TyraTech raises £25 million in AIM IPO
29 May 2007
XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing stream of high value new companies, is pleased to announce that its second company, TyraTech Inc. (“TyraTech”) (AIM: TYR), the pioneer of safer, effective and natural pesticide products, has published its admission document relating to its placing and admission to trading on AIM.
TyraTech has completed a placing of ordinary shares with institutional investors, raising £25 million (US$49.7 million) before expenses. The proceeds will be used by TyraTech to facilitate product development and commercialisation, enhance its product support operations, and to repay existing debt obligations, including approximately US$10.9 million owed to XL TechGroup.
Based on the 500p placing price, the market capitalisation of TyraTech is anticipated to be approximately £110 million (US$219 million) at the commencement of dealings which is expected to be on 1 June 2007. As part of its stated goal of maintaining a controlling interest in all its companies after AgCert International, and to also affirm its commitment to TyraTech, XL TechGroup has subscribed for 500,000 new TyraTech shares at the 500p placing price. XL TechGroup has not sold any TyraTech shares and therefore the Company will hold a 47.92% interest in TyraTech following this placing.
Dr. John Scott, CEO of XL TechGroup, said: “We are delighted that our continuing process of significant value creation has again been validated by TyraTech's successful IPO on AIM. Our confidence in TyraTech is underpinned by the fact that we have not sold any shares as part of the IPO placing, and have instead subscribed for new shares to cement our ongoing commitment. We are supportive and enthusiastic shareholders of TyraTech, which is addressing a significant global market need for safer, effective all-natural pesticides in conjunction with major multinational partners like Syngenta and Kraft.
We are also pleased that shareholders of AgCert International approved all resolutions last week in relation to a successful placing of approximately £20.5 million, as well as the capitalisation of debt, including £2.73 million owed to XL TechGroup. AgCert now has the funds it requires to implement its revised business strategy which we are confident will deliver at least the same emission reduction delivery programme as previously anticipated, but with a significantly reduced capital funding requirement, and enable AgCert to move through to self sufficiency.
Finally, we are delighted to report that the XL TechGroup Company Day held in London on 23 May 2007, which gave the financial community an opportunity to meet each of our portfolio companies and their respective CEOs, was a considerable success and we would like to thank all the attendees for their interest.”
For further information:
| XL TechGroup Inc. | |
| John Scott / Harold Gubnitsky | Tel: +1 321 409 7403 |
| hgubnitsky@xltg.com | |
| Chris Munden, Director of Investor Relations | Tel: +44 (0) 20 7398 7720 |
| cmunden@xltg.com | www.xltechgroup.com |
| Nomura Code Securities | |
| Richard Potts, Corporate Finance | Tel: +44 (0) 20 7776 1200 |
| www.nomuracode.com |
XL TechGroup media enquiries:
Abchurch Communications |
|
| Heather Salmond / Gareth Mead | Tel: +44 (0) 20 7398 7700 |
| heather.salmond@abchurch-group.com | www.abchurch-group.com |
NOTES TO EDITORS
About XL TechGroup
XL TechGroup is in the business of significant value creation. Working with major international corporate and technology partners such as AES, Procter & Gamble and leading universities, XL TechGroup first identifies global unmet market needs and then targets and exploits these by the systematic creation of successful, disruptive technology businesses. These are built from scratch, and are then funded and developed by XL TechGroup through to the point of a trade sale or a stock market listing.
XL TechGroup's unique and proven methodology selects the best opportunities in order to create one-to-two new companies annually, where each company is expected to achieve a realisable valuation of at least US$400 million within four years from its creation. While an XL TechGroup company might perform a stock market listing at an earlier point in this four year timeframe, XL TechGroup would retain its controlling interest and would continue to assist with the company's development.
XL TechGroup's companies to date are: AgCert International plc (www.agcert.com), TyraTech Inc. (www.tyratech.com), DxTech LLC (www.dxtech.com), PetroAlgae LLC (www.petroalgae.com) and QuoNova LLC (www.quonova.com).
XL TechGroup has also established GenXL LLC (www.gnxl.com) as a joint venture to capture the value of those prospects that do not quite meet the US$400 million, four year criteria but still demonstrate considerable potential worth. Over and above XL TechGroup's core business model, GenXL will review a significant flow of opportunities from both XL TechGroup and GEN3 in order to generate new companies, standalone product lines and technology licensing opportunities or an appropriate mix of these.
For further information, see www.xltechgroup.com
About TyraTech
TyraTech is pioneering a new class of highly effective, non-toxic, pesticides and anti-parasitic compounds to address global agriculture, horticulture, functional foods, healthcare and veterinary markets. Using a revolutionary chemoreceptor screening process, TyraTech has identified natural oils that stimulate the reactions and biological behaviour of insects and parasites so that they can be effectively repelled or killed. TyraTech's technology prevents the development of resistance and avoids the environmental concerns and human health risks of chemical solutions whilst still being at least, if not more, effective.
The Company's products have been validated through strong partnerships with multinational conglomerates operating within a growing US$30 billion worldwide market that is being increasingly driven by environmental legislation and end-user demand.
TyraTech's discovery platform has been tested and verified by global corporations and independent laboratory test facilities around the world. These test results include total mosquito lavicidal mortality in one hour, mosquito repellent at least equal to DEET, full head lice mortality in less than five minutes and complete intestinal parasite mortality in five minutes, amongst others.
TyraTech continues to develop new product applications based on safe, natural ingredients with a broad range of partners around the world.
For further information, see www.tyratech.com
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