Placing to raise ?1.1m

RNS Number : 4293X

Eden Research plc

08 February 2013

 



EDEN RESEARCH PLC

(AIM: EDEN)

Placing to raise £1.1m

Eden Research Plc ("Eden" or "the Company"), the AIM listed agrochemical and encapsulation development company, is pleased to announce a placing raising approximately £1.1m, before expenses ("the Placing").

Details of the Placing

The Placing involves the issue of 12,233,337 ordinary shares of 1 pence each ("Ordinary Shares") at a price of 9 pence ("the Placing Price") per Ordinary Share ("the Placing Shares"). 

The net proceeds of the Placing will be used to develop and exploit the Company's co-encapsulation process and to research and develop other applications, such as wound-care and dental hygiene, as well as providing general working capital.

Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that admission will become effective at 8.00 a.m. on 12 February 2013 ("Admission").  Immediately following Admission the Company's issued share capital will consist of 123,277,498 Ordinary Shares ("Enlarged Share Capital") and the Placing Shares will represent approximately 9.92 per cent. of the Enlarged Share Capital.

The Placing Shares will rank pari passu in all respects with the existing Ordinary Shares. It is expected that CREST accounts will be credited with entitlements to Placing Shares as soon as practicable after 8.00 a.m. on the day of Admission or that share certificates (as the case may be) will be despatched as soon as practicable after Admission.

Related party interests

The following directors ("the Participating Directors") have participated in the Placing:

	Placing Shares	Revised Total Holding	% of Enlarged Share Capital
Ken Brooks	297,744	1,985,936	1.61%
Ben Gill	296,296	952,477	0.77%
Clive Newitt	144,852	323,947	0.26%
Alex Abrey	372,220	528,160	0.43%

As directors of Eden, the Participating Directors' involvement in the Placing is classified under the AIM Rules as a related party transaction. The independent director of Eden, that is Tom Lupton, having consulted with the Company's nominated adviser, WH Ireland Limited, considers that the terms of this transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Voting rights

In accordance with the Disclosure and Transparency Rules (DTR 5.6.1R) the Company hereby notifies the market that immediately following Admission of the Placing Shares its issued share capital will consist of 123,277,498 Ordinary Shares.  The Company does not hold any shares in treasury.  Shareholders may use this figure as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in, the Company under the FSA's Disclosure and Transparency Rules.

Enquiries:

Eden Research Plc	www.edenresearch.com
Alex Abrey Chief Financial Officer	Tel: [phone]
W H Ireland Limited	www.wh-ireland.co.uk
John Wakefield / Marc Davies	Tel:  [phone]
Walbrook PR Ltd	Tel: [phone] or [e-mail]
Paul McManus (Media Relations)	Mob: [phone]
Paul Cornelius (Investor Relations)	Mob: [phone]

Notes:

Eden has developed a terpene-based encapsulation technology which uses yeast cells to deliver a slow release of natural compounds for agricultural and non-agricultural uses.

Terpenes are natural compounds which function as defence mechanisms in many plant groups and are released in response to infection, attack by pests, stress or mechanical injury. Terpenes are already widely used in the food flavouring, cosmetic and pharmaceutical industries.

Historically, terpenes have had limited commercial use in the agrochemical sector due to their volatility, phytotoxicity and poor solubility. Eden's platform encapsulation technology provides a unique, environmentally friendly solution to these problems and enables terpenes to be used as effective, low-risk agrochemicals.

The next-generation encapsulation technology, licensed from University of Massachusetts Medical School ("UMMS") recently, provides significant additional benefits to the original system as it allows release to be controlled by environmental factors rather than relying solely upon the chemistry of the substances used. This means that there is more control over the timing of the release of the active compound being carried allowing for further reduction in chemicals applied whilst ensuring maximum effectiveness.

The UMMS license also significantly expands the potential use of the Eden technology in non-agricultural applications such as health and beauty, cosmetics and animal health.

For more information about Eden, please visit www.edenresearch.com

 

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