News Archive
(Amendment) Trading Update/ Proposed Move to Aim, etc.
ISSUER AMENDMENT TO ANNOUNCEMENT RELEASED AT 02:04PM on 24/05/2004
- Dr Ostroff was formally employed by Biopolymer Engineering BEI Pharma and is not Technical Officer. The technology was licensed direct from Dr Gary Ostroff. -
AMENDMENT TO ANNOUNCEMENT RELEASED ON 24TH MAY 2004. (ANNOUCEMENT RELEASED EARLIER TODAY TO BE DIREGARDED)
CORRECTIONS:
Dr Ostroff was formally employed by Biopolymer Engineering BEI Pharma and is not Technical Officer. The technology was licensed direct from Dr Gary Ostroff.
EDEN RESEARCH PLC REPORTS STRONG FIELD RESULT AND OBTAINS LICENCE TO USE INNOVATIVE DELIVERY TECHNOLOGY FOR UNIQUE TERPENE ANTI MICROBIAL FORMULATION
Overview:
- Positive results from soil fumigation trials in California
- Licence obtained to use new delivery technology for application of terpenes
- Experienced scientific advisory board formed to fast track development work
- Migration to the Alternative Investment Market proposed
Eden Research plc, the agrochemical and pharmaceutical company, has received positive preliminary results from field trials for its natural soil fumigation product, which have shown up to a 98% success rate in the eradication of nematodes (plant parasitic worms). The trials, undertaken in California, place Eden's natural product in line with the effectiveness of methyl bromide (currently used for the elimination of soil pathogens such as nematodes), which due to toxicity concerns is soon to be phased out by US governmental legislation.
The Company has focused on eliminating nematodes, which are considered to be the most significant soil pathogens in the agricultural sector, with the annual US market estimated to be in excess of $1 billion. Refinement of Eden's natural product to work effectively in various types of soils will extend its already considerable potential in the vast agricultural industry. The Company is also in the late stages of negotiation with two separate major distribution companies which cover the whole of the Californian territory.
Tim Griffiths Chief Executive Officer of Eden said: "These are great results which prove that our products now have the ability to not only compete with existing pesticides but can provide a completely natural replacement. The methyl bromide market is vast, so with our alternative we feel that through established distribution partners we will be able to generate significant revenues."
Eden has also been granted a licence from Dr Gary Ostroff for the use of an innovative delivery technology relevant to its current terpene-based natural products for agricultural applications. Allowing terpenes to be delivered as a slow-release powder formulation, it was developed by Dr. Gary Ostroff, formally employed Biopolymer Engineering BEI Pharma Inc. This represents an exciting technical advance and opens a significant new market for Eden in the treatment of the worldwide agricultural problems such as powdery and downy mildew, which cause millions of dollars of damage to crops in the US alone. Applications of this technology also extend to Eden's vision for the potential use of its natural antimicrobials in the healthcare and consumer markets.
In addition, Dr Gary Ostroff has accepted an invitation to join the Company's newly formed Scientific Advisory Board (SAB). Gary is a microbiologist with over 19 years of research and development (R&D) experience in the biopharmaceutical, functional food and dietary supplement industries. He will be working alongside the leading plant pathologist Professor CJ Chang of the University of Georgia (US) and the respected molecular microbiologist Professor Paul Williams of the University of Nottingham (UK).
Professor Chang, an opinion leader in the field of Pierce's disease, has performed advanced research on the use of terpenes to treat vineyards affected by this devastating plant condition. Professor Williams, director of the Institute of Infection, Immunity and Inflammation at Queen's Medical Centre, offers in-depth expertise on antimicrobial agents for human and agricultural applications. The board will formally meet quarterly but each member will be supervising individual projects.
Tim Griffiths continued: "The licensing of the powder delivery technology to Eden allows us to participate competitively in the lucrative agricultural market. Establishing the SAB will also enhance our ability to service this sector and we are delighted that such eminent scientists have agreed to join us. They will enable us to not only fast track our existing research projects but also open up new avenues to expand our product offering."
The Company has also signed a joint venture agreement with Soyad Brothers Textile Corporation for the supply of anti-microbial compounds for the effective treatment of fibres used in textiles. Soyad is one of the major original equipment manufacturers (OEM) of high quality socks for thousands of distributors across the US, Canada and Mexico. They specialise in manufacturing sports wear for both professional and school sports teams. Eden will receive a 10% royalty on anti-microbial compound sales and an additional 5% commission on business introduced by Eden to the joint venture.
The directors of Eden have decided to seek Admission to the London Stock Exchange's Alternative Investment Market (AIM). As part of the preparatory steps for an AIM listing the Company has agreed to convert the majority of debt on the balance sheet as shown in the last accounts into new shares at today's price, which means a debt conversion of GBP754,197 for 1,323,153 shares. The issued share capital of the Company now stands at 44,657,260 shares of which the directors hold 928,554 shares, representing 2.08%.
Tim Griffiths continued: "We believe that the positive development and imminent commercialisation of our products means that a move to AIM is in the best interests of the Company and its shareholders. The OFEX market has been good to us but, like many companies before us, we see a move to AIM as a natural progression for a successful Company."
Issued on behalf of Eden Research plc by St Brides Media & Finance Ltd, 46 Bedford Row, London, WC1R 4LR.
CONTACTS
| Tim Griffiths Eden Research plc | Tel: 01993 868844 |
| Hugo de Salis St Brides Media & Finance Ltd | Tel: 020 7242 4477 |