Joint Venture
Byotrol PLC
30 July 2007
BYOTROL plc
SIGNS JOINT VENTURE WITH CONSUMER INNOVATION EXPERTS
The Directors of Byotrol plc ('Byotrol' or the 'Company') are pleased to
announce the signing of a joint venture with What If Ventures, the investment
arm of What If Holdings Ltd, the holding company of the world's largest
independent consumer innovation company.
The joint venture will be called Byotrol Consumer Products Limited ('BCP') and
will provide the vehicle through which the Company will pursue opportunities for
its anti-microbial technology in global consumer markets. BCP will pursue a
similar strategy to Byotrol, seeking to exploit its technology by entering
licence agreements with leading Fast Moving Consumer Goods companies ('FMCG').
The Board recognises that the skills, expense and timeframes required in
launching new consumer products require a partner with a proven track record in
the FMCG sector. What If Ventures and its group have that track record, as well
as leading-edge global consumer insight skills, new product development
expertise and access to the world's major consumer product businesses.
In the opinion of the Directors, BCP represents the most appropriate structure
to maximise the significant opportunity presented by the consumer marketplace.
The Board expects the combination of Byotrol and What If Ventures to short cut
the often lengthy and expensive new product development process within FMCG
businesses and bring the Byotrol anti-microbial technology to the largest
possible audience at the fastest possible pace.
Byotrol Consumer Products Limited
Background
Having identified What If Ventures as the most appropriate partner, the Board
has worked closely with the What If Ventures team since the beginning of 2007.
Considerable work has been undertaken ahead of the formation of the joint
venture in order to maximise the opportunities available to it from today
onwards.
During 2007, the joint venture partners have invested considerable time, money
and resource in planning BCP, including strengthening the patent framework,
developing and testing products, developing consumer insights and consumer
propositions, market scoping and target licensee development.
More specifically, focus groups were conducted in the United Kingdom, United
States, Europe, China and India. Within these groups the response to the
Byotrol anti-microbial technology was encouraging.
The market opportunity
Based on initial research carried out by BCP, the Byotrol anti-microbial
technology is relevant to several multi-billion dollar global consumer markets.
There are a number of specific applications within the consumer marketplace that
BCP has identified, where there is the potential to add value to products
through the addition of Byotrol's technology.
Strategy
The strategy pursued by BCP will be similar to that already in place within
Byotrol, in that licensees will be sought from amongst the leading global FMCG
companies. It is expected that BCP will receive principally a mixture of
initial fees and on-going royalties where the Byotrol technology is used.
In the next two years, BCP will focus on concluding two major types of licensee
opportunities. In particular, BCP will seek to partner with a global FMCG
business and will also examine opportunities with companies which have specific
niche opportunities whether on a regional or global basis.
Inevitably, each potential licensee will require time to assess the opportunity
whilst BCP will aim to ensure the optimum combination of licensees. In FMCG
businesses, new product launches can typically take many years from inception to
profitability. The Directors believe however that the addition of What If
Ventures' consumer insight, innovation expertise and high level corporate access
will have a significant impact on the time taken to introduce product to the
market.
The board of BCP currently expects that the company will break even within
approximately two years. However it is not anticipated that the company's start
up costs will be significant ahead of that time.
The joint venture
An agreement has today been signed that establishes Byotrol Consumer Products
Limited as a 50:50 joint venture between Byotrol and What If Ventures'
investment vehicle, What If Innovation Capital Nominees Ltd ('WIICN'). Both
companies have committed to invest £250,000 during the first year of operation.
Initially, BCP will draw directly upon resources and expertise within Byotrol
and What If Ventures before recruiting the appropriate longer term management
team in due course.
The board of Byotrol Consumer Products will comprise David McRobbie (Chief
Executive, Byotrol), Stephen Falder (Deputy Chairman, Byotrol), Richard Bell
(Finance Director, Byotrol), David Traynor (Director, WIICN), David Allan
(Director, WIICN) and Julia Hoare (Director and Company Secretary, WIICN). In
addition, BCP will be able top draw upon the knowledge and expertise of senior
advisers with backgrounds in FMCG operations.
Byotrol plc Chief Executive David McRobbie said: 'This joint venture will allow
us to fast track our technology to the consumer market place. What If Ventures
and its group's proven track record working with FMCG companies, its network of
contacts, its consumer knowledge and its insight and marketing expertise are a
perfect fit with our scientific and technical innovation skills.
'For Byotrol alone, launching a consumer brand from scratch would be a massive
financial undertaking with significant risk attached. By partnering with What If
Ventures, we are aiming to capture a substantial amount of market share without
the risk or cost associated with a conventional entry into the consumer market
place.
'Importantly, the establishment of this joint venture also allows us to maintain
a strong focus on our core business in the healthcare, food, agriculture and
industry sectors.'
David Allan of What If Ventures added: 'We believe Byotrol is a very significant
technology which will deliver real innovation and significant benefits to
consumers. Our initial research show the technology has the potential to cross a
number of hygiene markets in home and personal care from anti bacterial
protection of the kitchen and bathroom to skin care and pet care. What If
Ventures is ideally positioned to help develop the consumer business and help
introduce Byotrol to some of the world's leading FMCG businesses.'
More information on What If Ventures can be found at: http://
www.whatifinnovation.com/Ventures
30 July 2007
Enquiries:
Byotrol plc 0161 277 9518
Stephen Falder Deputy Chairman
Richard Bell 07825 204110
Finance Director
Charles Stanley Securities 020 7149 6457
(Nominated Adviser)
Philip Davies
Anthony Noakes
McCann Erickson PR 01625 822540
Jim Rothnie
Rawlings Financial 01756 770376
John Rawlings
This information is provided by RNS
The company news service from the London Stock Exchange
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