Eden Research plc (AIM: EDEN), the AIM-listed company that provides breakthrough biocontrol products and natural microencapsulation technologies to the global agrochemicals, animal health and consumer products industries, announces that it has raised c.£2.4 million, before expenses, through a subscription for 20,494,330 new ordinary shares of 1p each in the Company and an institutional placing of 1,915,888 new Ordinary Shares, both at a price of 10.7 pence each.
Sipcam SpA, Eden’s commercialisation partner in a growing list of countries, subscribed for the Subscription Shares which represent c.9.9 per cent. of the enlarged share capital.
The Company has also received a non-binding indication from an existing institutional investor for £300,000 of Ordinary Shares at the Placing Price. The Additional VCT Placing is anticipated completing (subject to contract and relevant regulation) once the Company receives clearance from HMRC that the Company’s business will qualify for the relevant tax reliefs in connection with the Additional VCT Placing. The Company will submit an application for clearance to HMRC shortly and it is anticipated by the Company that such clearance will be granted, should it be granted, within 2 – 3 months. Even if such clearance is granted, there can be no certainty that the Additional VCT Placing will occur. The Company will make further announcements as is appropriate.
Sean Smith, Chief Executive of Eden, said:
“Eden and Sipcam have worked closely together and we have been pleased with the progress that Sipcam has made and the commercial traction that it achieved through the development and commercialisation of 3logy.
“Following the completion of a number of commercial agreements, as we announced earlier today, we believe that the investment by Sipcam aligns both parties’ interests and will allow us to build on the momentum that the partnership has generated to date.”
“In addition to the support provided by existing institutional investors, we are delighted to have Sipcam as a shareholder of Eden and believe that this investment, made by a significant and well respected leader in the agrochemicals industry, further validates Eden’s technologies and products and will help us to achieve greater success and stature.”
Nadia Gagliardini, President of Sipcam, said:
“Since we started our collaboration with Eden we have believed that their technology has excellent potential and that the fit between Sipcam and Eden’s expertise is highly complimentary. Sipcam is well recognised for its technical expertise and marketing capabilities, with a strong presence in key agricultural markets, while Eden’s technology has proven to be very effective and to hold tremendous potential. The technology Eden has developed, along with the strength of Eden’s management team, convinced Sipcam’s Board to invest in the future of Eden, becoming a shareholder, with a long term perspective whilst contributing its expertise in the technical, marketing and industrial areas.”
The Subscription Shares and the Placing Shares will rank pari passu in all respects with the Company’s existing Ordinary Shares and will represent c.10.8% of the Company’s enlarged issued share capital. Application has been made for the Subscription Shares and the Placing Shares to be admitted to AIM and it is expected that admission will take place on 5 July 2017.
Under the terms of its subscription for the Subscription Shares, Sipcam has been granted the right to appoint a director to the board of the Company for as long as it retains a minimum interest of seven and a half (7.5) per cent. of the issued share capital of the Company. The Parties have also signed a lock-in agreement which prevents Sipcam from selling its Placing Shares for a period of three years.
Following Admission, the Company’s total issued and voting share capital will comprise 207,064,337 Ordinary Shares. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, securities of the Company.
Eden Research plc – www.edenresearch.com
Sean Smith, Chief Executive Officer – Tel: 01285 359 555
Alex Abrey, Chief Financial Officer
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