EMT Emmit

TIDMEMT

RNS Number : 9660B

Emmit PLC

13 January 2015

Emmit PLC

13 January 2015

Update

Further to the previous update on 7 November 2014, the Company announces an update on its investing policy and the two investments held, Ximax Environmental Solutions Plc ("XES") and Ximax Oil & Gas Solutions Limited ("XOG").

The Company remains 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. As previously announced these discussions, if successfully concluded, would result in a reverse takeover of Emmit under Rule 14 of the AIM Rules for Companies ("AIM Rules").

Trading update for Ximax

The last three months has seen an increase in all aspects of Ximax's businesses, both in Water Treatment Solutions as well as Oil, Gas and Fracking applications, with the latest (un)audited accounts for the 10 months to 31 December 2014 revealing a turnover of cGBP 2.5 million, up 30% on original projections. This is testament to five years of continuing trials, certification and sales by the founders of the company.

For example, a contract with Rolco Energy Services, LLC ("Rolco") in the USA signed in mid-2014 in which Ximax was expected to provide GBP120,000 of Xziox chemicals every 6 weeks is now delivering these volumes every 2-3 weeks. According to the University of Pittsburg's FracTracker research programme there are over 100,000 fracking wells and over 500,000 oil wells in the USA & Canada and Rolco is but one of several oil companies now testing and using Ximax's products.

The international water treatment business continues to grow with Ximax's oldest distributor in Romania dealing with water treatment on a national scale. Recent elections have had a positive effect on Ximax's ability to sell in the region, and they have recently signed a new contract which is expected to triple their sales, worth over GBP3m to Ximax in the coming year. Ximax has also acquired a 49% stake in the Romanian SC Water Solutions which will now be called Ximax Solutions RO.

Additionally our distributor in UAE, Ximax Middle East LLC, has recently placed an order for cGBP1million of Xziox product, deliverable over the next 12 months, some of which will be distributed to Kuwait and Egypt.

Xziox products requires continuous dosage, therefore the company is confident that its DWI licence and NSF-60 certifications for efficacy and safety will help us achieve significant sales levels in the USA and UAE through increased adoption by companies in the region and countries internationally.

In summary this means Ximax is expecting to significantly increase its sales forecasts for 2015 in line with these orders and contracts.

For further information please contact:

Emmit plc

Dean Cook Managing Director 01473 604504

This information is provided by RNS

The company news service from the London Stock Exchange

END

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