Result of General Meeting

RNS Number : 7959N

TEG Group (The) PLC

17 June 2010

 



 

For release

11:30

Date: 17 June 2010

The TEG GROUP PLC (TEG/L)

("TEG" or "the Company")

Results of General Meeting; Completion of Placing and Acquisition

The TEG Group Plc (AIM:TEG) is pleased to announce that, further to its announcement of 2 June 2010 regarding its conditional Placing and its conditional acquisition of Simpro Limited ("Simpro"), the owner of six composting sites based in the Midlands, all resolutions were passed at the shareholders General Meeting held today, approving inter alia the allotment and issue of the Placing Shares and the Consideration Shares to satisfy the consideration for the Acquisition.

Under the terms of the Placing, 20,598,484 new ordinary shares were placed with investors at a placing price of 33 pence per share, raising approximately £6.8 million before expenses to finance the cash consideration element of the Acquisition and to provide development capital for certain of the Company's other projects.

Application has been made for the admission of the Placing Shares to be admitted to trading on AIM, which is expected to occur tomorrow, Friday 18^th June 2010.

Conditional upon Admission, completion of the Acquisition will occur on Monday 21^st June 2010, at which point, in addition to the transfer of £4.85 million cash consideration to the Vendors, 1,212,122 Consideration Shares will be issued to the Vendors. Application has been made for the admission of the Consideration Shares to trading on AIM which is expected to occur on Monday 21^st June 2010.

Following the issue of both the Placing Shares and Consideration Shares TEG will have 74,848,987 ordinary shares in issue.

Commenting on the results of the EGM, Mick Fishwick, Chief Executive said "We are delighted to have received the approval of our shareholders and we are grateful for their continued support.  The acquisition of Simpro is another significant step forward for the Company and we look forward to developing our business in the Midlands."

ENDS

Contact:
The TEG Group Plc	Tel: [phone]
Michael Fishwick, Chief Executive	www.theteggroup.plc.uk
Peckwater PR	Tel: [phone]
Tarquin Edwards	[e-mail]
Canaccord Genuity (Nomad)	Tel : [phone]
Robert Finlay / Guy Blakeney

Editor's Notes:

TEG

TEG provides an in-vessel composting technology, which is one of the few approved technologies capable of treating animal by-product (ABP) waste, and is now providing an anaerobic digestion (AD) technology to produce power from food waste.  Plant economics are predominantly driven by the gate fees charged, rather than the value of the end product (compost).  The AD plants also benefit from power sales and Renewable Obligations Certificates ("ROCS") or Feed-in Tariffs ("FITs").  TEG owns its composting technology and has an agreement with UTS Biogastechnik GmbH ("UTS") for the provision of AD technology into the UK waste markets.  The TEG processes are an economic alternative to landfill.

The TEG Silo Cage System

The Silo Cage system, one of the few technologies in Europe capable of treating this waste, is a natural process producing compost as an end product.  The compost is an excellent soil conditioner that fertilises, retains moisture, provides structure and reduces the incidence of plant disease.  TEG's Silo-Cages are housed in self-contained buildings, are not unsightly and are environmentally friendly.

Collaboration with UTS

Having supplied equipment to more than 1,500 equipped biogas plants, UTS Biogastechnik GmbH is one of the world's leading biogas companies.  The UTS group of companies offers services in the planning, construction, delivery and installation of biogas plants and their key components.  The company has its own production facilities and service shops, technical design and development departments as well as mobile mechanical and biological customer service technicians to support the international client base.  UTS also develops and sells specialized mixers, pumps and a variety of solid/liquid separating devices related to the biogas and agro/food markets. The company is headquartered near Munich, Germany with subsidiaries in Italy, Hungary, Spain, the Czech Republic and now a rapidly developing company UTS Biogas Limited. to service the United Kingdom & Ireland markets.

General

Customers include local authorities, waste management companies, food processors, farmers and landowners.  The Company's expanding market is driven by increasingly stringent EU and UK legislation regulating the treatment and disposal of organic waste.  Statutory targets for the diversion of waste from landfill increase annually through to 2020, increasing TEG's market opportunity year on year. 

The Natural Organic Fertiliser Company Limited ("NOFCO"), a subsidiary of TEG, is a marketing company specialising in the development of end markets for compost products, an important aspect of all plant developments and key to local authority development.  The company has an expertise in the development of agricultural and horticultural markets and this capability is provided to customers to enhance TEG's overall service offering.

 

END

 

 

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