already established a significant presence in Brazil and Mexico, where the first CERs have already been issued. AgCert has also reported significant operational progress since the appointment of Bill Haskell in September 2005, with over 400 operational sites in place which are expected to generate over 20 million CERs during the ten year contract terms. Finally, AgCert has secured advance sales contracts for CERs with future cash flows of approximately €94 million, not including the AES pre-payment.
Dr John Scott, CEO of XL TechGroup, said: "We are very pleased with the significant progress that has been made at AgCert since Bill Haskell took over as interim CEO in September 2005. As a leading shareholder in AgCert, it therefore gives us considerable comfort that the AgCert board has asked Bill to become their permanent CEO. We fully share his confidence about the attractive long-term prospects for AgCert."
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Notes to Editors
About XL TechGroup
XL TechGroup identifies unmet market needs in the Biotech, Ecotech and Medtech sectors and then systematically creates and develops successful disruptive technology businesses to exploit these needs. The Company has developed a unique proven method to rapidly bring companies from inception to liquidity, matching unexploited IP from a group of corporate and technology partners to the identified unmet market need. XL TechGroup employs its own predictive algorithm to ensure the market will rapidly adopt the identified solution and then moves to scale the company specifically created to exploit the opportunity.
Before forming XL TechGroup, the management team created substantial value for shareholders over a twelve year period, successfully exiting six technology businesses at an average market valuation of approximately US$500 million.
The listing of the first company created under the XL TechGroup banner, AgCert International, continues to validate the systematic approach to value creation.
- AgCert International was created by XL TechGroup in May 2002 and is a global leader in the production and sale of agriculturally derived greenhouse gas emission reductions, with business in Europe, Asia, North America and South America. AgCert was listed on the London Stock Exchange in June 2005 and XL TechGroup maintains a 27.2% interest in AgCert.
www.agcert.com
The second and third companies in the new generation of XL TechGroup businesses are:
TyraTech LLC, which was created by XL TechGroup in July 2004, is developing a new class of highly effective, non-toxic pesticides using cloned insect chemoreceptors, based on approved, safe, natural oils. Its development is progressing rapidly particularly in human healthcare applications. TyraTech, which is 66.7% owned by XL TechGroup, is continuing discussions with companies in North America, Asia and Europe as well as numerous national public health programs about the licensing and distribution rights for its patented formulations in relation to natural insecticide and personal care products.
www.tyratech.comDxTech LLC was created by XL TechGroup in July 2005, and is developing a unique micro-fluidic platform that replaces essentially all biological tests currently performed at reference laboratories with a fully-automated, point-of-need device. This technology has applications in significantly lowering costs and increasing efficiency for major pharmaceutical companies in their clinical trials, the provision of diagnostics in developing countries and delivering a new revenue stream for doctors in the USA. DxTech is 88% owned by XL TechGroup.
www.dxtech.com
XL TechGroup has a number of other opportunities already at an advanced stage in its business creation pipeline, and expects to create one-to-two new companies annually that can each achieve a liquidity event worth at least US$400 million within four years from inception.
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