AgCert announces final results, strategic review and proposed financing
30 April 2007
XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing stream of high value new companies, advises that that its portfolio company, AgCert International plc (“AgCert”), a leader in the production and sale of agriculturally derived greenhouse gas emission reductions, reported on 27 April 2007 its financial results for the year ended 31 December 2006. AgCert has also announced a proposed placing and capitalisation of debt in order to finance an improved business strategy that is designed to produce as many credits as before but from a significantly lower level of capital investment.
To fund the implementation of the improved strategy, AgCert is proposing to raise £20.5 million (£18.7 million after expenses) by way of a placing of 51.18 million new ordinary shares at 40 pence per share which has been fully underwritten by Nomura Code Securities and Hoare Govett. AgCert is also proposing to capitalise approximately €14.6 million of debt owed to three major shareholders, including £2.73 million owed to XL TechGroup. The capitalisation at 40 pence per share would result in the issue of an additional 24.95 million new ordinary shares, including 6,822,429 to XL TechGroup. Completion of this capitalisation will result in XL TechGroup owning 46,043,394 shares in AgCert, representing 18.79% of the issued share capital.
It is also proposed that XL TechGroup will provide AgCert with a credit facility of up to €5 million, available in the second quarter of 2008 for certain, defined working capital needs and convertible into new ordinary shares of AgCert.
Subject to shareholder approval of the funding and debt recapitalisation proposals at an AgCert EGM on 24 May 2007, the improved strategy will enable AgCert to deliver at least the same emission reduction delivery programme as previously anticipated, but with a significantly reduced capital funding requirement and will provide the company with financing through to self sufficiency.
John Scott, CEO of XL TechGroup, said: “Our continuing commitment to AgCert and our approval of the improved strategy is clearly demonstrated by our willingness to convert existing loans into equity and by the additional credit facility that we are providing. We are pleased with the response to AgCert's successful fundraising and we reaffirm our belief that AgCert will deliver the same significant value that we have anticipated since its inception.”
For further information:
| XL TechGroup Inc. | |
| John Scott / Harold Gubnitsky | Tel: +1 321 409 7403 |
| hgubnitsky@xltg.com | www.XL TechGroup.com |
| Chris Munden, Director of Investor Relations | Tel: +44 (0) 20 7398 7720 |
| cmunden@xltg.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 | Tel: +44 (0) 20 7398 7700 |
| heather.salmond@abchurch-group.com | |
| Gareth Mead | |
| gareth.mead@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 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 LLC (www.tyratech.com), DxTech LLC (www.dxtech.com), PetroAlgae LLC (www.petroalgae.com) and QuoNova LLC.
XL TechGroup has also established GenXL LLC 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
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