REG - Eden Research plc - Half Yearly Report
29/09/2023 07:15
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RNS Number : 0778O Eden Research plc 29 September 2023
The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.
29 September 2023
Eden Research plc
("Eden" or "the Company")
Half Yearly Report
Eden Research plc (AIM: EDEN), the AIM-quoted company focused on sustainable
biopesticides and plastic-free formulation technology for use in the global
crop protection, animal health and consumer products industries, announces
its interim results for the six months ended 30 June 2023.
Financial highlights
· Revenue for the period of £1.14m (H1 2022: £1.04m)
· Product sales of £1.09m (H1 2021: £1.01m)
· Operating loss for the period of £1.2m (H1 2022: £1.3m)
· Adjusted loss (excluding a non-cash intangible assets impairment
of £5.0m*) for the period of £0.9m, loss of £5.9m including impairment (H1
2022: £1.0m, impairment of £nil)
· Cash and cash equivalents of £0.5m (H1 2022: £0.9m)
· Cash and cash equivalents at 31 August 2023 of £1.73m following
a tax refund and proceeds from the unconditional placing
· On track to meet 2023 market expectations for product sales
revenue and EBITDA
*See note 9 for further details.
Business highlights
Expanding regulatory approvals in key territories, including the US, new
commercial agreement, and new product areas
· First commercial order received for Ecovelex(®), Eden's new seed
treatment product (August 2023)
· Materially increased Eden's global addressable market with label
extensions and new regulatory approvals, most notably the addition of the US
following various state approvals
· Authorisation for Cedroz™ received in the key state of
California with Mevalone(®) authorisation anticipated in due course
· Eden's first 'non-professional' (home garden) uses for 3logy(®)
granted in Italy
· Mevalone(®) received regulatory authorisation in Poland, which
is acting on behalf of the EU Central Zone, thereby paving the way to central
EU approvals
· Authorisation for Mevalone(®) (Novellus) received in New Zealand
· Submission made to the EU and UK authorities for Eden's seed
treatment product, Ecovelex(®), which was developed with Corteva Agriscience
· Steps to expand the use of Mevalone(®) in France to include
powdery and downy mildew are well underway
· Return to commercial production of CedrozÔ following previous
manufacturing issues. Continue to actively monitor customer feedback
· Use of CedrozÔ expanded to include the control of wire worm in
potatoes through the granting of an emergency use approval in Italy
· New distribution agreement signed with Anasac for Mevalone(®) in
Colombia
· 140 field trials run by potential distribution partners in 2023,
following significant interest in the evaluation of Eden's developmental
insecticide
Corporate highlights
Strengthening of the Company's financial position and team to allow the
business to grow apace
· Successful firm Capital Raising of £1.1 million, Minimum
Conditional Capital Raising of £7.9 million and Retail Offer of £0.4
million, all before expenses (Announced in July 2023)
· Strengthening of the Commercial Team underway
Lykele van der Broek, Chairman of Eden Research, commented:
"It was with great pleasure that in May this year we were finally able to
announce, in conjunction with our partner Corteva Agriscience ("Corteva"), the
development of our new bird repellent, seed treatment product Ecovelex(®).
Ecovelex(®) is the result of a three-year collaboration with Corteva with
significant effort, work and determination from everyone involved in the
project and is a direct result of the fundraise that took place in March 2020,
without which this would not have been possible.
Ecovelex(®) represents Eden's first commercial activity in broad-acre crops
and seed treatments and highlights the versatility that the Company's
technologies and products can bring to the market. The initial commercial
opportunity on maize in Europe is significant by itself, but there are
numerous additional others that we can now look to exploit using the same,
proven platform.
The first half of the year also saw several important regulatory approvals
come through, such as Mevalone(®) in New Zealand, where botrytis is prevalent
and Poland, off the back of which we expect to receive approvals in the other
central EU zone countries in fairly short order, and state approvals in the US
for both Mevalone(®) and CedrozÔ.
Each of these approvals unlocks our route to product sales and increases our
addressable market.
At the end of July, the Company announced that it had completed a firm placing
of £1.1m and conditional placing of at least £7.9m (up to a maximum of
£9.4m), both before expenses.
The Board of Eden considered very carefully the right approach to ensure the
future viability and growth prospects of the business and it was concluded
that, with the much-appreciated support from institutional and retail
shareholders, strengthening the Company's financial position through a
fundraise was the right course of action.
From this new position of strength, we can now expeditiously develop and
commercialise our products which, the Board believes, will, on balance,
substantially benefit the Company and its shareholders."
For further information contact:
Eden Research plc www.edenresearch.com (http://www.edenresearch.com/)
Sean Smith 01285 359 555
Alex Abrey
Cavendish Securities plc (Nominated advisor and broker)
Giles Balleny / George Lawson (corporate finance) 020 7397 1961
Michael Johnson (sales)
Hawthorn Advisors (Financial PR)
Simon Woods eden@hawthornadvisors.com (mailto:eden@hawthornadvisors.com)
Felix Meston
Chief Executive Officer's Statement
At Eden Research, we aim to create innovative and sustainable crop protection
solutions to empower farmers worldwide to tackle destructive pest infestations
and plant diseases effectively and without causing harm to the environment.
The first half of 2023 has seen further progress towards these aims. With
our three plant-derived active ingredients and proprietary microencapsulation
technology, Sustaine(®), we are making good progress with our efforts to
develop a portfolio of products to address a multitude of challenges that go
beyond our initial focus on treating grapevine fungal diseases.
Demonstrating development excellence in seed treatments
One such example is our recently unveiled, new seed treatment, Ecovelex(®).
Without doubt, this has been the highlight of the first half of the year and
is the result of more than three years of intensive development alongside our
partner Corteva Agriscience. In its initial use case, Ecovelex(®) will be
deployed as a seed coating for maize seeds, acting as a repellent against bird
infestation and protecting farmers' crop yield at the earliest point in the
growth cycle.
Ecovelex(®) represents an alternative to currently available bird repellent
seed treatments widely used across the arable farming community. One of the
most popular seed treatments, containing conventional synthetic active
ingredients, is likely to be removed from the market in the EU without there
being any other bird repellent available in the shorter term. We see not only
a significant opportunity for Ecovelex(®) to act as a replacement in this
regard, but are also proud that we can offer the maize-growing community a
method to protect their seeds using naturally occurring compounds that help
protect soil and bird health. Furthermore, extensive field trials have
demonstrated that our product is equally effective when compared with the
incumbent product currently used by farmers.
Alongside announcing Ecovelex(®) in May, we also indicated to the market that
we have submitted a dossier and application to the Austrian regulator, who
will act as the interzonal rapporteur member state ("RMS") on behalf of the
EU. Approval by the RMS will provide the key to entry into the rest of the
European Union single market, subject to each state requesting further
information before local authorisations are granted. In July, we also
announced that we had submitted the equivalent application to the Chemicals
Regulation Division in the UK for authorised use in our home country. In both
these instances, it is expected that review and authorisation of Ecovelex(®)
will take between 18 and 24 months, although it should be noted that the pace
of regulatory actions lies solely in the control of the relevant authorities.
During this time, the Eden management and regulatory teams will work closely
with each regulator to ensure they have all the necessary tools and
information required to grant authority as soon as possible. We are also
exploring other means to bring Ecovelex(®) to the market sooner, such as via
emergency authorisations which could see the product being used as early as
the 2024 growing season. However, such authorisations are not guaranteed,
and we are working to ensure that we obtain full authorisation in a timely
manner.
Widening geographic presence, growing the label
A large part of our commercial progress this period has been linked to our two
existing products, Mevalone(®) and Cedroz™. Here, our strategy has been to
introduce these biopesticides to new markets and expand the list of allowed
uses, known as 'the label', beyond existing uses.
Following receipt of our landmark Environmental Protection Agency (EPA)
approval in the US at a national level for both Mevalone(®) and CedrozÔ in
September of last year, we are delighted to have been able to secure
individual state approvals in 17 US states, as announced in March and May of
this year. These include the lucrative markets of Florida and California
(Cedroz only), where high-value fruit and vegetables are grown. Not only are
these attractive markets in terms of production, but also with respect to
their favoured use of natural pesticides and other agricultural inputs over
conventional alternatives. We now look forward to receiving approval for
Mevalone in California where we will be predominantly focused on the wine
market in high profile regions such as Napa Valley, Sonoma, Monterey, and
Santa Barbara.
In April, we were pleased to have been granted approval for Mevalone(®) in
Poland for use on wine and table grapes, as well as on apples. Poland is the
EU's largest producer of apples, accounting for a total annual production of
approximately 2.5 million tons. As with the case in a number of other
countries, the Mevalone approval extends to pre-harvest application for
post-harvest effect given its exemption from maximum residue levels, thereby
helping to prevent food waste in the very early stages of the supply chain.
More importantly, this one approval represents a significant landmark in that
it provides the opportunity for entry into Central Europe where we can
ultimately access the nearby markets of Austria, Hungary, and Germany, where a
high concentration of wine production is found. Efforts are being made by our
regulatory team to actively pursue these opportunities through eventual
regulatory approval in each member state.
Elsewhere, we continue to build our geographic presence in the Southern
Hemisphere with regulatory approval for Mevalone in New Zealand, where the
product is marketed as a Novellus®. This builds on our existing presence in
Australia where we are once again targeting another significant wine region.
New Zealand's damp conditions and fluctuating temperatures across its wine
growing areas provides an ideal environment for Botrytis cinerea to thrive and
we forecast this will create strong demand for our product, particularly for
use on its most famous grape varietal, Sauvignon Blanc, which is highly
susceptible to bunch rot given how close the berries grow to one another.
Eden has also made its first move in South America having appointed Anasac as
its exclusive distribution partner for Mevalone(®) in Colombia. Here, Eden is
pursuing the registration of Mevalone(®) on ornamental crops such as cut
flowers to prevent and cure outbreaks of Botrytis cinerea. Colombia is one of
the world's largest cut flower exporters with the United States acting as the
primary export market. The US imports over $1.35 billion of cut flowers
annually. Building on our presence in Mexico, where we already have regulatory
approval and are selling product, and in Colombia, where we expect regulatory
approval to be granted in due course, we are intent on widening our influence
in Latin America, working alongside our regional partners.
Closer to home, we have secured our first domestic (non-professional use)
approval with the authorisation of Mevalone(®) for home-use in Italy. This
will afford Italian gardeners the same access to sustainable biopesticides as
farmers and provide them with a biocontrol tool to prevent and treat several
destructive plant pathogens such as Botrytis cinerea and powdery mildew.
Building robust cashflow
While much of our effort is directed at ensuring that we are well-placed
geographically and targeting the right pests and diseases, our partnerships
form an important part of our commercial success. We are proud to have formed
close ties with some of the industry's largest and high-profile leaders such
as Corteva, Sipcam, SumiAgro and others, who play a key role in distributing
our pesticides across the globe.
We have also benefitted from sales made in the United States following EPA
approval obtained last year, and the various approvals across individual
states obtained subsequently.
As has been the case in recent years, the 2023 growing season has not been
without its challenges. In our primary market of Southern Europe, we have
seen severe drought and high temperatures which can adversely affect demand
for certain fungicides, particularly those that target botrytis. We remain
cautiously optimistic that more favourable growing conditions will return
toward the end of the season thereby helping to ensure appropriate inventory
levels and a reasonable post-season restocking period.
Across the interim period, Eden reported revenues of £1.14 million, a
marginal increase on the previous H1 2022 period of £1.04 million. Product
sales have also marginally increased to £1.09 million from £1.01 million in
H1 of last year.
Earnings remained consistent with H1 2022 with an overall loss before tax of
£0.9 million compared with £1.0 million, (excluding a non-cash intangible
assets impairment during the period of £5.0 million). Including impairment,
the total H1 2023 loss after tax was £5.9 million. See note 9 for details of
the impairment.
As at 30 June 2023, Eden's cash and cash equivalents balance stood at £0.5
million. Post period end, we have seen cash and cash equivalents increase to
£1.73m as at 31 August 2023 following a tax refund and proceeds from the
unconditional placing.
As the 2023 harvest season approaches and we near a key pesticide application
period for botryticides, we remain on track to meet market expectations for
product sales.
Strengthening the financial position
In Q3 2023, Eden announced a fundraising round by means of firm and
conditional placings, as well as a retail offer to existing shareholders. In
total, once the fundraising is complete, which is expected in the coming
weeks, we expect to have raised a total of £10.0 million before expenses.
This fundraise not only provides us with additional capital to commercialise
further existing products and fund new areas of the business, but it also
serves to strengthen our balance sheet and provide greater flexibility during
this high-growth period.
Firm placing and rights issue
The use of proceeds raised from the firm placing and retail offer will
primarily be allocated towards the funding of materials to build up stocks for
our new seed treatment. We will also be looking to grow the Ecovelex(®) label
through further lab screening and field trials, and formulation development,
as well as expand our territorial presence in new regions such as Latin
America and South-East Asia. Lastly, we intend to bolster our commercial team
with the appointment of a new commercial director and a market development and
product manager.
Conditional placing
The net proceeds from the conditional capital raise will be used towards new
product development, further development of our insecticides as partnering
discussions progress, and as additional working capital towards Ecovelex's(®)
label expansion. These proceeds will also be used to establish a US-based team
to help support the Company's growth across the US and North America. In the
announcement made by the Company on 28 July 2023 regarding its Capital
Raising, it noted that the Conditional Placing was subject, inter alia, to (i)
the approval of the Resolutions at the General Meeting, (ii) the Advanced
Assurance being obtained from HMRC, (iii) the Capital Reduction becoming
effective and (iv) Second Admission.
The first three conditions have now been met and, as such, the Company expects
to complete the Second Admission and Conditional Placing shortly.
As at 31 August 2023, Eden's post-period cash and cash equivalents balance
stood at £1.73 million, following a tax refund and receipt of capital raised
at the recent unconditional placing and rights issue.
There are currently no near-term plans to pay a dividend. However, the Board
continues to review the Company's dividend policy.
Following an independent impairment review, the Board agreed to write down the
value of its intangible assets by £5.0m. For further details, please see note
9.
Extending our product line
We have made great advancements with our product development pipeline with the
limited working capital available to us before the post-period fundraise. The
second notable product that we are working to bring to market next is our
insecticide, the development of which was funded by the capital we raised
three years ago. Our lead product candidate targets key pests that attack
plants such as spider mites, whitefly, aphids, and thrips. Extensive
greenhouse and field trials by Eden and its partners have been conducted
throughout the past two years, and the results have so far proven to be
promising with good efficacy and consistency against our targeted pests. We
intend to launch this product as soon as practicable, with regulatory
applications planned for submission in late 2023 or early 2024, subject to the
outcome of ongoing trials and data analysis. Pending a positive and prompt
regulatory decision, we estimate product launch and first sales as early as
2024/25 in the US and 2025/26 in the EU.
We are continually assessing applicable use of our biopesticide products
across crops and pests outside our existing remits such as cannabis, black
sigatoka, potato blight and wireworm. In each case, initial evaluations have
been conducted and have produced encouraging results. Eden is also exploring
the use of its proprietary technologies in the consumer products and animal
health industries. While we have long indicated the possibility of expanding
our scope in this regard, the consumer and animal health segments are still
considered non-core to our business for the time being, although we still
maintain good relationships and active discussions with potential partners.
Reflecting on the half-year period, I am very proud of what we have been able
to achieve in such a short space of time. These milestones serve as a reminder
of the company's potential and, with the additional resources expected to come
at our disposal, we are committed to ensuring we can continue to deliver on
our growth objectives. I'd like to take this opportunity to thank our
shareholders, our team and the Board for their support and efforts.
Sean Smith
Chief Executive Officer
28 September 2023
Eden Research plc - Consolidated Statement of Comprehensive Income for the six
months ended 30 June 2023
Six Six Year ended 31 December 2022
months ended 30 June 2023 £ unaudited months ended 30 June 2022 £ unaudited £
audited
Revenue (note 18) 1,142,371 1,040,036 1,827,171
Cost of sales (710,337) (626,342) (997,011)
Gross profit 432,034 413,694 830,160
Administrative expenses (1,250,541) (1,295,770) (2,749,240)
Amortisation of intangible assets (264,557) (246,325) (495,818)
Share based payments (note 17) (119,083) (152,135) (152,135)
Operating loss (1,202,147) (1,280,536) (2,567,033)
181 28 192
Investment revenues (9,539) (9,868) (22,046)
Finance costs 11,857 (33,351) (52,736)
Foreign exchange gains/(losses) (4,968,529) - -
Impairment of intangible assets (note 9)
Share of loss of equity accounted investee, net of tax (note 10) (25,111) (9,849) (31,444)
Loss before taxation (6,193,288) (1,333,576) (2,567,595)
Income tax income 317,230 345,424 323,716
Loss for the financial period (5,876,058) (988,152) (2,243,879)
Attributable to: (5,887,194) (997,630) (2,237,262)
Equity holder of the company
Non-controlling interest 11,136 9,478 (6,617)
Total Comprehensive Income (5,876,058) (988,152) (2,243,879)
Earnings per share (note 7)
Basic (pence per share) (1.54) (0.26) (0.59)
Eden Research plc - Consolidated Statement of Financial Position as at 30 June
2023
30 June 2023 30 June 2022 31 Dec 2022
£ £ £
unaudited unaudited audited
NON-CURRENT ASSETS
Intangible assets (note 9) 3,641,058 8,330,644 8,447,226
Property, plant & equipment (note 12) 167,175 222,712 198,786
Right of Use assets (note 13) 265,141 339,179 332,814
Investments in associate (note 10) 305,133 351,839 330,244
4,378,507 9,244,374 9,309,070
CURRENT ASSETS
Inventories (note 14) 651,394 459,424 625,458
Trade and other receivables (note 15) 930,000 1,564,652 658,866
Taxation 640,946 918,009 323,716
Cash and cash equivalents 492,766 1,852,019 1,994,472
2,715,106 4,794,104 3,602,512
CURRENT LIABILITIES
Trade and other payables (note 16) 1,818,582 1,638,945 1,813,341
Lease liabilities 138,808 114,478 139,547
1,957,390 1,753,423 1,952,888
NET CURRENT ASSETS 757,716 3,040,681 1,649,624
NON-CURRENT LIABILITIES
Lease liabilities 147,780 247,742 215,776
147,780 247,742 215,776
NET ASSETS 4,988,443 12,037,313 10,742,918
EQUITY
Called up share capital 3,811,089 3,803,402 3,808,589
Share premium account 39,308,529 39,308,529 39,308,529
Warrant reserve 640,741 769,773 701,065
Merger reserve (note 19) - 10,209,673 10,209,673
Retained earnings (38,807,554) (42,094,661) (43,309,440)
Non-controlling interest 35,638 40,597 24,502
TOTAL EQUITY 4,988,443 12,037,313 10,742,918
Eden Research plc - Consolidated Statement of Changes in Equity as at 30 June
2023
Non-control-ling interest
Share capital Share premium Merger reserve Warrant reserve Retained earnings
Total
£ £ £ £ £ £ £
Six months ended 30 June 2023
Balance at 1 January 2023 (audited) 3,808,589 39,308,529 10,209,673 701,065 (43,309,440) 24,502 10,742,918
(Loss) - - - - (5,887,194) 11,136 (5,876,058)
/profit and total comprehensive income
Transactions with owners
- Transfer of merger reserve
- Options granted - - (10,209,673) - 10,209,673 - -
- - - 119,083 - - 119,083
- Options exercised/ lapsed 2,500 - - (179,407) 179,407 - 2,500
Transactions with owners - - (10,209,673) (60,324) 10,389,080 - 2,500
Balance at 30 June 2023 (unaudited) 3,811,089 39,308,529 - 640,741 (38,807,554) 35,638 4,988,443
Six months ended 30 June 2022
Balance at 1 January 2022 3,803,402 39,308,529 10,209,673 937,505 (41,460,753) 31,119 12,829,475
(audited)
(Loss)/profit and total comprehensive income - - - - (997,630) 9,478 (988,152)
Transactions with owners
- Xinova write off (note 17) - - - - 43,855 - 43,855
- Options granted - - - 152,135 - - 152,135
- Options exercised/lapsed - - - (319,867) 319,867 - -
Transactions with owners - - - (167,732) 363,722 - 195,990
Balance at 30 June 2022 (unaudited) 3,803,402 39,308,529 10,209,673 769,773 (42,094,661) 40,597 12,037,313
Eden Research plc - Consolidated Statement of cash flows for the six months
ended 30 June 2023
Six months Six months
ended ended Year ended 31
30 June 2023 30 June 2022 December 2022
£ £ £
unaudited unaudited audited
Cash flows from operating activities
Cash outflow from operations (note 8) (1,018,716) (1,528,470) (1,586,531)
Interest on lease liabilities - (9,868) -
R&D tax credit received - 330,660 903,244
Net cash used in operating activities (1,018,716) (1,207,678) (683,287)
Cash flows from investing activities
Development of intangible assets (426,918) (657,189) (1,023,262)
Purchase of property, plant and equipment (1,875) (21,790) (30,929)
Interest received 181 28 192
Net cash used in investing activities (428,612) (678,951) (1,053,999)
Cash flows from financing activities
Issue of shares 2,500 - -
Payment of lease liabilities (59,196) (57,370) (128,301)
Interest on lease liabilities (9,539) - (22,046)
Net cash used in financing activities (66,235) (57,370) (150,347)
Decrease in cash and cash equivalents (1,513,563) (1,943,999) (1,887,633)
Cash and cash equivalents at
beginning of period 1,994,472 3,829,369 3,829,369
Effect of exchange rate fluctuations on cash held
11,857 (33,351) 52,736
Cash and cash equivalents at
end of period 492,766 1,852,019 1,994,472
Cash and cash equivalents comprise bank account balances.
Notes to the Interim Results
1. Reporting Entity
Eden Research plc is a public limited company incorporated in the United
Kingdom under the Companies Act 2006. The Company is domiciled in the United
Kingdom and is quoted on the Alternative Investment Market (AIM).
These condensed consolidated interim financial statements ('Interims') as at
and for the six months ended 30 June 2023 comprise the Company and its
Subsidiaries (together referred to as 'the Group'). The principal activities
of the Group are the development and commercialisation of encapsulation,
terpenes and environmentally friendly technologies to provide naturally
occurring solutions for the global agrochemicals, animal health, and consumer
product industries.
2. Basis of Preparation
These Interims have been prepared in accordance with IAS 34 'Interim Financial
Reporting' and should be read in conjunction with the Group's last annual
consolidated financial statements as at and for the year ended 31 December
2022 which were approved by the Board of Directors on 4 May 2023 and have been
delivered to the Registrar of Companies. The report of the auditors on those
financial statements was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under section 498 of the Companies
Act 2006.
The Interims do not include all of the information required for a complete set
of financial statements prepared under UK-adopted International Accounting
Standards and do not constitute statutory accounts within the meaning of
section 434 of the Companies Act 2006. However, selected explanatory notes are
included to explain events and transactions that are significant to an
understanding of the changes in the Group's financial position and performance
since the last annual financial statements.
Comparative information in the Interims as at and for the year ended 31
December 2022 has been taken from the published audited financial statements
as at and for the year ended 31 December 2022. All other periods presented are
unaudited.
The Board of Directors and the Audit Committee approved the interims on 28
September 2023.
3. Going Concern
The directors have, at the time of approving the Interims, a reasonable
expectation that the Group has adequate resources to continue in operational
existence for at least 12 months from the approval of the financial
statements. Thus, the Interim financial statements have been prepared on a
going concern basis which contemplates the realisation of assets and the
settlement of liabilities in the ordinary course of business.
The Group has reported a loss for the first half of the year after taxation of
£5,876,058 (H1 2022: £988,152). Net current assets at that date amounted to
£757,716 (H1 2022: £3,040,681). Cash at that date amounted to £492,766 (H1
2021: £1,852,019). The Group is reliant on its current cash balance to fund
its working capital.
The Directors have prepared budgets and projected cash flow forecasts, based
on forecast sales provided by Eden's distributors where available, for a
period of at least 12 months from the date of approval of the Interims and
they consider that the Company will be able to operate with the cash resources
that are available to it for this period.
The forecasts adopted include only revenue derived from existing contracts.
They do not include potential upside from on-going discussions and
negotiations with other parties not yet contracted, as well as other 'blue
sky' opportunities.
In addition, the Group has relatively low fixed running costs and, while
mitigating actions are not forecast to be required to support the going
concern basis, the Directors have previously demonstrated its ability to
postpone certain other costs, such as Research and Development expenditure, in
the event of unforeseen cash constraints and are willing and able to delay
costs in the forecast period should the need arise.
Furthermore, in July 2023, Eden completed a firm Capital Raising of £1.1
million and Retail Offer of £0.4 million (July 2023) together with a
Conditional Capital Raising of a minimum of £7.9 million, all before
expenses.
Consequently, the directors are confident that the Company will have
sufficient funds to continue to meet its liabilities as they fall due for at
least 12 months from the date of approval of the half year report and
therefore have prepared the half year report on a going concern basis.
4. Adoption of new and revised standards and changes in
accounting policies
These condensed consolidated Interims have been prepared in accordance with
the accounting policies adopted in the last annual financial statements for
the year to 31 December 2022, except for the application of the following
standard at 1 January 2023:
· Amendments to IFRS 3, IAS 16, IAS 37 and the 2018-2020 IFRS
Annual Improvements cycle
The adoption of these new standards would not result in any material changes
to the Interims.
The accounting policies have been applied consistently for the purposes of
preparation of these condensed Interims.
5. Principal risks and uncertainties
The Company's prime risk is the on-going commercialisation of its intellectual
property, which involves testing of the Company's products, obtaining
regulatory approvals and reaching a commercially beneficial arrangement for
each product to be taken to market. This is measured by comparing actual
results with forecasts that have been agreed by the Company's Board of
Directors.
The Company's credit risk is primarily attributable to its trade receivables.
Credit risk is managed by running credit checks on customers and by monitoring
payments against contractual agreements.
The Company monitors cash flow as part of its day-to-day control procedures.
The Board considers cash flow projections at its meetings and ensures that the
Company has sufficient cash resources to meet its on-going cash flow
requirements.
Due to the nature of the business, there is inherent risk of infringement of
Eden's intellectual property rights by third parties. The risk of infringement
is managed by taking (and acting on) the relevant legal advice as and when
required.
There is also inherent uncertainty surrounding the regulatory approval of
products in terms of both timing and outcome. This risk is managed by
retaining appropriately experienced staff and contracting with expert
consultants as needed.
6. Ukraine
Eden does not currently have any business activities in Russia or Ukraine and,
as such, has not experienced, nor does it expect, any direct impact on its
business.
The knock-on effect of the conflict on other countries is still being
understood, though we do not envisage significant disruption to the current
business in the short term.
7. Earnings per share
Six months ended Six months ended Year ended
30 June 2023 30 June 2022 31 December 2022
Pence unaudited Pence unaudited Pence
audited
(Loss)/profit per ordinary share (pence) - basic (1.54) (0.26) (0.59)
Loss per share - basic has been calculated on the net basis on the loss after
tax of £5,876,058 (30 June 2022: £988,152, 31 December 2022: £2,243,879)
using the weighted average number of ordinary shares in issue of 380,912,474
(30 June 2022: 380,340,229, 31 December 2022: 380,549,518).
Diluted earnings per share has not been presented as the Group is currently
loss making and as a result, any additional equity instruments have the effect
of being anti-dilutive.
8. Reconciliation of loss before income tax to cash used by
operations
Six months ended Six months ended
30 June 2023 30 June 2022 Year ended
£ £ 31 December 2022
unaudited unaudited £
audited
(Loss)/profit after tax (5,876,058) (988,152) (2,243,879)
Adjustments for:
Share of associate's losses 25,111 9,849 31,444
Amortisation charges 264,557 246,325 495,818
Impairment of intangible assets 4,968,529 - -
Share based payment charge 119,083 152,135 152,135
Xinova loan balance written off - 43,855 43,855
Depreciation of property, plant and equipment and right of use assets
101,159 88,159 191,622
Finance costs - 9,868 22,046
Foreign exchange currency losses/(gains) (11,857) 33,351 (74,782)
Finance income (181) (28) (192)
Tax credit (317,230) (345,424) (323,716)
Inventory provision - - 76,250
Doubtful debt provision - - 107,188
Movements in working capital:
(Increase)/decrease in trade and other receivables (271,134) (678,066) 125,720
(Decrease)/ Increase in trade and other payables 5,241 (162,269) (9,683)
Decrease/(increase) in inventory (25,936) 61,927 (180,357)
Cash used by operations (1,018,716) (1,528,470) (1,586,531)
9. Intangible assets
Intellectual property Licences and trademarks Development Costs Total
£ £ £ £
COST
At 1 January 2022 9,407,686 456,684 8,150,140 18,014,510
Additions - - 657,189 657,189
At 30 June 2022 9,407,686 456,684 8,807,329 18,671,699
Additions 99,371 - 266,702 366,073
At 31 December 2022 9,507,057 456,684 9,074,031 19,037,772
Additions - - 426,918 426,918
At 30 June 2023 9,507,057 456,684 9,500,949 19,464,690
AMORTISATION
At 1 January 2022 6,936,629 448,896 2,709,205 10,094,730
Charge for the period 105,174 648 140,503 246,325
At 30 June 2022 7,041,803 449,544 2,849,708 10,341,055
Charge for the period 105,172 648 143,671 249,491
At 31 December 2022 7,146,975 450,192 2,993,379 10,590,546
Charge for the period 132,588 780 131,189 264,557
Impairment 1,705,122 2,545 3,260,862 4,968,529
At 30 June 2023 8,984,685 453,517 6,385,430 15,825,242
CARRYING AMOUNT
At 30 June 2023 522,372 3,167 3,115,519 3,641,058
At 31 December 2022 2,360,082 6,492 6,080,652 8,447,226
At 30 June 2022 2,365,883 7,140 5,957,621 8,330,644
Background
The impairment review that was undertaken as part of the Company's 2022
accounts preparation resulted in headroom over the carrying value of only
£0.9m (down from £8.3m in 2021), a rather small margin given intangible
assets amounted to £8.4m at that time.
Given the marginal headroom and general downward trend, the management team
and Audit Committee agreed it was appropriate to undertake a further
impairment review of the Company's intangible assets, as part of the
preparation of the Company's 2023 Interims.
The need for an impairment review was also driven by external factors such as
continuing high interest rates and inflation which it was felt might impact
the discount rate used in the Company's CGU calculations.
The Board agreed to appoint an independent advisor to undertake an impairment
review, based on the current position of the Company and the current financial
environment.
Based on the advisor's review, it was reported that there was an indication of
impairment of £5.0m which had arisen primarily due to an increase in the
discount rate used and increased forecast development costs.
Accordingly, the Board agreed to impair intellectual property by £1.7m and
development costs by £3.3m.
The Board will continue to assess the carrying value of its intangible assets
on a regular basis to check for any indications of impairment.
Details
In 2003, the Group acquired Eden Research Inc., primarily obtaining
intellectual property assets worth £9,181,967. Recently, the Group has taken
steps to establish its own research and development facility, comprising a
skilled team proficient in formulation, chemistry, and biology. Over the past
three years, the Group has significantly expanded its internal knowledge base,
historically reliant on external parties. The Directors have concluded that
none of the old formulations, or formulation techniques acquired from Eden
Research Inc. are now relevant to the Group's current, or future product
portfolio. As a result, it is highly probably that the intellectual property
acquired in the past has substantially decreased in value.
On review of the estimated timeline for product development and given the slow
pace of development to commercialisation of products in the crop protection
industry, the Directors have forecasted that most of the future revenues for
product development projects will start at the end of the current forecasting
timeline of 2030. Given the general uncertainty as to what the products and
their addressable markets would be, it is not reasonable to include them
within any produce sales revenue forecasts. Therefore, the Directors felt it
was prudent to complete an impairment assessment based on the projected
revenues that have already been sold or have licences for.
Further to the above, in the period to 30 June 2023, the Directors have
observed a decrease in the expected gross profit and budgeted operating loss
within the Agrochemicals CGU. The Group is currently evaluating whether this
decline is a short-term trend linked to the current uncertainty of wider the
economic environment or whether this is part of a boarder, long-term trend.
Based on the above, an impairment review has been undertaken by the Directors.
Of the total carrying value of the intangible assets, £8,523,296 have been
allocated to the Agrochemicals Cash Generating Unit (CGU).
The recoverable amounts of the intangible assets has been determined based on
value in use calculations based on the Agrochemicals CGU.
Assumptions
The Directors have prepared a discounted cash-flow forecast, based on product
sales forecasts including those provided by the Group's commercial partners,
and have taken into account the market potential for the Group's products and
technologies using third party market data that the Group has acquired
licences to. The discounted cash-flow forecast is limited to those products
which are already being sold, or are expected to be sold in 2023, or early
2024.
The forecast covers a period of 7.5 years, with no terminal value, reflecting
the useful economic life of the patent in respect of the underlying
technology. Financial forecasts are based on the approved budget. Financial
forecasts for 2024-2025 are used on the approved long-term plan. Financial
forecasts for 2026-2030 are extrapolated based on a long-term growth rate.
The discount rate is derived from the Group's weighted average cost of
capital, taking into account the cost of equity and debt, which specific
market-related premium and company-related premium adjustments are made. The
discount rate used was 16.36%.
Tax rate is assumed at 25% which is in line with the rate in the years the
Group have earnings, however the current losses brought forward as at 30 June
2023 exceed £30m so not tax charge has been included in the forecasted years
where the Group is profitable.
Based on the above assumptions, the value in use of the intangible assets was
£4,970,139 lower than the carrying value of the intangible assets indicating
that an impairment of intangible assets is required at 30 June 2023.
The cash flows used within the impairment model are based on assumptions which
are sources of estimation uncertainty and small movements in these assumptions
could lead to further impairment. Management have performed a sensitivity
analysis on the key assumptions in the impairment model using reasonably
possible changes in these key assumptions.
Increase in assumption Effect on value in use calculation (£)
Discount rate 1% (270,020)
Working capital investment as a % of revenue growth 1% (137,499)
Average exchange rate 0.30 (682,654)
The impairment charge of £4,968,529 has been charged immediately to the
statement of comprehensive income.
10. Investment in associate
Six months ended Six months ended Year ended
30 June 2023 30 June 2022 31 December 2022
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Percentage ownership interest
and proportion of voting rights 29.90% 29.90% 29.90%
£ £ £
Non-current assets 347,094 409,425 378,271
Current assets 340,873 310,173 382,753
Non-current liabilities (57,155) (98,806) (92,341)
Current liabilities (386,531) (269,026) (365,430)
Net assets (100%) 244,281 351,766 303,903
Company's share of net assets 73,040 105,178 90,867
Separable intangible assets 118,965 133,533 126,249
Goodwill 412,649 412,649 412,649
Impairment of investment in associate (299,521) (299,521) (299,521)
Carrying amount of interest in associate 305,133 351,839 330,244
Revenue 297,304 255,912 497,292
Profit/(loss) from continuing operations (59,620) (8,579) (56,440)
Post tax profit from discontinued operations - - -
100% of total post-tax profits (59,620) (8,579) (56,440)
29.9% of total post-tax profits (17,827) (2,565) (16,876)
Amortisation of separable intangible (7,284) (7,284) (14,568)
assets
Company's share of loss including amortisation of separable intangible asset (25,111) (9,849) (31,444)
11. Subsidiaries
Details of the company's subsidiaries at 30 June 2023 are as follows:
Name of undertaking Country of incorporation Ownership interest (%) Voting power held (%) Nature of business
TerpeneTech Limited Republic of Ireland 50.00 50.00 Sale of biocide products
Eden Research Europe Limited Republic of Ireland Dormant
100.00 100.00
TerpeneTech Limited ("TerpeneTech (Ireland))", whose registered office is 108
Q House, Furze Road, Sandyford, Dublin, Ireland, was incorporated on 15
January 2019 and is jointly owned by both Eden Research Plc and TerpeneTech
(UK), the company's associate.
Eden has the right to appoint a director as chairperson who will have a
casting vote, enabling the Group to exercise control over the Board of
Directors in the absence of an equivalent right for TerpeneTech (UK). Eden
owns 500 ordinary shares in TerpeneTech (Ireland).
Eden Research Europe Limited, whose registered office is 108 Q House, Furze
Road, Sandyford, Dublin, Ireland, was incorporated on 18 November 2020 and is
wholly owned by both Eden Research plc.
Non-controlling interests
The following table summarises the information relating to the Group's
subsidiary with material non-controlling interest, before intra-group
eliminations:
30 June 2023 30 June 2022 31 Dec 2022
£ £ £
unaudited unaudited audited
NCI percentage 50% 50% 50%
Non-current assets 86,291 99,563 92,927
Current assets 34,983 - 6,076
Non-current liabilities - - -
Current liabilities - (18,371) -
Net assets 121,274 81,192 99,003
Carrying amount of NCI -
Revenue 28,907 25,591 50,038
Profit/(loss) 22,271 18,955 (13,234)
OCI - - -
Total comprehensive income 22,271 18,955 (13,234)
Share of NCI (50% of net Total comprehensive income) 11,136 9,478 (6,617)
Cash flows from operating activities - - -
Cash flows from investment activities - - -
Cash flows from financing activities - - -
Net increase/(decrease) in cash and cash equivalents - - -
Dividends paid to non-controlling interests - - -
12. Property, plant and equipment
Land and buildings
Total
£ £
COST
At 1 January 2022 302,027 302,027
Additions 21,790 21,790
At 30 June 2022 323,817 323,817
Additions - owned 9,139 9,139
At 31 December 2022 332,956 332,956
Additions 1,875 1,875
At 30 June 2023 334,831 334,831
AMORTISATION
At 1 January 2022 69,749 69,749
Charge for the period 31,356 31,356
At 30 June 2022 101,105 101,105
Charge for the period 33,065 33,065
At 31 December 2022 134,170 134,170
Charge for the period 33,486 33,486
At 30 June 2023 167,656 167,656
CARRYING AMOUNT
At 30 June 2023 167,175 167,175
At 31 December 2022 198,786 198,786
At 30 June 2022 222,712 222,712
13. Right of use assets
Land and buildings
Vehicles Total
£ £ £
COST
At 1 January 2022 443,777 86,073 529,850
Additions - 23,194 23,194
Disposals - (35,865) (35,865)
At 30 June 2022 443,777 73,402 517,179
Additions - 64,034 64,034
At 31 December 2022 443,777 137,436 581,213
At 30 June 2023 443,777 137,436 581,213
AMORTISATION
At 1 January 2022 119,865 37,198 157,063
Charge for the period 45,438 11,364 56,802
Eliminated on disposal - (35,865) (35,865)
At 30 June 2022 165,303 12,697 178,000
Charge for the period 45,438 24,961 70,399
At 31 December 2022 210,741 37,658 248,399
Charge for the period 45,438 22,235 67,673
At 30 June 2023 256,179 59,893 316,072
CARRYING AMOUNT
At 30 June 2023 187,598 77,543 265,141
At 31 December 2022 233,036 99,778 332,814
At 30 June 2022 278,474 60,705 339,179
14. Inventories
30 June 31 December
30 June 2023 2022 2022
£ £ £
Raw materials 533,227 114,562 115,929
Goods in transit - 251,985 411,181
Finished goods 118,167 92,877 98,348
651,394 459,424 625,458
Inventory above is shown net of a provision off
Provision for obsolete inventory 76,250 - 76,250
76,250 - 76,250
15. Trade and other receivables
30 June 31 December
30 June 2023 2022 2022
£ £ £
Trade receivables 479,311 1,166,042 322,489
VAT recoverable 252,336 231,407 179,214
Other receivables 99,140 66,410 67,410
Prepayments and accrued income 99,213 100,793 89,753
930,000 1,564,652 658,866
Trade receivables are shown net of a provision for doubtful debt of:
Provision for doubtful debt 107,188 - 107,188
107,188 - 107,188
Trade receivables disclosed above are measured at amortised cost. The
Directors consider that the carrying amount of trade and other receivables
approximates their fair value.
16. Trade and other payables
30 June 31 December
30 June 2023 2022 2022
£ £ £
Trade payables 1,171,433 1,306,597 1,150,873
Accruals and deferred income 420,310 212,193 515,860
Social security and other taxation 55,434 47,541 52,849
Other payables 171,405 72,614 93,759
1,818,582 1,638,945 1,813,341
17. Share based payments
Long-Term Incentive Plan ("LTIP")
Since September 2017 Eden has operated an option scheme for executive
directors, senior management and certain employees under an LTIP which allows
for certain qualifying grants to be HMRC approved. Details on options issued
in prior periods can be found in the annual report for the year ended 31
December 2022.
Options
Number of share options Weighted average exercise price (pence)
30 Jun 2023 30 Jun 2022 30 Jun 2023 30 Jun 2022
Outstanding at 1 January 16,312,649 18,680,044 7 7
Granted during the period - 2,006,939 - 5
Exercised during the period (250,000) - 1 -
Lapsed during the period (3,500,000) (3,500,000) 6 6
Exercisable at 30 June 12,562,649 17,186,943 8 8
The following information is relevant in the determination of the fair value
of options granted during 2022 under the LTIP Replacement Award.
Grant date 30/06/2022
Number of awards 2,006,939
Share price £0.04 - £0.05
Exercise price £0.01 - £0.06
Expected dividend yield -%
Expected volatility 63%
Risk free rate 0.95%
Vesting period One year
Expected Life (from date of grant) 3 years
The exercise price of options outstanding at the end of the period ranged
between 6p and 10.4p (H1 2022: 1p and 10.4p) and their weighted average
contractual life was 1.4 years (H1 2022: 2.1 years).
The share-based payment charge for the period, in respect of options, was
£119,083 (H1 2022: £152,135). The charge in H1 2023 is in respect of the
options granted in 2022 under the LTIP Replacement Award.
During the period, 3,500,000 of options lapsed and £171,251 (H1 2022:
£171,251) was transferred from the warrant reserve to retained earnings.
Also, during the period, 250,000 of options were exercised and £8,156 (H1
2022: £nil) was transferred from the warrant reserve to retained earnings.
Warrants
Number of share options Weighted average exercise price (pence)
30 Jun 2023 30 Jun 2022 30 Jun 2023 30 Jun 2022
Outstanding at 1 January - 2,989,865 - 19
Granted during the period - - - -
Exercised during the period - - - -
Lapsed during the period - - - 25
Exercisable at 30 June - 2,989,865 - 15
There were no warrants outstanding at 30 June 2023.
The exercise price of warrants outstanding at 30 June 2022 ranged between 12p
and 30p and their weighted average contractual life was 1.0 year. None of the
warrants had vesting conditions.
The share-based payment charge for the period, in respect of warrants, was
£nil (H1 2022: £nil).
Xinova liability
In September 2015, the Company entered into a Collaboration and Licence
agreement with Invention Development Management Company LLC (part of
Intellectual Ventures, now called Xinova LLC). As part of this agreement,
upon successful completion of a number of different tasks, Xinova became
entitled to a payment which is calculated using a percentage (initially 3.17%,
reduced to 1.6% following the fundraise in March 2020) of the fully diluted
equity value, reduced by cash and cash equivalents, of the Company on the date
on which payment becomes due which is expected to be 30 September 2025. This
has been accounted for as a cash-settled share-based payment under IFRS 2.
An amount of £67,462, being the estimated fair value of the liability due to
Xinova, was recognised during 2016 and included as a non-current liability.
It is not believed that the value of the services provided by Xinova can be
reliably measured, and so this amount was calculated based on the Company's
market capitalisation at 31 December 2016, adjusted to reflect the percentage
of work completed by Xinova at that date based on a pre-determined schedule of
tasks.
During H1 2022, Eden was informed that Xinova had begun to wind down its
operations.
As a consequence, Eden began communications with an agent acting on behalf of
Xinova to effect the wind down in respect of the liability owed to Xinova by
Eden.
On 22 April 2022, Eden signed a 'full and final' settlement agreement with
Xinova which resulted in Eden paying an amount of £43,855, which represented
a c. 50% discount to the liability of £87,740 as at 31 December 2021, in line
with the then existing contract.
At 30 June 2023, an amount of £nil (30 June 2022: £nil) was owed to Xinova.
18. Segmental Reporting
IFRS 8 requires operating segments to be reported in a manner consistent with
the internal reporting provided to the chief operating decision-maker. The
chief operating decision-maker, who is responsible for the resource allocation
and assessing performance of the operating segments has been identified as the
Executive Directors as they are primarily responsible for the allocation of
the resources to segments and the assessment of performance of the segments.
The Executive Directors monitor and then assess the performance of segments
based on product type and geographical area using a measure of adjusted
EBITDA. This is the result of the segment after excluding the share-based
payment charges, other operating income and the amortisation of intangibles.
These items, together with interest income and expense are not allocated to a
specific segment.
The segmental information for the six months ended 30 June 2023 is as follows:
Agrochemicals Consumer products Animal health Total
Revenue £ £ £ £
Milestone payments - - - -
R & D charges - 4,943 - 4,943
Royalties - 28,907 - 28,907
Product sales 1,108,521 - - 1,108,521
Total revenue 1,108,521 33,850 - 1,142,371
EBITDA (751,178) 33,850 - (717,328)
Share Based Payments (119,083) - - (119,083)
Adjusted EBITDA (870,261) 33,850 - (836,411)
Amortisation (257,941) (6,636) - (264,577)
Impairment (4,968,529) - - (4,968,529)
Depreciation (101,159) - - (101,159)
Finance costs, foreign exchange and investment revenues 2,499 - - 2,499
Income Tax 317,230 - - 317,230
Share of Associate's loss - (25,111) - (25,111)
(Loss)/Profit for the Year (5,878,161) 2,103 - (5,876,058)
Total Assets 6,971,889 121,274 - 7,093,613
Total assets includes:
Additions to Non-Current Assets 428,793 - - 428,793
Total Liabilities 2,085,170 20,000 - 2,105,170
The segmental information for the six months ended 30 June 2022 is as follows:
Agrochemicals Consumer products Animal health Total
Revenue £ £ £ £
Milestone payments - - - -
R & D charges - 3,232 - 3,232
Royalties - 25,591 - 25,591
Product sales 1,011,213 - - 1,011,213
Total revenue 1,011,213 28,823 - 1,040,036
EBITDA (822,740) 28,823 - (793,917)
Share Based Payments (152,135) - - (152,135)
Adjusted EBITDA (974,875) 28,823 - (946,052)
Amortisation (239,689) (6,636) - (246,325)
Depreciation (88,159) - - (88,159)
Finance costs, foreign exchange and investment revenues (43,191) - - (43,191)
Income Tax 345,424 - - 345,424
Share of Associate's loss - (9,849) - (9,849)
(Loss)/Profit for the Year (1,000,490) 12,338 - (988,152)
Total Assets 13,931,631 99,563 - 14,038,478
Total assets includes:
Additions to Non-Current Assets 702,173 - - 702,173
Total Liabilities 1,982,793 18,371 - 2,001,164
The segmental information for the year ended 31 December 2022 is as follows:
Agrochemicals Consumer products Animal health Total
Revenue £ £ £ £
Milestone payments - - - -
R & D charges 75,334 14,309 - 89,643
Royalties 17,694 100,038 - 117,732
Product sales 1,619,796 - - 1,619,796
Total revenue 1,712,824 114,347 - 1,827,171
Adjusted EBITDA (1,841,805) 114,347 - (1,727,458)
Share Based Payments (152,135) - - (152,135)
EBITDA (1,993,940) 114,347 - (1,879,593)
Amortisation (482,546) (13,272) - (495,818)
Depreciation (191,622) - - (191,622)
Finance costs, foreign exchange and investment revenues 30,882 - - 30,882
Impairment of investment in associate - - - -
Income Tax 323,716 - - 323,716
Share of Associate's loss - (31,444) - (31,444)
(Loss)/Profit for the Year (2,313,510) 69,631 - (2,243,879)
Total Assets 12,812,579 99,003 - 12,911,582
Total assets includes:
Additions to Non-Current Assets 1,141,418 - - 1,141,418
Total Liabilities 2,168,664 - - 2,168,664
Geographical Reporting
Six months ended 30 June 2023 Six months ended 30 June 2022 Year ended 31 December 2022
£ £ £
UK 33,850 28,823 114,347
Europe 1,108,521 1,011,213 1,712,824
1,142,371 1,040,036 1,827,171
The revenue derived from Milestone Payments relates to agreements which cover
a number of countries both in the EU and the rest of the world.
All of the non-current assets are in the UK.
19. Merger Reserve
Six months ended 30 June 2023 Six months ended 30 June 2022 Year ended 31 December 2022
£ £ £
Merger reserve - 10,209,673 10,209,673
During the period, the carrying value of the intellectual property which had
arisen from an acquisition in 2003 had been reduced to zero. As such, under
the Companies Act 2006, the full balance of the merger reserve of £10,209,673
was transferred to retained earnings.
20. Subsequent Events
Capital Raising
On 28 July 2023, the Company announced that it had raised £1.1
million through a firm placing and subscription of new Ordinary Shares ("Firm
Capital Raising") and a further £0.4 million through a Retail Offer and had
conditionally raised a minimum of £7.9 million by way of a Placing of new
Ordinary Shares ("Conditional Capital Raising"), all before expenses.
The Conditional Capital Raising is expected to complete shortly.
LTIP grant
On 31 August 2023, the The Company made a LTIP grant to the Executives, in
respect of 2022 in order to ensure continuity of long term incentive, of
options over 8,698,909 new Ordinary Shares in Eden ("the Options"), at a
strike price of 5.05p each, being the 2022 Volume Weighted Average Price, in
the amounts of 4,968,000 awarded to Sean Smith and 3,730,909 awarded
to Alex Abrey.
The Options expire on 31 August 2027 and vest as follows:
1/3 upon grant
1/3 12 months from the date of grant
1/3 24 months from the date of grant
Separately, the Board agreed that it would extend the exercise date to 31
December 2023 for the 3,500,000 options (2,000,000 awarded to Sean
Smith and 1,500,000 awarded to Alex Abrey) with a strike price of 6p which
were granted to the Executives in April 2021 under the Company's LTIP and
which were due to expire on 30 June 2023.
The extension was agreed to due to the unusually long closed period that the
Executives were placed in prior to the options' expiration date.
Notes to Editors:
Eden Research is the only UK-listed company focused on biopesticides for
sustainable agriculture. It develops and supplies innovative biopesticide
products and natural microencapsulation technologies to the global crop
protection, animal health and consumer products industries.
Eden's products are formulated with terpene active ingredients, based on
natural plant defence metabolites. To date, they have been primarily used on
high-value fruits and vegetables, improving crop yields and marketability,
with equal or better performance when compared with conventional pesticides.
Eden has two products currently on the market:
Based on plant-derived active ingredients, Mevalone(®) is a foliar
biofungicide which initially targets a key disease affecting grapes and other
high-value fruit and vegetable crops. It is a useful tool in crop defence
programmes and is aligned with the requirements of integrated pest management
programmes. It is approved for sale in a number of key countries whilst Eden
and its partners pursue regulatory clearance in new territories thereby
growing Eden's addressable market globally.
Cedroz™( )is a bionematicide that targets free living nematodes which are
parasitic worms that affect a wide range of high-value fruit and vegetable
crops globally. Cedroz is registered for sale on two continents and Eden's
commercial collaborator, Eastman Chemical, is pursuing registration and
commercialisation of this important new product in numerous countries
globally.
Eden's Sustaine(®)( )encapsulation technology is used to harness the
biocidal efficacy of naturally occurring chemicals produced by plants
(terpenes) and can also be used with both natural and synthetic compounds to
enhance their performance and ease-of-use. Sustaine microcapsules are
naturally-derived, plastic-free, biodegradable micro-spheres derived from
yeast. It is one of the only viable, proven and immediately registerable
solutions to the microplastics problem in formulations requiring
encapsulation.
Eden was admitted to trading on AIM on 11 May 2012 and trades under the
symbol EDEN. It was awarded the London Stock Exchange Green Economy
Mark in January 2021, which recognises London-listed companies that derive
over 50% of their total annual revenue from products and services that
contribute to the global green economy. Eden derives 100% of its total annual
revenues from sustainable products and services.
For more information about Eden, please visit: www.edenresearch.com
(http://www.edenresearch.com/) .
Follow Eden on LinkedIn (https://www.linkedin.com/company/eden-research-plc/)
, Twitter (https://twitter.com/edenresearch) and YouTube
(https://www.youtube.com/@edenresearch580) .
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