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Oxonica plc (OXN)

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Thursday 18 June, 2009

Oxonica plc

AGM Statement & Intention to

RNS Number : 1077U
Oxonica plc
18 June 2009
 




18 June 2009


Oxonica plc


AGM statement


Intention to Seek Cancellation of Admission to AIM


At the Annual General Meeting of international nanomaterials group Oxonica plc (LSE: OXN.L), to be held later today, Dr Kevin Matthews, Chief Executive Officer, will give the following update.


I am pleased to report that, despite the difficulties in world markets, Oxonica's revenues for the five months to May 2009 are 20% higher than for the comparative period in 2008Also, the operating loss and the cash outflow from operations are both considerably lower than in the corresponding prior year period. On 16 June 2009, the Group had cash balances of £2.9 million. Oxonica is focused on further improving the profitability of its businesses during 2009.


Oxonica Energy: Although progress in the mining sector has been adversely impacted by a substantial reduction in activity caused by the collapse in demand for commodities, the Company has made further progress in this market, particularly in the USA and expects to benefit from the upturn in activity anticipated in the second half of the year. The Company has continued to focus its sales efforts on the UK bus and truck market where it has been able to grow sales and win new customers. A number of product trials with significant potential customers are ongoing and market interest in Envirox™ continues to build.


Oxonica Materials: Sales of Optisol™ UV absorber have shown some improvement in 2009 following receipt of a significant order from the Company's Korean distributor early in the yearHowever, the overall performance of this product continues to be disappointing. Having looked to restructure the supply chain for the product in collaboration with its partners, Umicore and Croda, the Company is now close to finalising a suitable structure with which to go forward. 


Oxonica SecurityAs reported in December 2008Oxonica Security received a letter of intent for three further purchases of development products from an existing customer amounting to US$4 million for delivery by October 2009. Deliveries against the associated purchase orders have been made since the year end with the result that, for the period to date, Security sales are significantly higher than for the corresponding prior year period. The businesses' Sol-ID™ anti-counterfeiting products were formally introduced at the Tax Stamp Forum in Budapest in February 2009 and generated a high level of interest. 

 

Oxonica Diagnostics: As reported in the preliminary results statement released in March 2009Oxonica signed an Assignment and License Agreement with BD in September 2008 under the terms of which, cash payments of US$7.0 million have been received by the Group. US$4.75 million was received prior to the year end and the remaining US$2.25 million was received by the end of April 2009 following the successful completion of certain technical milestones.


Licence and patent dispute: The defendant has now submitted its claim for legal costs in connection with this dispute. A provision of £550,000 for these costs was made in the prior year and the Company remains of the view that this provision is adequate. Oxonica Energy's appeal against the High Court judgment is due to be heard in the week commencing 22 June 2009. 


AIM ListingHaving reviewed the position, the Board of the Company has decided to seek shareholders' approval for the cancellation of the Company's admission to trading on AIM. The Board is concerned by a number of factors, including the relatively small total market capitalisation of the Company, the small free float, the limited trading volumes in the Company's shares and the significant direct and indirect costs of compliance with the AIM Rules. The Board has undertaken a review, which included consultation with the Company's advisers and a number of its major shareholders and has come to the view that it is no longer in the Company's best interests to maintain the admission of the Company's shares to trading on AIM.


It is the Board's intention to convene a General Meeting at which the necessary resolution to effect the delisting will be put to the shareholders of the Company. The Board has evaluated alternative arrangements to enable shareholders to continue to trade their shares after the delisting and in the event that the delisting is approved, the Board intends to apply for the shares to be traded on SharemarkSharemark is a periodic auction-based dealing facility offering smaller companies a simple, flexible and cost effective service through which their shares or loan stock can be traded.  It provides investors in participating companies with a secure and regulated environment in which to trade shares.  


The Board will shortly post a circular to shareholders setting out further details of the above proposals and convening the required General Meeting. 


Oxonica intends to report its interim results by the end of September 2009.



For further information, please contact:


Oxonica plc                                 01865 856 700

Kevin Matthews, Chief Executive

Richard Clarke, Finance Director


Panmure Gordon                         020 7459 3600

Hugh Morgan

Andrew Potts



Notes to Editors


About Oxonica plc - www.oxonica.com


Oxonica (AIM: OXN.L) is a leading nanomaterials group with products already launched into international markets. Oxonica's leading product is Envirox™ Fuel Borne Catalyst - a nanocatalyst improving fuel economy and reducing emissions.

 

The Group has also developed Optisol™, a photostable UV protection system designed to optimise the performance of quality sunscreens and anti-premature ageing products, and generates licence and development revenue from activities in the clinical diagnostics and security markets. 


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