14th Jan 2009 07:00
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For Immediate Release |
14 January 2009 |
There will be a conference call for investors and analysts to discuss this announcement today on Wednesday 14th January at 14:30 (GMT). Dial-in details are as follows: UK Access Number: +44 (0)20 8609 1435, US toll free number: 1866 793 4279, PIN code: 356088#. A replay of the conference call will be available for one month via UK: 0800 358 2189 or 020 8609 0289, US: 1 866 676 5865. Conference reference number: 250764#.
TYRATECH, INC.
("TyraTech" or "the Company")
New Joint Venture - TyraChem
~ Collaboration Provides Immediate Pesticide Development and Commercial Access to Banana and Pineapple Markets ~
TyraTech, Inc. (AIM: TYR), a leading independent novel clean technology company for human, animal and environmental health, is pleased to announce a new joint venture, named TyraChem, (the "Joint Venture") for the use of TyraTech pest control products for plantation crop agriculture. The TyraChem Joint Venture has been formed with Chemplast International ("Chemplast"), a market leader in plastic pesticide delivery products for banana and pineapple growers. Chemplast is a subsidiary of McNeel International Corp., a company consistently recognised for its development of innovative products since it first revolutionised commercial banana cultivation with insecticide impregnated plastics in the early 1960s. The formation of TyraChem provides a focused structure for the development and commercialisation of pesticide products which are based on TyraTech's proprietary technology for the $200-plus million banana, plantain and pineapple market.
Highlights of the new joint venture include:
TyraChem is a 50:50 Joint Venture to develop and commercialise products that combine TyraTech Natural pesticide technology with Chemplast plastics technology;
TyraChem will develop and market other TyraTech Natural insecticide and fungicide products for the banana, plantain and pineapple agricultural markets;
Lead products will use TyraTech Natural compounds developed in the past year that have shown to be effective against target market pests; and
Operating expenses to be shared, with initial funding provided by Chemplast; TyraTech to receive royalties on product sales and both parties receive equal profit share.
TyraChem will utilise Chemplast's market presence, as well as its technology expertise in the plastics arena and TyraTech's proprietary potent blends of plant derived pesticides, to develop innovative products which have the ability to protect against chemical pesticide-resistant insects and fungi in the agriculture and consumer markets. The Joint Venture will also develop markets for TyraTech Naturals for direct application in the banana and pineapple field.
Under the terms of the Joint Venture, TyraTech will contribute an exclusive royalty earning license to its proprietary TyraTech Natural technology and products for application in the banana and pineapple field, and other markets when used together with Chemplast plastics technology. Chemplast will provide its plastics technology and market access capability, as well as funding the initial operational expenses of TyraChem including the capital needed for product and market development. The reimbursement of this funding is by a preferential distribution from the Joint Venture, and any accelerated repayment due to a default by TyraTech is secured against TyraTech's holding in the Joint Venture.
The control of both insects and fungal disease is a major issue in the banana and pineapple industries. One popular approach to protecting growing banana bunches is to envelop the growing bananas in a plastic bag that has insecticides incorporated into the plastic, for which Chemplast's parent company, McNeel, is currently a market leader. In addition, both insecticides and fungicides are directly sprayed on plants to protect both the plant itself, as well as the growing fruit from damage. Years of use of chemical pesticides has resulted in the emergence of new resistant organisms. Regulatory limitations in bringing new chemical pesticides into the market, as well as a general movement to safer and more organic pesticides have opened a significant market opportunity.
TyraChem will focus directly on this opportunity with specific products ranging from TyraTech Natural based plastic banana tree bags to crop insecticide and fungicide sprays. The level of interest across this industry is high as the TyraTech technology has the potential to address a number of key challenges facing fruit exporters. Key benefits to the industry include crop production efficiencies (improved yield and quality of fruit), a reduction in the use of synthetic pesticides and progress toward more sustainable production practices. The lead TyraTech Natural technology to be used for these products was newly developed over the past year using its proprietary development platform, and their activity against the pests in the target market was successfully demonstrated.
Chemplast is a private international company (based in Florida, USA) focused on the development, manufacture and distribution of plastic resins incorporating pesticides (termed "Masterbatch") for use in a range of industries including agricultural, commercial & industrial applications. Masterbatch is sold to customers for molding into final product forms (such as the banana bags) which can then release the pesticide under a selected schedule to suit the market or customer need.
Commenting on the announcement, Douglas Armstrong Ph.D., Chief Executive Officer of TyraTech, said: "TyraChem represents another strong and innovative step for TyraTech as we establish new channels to the market and bring forward new product formats that exploit our safe, effective and natural pesticide technology. Chemplast is an excellent partner enabling us to deliver an expanded product portfolio to their existing customer base of banana and pineapple growers. Furthermore, we believe that their industry leading technology for incorporating TyraTech Naturals into plastics should open up very exciting new markets for plastic-based products in consumer, vector control, agriculture and industrial areas of use."
Also commenting on the Joint Venture, Clayton W. McNeel, Chemplast CEO and President, said: "The control of insects and fungal disease in the tropical fruit industry has become a major issue driven by the development of resistance to the standard chemical pesticides. The activity that we have seen with TyraTech Naturals against the leading insect pest and fungal disease in this market, along with the unique safety profile that this technology affords, was the stimulus for our entering this exciting joint venture. Our plastics technology and expertise in this marketplace are well-matched for developing and delivering products that should have an immediate impact."
For further information please contact:
TyraTech Inc.
Douglas Armstrong Ph.D., Chief Executive Officer +1 (321) 409 7403
Keith Bigsby, Chief Financial Officer +1 (321) 409 7714
www.tyratech.com
Nomura Code Securities
Charles Walker +44 (0)20 7776 1200
www.nomuracode.com
Buchanan Communications
MaryߛJane Johnson / Lisa Baderoon +44 (0)20 7466 5000 / Catherine Breen / Stasa Filiplic
About TyraTech TyraTech was formed in 2004 to develop and commercialise products for the control of invertebrate pests and pathogens using the Company's proprietary technology. TyraTech, which already has a product on the market, is positioned for human health, animal health and pesticide market opportunities which total over $23 billion globally. TyraTech's technology provides the Company with a wide variety of product and business opportunities in many markets and geographic regions. The differentiating feature of these products is the potential to have a combined level of potency and safety that other invertebrate control products are unable to offer. TyraTech's platform brings many of the principles of drug discovery and development to the fields of insecticides and parasiticides. By targeting specific chemoreceptors that are found in invertebrates but not in humans and animals, TyraTech can produce products that use natural plant derived compounds targeting these receptors.
TyraTech's plan for the use of its technology is to develop selected proprietary active ingredients which can then be used across a wide variety of market segments, either by development partners or by TyraTech itself. TyraTech already has products or partnerships in the areas of professional and horticultural insect control, and for an insect/mosquito repellent. TyraTech also has an innovative partnership with Kraft to use its natural oils to develop functional foods for improving the health of the more than 2 billion people worldwide subject to intestinal parasitic infections.
TyraTech also has a separate technology with associated intellectual property that is the basis for the Sustainable Solutions business. This technology has been incorporated into specialised dairy farm equipment for processing cattle manure waste to a usable material for TyraTech to sell as a commercial plant growing medium. For more information please visit www.tyratech.com.
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