Virotec International Ld
21 December 2004
VIROTEC INTERNATIONAL LTD
21 December 2004
Completion of sale of HydroDecTM Technology
The Board of Virotec International Ltd ('Virotec')(ASX/AIM: VTI) is pleased to
announce that the sale of the HydroDecTM Technology to Vert-eco Group plc
('Vert-eco')(AIM: VRT) as announced on 25 November 2004, has been completed.
Vert-eco's shareholders approved the transaction on Monday 20 December 2004. The
shareholders also approved a change of name of Vert-eco to HydroDec Group plc
(AIM: HYR) which is effective as from 21 December 2004. Two directors of
Virotec, Mr Brian Sheeran and Mr Bruno Bamonte, will be appointed to the
HydroDec Group board.
Yesterday's announcement by HydroDec Group (formerly Vert-eco) was preceded by
an announcement on 17 December, wherein HydroDec Group advised that it had
conditionally raised an additional £1,035,000 by way of a placement to assist
funding the ongoing operations of the business.
As a result of these transactions, Virotec now holds 60,000,000 shares in
HydroDec Group which represents approximately 38% of the expanded capital. This
equity has a market value of approximately £8.25 million (A$20.97 million) at
yesterday's quoted closing price of £0.1375.
In addition, Virotec has received cash payments totalling £1.0 million (approx.
A$2.54 million) which represented a £500,000 cash consideration and a £500,000
Furthermore, Virotec retains its ongoing royalty from HydroDec of 5 per cent of
its gross revenue.
Virotec Chairman Mr Sheeran states,'In a company where new ideas are cultivated,
and pro-activity is encouraged, spinning off new business is a natural component
of our ongoing business model. Virotec's strategic decision to nurture
HydroDecTM Technology until it provided a proven, commercial model has been
validated today. We expect our shareholders to fully appreciate the value of
this strategic position over time, as HydroDec begins to realise its true
potential in the market. We also expect that Virotec's equity in this investment
will provide excellent returns.'
For more information in relation to Virotec, please telephone +617 5530 8014 or
Virotec International Ltd
ABN 81 004 801 398
PO Box 188
Sanctuary Cove QLD 4212
Notes on the HydroDecTM Technology:
HydroDecTM technology was developed over 12 years by Australia's Commonwealth
Scientific and Industrial Research Organization ('CSIRO'). The fundamental key
to HydroDec's success is the HydroDec hydrogenation reactor (a patented
modification of known oil refining technology). Essentially, 'dirty' feed oil is
passed through the HydroDec reactor under controlled conditions, contaminants
are destroyed, and a 'clean' feed oil is produced.
The reactor can be used as an oil re-refining system and/or as a 'zero emission'
hazardous waste treatment system to destroy Persistant Organic Pollutants 'POPS'
(PCB, DDT, PCP, HCB and dioxins). When used to re-refine transformer oils, the
re-refined HydroDec Superfine oil meets 'as new' specifications. When used to
destroy POP's, all POP's can be treated and virtually all the POP contaminant is
In operation, there are no chlorinated or halogenated products or noxious by
products from the process. The primary reactions occur in a closed loop. There
are no combustion processes and no potential hazardous emission points from the
process. Unlike incineration, the HydroDec process prevents the formation of
dioxins or other hazardous by products. Being based upon standard oil refinery
hydrotreatment processes and engineering, HydroDec's process parameters are
proven, reliable and scalable.
HydroDec Development Corporation Pty Ltd is the holder of a world wide exclusive
licence for marketing and distribution of the HydroDecTMTechnology.
This information is provided by RNS
The company news service from the London Stock Exchange