Information  X 
Enter a valid email address

Virotec Intl Ld (VTI)

  Print      Mail a friend

Friday 08 July, 2005

Virotec Intl Ld

Placing and trading update

Virotec International Ld
08 July 2005

                       
8 July 2005
                            VIROTEC INTERNATIONAL LTD

                          Placing to raise £9 million
                                        
                                 Trading Update
                            

Placing

Virotec International Ltd ('Virotec' or the 'Company')(ASX/ AIM: VTI) plans to
raise up to £9.0 million (AUD$21.186 million*) net of expenses in a conditional
placing (the 'Placing') with Institutions arranged by Numis Securities Limited
('Numis'). The Placing will involve the issue of up to 31,000,000 new ordinary
shares in the Company at a price of 30p (AUD$0.706*) per share. Immediately
following the Placing the total number of shares in issue will be 237,895,894.

The proceeds from the Placing will be used for the following purposes:
•Expand sales and marketing infrastructures in Europe;
•Expand sales and marketing infrastructures in USA;
•Streamline and expand product distribution in the USA, Europe and Australia;and
•General working capital.

Commenting on the announcement, Mr Brian Sheeran, Virotec's Chairman and CEO,
said 'This Placing will allow us to expand both our global presence and
production capacity immediately to meet the growing demand for Virotec's
technologies. We will also use part of the Placing to bring in a number of new
institutional shareholders, further strengthening our share register'.

Under the Placing, the Company has conditionally placed up to 31,000,000 new
ordinary shares (the 'New Shares') at a placing price of 30p (AUD$0.706*) per
share to raise £9.3 million (AUD$21.892 million*) (before expenses). The Placing
has been arranged by Numis. The Placing is subject to a Placing Agreement
between Virotec and Numis becoming unconditional and not being terminated prior
to 14 July 2005 the expected date of Admission or such later date (being no
later than 28 July 2005) which the Company and Numis may agree. The New Shares
will rank pari passu in all respects with the existing Virotec Shares on issue.
It is expected that dealings in the New Shares will commence on AIM on 14 July
2005.

* Exchange rate: AUD$2.354 per £1.00, as at 5pm BST, 7 July 2005

Trading Update

Virotec announces that further to its comments regarding its projected financial
result for the year ended 30 June 2005, as announced on 1 December 2004, Virotec
expects to record its maiden profit in the 2005 year. Based on current
calculations and circumstances, Virotec expects to record a profit before tax of
between AUD$3.2 million and AUD$4 million.

In addition, Virotec is pleased to announce that it has entered into a strategic
alliance agreement with the Al-Othman Group of Al-Khobar, Saudi Arabia. The
agreement grants an exclusive right to Al-Othman to market and sell Virotec's
environmental services throughout the Kingdom of Saudi Arabia for a renewable
period of eighteen months.

The agreement includes a revenue performance target of AUD$5.0 million in the
first 18 months of operations and in the event the target is not met, a
Licensing Fee of AUD$200,000 will be payable. All costs associated with the
alliance and the implementation of projects are to be borne by the Al-Othman
Group, and Virotec will begin supplying expertise and training to Al-Othman
staff in the coming months.

'We are extremely keen to extend Virotec's global expansion strategy to the
Kingdom of Saudi Arabia', said Dr Lee Fergusson, Virotec's Chief Operating
Officer. 'To have been approached by such an esteemed partner with an
established government and local industry network throughout the Kingdom and to
begin working on large-scale environmental projects in the region is very
exciting'.

The Al-Othman Group of companies (www.al-othman.com) is privately owned by the
Al-Othman family, with business activities across a range of industries,
including consulting, dairy and food manufacturing, plastics, and industrial
trading. The Group has an estimated annual turnover of US$300 million. Mr George
Abraham, Director of the Al-Othman Group, said 'After conducting a comprehensive
due diligence of environmental technology and remediation companies in Australia
we have chosen to work with Virotec International because their track record of
success speaks for itself and the suitability of their technologies to the Saudi
Arabian market is very high'.

Market feasibilities have begun, and several projects are at the initial
analysis, testing and scoping phase. It is expected that Virotec's technical
field personnel will begin on-site work within the next two months.

'We believe that the coming decade in Saudi Arabia is going to be one of great
expansion in environmental awareness and application', explained Mr Brian
Sheeran, Virotec's Chairman and Chief Executive Officer. 'We look forward to a
working with Al-Othman management and staff as we position our two companies
with an early-to-market strategic position in the Saudi market'.

Issue of Shares pursuant to the Executive Share Incentive Plans

Virotec also advises that it has today issued the following securities:

2,138,889 Ordinary shares issued at a price of AUD$0.72 per share pursuant to
          the short term incentive plans for executives as approved by 
          shareholders at the Company's Annual General Meeting on 28 November 
          2003 in respect of the year ended 30 June 2005.

340,000   Ordinary shares issued at a price of AUD$0.72 per share pursuant to 
          the long term incentive plans for executives as approved by 
          shareholders at the Company's Annual General Meeting on 28 November 
          2003 in respect of the year ended 30 June 2005.

In accordance with the terms of the short term incentive plan, any shares issued
under the plan cannot be disposed of for a period of 12 months from the date of
issue.

The current issued capital of Virotec (prior to the issue of securities under
the placement set out above) is as follows:

206,895,894 Ordinary shares

4,312,500   Options (unquoted) with various expiry dates between 30 July 2005 
            and 31 March 2007 and exercisable at various exercise prices between 
            AUD$0.21 and AUD$1.00.


For more information please contact:

Angus Craig
Virotec International Ltd
+61 7 5530 8014

David Poutney
Nick Westlake
Numis Securities
+44 (0) 20 7776 1500

Nick Fox
Patrick d'Ancona
M:Communications
+44 (0) 20 7153 1540


                                        
                            Virotec International Ltd
                               ABN 81 004 801 398
                            PO Box 188 Sanctuary Cove
                               QLD 4212 Australia
                                www.virotec.com
                                        


                      This information is provided by RNS
            The company news service from the London Stock Exchange