On Friday the 30th June 2017, Eden Research made a series of announcements through the London Stock Exchange RNS channel including that  of a strategic announcement by Sipcam SpA.  Sipcam SpA is a major global player in the Agro-Chemicals market with 45% of their 451 million Euro revenues for 2016 coming from Europe.

In short, the announcement includes the following:

  • A proposed strategic investment, executed and qualified in a subsequent RNS of the same day
  • The ability for Sipcam to place someone on Eden's BoD's
  • Sipcam SpA to have exclusive  rights to distribute Eden's 3AEY product to protect  grapes against the disease, botrytis in Italy, Spain and Australia, three major growing grape countries for the wine industry

The overall arrangement can be found in the "strategic announcement" link above.  This includes extensive collaboration and distribution agreements.

Further good news is that Eden has ample cash as a result of this transaction, a further placing to Livingbridge who are an existing investor and existing cash held.  With existing annual operational costs running at £1.4 million according to last years end of year accounts, this gives Eden at least two years cover. Furthermore, Eden has announced product sales of 3AEY, although not the volumes and net amounts received and receivable from Sipcam, Sumi-Agro Europe and others and it is therefore safe to assume, that cash is plentiful. As such, there is no need for capital raisings from Eden in the foreseeable future.

Eden's shares in issue as a result of Friday's RNS announcements rises from 184 million to 207 million.  Given the credibility that Sipcam SpA's new and committed engagement with Eden will provide, this appears to be very good news. This will no doubt catch the attention of the agro-chemical industry as well as investors, both private execution only investors and institutional investors who will likely see this as a de-risking of any potential investment in Eden. Eden's market capitalisation might be considered by some to be very low at £24 million for a biotech with the Sipcam Alliance and commitment.

This deal alone is a gamechanger for Eden, in terms of credibility, acceptability, sales channels, new developments and future prospects and this takes no account of any other part of Eden's business.

It should not be forgotten that Eden recently signed a major and exclusive right's deal with Eastman Chemicals and also announced in Friday's…

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