TyraTech, Inc. Envance LLC amended: Sharpened strategic focus (6242K)
April 20 2015 - 2:00AM
UK Regulatory
TIDMTYR TIDMTYRU
RNS Number : 6242K
TyraTech, Inc.
20 April 2015
TyraTech, Inc.
("TyraTech" or the "Company")
Envance LLC amended: TyraTech to sharpen its strategic focus
TyraTech, Inc. (AIM: TYR and TYRU), a life sciences company
focused on nature-derived insect and parasite control products for
the personal care and animal health markets, is pleased to announce
that the Company and AMVAC, a wholly-owned subsidiary of American
Vanguard Corporation (NYSE: AVD), have updated their commercial
relationship and have amended the Limited Liability Company
Agreement (the "Amendment") relating to Envance Technologies, LLC
("Envance"), a jointly owned enterprise. As a result, TyraTech will
receive approximately $500k in cash in repayment of loans and
consideration which it will re-invest into working capital and
geographical expansion of its Vamousse branded products.
Envance Technologies was originally created in November 2012 to
further develop and commercialise TyraTech's technology in the
fields of agriculture, home, and lawn and garden. Since that time,
TyraTech's primary focus, both financial and commercial, has been
on its personal care (the Vamousse range of products) and animal
health products. In line with this area of focus, the majority of
the financing for Envance has been provided by AMVAC.
Under the terms of the Amendment, TyraTech and AMVAC agreed that
Covering Capital Contributions made subsequent to the formation of
Envance would be converted to Membership Interests. With this
conversion, the Membership Percentage Interests in Envance would be
adjusted from AMVAC owning 60 percent and TyraTech owning 40
percent to AMVAC owning 83.77 percent and TyraTech owning 16.23
percent.
Contemporaneous with the Amendment, AMVAC offered to purchase,
and TyraTech agreed to sell, approximately 3 percent of its
remaining ownership interest in Envance. Subsequent to this
transaction, AMVAC will have a Membership Percentage Interest of
86.67 percent, and TyraTech will have a Membership Percentage
Interest of 13.33 percent.
The Company considers the reduction of TyraTech's membership
interest in Envance to be positive for the Company, as it allows
greater focus on the Company's core markets of personal care and
animal health.
The Independent Directors of TyraTech, having consulted with
SPARK Advisory Partners Limited, as Nominated Adviser to the
Company, consider the terms of the proposed amendment to the
Envance Technologies Limited Liability Company Agreement and the
sale to AMVAC to be fair and reasonable, insofar as the
shareholders are concerned. In providing advice to the Independent
Directors, SPARK Advisory Partners Limited has taken into account
the Independent Directors' commercial assessments of this related
party transaction.
Eric Wintemute, President of AMVAC, said: "By strengthening its
position in Envance, AMVAC reaffirms its vision of developing
innovative nature-derived products to control insects and parasites
in the fields of agriculture, home, and lawn and garden. It is also
a way to support more closely the development of Envance's business
strategy and the continuation of its commercialisation
efforts."
Bruno Jactel, Chief Executive Officer of TyraTech, said: "Over
the past twelve months, having validated our entry into the
personal care market with the successful launch of our Vamousse
branded products in both the USA and the UK, our investment and
growth pathway will be through geographic expansion of our current
products, commercialisation of products in development, and
continued development of our pipeline across both the personal care
and animal health markets. With our sharpened strategic focus in
these two markets, I am very pleased that together with TyraTech's
strategic investor, AMVAC, we were able to achieve our goal of
strengthening Envance as the organisation best suited to develop
and commercialise TyraTech's technology for the agriculture,
household, and lawn and garden markets."
TyraTech Inc.
Bruno Jactel, Chief Executive Officer Tel: +1 919 415
Vincent T. Morgus, Chief Financial 4340
Officer & Treasurer Tel: +1 919 415
4287
--------------------------------------- -------------------
SPARK Advisory Partners Limited,
Nominated Adviser Tel: +44203 368
Matt Davis / Mark Brady 3552
Tel: +44203 368
3551
--------------------------------------- -------------------
Allenby Capital Limited , Joint Broker
Chris Crawford Tel: +44 20 3328
5656
--------------------------------------- -------------------
Whitman Howard Limited, Joint Broker
Ranald Mc-Gregor Smith / Niall Devins Tel: +44 20 7087
4555
--------------------------------------- -------------------
Walbrook, Financial PR and IR
Guy McDougall/Nick Rome Tel: +44 20 7933
8780
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This information is provided by RNS
The company news service from the London Stock Exchange
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