REG - Symphony Environment - Convertible loan agreement & revenue update

Symphony Environmental TechnologiesAnnouncement

13/03/2023 15:45

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RNS Number : 7961S  Symphony Environmental Tech. PLC  13 March 2023

 

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014. It forms part of United Kingdom domestic law by virtue of the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement, this information is considered to be in the public domain

 

      13 March 2023

SYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC

 

("Symphony" or the "Company")

 

Company secures convertible loan raising £1,000,000

Hearing date set for the EU Case

2022 revenue update

 

Symphony Environmental Technologies Plc (AIM: SYM), global specialists in
technologies that make plastic and rubber products "smarter, safer and
sustainable", is pleased to announce receipt of a convertible loan ("Loan")
from Sea Pearl Ventures Limited ("Sea Pearl"), based in the Bahamas. Key terms
of the Loan are:

 

·      Loan principal: £1 million (unsecured)

·      If not repaid before expiration, conversion at 1 year and 30 days
(no earlier)

·      Conversion price: 80% of the volume-weighted average share price
for the 3 months prior to conversion at 1 year and 30 days

·      Interest: 7% per annum, payable as accrued on repayment and/or
conversion

·      Symphony able to repay the loan in full or in part before
conversion at its discretion

 

The proceeds of the Loan will be used to strengthen the Group's cash position
for ongoing working capital purposes and will further support the Group to
deliver on its many commercial opportunities during the year.

 

Sea Pearl is currently interested in 17.4% of Symphony's issued share capital
and is therefore considered a substantial shareholder under the AIM Rules.
Being a substantial shareholder, provision of the Loan is considered to be a
related party transaction under the AIM Rules for Companies. The board of
directors of the Company consider, having consulted with the Company's
nominated adviser, that the terms of the Loan are fair and reasonable insofar
as the Company's shareholders are concerned.

 

EU Case Hearing Date

 

The Group advises that a hearing date at the General Court of the EU in
Luxembourg has been set for 20 March 2023. The legal action is for financial
damages against the Commission, Parliament and Council of the EU having been
advised by three specialists in EU law that Article 5 of the EU Directive
2019/904 is unconstitutional. The date of the judgment is not known, but the
Company is advised by its legal advisors that it is expected to be delivered
12 to 15 months after the hearing, and without prior notice.

 

2022 Revenue Update

 

Group revenue for the financial year ended 31 December 2022 ("FY-22") is now
expected to be £6.2 million, being lower than the £6.5 million previously
indicated. This is purely a consequence of timing differences over the year
end with final shipment consignments (for revenue recognition purposes),
primarily of deliveries from the new plant in the Middle East, falling into
January 2023.  The foregone contribution from these sales will also impact
losses reported in FY-22. However, the new plant has been operating well and
in line with management expectations during this first quarter of 2023.

 

Michael Laurier, CEO of Symphony, commented;

 

"We are pleased with the continuing support from Sea Pearl as demonstrated
through the provision of this £1 million convertible loan. We have an
extensive pipeline of exciting projects which this money will help progress."

 

 

Enquiries:

 Symphony Environmental Technologies Plc
 Michael Laurier, CEO                                                  Tel: +44 (0) 20 8207 5900
 Ian Bristow, CFO
 www.symphonyenvironmental.com (http://www.symphonyenvironmental.com)

 Zeus (Nominated Adviser and Joint Broker)
 David Foreman, Kieran Russell (Investment Banking)                    Tel: +44 (0) 161 831 1512
 Dominic King, Victoria Ayton (Sales)                                  Tel: +44 (0) 203 829 5000

 Hybridan LLP (Joint Broker)

 Claire Louise Noyce                                                   Tel: +44 (0) 203 764 2341

The person responsible for arranging the release of this information is
Michael Laurier, CEO of the Company.

 

About Symphony Environmental Technologies Plc

https://www.symphonyenvironmental.com (https://www.symphonyenvironmental.com)

Symphony has developed a range of additives, concentrates and master-batches
marketed under its d(2)p® ("designed to protect") trademark, which can be
incorporated in a wide variety of plastic and non-plastic products so as to
provide protection against many different types of bacteria, viruses, fungi,
algae, moulds, and insects, and against fire.  d(2)p products also include
odour, moisture and ethylene adsorbers as well as other types of
food-preserving technologies. For an overview see www.d2p.net
(http://www.d2p.net)    Symphony has launched d(2)p anti-microbial household
gloves and toothbrushes and "Symfresh" food-packaging, and is developing a
range of other d(2)p finished-products for retail sale.

 

Symphony has also developed a biodegradable plastic technology which addresses
the problem of persistent microplastics, by turning ordinary plastic at the
end of its service-life into a waxy substance which is biodegradable. It is
then no longer a plastic and can be bioassimilated in the open environment in
a similar way to a leaf without leaving microplastics behind. The technology
is branded d(2)w® and appears as a droplet logo on many thousands of tonnes
of plastic packaging and other plastic products around the world, much of
which has been recycled. In some countries, most recently Saudi Arabia,
oxo-biodegradable plastic is mandatory for short-life plastic products.

 

d(2)w technology was studied for three years in the Oxomar project, sponsored
by the French government, which concluded that plastic made with Symphony's
d(2)w oxo-biodegradable technology will biodegrade in seawater significantly
more efficiently than conventional plastic. See
https://www.biodeg.org/subjects-of-interest/agriculture-and-horticulture/the-marine-environment/
(https://www.biodeg.org/subjects-of-interest/agriculture-and-horticulture/the-marine-environment/)
 

 

Following this report, the scientists allowed bacteria commonly found in the
open environment access to d(2)w oxo-biodegradable plastic containing Carbon
13.  They found Carbon 13 in the carbon dioxide exhaled by the bacteria,
proving beyond doubt that the plastic had been bioassimilated by the bacteria.

 

Symphony has complemented its d(2)w and d(2)p product ranges with d(2)c
"compostable resins and products" that have been tested to US and EU
composting standards, and has invested in Eranova - a French company
extracting starch for making plastics, out of algae.

 

Symphony has also developed the d(2)Detector®, a portable device which
analyses plastics and detects counterfeit products.  This is useful for
government officials tasked with enforcing legislation, and Symphony's d(2)t
tagging and tracer technology is available for further security.

 

Symphony has a diverse and growing customer-base and has established itself as
an international business with over 70 distributors around the world. Products
made with Symphony's plastic technologies are now available in nearly 100
countries and in many different product applications. Symphony itself is
accredited to ISO9001 and ISO14001.

 

Symphony is a member of The BPA (www.biodeg.org) and actively participates in
the Committee work of the British Standards Institute (BSI), the American
Standards Organisation (ASTM), the European Standards Organisation (CEN), and
the International Standards Organisation (ISO).

 

Further information on the Group can be found at www.symphonyenvironmental.com
and twitter @SymphonyEnv   See also Symphony on Instagram. A Symphony App is
available for downloading to smartphones.

 

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