Crop yield improvement technology developer Plant Impact is raising £2.1m at 15p a share in order to take full advantage of its recent agreement with Arysta LifeScience Corporation and other partnerships.
Even though Plant Impact has announced positive news the share price fell sharply on the day the placing was announced. Prior to the placing announcement the share price was 25p and the shares fell 26% on the day. At 18.5p a share, Plant Impact is valued at £5.81m before the latest placing – which is equivalent to 31% of the enlarged share capital.
The cash will be spent on recruiting sales and marketing personnel to boost sales and speed up product development.
Arysta is a Japan-based global crop protection company with annual revenues of $1.3bn. Last year it signed a 20 year licence agreement with Plant Impact covering the manufacturing and sale of BugOil for mainstream agricultural activities.
The latest deal covers the InCa, Balance and Cocoa Stress Tolerance products. This will more than double to 52 the number of countries where the products are sold. Arysta has exclusivity to evaluate the products until the end of March 2011. Distribution agreements will be signed on a country by country basis.
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