Potential Acquisition
October 01 2004 - 3:30AM
UK Regulatory
RNS Number:5570D
Vert-Eco Group PLC
1 October 2004
1 October 2004
Vert-eco Group plc ("Vert-eco" or the "Company")
Vert-eco enters into non-binding Heads of Agreement to acquire HydroDecTM
Technology
The Directors of Vert-eco Group (AIM: VRT), are pleased to announce that the
Company has entered into a non-binding Heads of Agreement for the purchase of
the HydroDecTM technology from Virotec International Limited (AIM: VTI) ("
Virotec").
The agreement is conditional, inter alia, on the Company finalising its due
diligence process, which is expected to be completed within the next 30 days,
the entering into of a binding purchase agreement and shareholder approval being
received. The key aspects of the Heads of Agreement are:
* The consideration is #7.0 million to be satisfied by the issue of
65,000,000 new ordinary shares in Vert-eco (at an ascribed valued of 10
pence per share), which will represent approximately 40% of the enlarged
share capital of VRT and #500,000 in cash;
* The new ordinary shares will be issued upon completion of the Transaction;
and
* Following completion, a 5% royalty will be paid to Virotec on turnover
derived by Vert-eco from the HydroDecTM technology and a further 5% will be
paid to CSIRO (Commonwealth Scientific & Industrial Research Organisation,
Australia).
In addition, it is intended that the Company will raise up to #1 million (before
expenses) through shares being placed for cash with investors. These new funds
will be applied to the #500,000 cash consideration, expenses of the transaction
and the Company's ongoing working capital requirements post-acquisition. An
explanatory circular, containing a notice of extraordinary general meeting and
incorporating an AIM admission document, will be posted to Vert-eco shareholders
once the Company has completed its due diligence investigations and entered into
a binding assets purchase agreement.
Executive Chairman John Gunn states, "We have reviewed a number of technologies,
and we believe the HydroDec technology is the best for Vert-eco as it is proven
and it appears to have wide ranging applications. We understand that there is a
good order book to provide access to some immediate cash flow and with our
capital we expect to be able to expand the business relatively quickly in other
regions. The first full operating plant located at Young, NSW, commenced
commercial operations in late August 2004. Our due diligence will allow us to
review all the relevant information and complete our plans before proceeding to
a binding purchase contract".
HydroDecTM technology was developed over 12 years by the Australian CSIRO
(Commonwealth Scientific & Industrial Research Organisation) and it is able to
efficiently re-refine used transformer oil, including PCB contaminated oils, to
produce new oil at a similar quality as traditional hydro treatment refining
processes. HydroDecTM technology has also been successfully applied to the
destruction of a wide range of chlorinated hydrocarbons, (PCB, DDT, PCP, HCB and
dioxins) and a significant benefit of this process is that, unlike incineration,
it makes the formation of dioxins totally impossible.
- Ends -
For further information please contact:
John Gunn, Non-executive Chairman, Vert-eco T: 020 7236 6236
Richard Swindells/Katherine Roe, Durlacher T: 020 7459 3600
Nick Fox, M:Communications T: 020 7153 1540
This information is provided by RNS
The company news service from the London Stock Exchange
END
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