28th Aug 2009 17:54
28 August 2009
GEM BIOFUELS PLC
("Gem Biofuels" or the "Company")
Notice of Extraordinary General Meeting
The Company announces that following consent from shareholders representing more than 95% of the nominal value of the ordinary shares and in accordance with its Articles of Association, the Company has called an Extraordinary General Meeting ("EGM") at short notice for 31st August 2009. The Company also confirms its intention to raise approximately £500,000 through a placing of 4,000,000 ordinary shares of 1p each (the "Placing Shares") at 12.5 pence per share (the "Placing") and the issue of 2,000,000 warrants with an exercise price of 18 pence per share (the "Warrants").
The Company is seeking approval from shareholders to disapply existing pre-emption rights to facilitate the Placing. The net proceeds of the Placing will be used to strengthen the Company's balance sheet and provide additional working capital for the Group to enable it to further deliver on its strategy.
Details of the Placing
The Company is seeking authority to issue up to 4,000,000 ordinary shares and 2,000,000 Warrants with institutional and other investors.
The Placing Shares will rank pari passu in all respects with the existing ordinary shares in the capital of the Company ("Ordinary Shares"), including the right to receive all dividends and other distributions hereafter declared, made or paid.
Application will be made for the Placing Shares to be admitted to trading on the AIM Market of the London Stock Exchange ("AIM"). The Placing Shares represent approximately 12.7 per cent of the issued share capital of the Company as enlarged by the Placing.
Each Warrant entitles the holder thereof to subscribe for one new Ordinary Share at 18 pence. The Ordinary Shares issued on exercise of the Warrants will rank pari passu in all respects with the Ordinary Shares in issue at the date of issue of such Ordinary Shares, including the right to receive any dividend or other distribution thereafter made, declared or paid.
In addition, the Company intends to issue 200,000 warrants with an exercise price of 12.5 pence per share to Haywood Securities (UK) Limited in connection with the Placing.
Extraordinary General Meeting
The EGM will be held on 31st August 2009 at 4.00pm at Suite B10, 431 Roberts Road, Subiaco, Australia. A special resolution will be proposed to disapply pre-emption rights in relation to the issue of the Placing Shares.
Enquiries:
|
GEM Biofuels Plc |
Shore Capital and Corporate Limited |
Walbrook PR Ltd |
|
Paul Benetti Chief Executive Officer |
Dru Danford / Stephane Auton |
Leah Kramer |
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+61 (0) 8 6365 3038 / +61 (0) 407 039 379 (mobile) |
+44 (0) 20 7408 4090 |
T: +44 (0) 20 7933 8780 |
NOTES TO EDITORS
About GEM BioFuels
GEM BioFuels was founded in 2004 to capitalise on the opportunity presented by the local agricultural and socio-economic conditions in Madagascar to produce Jatropha oil for use as a biodiesel feedstock. Operations are based in the South of the island where the Jatropha tree grows wild.
The Company has secured 50 year agreements giving exclusive rights over 452,500 hectares (in excess of 1 million acres) to establish plantations, ranging in size from 2,500 - 50,000 hectares with a further 40,000 hectares of natural forest containing substantial numbers of mature Jatropha trees.
GEM BioFuels Plc was admitted to trading on AIM in October 2007.
Jatropha
Jatropha is a small tree/shrub, growing to about 5 metres in height and is well suited for use in the production of biodiesel. Jatropha trees are relatively drought resistant and suitable for cultivation in sub tropical regions. The high oil yielding seeds are mildly toxic and as such Jatropha is not a food and its use in biodiesel production does not affect the cost of living of the indigenous population. Biodiesel refined from Jatropha oil complies with international standards, including EN14214 in Europe, the major market for biodiesel.
Whilst the current production of Jatropha seed for commercial purposes is small, it is substantially increasing due to its attractiveness as a biodiesel feedstock because of its ability to grow on marginal land and the fact that it is non-edible and so does not fall foul of the 'food versus fuel' debate.
Related Shares:
HUN.L