EMT Emmit

 
TIDMEMT 
 
7 November 2014 
 
                                   Emmit Plc 
 
                          ("Emmit" or the "Company") 
 
          Update on Investing Policy and Potential Acquisition Talks 
 
Further to the announcement on 5 November, the Company announces an update on 
its investing policy and the two investments made earlier this year. 
 
On 14 November 2013, the Company's shareholders voted to adopt an investing 
policy focusing on investments in the environment, leisure and technology 
sectors, using the Company's equity as consideration. On 11 March 2014, Emmit 
announced that it had acquired a 20 per cent. holding in Ximax Environmental 
Solutions Plc ("XES"), a niche water treatment company, for GBP30,000, satisfied 
through the issue of 500,000 new Emmit shares and the issue of 4,500,000 
warrants at 6p per share. Then, on 25 March 2014, Emmit announced that it had 
acquired 25 per cent. of Ximax Oil & Gas Solutions ("XOG"), a company which has 
developed water treatment applications aimed at the Oil and Gas industry, which 
is an associate company to XES, for GBP90,000, satisfied through the issue of 
1,800,000 warrants at 6p per share. 
 
Information on XES and XOG 
 
The following information on the performances of both businesses was previously 
provided to investors in announcements on 26 August 2014 and 30 September 2014. 
Further information can also be found on www.ximaxes.com. 
 
Formed in 2009, XES has developed a proprietary high purity chlorine dioxide 
solution, XzioX, an environmentally friendly and trade-marked, cost effective 
biocide and disinfection product. XzioX is currently used by 200 agricultural 
clients in the UK and Ireland, of which 50 have been secured in XES's current 
financial year. Overseas, XES secured an order for GBP100,000 from a Dubai 
governmental body in April of this year and continues to engage in discussions 
in the United Arab Emirates ("UAE") regarding the supply of XzioX for the 
treatment of water in parks and fountains throughout the region. Turnover for 
XES for the year to February 2014 was GBP2,080,927 (2013: GBP11,583,414). The drop 
was due to the inclusion in the previous year of specialist equipment for the 
oil and gas trials, which were successfully completed earlier this year. 
Pre-tax profit for the period was GBP373,667 (2013: GBP589,484). Turnover for the 
six months to September 2014 was GBP814,797, with profit of GBP397,415. 
 
Alongside the growth in XES's domestic operations, which is expected to provide 
a boost to XES's turnover and profits in the year to February 2015, the Board 
of Emmit has been particularly encouraged by the positive progress made with 
potential clients in the UAE. XES has recently completed successful field 
trials with a major potential customer and, with other smaller customers 
currently being converted into orders, the Board remains confident in the 
potential for the opportunities in the UAE to drive a step change in the 
company's fortunes. 
 
XOG was formed in January 2011, to further develop and enhance Xziox for 
specialist water treatment applications in the Oil and Gas industry, under the 
registered brand name of FlowXcel. In August 2014, following successful field 
trials earlier this year, XOG, through its US distributor, American Flo Excel, 
LLC, signed a 10 year agreement with ROLCO Energy Services 
(www.rolcoenergyservices.com) to supply Ximax's FlowXcel product for water 
treatment in the US unconventional oil and gas industry (the "ROLCO contract"). 
A third order for GBP100,000 has recently been received, bringing the turnover 
under the ROLCO contract to GBP300,000 in the last 6 weeks. With the expectation 
of regular orders to follow in the future, the Board believes that XOG has 
strong growth prospects and will be a major driver of value for Emmit. 
 
Financial Information on Emmit 
 
On 30 September 2014, the Company released its interims results to 30 June 
2013. These showed a balance sheet with negative equity of GBP154,000. However, 
since the end of the interim period, as announced on 26 August 2014, all the 
outstanding convertible loan notes have been converted into ordinary equity, 1 
million warrants have been exercised and a further GBP70,000 of new capital has 
been raised. As well as strengthening the balance sheet, the impact of this has 
been to clear nearly all of Emmit's financial liabilities and provide the 
Company with sufficient working capital whilst it looks to either complete its 
investing policy or carry out a reverse transaction. 
 
Potential Acquisition and Suspension under Rule 14 of the AIM Rules 
 
The Company is currently in discussions with the shareholders of XES and XOG 
(together "Ximax") regarding the potential acquisition of the shares in Ximax 
not currently owned by Emmit. The exact terms of such an acquisition are still 
being finalised as it may involve a re-organisation of Ximax prior to any 
purchase by Emmit. These discussions, if successfully concluded, would result 
in a reverse takeover of Emmit under Rule 14 of the AIM Rules for Companies 
("AIM Rules"). 
 
Noting the potential reverse takeover referred to above, trading on AIM in the 
Company's shares is now subject to suspension pursuant to Rule 14 of the AIM 
Rules. Accordingly, trading on AIM in the Company's shares will now remain 
suspended until such time as either an admission document has been published in 
respect of an acquisition of Ximax or, if such does not proceed, the Company 
fulfils its investing policy. If neither occurs in six months from today then 
admission of the Company's shares to trading on AIM will be cancelled. 
 
The Board recognises that some shareholders may be frustrated by the recent 
suspension and there no being no restoration of trading prior to the potential 
acquisition of Ximax. However, the Board believes that the acquisition of 
Ximax, if successfully concluded, would be in the best interests of the Company 
and its shareholders as a whole. The recent FCA notice has not been helpful to 
these conversations and the Board believes that it is in the Company's best 
interests now to proceed as quickly as possible with the acquisition of Ximax. 
 
Further announcements will be made in due course. 
 
For further information please contact: 
 
Emmit plc                    Dean Cook                        01473 604504 
Managing Director 
 
Daniel Stewart & Company Plc Antony Legge / Paul Shackleton   020 7776 6550 
Nominated Adviser 
 
Alexander David Securities Ltd   David Scott                  020 7448 9820 
Broker 
 
www.emmitplc.com 
 
 
 
END 
 

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