13th Feb 2006 08:05
MicroFuze International plc13 February 2006 SUCCESSFUL COMPLETION OF PLACING FOR MICROFUZE INTERNATIONAL PLC (MFZ) MicroFuze International plc ("MicroFuze" or "the Company") announces thesuccessful Placing of 25,121,110 Ordinary Shares at 10p per share. The Companyhas raised £2,512,111 conditionally on Admission to enable it to fast track thecommercialization of the technology and continue with further product andtechnology development. At the placing price the company is capitalized at £14.9million. MicroFuze owns, through its 85 per cent. owned subsidiary Tesla USA, Inc. (TUI),a licence to exploit a patented process referred to as Microwave DiffusionTreatment ("MDT"). The Licensor, as agent for the US Department of Energy, holdsa 10% interest in TUI. MicroFuze's business model is to be a commercially focused microwave technologycompany specializing in the surface treatment of metals and other minerals.Specifically, MicroFuze intends to provide a range of surface engineeringsolutions to the power generation, automotive, aeronautical and generalmanufacturing industries. The Directors of MicroFuze believe that parts,components and accessories used in these industries and which require hardening,lubricity, wear resistance and corrosion protection are among the items mostlikely to derive significant benefits from the application of the MDT. In addition, MicroFuze is seeking to launch new applications of emerging andcomplementary technologies for rapid commercialisation. The technology is basedon microwave-driven diffusion of donor metals into target components. TheMicroFuze technology base comprises two MDTs for processing alloys: microwavepack cementation, which is ready for commercialisation; and cool plasmaprocessing, which is in the early stages of development. The obvious short term market opportunities are those existing markets where thebenefits of MDT offer an advantage in processing speed, including all theexisting markets for pack cementation (batch processing), nitriding (hardening),carburizing, etc. One of the most critical issues facing heat-treating in thefuture may be the energy cost. The Directors believe that MDT is an answer tothe high-energy cost of heat treating. The segments in which MDT would competeinclude Surface Heat Treating, Hard Facing, and a component of theElectroplating industry (wear and corrosion coatings). In total these threemarkets have a value estimated to be approx. US$44 billion worldwide, of whichHeat Treating - the primary market for MDT - is worth approx. US$6 billion andgrowing. Mr Doug Parrish, Chief Executive Officer of MicroFuze, commented: "The successof this Placing means we can now move forward rapidly with the financing of thecommercialisation of this exciting new technology which has already attractedthe attention of some of the world's leading multinational companies in keyindustries including: automotive, chemical, defence, health, power generation,textiles and aviation. The Placing will allow MicroFuze to commission newmicrowaves and build revenue over the next 12 months." 13 February 2006 END. For enquiries: Doug Parrish, CEO, MicroFuze International plc 020-7016-5100 Tim Wall, Finance Director, MicroFuze International plc 020-7016-5100 Henry L Gewanter, PR, Positive Profile 020-7489-2028 Hugh Oram, Nominated Adviser, Nabarro Wells &Co. Ltd 020-7710-7400 Website: www.microfuze.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Armadale Capital