REG - Symphony Environment - Equity subscription and grant of warrants

Symphony Environmental TechnologiesAnnouncement

01/08/2022 07:16

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RNS Number : 3507U  Symphony Environmental Tech. PLC  01 August 2022

 

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014. Upon the publication of this announcement, this inside information
is considered to be in the public domain.

 

      1 August 2022

SYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC

 

("Symphony" or the "Company")

 

Equity subscription raising £1,000,000,

Grant of 4.0 million warrants and

Total Voting Rights

 

Symphony Environmental Technologies Plc (AIM: SYM), a global science-based
group that makes plastic and rubber products "smarter, safer and sustainable",
is pleased to announce an equity subscription for 5,555,556 new ordinary
shares of 1 pence each in the Company ("Ordinary Shares") by Sea Pearl
Ventures Limited ("Sea Pearl"), based in the Bahamas, at a price of 18 pence
per Ordinary Share ("Subscription Price") (the "Subscription"). Gross proceeds
from the Subscription are £1,000,000.

 

The Subscription Price represents a c.5 per cent. discount to the closing
price of 19.00 pence per Ordinary Share on 28 July 2022, being the last
business day prior to the date of the Subscription.

 

In addition, 4.0 million warrants have been granted to Sea Pearl (the
"Warrants") at an exercise price of 25 pence per Ordinary Share and are
exercisable for one year from completion of the Subscription.

 

The total interest in Symphony of Vincel Investment Holdings Limited
("Vincel") have been transferred to Sea Pearl. Upon completion of the
Subscription, Sea Pearl will be interested in 17.4 per cent. of the enlarged
issued share capital of the Company. Sea Pearl shares the same ownership
structure as Vincel and is 100% owned by Mrs Shruti Lohia, daughter of Mr S P
Lohia. Mr Lohia is the Chairman of Indorama Corporation, Singapore.

 

The proceeds of the Subscription will be used for ongoing working capital
purposes and will be used  to strengthen the balance sheet to take advantage
of future commercial opportunities as the group transitions to profitability.

 

Due to Sea Pearl's current interest in Symphony, the Subscription and grant of
Warrants are considered to be a related party transaction under the AIM Rules
for Companies.

 

Accordingly, the board of directors of the Company consider, having consulted
with the Company's nominated adviser, that the terms of the Subscription, and
the grant of Warrants, are fair and reasonable insofar as the Company's
shareholders are concerned.

 

The Subscription is conditional upon admission of the new Ordinary Shares to
trading on AIM which is expected to commence on 5 August 2022 ("Admission").

 

The new Ordinary Shares issued pursuant to the Subscription as well as the
Ordinary Shares to be issued upon the exercise of the Warrants will rank in
full for all dividends or other distributions hereafter declared, made or paid
on the ordinary share capital of the Company and will rank pari passu in all
other respects with all other Ordinary Shares in issue.

 

Total Voting Rights

 

Following Admission, the total issued share capital of the Company will be
184,806,833 Ordinary Shares. The Company does not hold any shares in treasury
and therefore the total number of voting rights in Symphony will be
184,806,833.

 

The above figure may be used by shareholders as the denominator for the
calculations by which they will determine whether they are required to notify
their interest in, or a change to their interest in, the Company under the
Financial Conduct Authority's Disclosure and Transparency Rules.

 

Michael Laurier, CEO of Symphony commented,

 

"We are pleased to have received this investment from Sea Pearl showing
ongoing support and optimism around the potential of the Group. The additional
warrants show longer term partnership and commitment."

 

 

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 Capital Limited (Nominated Adviser and Joint Broker)
 David Foreman, Kieran Russell, Guy Brinkley (Corporate Finance)       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 74 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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