Michael Panteli has stepped down as finance director of Plant Impact and left the company.
There has been speculation about his role at the company and three weeks ago Plant Impact said that he was still employed. A new finance director is being recruited and there will be an interim finance director for the time being.
Arysta LifeScience has agreed to amend the terms of its agreement concerning natural insecticide BugOil so that Plant Impact does not have to repay a £750,000 development loan (£838,000 including interest) until 31 May 2013. The interest rate has been increased by three percentage points. Plant Impact had £1.66m in the bank at the end of September 2011. There was a cash outflow of nearly £1.5m in the previous six months so repayment on the original date of 22 February 2012 would strain the cash position.
It is taking longer than expected to gain regulatory approval. US registration is still expected by the middle of this year. UK approval should be next year. Plant Impact is taking back commercial rights in some areas, including the US, South America, Asia and Australasia. Arysta retains the rights in the European Union and selected Eastern European countries, in Africa and several countries of the Middle East as well as in Mexico, Japan and South Korea.
Milestone payments will be adjusted for this. So far Plant Impact has received £500,000 and was expecting £1.75m more. It will now receive £854,000 in three tranches dependent on milestones being achieved.
Arysta owns 9.1% of Plant Impact.
The goodwill in the balance sheet is not being adjusted for the new agreement because management believes the full ownership of additional rights offsets the loss of milestone payments.
At 7.25p a share, Plant Impact is valued at £8.69m.
Allianz recently sold 1.7m shares.
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