Placing of Shares
26 July 2006
XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing stream of high value new companies, announces the placing of shares owned by Directors and employees of the Company, amounting to 4,000,000 existing common shares at 280p per share (the “Placing”) to satisfy demand from institutional investors and increase the free float.
Following the sale, the Directors' and other senior employees' interests in the Company are expected to change as follows:
| Number of common shares held prior to the Placing | % of issued common share capital | Number of common shares sold | Number of common shares held following Placing | % of issued common share capital following Placing | |
| John S. Scott | 7,141,011 | 14.47 | 728,650 | 6,412,361 | 12.99 |
| Gregory W. Haskell | 3,320,506 | 6.73 | 525,382 | 2,795,124 | 5.66 |
| David P. Szostak | 2,380,336 | 4.82 | 248,157 | 2,132,179 | 4.32 |
| Harold R. Gubnitsky | 2,380,336 | 4.82 | 253,157 | 2,127,179 | 4.31 |
| Ottmar K. Dippold | 2,380,336 | 4.82 | 241,513 | 2,138,823 | 4.33 |
| James W. Douglass | 1,785,252 | 3.62 | 247,160 | 1,538,092 | 3.12 |
John Scott, CEO, and David Szostak, CFO, have agreed not to sell their remaining shares for a period of at least six months following this Placing.
Commenting on the Placing, John Scott, Chief Executive Officer of XL TechGroup, said: “We are pleased with the support shown for the Company from both existing and new institutional investors which we believe is reflective of the strong pipeline of opportunities and the proven methodology that XL TechGroup employs.”
“The sale represents a small proportion of the overall stake of the Directors and senior employees and represents the only sale of shares by them since our IPO in October 2004.”
For further information:
hgubnitsky@xltg.com
www.xltechgroup.com
XL Tech Group media enquiries:
heather.salmond@abchurch-group.com
www.abchurch-group.com
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 24.7% 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 insecticides utilizing all natural active ingredients. TyraTech is able to quickly evaluate natural ingredient combinations by utilizing a patent-pending high throughput chemoreceptor screening process that accurately predicts effectiveness levels. TyraTech's development is progressing rapidly in both insecticidal and related 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 patent-pending formulations in relation to natural insecticide and personal care products. www.tyratech.com
DxTech 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-care 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 currently 88% owned by XL TechGroup.
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.
For further information, see www.xltechgroup.com
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