16th Oct 2006 07:00
Plant Impact PLC16 October 2006 16 October 2006 Plant Impact plc ("Plant Impact" or the "Company") Admission to trading on AIM Plant Impact plc (AIM: PIM) is pleased to announce that it has been admitted totrading on AIM, a market operated by the London Stock Exchange plc ("AIM"), andthat its ordinary shares commenced trading today on AIM under the symbol "PIM".The Company raised £3.85 million in gross proceeds through a placing of10,139,475 ordinary shares, representing approximately 43.86 per cent. of theenlarged share capital of the Company, at a placing price of 38p per share. Thisgives the Company a market capitalisation of approximately £8.79 million atadmission. Grant Thornton Corporate Finance is the Company's nominated adviserand Fiske plc is the Company's broker. About Plant Impact plc Plant Impact, and its wholly owned subsidiaries Biofutures Pi Limited andPiBioscience Limited (collectively, the "Group") has developed and markets arange of crop nutrients and natural pesticides that improve the health andproductivity of crops, whilst being inherently non-toxic and ecologically sound.The Group's products allow crops to be grown in a way that is better for theenvironment, the consumer and the grower, whilst increasing yield, quality andshelf life. The Group's approach to product development is different to the traditionalapproach adopted by many agricultural chemical companies. Plant Impact firstseeks to understand the nature of the problem to be solved, then analyses thepart of the plant's natural ability to cope with the problem as opposed tocreating numerous compounds and screening them to find a use for them. The Market The Directors believe that the focus of politicians, pressure groups andsupermarkets on the perceived adverse effects of pesticides and fertilizers onhuman health and the environment is likely to ensure continued pressure ongrowers to reduce the amount of crop protection products applied for theforeseeable future. There are numerous highly effective products in the foliar crop protectionmarket, but many of these products are over twenty years old and off patent, andsome are highly toxic. In many cases safer, more environmentally acceptableproducts would be welcomed by food groups and consumers. Pesticide resistance isalso increasing and alternative approaches may be required in order to providerobust control of pest species. Plant Impact seeks to position itself to address consumer, regulatory, politicaland market demands for greater food safety and sustainable agriculture by thedevelopment and introduction of acceptable, non-threatening technology. Products and Technologies Plant Impact has developed six key technologies which can be divided into twodistinct groups: a) crop nutrients, which improve plant health of which Alethea(R),PINTTM, CATTM and SpeedoTM are examples; b) crop protection agents or botanical pesticides, which act tocontrol pests. BugOil(R) and the Group's nematicide technology fall into thiscategory. The Group's technologies are mainly for use on high value fruit and vegetablecrops grown under glass or polythene, such as tomatoes, cucumbers, strawberriesand peppers. The Group achieved sales in its crop nutrient range of products of approximately£345,000 for the period ended 31 March 2006, mainly in the Middle East, but hasrecently expanded sales to Spain and the UK. The pesticide range, which hasshown great potential in early trials, is yet to be available for sale, astrials continue to be conducted and, in the case of BugOil(R), regulatoryapprovals are being sought. The Directors expect to receive regulatory approvalfor BugOil(R) in the USA and UK in the second quarter of 2008. Business Development and Strategy The Directors intend to commercialise the Group's products through distributionagreements and licensing arrangements with industrial partners, and/or, whereappropriate, through its own direct distribution channels. The focus is on salesto commercial growers of high value and protected crops. However, there is alsothe possibility of entering the home and garden market. Plant Impact has arrangements in place with distribution partners in specificmarkets in the Middle East arranged through Pi-MENA, a sales agency based inJordan supported by the Company. In December 2005, Plant Impact entered afurther distribution agreement with Certis Europe BV for its nutrient products,covering Spain and Portugal, which has already generated modest revenues. Intellectual Property and Product Registration The protection of intellectual property through the submission of patents is anintegral part of the Company's research and development strategy. Since itsformation, the Company has developed and filed eight base patent applicationscovering six technologies of which one, which covers BugOil(R), has already beengranted in the UK. Martin Robinson, non-executive Chairman of Plant Impact, commented: "The admission of the Company's shares to AIM marks another key milestone in thedevelopment of Plant Impact. The funds raised from the placing will be used tofinance further product development, the launch of new products, an increase insales and marketing activities, assist in creating strategic partnerships and tofinance the Company's working capital needs." Enquiries: Plant Impact plc Martin Robinson +44 (0) 161 929 4969 Grant Thornton Corporate Finance (Nominated Adviser) Graeme Thom +44 (0) 870 991 2790 Fiske plc (Broker) James Harrison +44 (0) 20 7448 4729 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Plant Impact