TIDMEDEN
RNS Number : 5376E
Eden Research plc
28 February 2020
28 February 2020
Eden Research Plc
("Eden" or "Company")
Placing, Subscription & Open Offer
Eden Research plc (AIM: EDEN), the AIM-quoted company that
develops and supplies breakthrough biopesticide products and
natural microencapsulation technologies to the global crop
protection, animal health and consumer products industries, today
announces that it has conditionally raised GBP10.1 million (before
expenses) by way of a Placing and Subscription of new Ordinary
Shares at the Issue Price of 6p per share to certain institutional
and other investors. Furthermore, to enable other Shareholders not
able to participate in the Placing an opportunity to subscribe for
additional Ordinary Shares, the Company is proposing to raise up to
an additional GBP0.5 million (before expenses) by way of an Open
Offer made to Qualifying Shareholders of up to 8,287,573 new
Ordinary Shares at the Issue Price.
Eden is currently the only UK-quoted company focused on
biopesticides for sustainable agriculture and is well positioned to
capitalise on the rapidly growing biopesticides market, which is
projected to be worth over GBP10 billion by 2025. The Company
expects to apply the net proceeds of the Fundraise to advance the
development, registration and commercialisation of new key product
categories, including new insecticide formulations and seed
treatments.
Transaction Highlights
-- Placing of 151,666,834 new Ordinary Shares at the Issue Price
with new and existing investors to raise GBP9.1 million (before
expenses)
-- Subscription for 16,666,500 new Ordinary Shares by Sipcam
Oxon S.p.A. at the Issue Price to raise in aggregate GBP1.0 million
(before expenses)
-- Open Offer to Qualifying Shareholders at the Issue Price to
raise up to an additional GBP0.5 million (before expenses)
-- The Directors intend to use the net proceeds from the Fundraise for the following purposes:
o c. GBP6.0 million to develop and commercialise the Company's
first insecticide products and seed treatments; and
o c. GBP2.0 million to develop use of Sustaine ä with
traditional agrochemicals; and
o c. GBP2.0 million to expand the Company's product portfolio in
seed treatments, broad-acre crops and the home and garden
market.
The Company will shortly be posting a Notice of General Meeting
and an accompanying circular (the "Circular") to existing
shareholders following this announcement. All relevant documents
will be available to download at https://www.edenresearch.com/
.
Sean Smith, Chief Executive Officer of Eden, said :
"Eden has been making good progress with the commercialisation
of our products and technologies. As momentum continues to build,
we remain focussed upon providing sustainable solutions for global
agriculture. Furthermore, we are eager to accelerate the
commercialisation of new products for new categories including
insecticides and seed treatments. Now is the right time to invest
and capitalise on the opportunities in our pipeline. We have a
clear ambition to be a global leader in sustainable chemistry, and
this fundraise will allow us to enter new and significant markets
from a position of strength.
The outlook for the biopesticides market is undoubtedly
positive, with a clear demand from a growing consumer market for
sustainably grown produce and a notable shift towards greener
farming practices. Eden's biopesticide solutions combine high
levels of efficacy that are comparable to synthetic pesticides and
are aligned with the direction of regulatory travel, which has seen
restrictions and, in some cases, the removal of conventional
products from the market."
Introduction
The Company announces a proposed Placing, Subscription and Open
Offer, pursuant to which it proposes to raise, subject to certain
conditions (i) GBP10.1 million (before expenses) by the conditional
Placing and Subscription of 168,333,334 new Ordinary Shares at the
Issue Price to certain institutional and other investors including
Sipcam; and (ii) up to approximately GBP0.5 million (before
expenses) by way of an Open Offer made to Qualifying Shareholders
of up to 8,287,573 new Ordinary Shares at the Issue Price.
The net proceeds of the Placing, Subscription and Open Offer
will be used to advance the development, registration and
commercialisation of new product categories, including new
insecticide formulations and seed treatments, as well as to provide
additional working capital for the Group associated with the new
development areas, as described in more detail in this
announcement. The Placing, Subscription and Open Offer are
conditional (amongst other things) upon the Company obtaining
approval from its Shareholders to disapply statutory pre-emption
rights and to grant the Board authority to allot and issue the New
Ordinary Shares. The Issue Price equates to a discount of 23.9 per
cent to the closing middle market price of 7.88 pence per Ordinary
Share on 27 February 2020 (being the last Business Day before
publication of this Announcement).
Background to and rationale for the Fundraise
The Company's vision is to become the leader in sustainable
bioactive products and the Board believes Eden is well positioned
to capitalise on the global shift towards more environmentally
friendly methods of crop protection, as demonstrated by the
European Chemicals Agency's proposed EU-wide restriction on the use
of intentionally added microplastic particles. Eden is currently
the only UK-quoted company focused on biopesticides for sustainable
agriculture. Eden develops and supplies innovative biopesticide
products to the global crop protection market, using the Company's
patented microencapsulation technology, Sustaine ä . Sustaine ä
microcapsules are naturally sourced, plastic-free, biodegradable
micro-spheres derived from yeast extract. Importantly, the Sustaine
ä microencapsulation technology enables the technical viability of
naturally occurring terpenes for use in commercial crop
protection.
The Company is pursuing the Fundraise to continue to drive
commercial progress and to build the foundations for the next stage
of its development in significant markets. The Company intends to
use the net proceeds from the Fundraise to (i) register and
commercialise the Company's first insecticide product, (ii) develop
the use of Sustaine ä with conventional agrochemicals, (iii) expand
the Company's product portfolio and (iv) to capitalise on
opportunities arising from its relationship with Corteva
Agriscience.
Market Opportunity for Biopesticides
While the use of effective pesticides has been fundamental to
the farming revolution over the last 100 years, governments and
consumers have increasingly begun to acknowledge the risk to the
environment and human health posed by conventional pesticides. This
has led to the banning or restriction (especially in Europe) of
some common pesticides such as Neonicotinoids and
Chlorothalonil.
This has subsequently increased the use of biopesticides and, as
a result, the biopesticides market is growing at a CAGR of
approximately 15% per annum and is projected to be worth more than
$10 billion by 2025.
Eden's biopesticide solutions solve a number of the issues of
conventional pesticides. Using plant derived active ingredients
that are generally accepted as safe by regulators around the world
means that the products are not subject to residue limits, long
per-harvest intervals and can be used as a post-harvest treatments,
subject to regulatory approval.
In addition, the Company's yeast based Sustaine(TM)
encapsulation technology allows Eden's products and conventional
pesticides to be used without the presence of plastics. There are
currently global concerns regarding the volume of micro-plastics in
the environment and the impact their presence has on human health
and wildlife. In response, there have been new regulations proposed
which could restrict the intentional addition of plastic to
pesticides, which has created a need for the major pesticide
producers to actively look for alternative approaches to
encapsulation of existing chemical treatments. These restrictions
mean that the time and cost of bringing new agrochemical products
to market has increased to around 10 to 12 years and approximately
$300 million.
From a broader perspective, concerns regarding the impact on
human health of pesticides has increased the consumer appetite for
organic products and encouraged regulators to put stricter controls
around spraying of crops and residue limits.
Another advantage of Eden's proposition is that its three
EU-registered active ingredients, geraniol, eugenol and thymol,
were all approved for use in organic farming in January 2020,
following inclusion in the EU's Organic Production Regulation.
Entry into the organic farming arena opens up new commercial
opportunities for the Company and is relevant to all products that
utilise the Company's three EU-registered active ingredients. In
2017, Organic farming covered 12.6 million hectares of agricultural
land in the EU Member States, equivalent to 7% of the total
utilised agricultural area. Between 2012-2017, land assigned for
organic growing within these Member States increased by 25%. In two
of the Company's key territories, Italy and Spain, the share of
organic production totals 15.2% and 9.3% respectively.
Eden's Current Products and Technology
Sustaine ä - Microencapsulation Technology
Eden proposes to use part of the proceeds to actively develop
formulations with traditional chemical products using its Sustaine
ä microencapsulation technology. Following the Fundraise, it plans
to undertake trials to demonstrate the range of benefits that
Sustaine ä offers to potential partners.
By 2025 in the EU, pesticides containing synthetic polymer
microplastics are likely to be severely restricted or banned
entirely and removed from the market. The Directors believe that
the only acceptable alternative is the substitution with
biodegradable formulations. Reformulated products will likely need
to be evaluated and registered within the five-year transition
period.
Eden has developed a natural formulation technology,
Sustaine(TM) using particles derived from natural yeast cells. The
technology was originally developed as a drug delivery method for
human health applications before Eden adapted it for use in the
encapsulation of pesticides. By creating a stabilised aqueous
emulsion, Sustaine ä enables the formulation of pesticides using a
number of terpene based active ingredients which would not be
functional without being encapsulated. The encapsulation provides
for the sustained release of these ingredients when in contact with
water and closing once dry, enabling their safe, more efficient
use. The benefit of Sustaine ä is that it is cost effective, useful
for a wide range of active ingredients, plastic-free, high
capacity, robust, sustainable and facilitates reduced
phytotoxicity.
Sustaine ä is a proven and viable solution to the microplastics
problem in formulations requiring encapsulation. Even before the EU
regulation of microplastics, the Company has a small number of
projects underway where it is testing the compatibility of Sustaine
ä with third-party active ingredients to determine whether benefits
such as formulation stability, dose reduction or resistance
management could be achieved. However, the new, proposed
restriction of microplastic particles may open up a further,
significant opportunity for Eden to deploy its Sustaine ä
technology on a very large scale.
Mevalone ä - Fungicide Product
Eden's first biopesticide, Mevalone ä , is a fungicide used in
the prevention and treatment of botrytis in table and wine grapes,
as well as the control of powdery mildew on grapevines and, in
certain territories, the treatment of botrytis on a range of crops
ranging from kiwis to onions.
During 2016, Mevalone ä was approved and distribution was in
place to cover four southern European countries and Kenya. The
first commercial sales of Mevalone ä were made in the same year in
Kenya, Greece, Italy and Spain. Approval in France for table and
wine grapes followed in 2017. During 2018, the Company initiated
the approval process for Mevalone ä and the three associated active
substances (terpenes) with the US Environmental Protection Agency
(EPA) and currently expects to receive approval during 2020. It is
also currently undergoing the regulatory approval process in a
number of additional countries, including key wine growing regions
Australia and New Zealand.
In 2019, Mevalone ä received an emergency use authorisation in
France for the treatment of postharvest storage diseases on apples.
Over one third of apples produced in France go into storage, and it
is under storage conditions that a number of diseases can develop.
It has been demonstrated that Mevalone ä , when applied shortly
before harvest, is effective at combating storage diseases and that
the product provided a solution that met the requirements of
growers where there is a lack of suitable commercially available
alternatives.
The Company currently has distribution agreements for Mevalone ä
with Sipcam and Sumi Agro for the major territories. A full list of
the regulatory approvals for Mevalone ä can be found in the
Appendix to the Chairman's letter.
Cedroz ä - Nematicide Product
In addition to Mevalone ä , Eden has developed a nematicide
product which is used to tackle nematode infestations which can
damage crops and affect yield. Nematodes are parasites that affect
a wide range of crops grown in open fields and in greenhouses.
In 2016, Eden signed an exclusive distribution agreement with
Eastman Chemical for the nematicide product which has since been
branded Cedroz ä . Eastman acquired the rights to register and sell
Cedroz ä in 29 countries. Cedroz ä recently received its first
zonal approval from Malta in February 2019 and was granted approval
for emergency use in Italy in April 2019. It has since been
approved in Belgium and Mexico. Additional applications for Cedroz
ä have been made for certain larger markets such as Italy, Spain
and France. The Company also submitted an application for
registration to the EPA in the US in 2018. A full list of the
regulatory approvals for Cedroz ä can be found in the Appendix to
the Chairman's letter.
The Corteva Agreement
The Fundraise will allow the Company to capitalise on
opportunities arising from its relationship with Corteva
Agriscience. Eden signed an exclusive evaluation agreement with
Corteva Agriscience, the world's fourth largest agriculture input
company, in January 2020 . Significantly for Eden, regulatory
change led to the withdrawal of one of Corteva Agriscience's key
seed treatment in the EU. Initial trials by Corteva Agriscience
have shown strong results using Eden's products and formulation
technology. Eden's formulation technology has been shown to be
stable, environmentally friendly and complies with emerging EU
regulations concerning polymers.
Further trials will be undertaken under a one-year evaluation
agreement and, subject to the results, Corteva Agriscience and Eden
will look to sign a distribution agreement for the EU, Russia,
Ukraine and Turkey giving Eden the opportunity to capture a
significant share of this market. The Directors estimate that, if
successful, there is the opportunity to generate up to c. EUR40
million of revenue for Eden from European geographies alone
(current market) from this product.
Insecticide Opportunity
The Company intends to use a proportion of the proceeds to
pursue the registration and commercialisation of its first
insecticide product. The funding will enable a more efficient and
concurrent approach to registration as the Company will be able to
run efficacy trials in parallel, rather than in sequence, which are
necessary for regulatory product authorisations around the world.
By funding these trials directly, it is expected that Eden will be
able to fully control and ultimately commercially leverage its
intellectual property and product authorisations. The Company may
seek to appoint local distributors where appropriate, thereby
optimising and significantly simplifying the value chain resulting
in margin expansion.
The insecticide product will be an addition to the Company's
current suite of products, and follows an assessment of various new
product development opportunities, one of which addresses
significant unmet needs in the agrochemical insecticide market.
Using a combination of Eden's active ingredients, which are
registered in the EU already, and various co-formulants, Eden has
developed an effective insecticide product with good activity
against multiple key insect pests including whitefly, aphids,
thrips and mites, as proven in a number of Good Experimental
Practice standard field trials undertaken by well-known Contract
Research Organisations.
The Company has identified this market as having a strong need
for an effective alternative to conventional insecticides due to
strong consumer and regulatory pressure driven by persistence,
bio-accumulation, toxicity and susceptibility to resistance. To
open this significant market opportunity for Eden, the Company will
need to complete a number of further efficacy and safety trials in
target markets. The initial investment will target the highest
value markets such as mites in the highest value crops (citrus,
tree fruit and grapes).
Estimated Market Sizes
(EURm) Mites Whitefly Thrips Aphids Total
----------------------- -------- --------- ------- -------- --------
US EUR159m EUR5m EUR59m EUR107m EUR330m
Europe (incl. Turkey) EUR147m EUR97m EUR85m EUR192m EUR521m
Company estimates
Product Portfolio Expansion
For some time, the Company has been aware of potential
commercial opportunities in seed treatments and broad-acre crops.
To date, investment in developing products for these areas of
application has been limited due to general resource constraints.
However, given the success that the Company has seen with the
commercialisation of its existing products, it now wishes to
expedite development of these additional product areas.
The funds will be used to undertake laboratory screening,
formulation work and pot/field trials. This should, where
successful, allow Eden to bring these products to a stage where
they can be registered and commercialised through the Company's
distribution channels.
Company Strategy
The Company's near-term focus is to maximize the opportunity for
sales of its two approved products, Mevalone ä and Cedroz ä , the
use of Sustaine ä with third party active ingredients, the
exploitation of seed treatment opportunities with Corteva
Agriscience and the development of its insecticide product. The
Company continues to explore additional business line
diversification including ongoing work with Bayer Animal Health, as
well as potential for consumer product launches. In addition, the
Company will seek to expand the crops and diseases treated by its
products and will look to undertake further geographic
diversification (seasonal and climatic variation).
Use of Proceeds
The Directors intend to use the net proceeds from the
Fundraising of up to GBP10.0 million for the following
purposes:
-- GBP6.0 million to develop and commercialise the Company's
first insecticide product and seed treatments;
-- GBP2.0 million to develop use of Sustaine ä with traditional agrochemicals; and
-- GBP2.0 million to expand the Company's product portfolio in
seed treatments, broad-acre crops and the home and garden.
Current Trading and Prospects
On 14 January 2020, the Company provided a trading update for
the year ended 31 December 2019. The Company reported that revenue
for the year is expected to be approximately GBP2.0 million (2018:
GBP2.8 million) and operating loss for the year will be
approximately GBP1.4 million (2018: loss of GBP0.5 million), in
line with market expectations. The Company confirmed that GBP1.7
million of the GBP2.0 million of revenue was derived from product
sales (2018: GBP1.6 million), achieved despite unfavourable growing
conditions in the Southern EU, with milestone and upfront payments
making up the balance.
The well-publicised hot and dry growing conditions across
southern Europe during the peak 2019 growing season negatively
impacted the development of Botrytis and this resulted in
botryticide usage generally being impacted. Despite the resulting
overall contraction of the botryticide market, product sales
revenue increased as a whole compared to the previous year.
During 2020, the Company expects to build on the sales achieved
in the territories where it had approvals during 2019 as well as
seeing further sales from the territories where it announced new
approvals at the end of last year (Belgium and Mexico). In
addition, the Company expects to see sales arising from new
approvals for Cedroz ä in Spain, Italy, France, Belgium, the
Netherlands and the United Kingdom where the applications for
registrations have now been outstanding from the early part of 2019
and the constituent active ingredients are already approved.
The Company also currently expects approval during 2020 of
Mevalone ä and Cedroz ä from the EPA so that the products can be
sold into the United States. However, these will constitute
entirely new approvals and timing is harder to predict. Although
the Company might expect to see some level of channel stocking, the
overall levels of sales will depend in part on the timing during
the year when the approvals come through in relation to the growing
season.
Directors' participation, appointment rights and LTIP
Directors' participation in the Placing
As part of the Fundraise, certain Directors and their connected
persons intend to subscribe (either personally or through a
nominee) for an aggregate of 416,500 Placing Shares at the Issue
Price. Details of the Placing Shares for which the Directors intend
to subscribe (either personally or through a nominee) are displayed
below:
Number Value of
of Placing Placing
Shares Shares
Number intended intended
of existing to be to be
Ordinary subscribed subscribed
Name Title Shares(#) for(#) for(#)
Chief Executive
Sean Smith Officer 433,393 183,333 GBP 11,000
Chief Financial
Alex Abrey Officer 1,152,824 150,000 GBP9,000
Robin Cridland Non-Executive Director 47,000 83,167 GBP 4,990
# The number of Ordinary Shares presented in this table as being
held or subscribed for by Directors refers to the number of
Ordinary Shares held or subscribed for by them either personally or
through a nominee.
LTIP
It is proposed that, following First Admission and Second
Admission, the Company will implement a new long term incentive
plan (LTIP) to award the performance of the executive management
team. The new LTIP would replace the Company's existing LTIP, and
is deemed a more appropriate scheme to incentivise management given
the Company's stage of development. Pursuant to the new LTIP, the
Company will grant options over 10.5 million new Ordinary Shares in
Eden, at a strike price of 6p each, in the amounts of 6 million
awarded to Sean Smith and 4.5 million awarded to Alex Abrey. The
options will vest immediately and will lapse in three equal
tranches in June 2022, June 2023 and June 2024. For the first five
years following the grant of options, no shares arising from the
exercise of these options may be sold unless the Company's
prevailing share price is equal to or in excess of 10p. The LTIP
will include a net cashless mechanism whereby a number of shares
may be deducted from the participant's option pool upon exercise,
equivalent to half the exercise cost based on the prevailing market
price of Eden's Ordinary Shares, and provided the remaining
exercise cost is paid in cash. The shares arising from exercise of
options shall be subject to a one-year lock-in restriction,
followed by a one-year orderly market restriction. Further details
of the LTIP will be announced following First Admission and Second
Admission once formally implemented.
Director appointment right
As part of their placing participation of 58,333,000 Placing
Shares (amounting to approximately GBP3.5 million), BGF has been
granted the right to appoint a director to the board of the Company
for as long as it retains a minimum interest of five per cent. of
the issued share capital of the Company.
Details of the Placing and the Subscription
Eden is proposing to raise GBP9.1 million (before expenses)
pursuant to the Placing. The Placing has conditionally raised a
total of approximately GBP5.2 million through the placing of the
EIS/VCT Placing Shares and a total of approximately GBP3.9 million
through the placing of the General Placing Shares. Admission of the
Ordinary Shares to trading on AIM will occur over two Business Days
to assist investors in the EIS/VCT Placing Shares to claim certain
tax reliefs available to EIS and VCT investors.
Subject to, inter alia, the passing of the Resolutions at the
General Meeting, the EIS/VCT Placing Shares are expected to be
admitted to trading on or around on 19 March 2020, being one
Business Day prior to admission to trading on AIM of the General
Placing Shares and Subscription Shares, which are expected to be
admitted to trading on AIM or around 20 March 2020 . The allotment
of the EIS/VCT Placing Shares will be conditional on First
Admission occurring. The allotment of the General Placing Shares
will be conditional on Second Admission occurring. Shareholders and
potential investors should be aware of the possibility that the
First Admission and Second Admission may not occur.
Although the Company currently expects to satisfy the relevant
conditions for EIS/VCT Placing Shares, and the Directors are not
aware of any subsequent change in the qualifying conditions or the
Company's circumstances that would prevent the EIS/VCT Placing
Shares from being eligible for EIS and VCT investments on this
occasion, neither the Directors nor the Company, nor Cenkos, nor
any of their respective directors, officers, employees, affiliates
or advisers give any warranty or undertaking or other assurance
that relief will be available in respect of any investment in the
EIS/VCT Placing Shares, nor do they warrant or undertake or
otherwise give any assurance that the Company will conduct its
activities in a way that qualifies for or preserves its status.
As the rules governing EIS and VCT reliefs are complex and
interrelated with other legislation, if Shareholders, or other
potential investors, are in any doubt as to their tax position,
require more detailed information, or are subject to tax in a
jurisdiction other than the United Kingdom, they should consult
their professional adviser.
In addition, Eden has entered into a conditional Subscription
Agreement with Sipcam, one of its commercial partners, pursuant to
which Sipcam will subscribe for 16,666,500 new Ordinary Shares
conditional on passing the resolutions at the General Meeting and
Second Admission. The Issue Price of 6 pence per share equates to a
discount of 23.8 per cent. to the closing price of 7.88 pence on 27
February 2020, the latest Business Day prior to publication of this
announcement.
The Placing Shares and Subscription Shares will represent
approximately 44 per cent. of the Enlarged Share Capital (on the
assumption that the maximum number of Placing Shares and
Subscription Shares are issued pursuant to the Placing and
Subscription and that the Open Offer is fully subscribed). The New
Ordinary Shares will, following each of the First Admission and the
Second Admission, rank in full for all dividends and distributions
declared, made or paid in respect of the issued Ordinary Share
capital of the Company after the date of their respective issue and
will otherwise rank equally in all other respects with the Existing
Ordinary Shares.
The Placing and Open Offer Agreement
Pursuant to the terms of the Placing and Open Offer Agreement,
Cenkos Securities has conditionally agreed to use its reasonable
endeavours, as agent for the Company, to place the Placing Shares
with certain institutional and other investors. The Placing, the
Subscription and the Open Offer have not been underwritten.
The Placing and Open Offer Agreement is conditional upon, inter
alia:
-- Resolutions 1 and 2 being passed without amendment at the General Meeting;
-- compliance by the Company in all material respects with its
obligations under the Placing Agreement; and
-- with respect to the issue of the General Placing Shares only,
Second Admission becoming effective by not later than 8.00 a.m. on
20 March 2020 (or such later date as is agreed between the Company
and Cenkos, being not later than 8.00 a.m. on the Long Stop
Date).
The Placing and Open Offer Agreement contains warranties from
the Company in favour of Cenkos Securities in relation to, inter
alia, the accuracy of the information in this announcement and
other matters relating to the Group and its business. In addition,
the Company has agreed to indemnify Cenkos Securities in relation
to certain liabilities it may incur in respect of the Fundraise.
Cenkos has the right to terminate the Placing and Open Offer
Agreement in certain circumstances prior to First Admission and/or
Second Admission, in particular, in the event of a breach of the
warranties given to Cenkos in the Placing and Open Offer Agreement,
the failure of the Company to comply in any material respect with
its obligations under the Placing and Open Offer Agreement, the
occurrence of a force majeure event or a material adverse change
affecting the condition, or the earnings, management business,
affairs, solvency or prospects of the Group as a whole.
Details of the Open Offer
Eden is proposing to raise up to approximately GBP0.5 million
(before expenses) pursuant to the Open Offer. The Issue Price per
Open Offer Share equates to a discount of 23.9 per cent. to the
closing price of 7.88 pence on 27 February 2020, the latest
Business Day prior to publication of this announcement. All
Qualifying Shareholders are being given the opportunity to
participate in the Open Offer.
The Open Offer provides Qualifying Shareholders with the
opportunity to apply to acquire Open Offer Shares at the Issue
Price pro rata to their holdings of Existing Ordinary Shares as at
the Record Date on the following basis:
1 Open Offer Share for every 25 Existing Ordinary Shares
Entitlements to apply to acquire Open Offer Shares will be
rounded down to the nearest whole number and any fractional
entitlement to Open Offer Shares will be disregarded in calculating
the Basic Entitlement. Qualifying Shareholders who do not take up
their Basic Entitlements in full will experience a dilution to
their interests of approximately 43.86 per cent. following Second
Admission (assuming full subscription under the Placing,
Subscription and the Open Offer).
Qualifying Shareholders should note that the Open Offer Shares
have neither been placed under the Placing subject to clawback
under the Open Offer nor have they been underwritten, and that
neither the Placing nor the Subscription is conditional upon the
number of applications received under the Open Offer.
Further details of the Open Offer and the application process
relating to the Open Offer are set out in the Circular.
General Meeting
The Directors do not currently have authority to allot all of
the New Ordinary Shares and, accordingly, the Board is seeking the
approval of Shareholders to allot the New Ordinary Shares at the
General Meeting.
A notice convening the General Meeting, which is to be held at
the offices of DAC Beachcroft LLP, 25 Walbrook, London EC4N 8AF at
11.00 a.m. on 18 March 2020, will be set out at the end of the
Circular. At the General Meeting, the following Resolutions will be
proposed:
-- Resolution 1, which is an ordinary resolution, to authorise
the Directors to allot relevant securities for cash up to an
aggregate nominal amount of GBP1,766,209 being equal to 176,620,907
New Ordinary Shares (i.e. the maximum number of New Ordinary Shares
available under the Placing, Subscription and Open Offer); and
-- Resolution 2, which is conditional on the passing of
Resolution 1 and is a special resolution, to authorise the
Directors to allot 176,620,907 New Ordinary Shares for cash
pursuant to the Placing, Subscription and Open Offer on a
non-pre-emptive basis.
The authorities to be granted pursuant to the Resolutions will
expire on whichever is the earlier of (a) the conclusion of the
next Annual General Meeting of the Company; and (b) the date
falling six months from the date of the passing of the Resolutions
(unless renewed, varied or revoked by the Company prior to or on
that date) and shall be in addition to the Directors' authorities
to allot relevant securities and dis-apply statutory pre-emption
rights granted at the Company's Annual General Meeting held on 14
May 2019.
For the purposes of section 571(6)(c) of the Act, the Directors
determined the Issue Price after consideration of applicable market
and other considerations and having taken appropriate professional
advice.
Shareholders will find accompanying the Circular a Form of Proxy
for use in connection with the General Meeting. The Form of Proxy
should be completed and returned in accordance with the
instructions thereon so as to be received by Link Asset Services,
The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU, as soon
as possible and in any event not later than two Business Days
before the time of the General Meeting. Completion and return of
the Form of Proxy will not prevent a Shareholder from attending and
voting at the General Meeting.
Recommendation
The Directors believe the Placing, Subscription and the Open
Offer and the passing of the Resolutions to be in the best
interests of the Company and its Shareholders as a whole.
Accordingly, the Directors unanimously recommend Shareholders to
vote in favour of the Resolutions as they intend so to do in
respect of their beneficial shareholdings amounting to 1,991,717
Ordinary Shares, representing approximately 1 per cent. of the
existing issued ordinary share capital of the Company.
As the Placing and Subscription and Open Offer are conditional,
inter alia, upon the passing by Shareholders of the Resolutions at
the General Meeting, Shareholders should be aware that, if the
Resolutions are not passed and First Admission and Second Admission
do not take place, the proceeds of the Placing and Subscription
will not be received by the Company. In addition, the Open Offer
will not proceed. Whilst the Company has sufficient working capital
on its current business plan to fund its operations for the next 12
months, it is expected to remain loss making in the near term as it
funds the development and commercialisation of new products. If the
proceeds of the Fundraising are not received, the Company would
need to pursue additional or alternative funding sources in the
next 12 months. There would be no certainty of the terms under
which alternative financing would be made available or at all.
DEFINITIONS
Act the Companies Act 2006 (as amended)
AIM the market of that name operated by the London
Stock Exchange
AIM Rules the AIM Rules for Companies published by the
London Stock Exchange from time to time
Application Form the application form relating to the Open Offer
which accompanies the Circular (in the case
of Qualifying Non-CREST Shareholders only)
Basic Entitlement the number of Open Offer Shares which Qualifying
Shareholders are entitled to subscribe for
at the Issue Price pro rata to their holding
of Existing Ordinary Shares pursuant to the
Open Offer as described in Part III of the
Circular
Business Day a day (other than a Saturday or Sunday) on
which commercial banks are open for general
business in London, England
Cenkos or Cenkos Securities Cenkos Securities plc
certificated form or an Ordinary Share recorded on a company's share
in register as being
certificated form held in certificated form (namely, not in CREST)
Company or Eden Eden Research plc, a company incorporated and
registered in England and Wales under the Companies
Act 2006 with registered number 03071324
CREST the relevant system (as defined in the CREST
Regulations) in respect of which Euroclear
is the operator (as defined in those regulations)
CREST Manual the rules governing the operation of CREST,
consisting of the CREST Reference Manual, CREST
International Manual, CREST Central Counterparty
Service Manual, CREST Rules, Registrars Service
Standards, Settlement Discipline Rules, CREST
Courier and Sorting Services Manual, Daily
Timetable, CREST Application Procedures and
CREST Glossary of Terms (all as defined in
the CREST Glossary of Terms promulgated by
Euroclear on 15 July 1996 and as amended since)
as published by Euroclear
CREST member a person who has been admitted to CREST as
a system-member (as defined in the CREST Manual)
CREST member account the identification code or number attached
ID to a member account in CREST
CREST participant a person who is, in relation to CREST, a system-participant
(as defined in the CREST regulations)
CREST participant ID shall have the meaning given in the CREST Manual
issued by Euroclear
CREST payment shall have the meaning given in the CREST Manual
issued by Euroclear
CREST Regulations the Uncertificated Securities Regulations 2001
(SI 2001/3755) (as amended)
CREST sponsor a CREST participant admitted to CREST as a
CREST sponsor
CREST sponsored member a CREST member admitted to CREST as a sponsored
member
Dealing Day a day on which the London Stock Exchange is
open for business in London
Directors or Board the directors of the Company whose names are
set out in the Circular, or any duly authorised
committee thereof
EIS enterprise investment scheme
EIS/VCT Placing the Placing Shares to be issued under the Placing
and either (i) in respect of which EIS relief
is to be claimed; or (ii) constituting a qualifying
holding for VCT purposes
EIS/VCT Placing Shares the 86,182,500 new Ordinary Shares to be issued
and allotted to the Placees pursuant to the
EIS/VCT Placing
Enlarged Share Capital the entire issued share capital of the Company
following completion of the Placing, Subscription
and Open Offer following First Admission and
Second Admission
EU the European Union
Euroclear Euroclear UK & Ireland Limited, the operator
of CREST
Excess Application Facility to the extent that Basic Entitlements to Open
Offer Shares are not subscribed for by Qualifying
Shareholders in full, such Open Offer Shares
will be available to satisfy excess applications,
subject to a maximum of 8,287,573 Open Offer
Shares in aggregate, as described in Part III
of the Circular
Excess CREST Open Offer in respect of each Qualifying CREST Shareholder
Entitlement who has taken up his Basic Entitlement in full,
the entitlement to apply for Open Offer Shares
in addition to his Basic Entitlement credited
to his stock account in CREST, pursuant to
the Excess Application Facility, which may
be subject to scaling back in accordance with
the provisions of the Circular
Excess Entitlements the entitlement for Qualifying Shareholders
to apply to acquire any number of Open Offer
Shares subject to the limit on applications
under the Excess Application Facility, as described
in Part III of the Circular
Excess Shares Open Offer Shares applied for by Qualifying
Shareholders in accordance with the Excess
Application Facility
Ex-entitlement Date the date on which the Existing Ordinary Shares
are marked "ex" for entitlement under the Open
Offer, being 2 March 2020
Existing Ordinary Shares the 207,189,337 Ordinary Shares in issue at
the date of this announcement, all of which
are admitted to trading on AIM
FCA the UK Financial Conduct Authority
FDA the US Food and Drug Administration
First Admission the admission to trading on AIM of the EIS/VCT
Placing Shares
Form of Proxy the form of proxy for use in connection with
the General Meeting which accompanies the Circular
FSMA the Financial Services and Markets Act 2000
(as amended)
Fundraise the Placing, Subscription and the Open Offer
General Meeting the general meeting of the Company to be held
at the offices of DAC Beachcroft LLP, 25 Walbrook,
London EC4N 8AF at 11.00 a.m. on 18 March 2020
(or any adjournment of that general meeting),
notice of which is set out at the end of the
Circular
General Placing the General Placing Shares to be issued under
the Placing other than (i) in respect of which
EIS relief is to be claimed; or (ii) constituting
a qualifying holding for VCT purposes
General Placing Shares the 65,484,334 New Ordinary Shares to be issued
and allotted to the Placees pursuant to the
General Placing and which do not constitute
EIS/VCT Shares
Group the Company and its subsidiaries
HMRC Her Majesty's Revenue and Customs (which shall
include its predecessors, the Inland Revenue
and HM Customs and Excise)
ISIN International Securities Identification Number
Issue Price 6 pence per Placing Share, Subscription Share
and per Open Offer Share
Link Asset Services a trading name of Link Market Services Limited
or Link
London Stock Exchange London Stock Exchange plc
Long Stop Date 2 April 2020
Money Laundering Regulations The Money Laundering, Terrorist Financing and
Transfer of Funds (Information on the Payer)
Regulations 2017, the Criminal Justice Act
1993 and the Proceeds of Crime Act 2002
New Ordinary Shares together, the Placing Shares, the Subscription
Shares and the Open Offer Shares
Notice of General Meeting the notice convening the General Meeting which
is set out at the end of the Circular
Open Offer the conditional invitation made to Qualifying
Shareholders to apply to subscribe for the
Open Offer Shares at the Issue Price on the
terms and subject to the conditions set out
in Part III of the Circular and, where relevant,
in the Application Form
Open Offer Entitlement the entitlement of Qualifying Shareholders
to subscribe for Open Offer Shares allocated
to Qualifying Shareholders on the Record Date
pursuant to the Open Offer
Open Offer Shares up to 8,287,573 new Ordinary Shares being made
available to Qualifying Shareholders pursuant
to the Open Offer
Ordinary Shares ordinary shares of GBP0.01 each in the capital
of the Company
Overseas Shareholders a Shareholder with a registered address outside
the United Kingdom
Placee the subscribers for the Placing Shares pursuant
to the Placing
Placing the EIS/VCT Placing and General Placing
Placing Shares the EIS/VCT Placing Shares and the General
Placing Shares
Prospectus Regulation the EU Prospectus Regulation (Regulation (EU)
2017/1129) in relation to offers of securities
to the public and the admission of securities
to trading on a regulated market
Qualifying CREST Shareholders Qualifying Shareholders holding Existing Ordinary
Shares in a CREST account
Qualifying Non-CREST Qualifying Shareholders holding Existing Ordinary
Shareholders Shares in certificated form
Qualifying Shareholders holders of Existing Ordinary Shares on the
register of members of the Company at the Record
Date (but excluding any Overseas Shareholder
who has a registered address in the United
States or any other Restricted Jurisdiction)
Receiving Agents Link Asset Services
Record Date 6.00 p.m. on 27 February 2020 in respect of
the entitlements of Qualifying Shareholders
under the Open Offer
Regulatory Information has the meaning given in the AIM Rules for
Service Companies
Resolutions the resolutions set out in the Notice of General
Meeting
Restricted Jurisdiction each and any of Australia, Canada, Japan, New
Zealand, the Republic of South Africa or the
United States and any other jurisdiction where
the Offer would breach any applicable law or
regulations
Second Admission the admission to trading on AIM of the General
Placing Shares
Shareholders holders of Ordinary Shares
Sipcam S.I.P.C.A.M. Societa Italiana Prodotti Chimici
per l'Agricoltura Milano S.P.A.
Subscription the Subscription by Sipcam for the Subscription
Shares
Subscription Shares the 16,666,500 new Ordinary Shares to be subscribed
pursuant to the Subscription
UK or United Kingdom the United Kingdom of Great Britain and Northern
Ireland
Uncertificated or Uncertificated recorded on the relevant register or other
form record of the shares or other security concerned
as being held in uncertificated form in CREST,
and title to which, by virtue of the CREST
Regulations, may be transferred by means of
CREST
US Person has the meaning given in the United States
Securities Act 1933 (as amended)
VCT Venture Capital Trust
voting rights means all voting rights attributable to the
share capital of the Company which are currently
exercisable at a general meeting
GBP and p United Kingdom pounds sterling and pence respectively,
the lawful currency of the United Kingdom
EXPECTED TIMETABLE OF PRINCIPAL EVENTS
Record Date for the Open Offer 6.00 p.m. on 27 February
2020
Announcement of the Placing, Subscription 28 February
and the Open Offer, 2020
Publication and posting of the Circular, 2 March 2020
Form of Proxy and to Qualifying Non-CREST
shareholders only, the Application Form
Existing Ordinary Shares marked "ex" 8.00 a.m. on 2 March 2020
by the London Stock Exchange
Open Offer Entitlements and Excess Open 3 March 2020
Offer Entitlements credited to stock
accounts in CREST of Qualifying CREST
Shareholders
Recommended latest time and date for 4.30 p.m. on 11 March 2020
requesting withdrawal of Open Offer Entitlements
from CREST
Latest time and date for depositing Open 3.00 p.m. on 12 March 2020
Offer Entitlements and Excess CREST Open
Offer Entitlements in CREST
Latest time and date for splitting Application 3.00 p.m. on 13 March 2020
Forms (to satisfy bona fide market claims
only)
Latest time and date for receipt of completed 11.00 a.m. 16 March 2020
Forms of Proxy on
Record time and date for entitlement Close of business 16 March 2020
to vote at the General Meeting on
Latest time and date for receipt of completed 11.00 a.m. 17 March 2020
Application Forms and payment in full on
under the Open Offer or settlement of
relevant CREST instruction (as appropriate)
General Meeting 11.00 a.m. 18 March 2020
on
Announcement of result of General Meeting 18 March 2020
and the Open Offer
First Admission and commencement of dealings 8.00 a.m. on 19 March 2020
in the EIS/VCT Shares on AIM
Second Admission and commencement of 8.00 a.m. on 20 March 2020
dealings in the General Placing Shares,
the Subscription Shares and the Open
Offer Shares on AIM
New Ordinary Shares credited to CREST 19 March 2020
members' accounts in respect of the EIS/VCT
Shares
New Ordinary Shares credited to CREST 20 March 2020
members' accounts in respect of General
Placing Shares, the Subscription Shares
and the Open Offer Shares
Despatch of definitive share certificates by 26 March 2020
in certificated form
APPIX
Mevalone ä Regulatory Approval Log
Mevalone Registration Crops Regulatory Estimated Distributor
ä Territory Details position Market size
(EURm)
-------------------- ----------------------- ---------------- --------------- ---------------
France Apples, Apples Emergency 0.5 Sumi Agro
storage use approval
diseases
-------------------- ----------------------- ---------------- --------------- ---------------
France Botrytis Table grapes, Approved 51.7 Sumi Agro
in field Wine Grapes
-------------------- ----------------------- ---------------- --------------- ---------------
Malta Botrytis Table Grape, Approved <0.5 Sipcam
in field Wine grape
-------------------- ----------------------- ---------------- --------------- ---------------
Bulgaria Botrytis Table Grape, Approved 1.1 KNE Certis
in Field Wine grape
-------------------- ----------------------- ---------------- --------------- ---------------
Cyprus Botrytis Table Grape, Approved <0.5 KNE / Coststas
in field Wine grape Christodoulou
-------------------- ----------------------- ---------------- --------------- ---------------
Cyprus Minor Use Aubergine, Approved <0.5 KNE / Coststas
- Botrytis Kiwi, Pomegranate, Christodoulou
in field Spring onion
and glasshouse
-------------------- ----------------------- ---------------- --------------- ---------------
Portugal Botrytis Table Grape, Approved 1.2 Sipcam
in field Wine grape
-------------------- ----------------------- ---------------- --------------- ---------------
Italy Botrytis Table grape Approved 30.5 Sipcam
in open and Wine
field grape
-------------------- ----------------------- ---------------- --------------- ---------------
Italy Emergency Kiwi Emergency <0.5 Sipcam
Use Authorisations authorization
- botrytis period from
in field 18 June 2019
to 15 October
2019
-------------------- ----------------------- ---------------- --------------- ---------------
Italy Emergency STRAWBERRY Emergency 19.5 Sipcam
Use Authorisations AND SMALL authorization
- botrytis FRUITS (blackberries, period from
in field wild blackberries, 8 April 2019
and glasshouse raspberries, to 5 August
blueberries, 2019 (2)
American
giant blueberries,
currants,
gooseberries,
rose hips,
mulberries,
blueberries,
elderberries,
other berries)
-------------------- ----------------------- ---------------- --------------- ---------------
Italy Emergency Pomegranate Emergency <0.5 Sipcam
Use Authorisations authorization
- botrytis period from
in field 8 April 2019
to 5 August
2019 (2)
-------------------- ----------------------- ---------------- --------------- ---------------
Kenya Botrytis Squash, French Approved <0.5 Lachlan
in field Beans
and glasshouse
-------------------- ----------------------- ---------------- --------------- ---------------
Kenya Powdery Roses, Snow Approved 2.8 Lachlan
mildew and Peas
botrytis
in field
and glasshouse
-------------------- ----------------------- ---------------- --------------- ---------------
Spain Botrytis Table grape Approved 14.0 Sipcam
and control and wine
of powdery grapes
mildew
-------------------- ----------------------- ---------------- --------------- ---------------
Greece, Botrytis Table grapes, Approved 3.7 Efthymiadis
Balkans in field wine grapes
and glasshouse
-------------------- ----------------------- ---------------- --------------- ---------------
Greece, Minor Use Aubergines, Approved 5.4 Efthymiadis
Balkans - Botrytis kiwis, pomegranates
in field and spring
and glasshouse onions.
-------------------- ----------------------- ---------------- --------------- ---------------
FYROM Botrytis Table grapes, Approved <0.5 Efthymiadis
in field wine grapes
-------------------- ----------------------- ---------------- --------------- ---------------
FYROM Minor Use Aubergines, Approved <0.5 Efthymiadis
- Botrytis kiwis, pomegranates
in field and spring
and glasshouse onions.
-------------------- ----------------------- ---------------- --------------- ---------------
Albania Botrytis Table grapes, Approved <0.5 Efthymiadis
in field wine grapes
-------------------- ----------------------- ---------------- --------------- ---------------
Albania Minor Use Aubergines, Approved <0.5 Efthymiadis
- Botrytis kiwis, pomegranates
in field and spring
and glasshouse onions.
-------------------- ----------------------- ---------------- --------------- ---------------
Australia Botrytis Grapes Submitted <0.5 Sipcam
in field
-------------------- ----------------------- ---------------- --------------- ---------------
New Zealand Botrytis Grapes TBC 6.9 Sipcam
in field
-------------------- ----------------------- ---------------- --------------- ---------------
United States Botrytis Grapes Submitted 12.6 Eastman
in field to EPA
-------------------- ----------------------- ---------------- --------------- ---------------
Benelux Botrytis Grapes Dossier being Grape <0.5 Sipcam
in field finalised Other crops
for submission - 4.9
in 2020
-------------------- ----------------------- ---------------- --------------- ---------------
Germany Fungicide Grapes and Dossier being Grape Botrytis SumiAgro
and Poland for grapes Apples finalised - 14.0
and three and treatment for submission Apples -
other central of storage in 2020 0.1
European diseases
markets on apples
-------------------- ----------------------- ---------------- --------------- ---------------
Serbia Botrytis Table grape Submitted <0.5 KNE Certis
in field and wine 2019
grapes
-------------------- ----------------------- ---------------- --------------- ---------------
Romania Botrytis Table grape Submitted 1.3 KNE Certis
in field and wine 2019
grapes
-------------------- ----------------------- ---------------- --------------- ---------------
Cedroz ä Regulatory Approval Log
Cedroz Registration Crops Regulatory Estimated Distributor
ä details position Market
Territory size (EURm)
----------------- ------------------------------- ---------------- ------------- ------------
Malta Nematodes in cucurbitaceous Approved <0.5 Eastman
open fields and (cucumbers,
glasshouse for courgettes,
wide range of melons, pumpkins,
crops watermelons),
fruiting vegetables
(aubergine,
pepper, sweet
pepper, chili,
pepino), strawberries
----------------- ------------------------------- ---------------- ------------- ------------
Mexico Nematodes in Tomatoes, potato, Approved 4.8 Eastman
open fields and pepper, eggplant,
glasshouse for melon, watermelon,
wide range of cucumber, pumpkin,
crops chayote squash
----------------- ------------------------------- ---------------- ------------- ------------
Belgium Nematodes in strawberries Approved <0.5 Eastman
greenhouses for (production
wide range of field), strawberries
crops (selection
and multiplication
field), tomatoes,
bell pepper,
Spanish pepper,
aubergine/eggplant
and pepino,
cucumber, courgette/patisson,
melon, pumpkin
----------------- ------------------------------- ---------------- ------------- ------------
Italy Nematodes open tomato, peppers, Emergency 30.6 Eastman
field and in eggplant, chili, Approval
greenhouses melon, watermelon,
pumpkin, cucumber,
courgette,
strawberries
----------------- ------------------------------- ---------------- ------------- ------------
Spain Nematodes open tomato, peppers, Submitted 14.4 Eastman
fields and in eggplant, chili, and Pending
greenhouses melon, watermelon,
pumpkin, cucumber,
courgette,
strawberries
----------------- ------------------------------- ---------------- ------------- ------------
USA Nematodes open Fruiting Vegetables: Submitted 83.0 Eastman
fields and in Eggplant, Okra, and Pending
greenhouses Pepper, Tomato
Cucurbit
Vegetables:
Cantaloupe,
Cucumber, Muskmelon,
Pumpkin, Squash,
Watermelon,
Zucchini
----------------- ------------------------------- ---------------- ------------- ------------
United Nematodes in tomato, (sweet) Submitted <0.5 Eastman
Kingdom greenhouses. peppers, eggplant, and Pending
chili, pepino,
melon, pumpkin,
cucumber, courgette,
strawberries
----------------- ------------------------------- ---------------- ------------- ------------
Netherlands Nematodes in strawberries, Submitted 0.6 Eastman
greenhouses. Cucurbitaceae and pending
(edible peel), (decision
Cucurbitaceae expected
(not edible imminently)
peel), Solanaceae
----------------- ------------------------------- ---------------- ------------- ------------
France Nematodes in tomato, peppers, Submitted 5.0 Eastman
greenhouses eggplant, chili, and Pending
melon, pumpkin,
cucumber, courgette,
strawberries
----------------- ------------------------------- ---------------- ------------- ------------
Greece Nematodes open tomato, peppers, Dossier 3.2 Eastman
fields and in eggplant, chili, prepared
greenhouses melon, watermelon,
pumpkin, cucumber,
courgette,
strawberries
----------------- ------------------------------- ---------------- ------------- ------------
Portugal Nematodes open tomato, peppers, Dossier 1.9 Eastman
fields and in eggplant, chili, submitted
greenhouses melon, watermelon, and pending
pumpkin, cucumber,
courgette,
strawberries
----------------- ------------------------------- ---------------- ------------- ------------
Morocco Nematodes open tomato, peppers, In progress 6.3 Eastman
fields and in eggplant, chili,
greenhouses melon, watermelon,
pumpkin, cucumber,
courgette,
strawberries,
(raspberry
and green bean)
----------------- ------------------------------- ---------------- ------------- ------------
Costa Rica Nematodes open tomato, melon, Trials 0.4 Eastman
fields potato, peppers done. Dossier
being prepared
----------------- ------------------------------- ---------------- ------------- ------------
Guatemala, Nematodes open tomato, melon, In progress 0.9 Eastman
fields potato, peppers
----------------- ------------------------------- ---------------- ------------- ------------
Honduras Nematodes open tomato, melon, In progress <0.5 Eastman
fields potato, peppers
----------------- ------------------------------- ---------------- ------------- ------------
Israel Nematodes open Multiple, TBC In progress TBC Eastman
fields
----------------- ------------------------------- ---------------- ------------- ------------
The information contained within this announcement (the
"Announcement") is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014. Upon the publication of this Announcement via
Regulatory Information Service, this inside information is now
considered to be in the public domain.
For further information contact:
Eden Research plc www.edenresearch.com
Sean Smith
Alex Abrey 01285 359 555
Cenkos Securities (Nominated advisor and
broker)
Giles Balleny / Cameron MacRitchie (corporate
finance)
Michael Johnson (sales) 020 7397 8900
Hawthorn Advisors (Financial PR)
Lorna Cobbett eden@hawthornadvisors.com
Jana Tsiligiannis
Notes:
Eden Research is an AIM quoted company that develops and
supplies breakthrough biopesticide products and natural
microencapsulation technologies to the global crop protection,
animal health and consumer products industries
Eden's Sustaine encapsulation technology harnesses the biocidal
efficacy of naturally occurring chemicals produced by plants
(terpenes) and can be used with both natural and synthetic
compounds to enhance their performance and ease-of-use.
Sustaine microcapsules are naturally derived, plastic-free,
biodegradable micro-spheres derived from yeast extract. They
produce stabilised aqueous suspensions which, are easy to mix and
apply, have phased release patterns, are safer for the environment
and the crops themselves.
The European Chemicals Agency (ECHA) has proposed an EU-wide
restriction on the placing on the market or use of
"intentionally-added" microplastic particles. The proposed
restriction includes the use of microplastics for agricultural and
horticultural purposes, including polymers utilized for
controlled-release fertilizers, encapsulated plant protection
products (PPPs), seed coatings, and biocides.
By 2025 in the EU, pesticides containing synthetic polymer
microplastics are likely to be banned and removed from the market.
The only acceptable alternative is the substitution with
biodegradable formulations. Reformulated products will need to be
evaluated and registered within the five-year transition
period.
Sustaine is one of the only viable, proven and immediately
registerable solutions to the microplastics problem in formulations
requiring encapsulation.
Historically, terpenes have had limited commercial use in the
agrochemical sector due to their volatility, phytotoxicity and poor
solubility. Sustaine provides a unique, environmentally friendly
solution to these problems and enables terpenes to be used as
effective, low-risk agrochemicals.
Eden is developing these technologies through innovative
research and a series of commercial production, marketing and
distribution partnerships.
The Company has a number of patents and a pipeline of products
at differing stages of development targeting specific areas of the
global agrochemicals industry. To date, the Company has invested in
the region of GBP14m in developing and protecting its intellectual
property and seeking regulatory approval for products that rely
upon the Company's technologies. Revenues earned by the Company
have been modest whilst the Company has concentrated on securing
patent protection for its intellectual property, gaining regulatory
approvals, identifying suitable industrial partners, and entering
into commercial agreements.
In May 2013, the three actives that comprise Eden's first
commercial product, Mevalone, were approved as new ingredients for
use in plant protection products by the European Commission ("EC").
This represented a major milestone in the commercialisation of
Eden's technology and is a significant accomplishment for any
company. To illustrate this point, one should note that in 2013,
Eden's approvals represented 3 of only 10 new active ingredients
approved by the EC.
Mevalone is a foliar fungicide which has been authorised for
sale in Kenya, Malta, Greece, Bulgaria,
Spain, Italy, France, Cyprus, Albania, Portugal and
Macedonia.
Cedroz is a nematicide which has been authorised for sale in
Malta, Belgium and Mexico.
Eden was admitted to trading on AIM on 11 May 2012 and trades
under the symbol EDEN.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IOESESFDAESSEDE
(END) Dow Jones Newswires
February 28, 2020 08:35 ET (13:35 GMT)
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