Admission to AIM
January 11 2002 - 5:20AM
UK Regulatory
RNS Number:8304P
Recycled Waste PLC
11 January 2002
11th January 2002 PRESS RELEASE
Recycled Waste plc
Placing and Open Offer raises #790,000 (net) for the Company,
Admission to the Alternative Investment Market
and First Day of Dealings
Recycled Waste plc ("Recycled Waste" or "the Company"), the waste technology
company, today announces the Placing and Pricing details of its successful
fundraising together with the result of the Open Offer and Admission to the
Alternative Investment Market ("AIM"). Dealings on AIM commence today.
Summary
* Placing of 62 million Ordinary Shares, raising #720,000 (net of
expenses) for the Company at 2p per share
* The total number of Ordinary Shares in issue following the Placing and
Open Offer is 272,308,050 Ordinary Shares
* The market capitalisation of Recycled Waste is approximately #5.45
million at the Placing Price
* Funds raised will facilitate Recycled Waste's development as an
innovative waste technology and recycling company
David M. Norton, CEO of Recycled Waste plc, commented:
"We are delighted with the support shown for the Company's plans. We believe
there is substantial scope to develop a world-leading waste technology
business, founded on innovative and productive treatment of high value or
environmentally damaging wastes.
"Our existing technology in reverse polymerisation promises to be
ground-breaking in the processing of deleterious wastes such as medical and
tyre refuse. This and other technology will not only reduce future
environmental damage but can also produce valuable by-products and even
surplus energy."
Enquiries:
David M. Norton Tel: 0113 234 1828
CEO, Recycled Waste plc
David Simonson or Tom Randell Tel: 0207 606 1244
Merlin Financial Communications
Details of the Placing and Open Offer
The gross proceeds of the placing and open offer by the Company are #1.31
million. Recycled Waste has issued 65,580,097 new Ordinary Shares at 2p per
share, valuing the Company at approximately #5.45 million at the Placing
Price.
Subsequent to the publication of the prospectus on 8 December 2001, the
Company has agreed to pay Jonathan Castle, a former director of the Company, a
commission and fee of, in aggregate, #20,000 in respect of services rendered
pursuant to the Placing and Admission generally.
Corporate Synergy PLC and W.H. Ireland Limited are the nominated adviser and
broker respectively to Recycled Waste.
Placing Statistics
Placing Price 2p
Number of Ordinary Shares in issue following the Placing and Open 272,308,050
Offer ("Enlarged Issued Share Capital")
Market capitalisation at the Placing #5.45
million
Number of New Shares issued pursuant to the Placing 62 million
Number of New Shares issued pursuant to the Open Offer 3,580,097
Estimated net proceeds receivable by the Company after deduction of #790,000
estimated costs of flotation of #520,000 (including commissions and
expenses)
Percentage of Enlarged Share Capital represented by the Placing 22.8%
Shares
Percentage of Enlarged Share Capital represented by the Placing 24.1%
Shares and Open Offer shares
Background to company
Recycled Waste was established in November 1999 and operates in the waste
recycling sector, which the Directors believe offers significant growth
potential. It intends to use three specific waste recycling processes:
* Reverse polymerisation - a patented, innovative technology using
microwave energy to reduce both the weight and volume of waste by
approximately 80 per cent. in a clean and controlled environment.
* Airless drying systems - an established process currently used in the
ceramics industry. The Enlarged Group intends to apply this process to
various organic and biomass waste streams to create value added products.
* Traditional recycling technologies - drum and plastic recycling using
processes currently in operation through Recycled Waste (Speke) Limited,
Recycled Waste's subsidiary, and liquid waste processing, to be undertaken
at the same site, when the necessary extensions to the existing licenses
have been received from the Environment Agency.
Waste Streams
Through the use of the processes above, the Enlarged Group intends to
concentrate on the recycling of waste which meets one, or preferably both, of
the following criteria:
* The processes produce a value added product which therefore can be sold
at a significant margin; and/or
* The product has a "high gate" value, meaning that the waste producer
will pay a significant fee to the Enlarged Group for taking the waste.
The Market
Approximately 400 million tonnes of waste are produced in England and Wales
every year, of which approximately 62 per cent. goes to landfill (source:
Department of Environment, Transport and the Regions May 2000). Although
landfill has been the preferred option in the past, increased environmental
concern together with the diminishing availability of suitable sites have led
the government to introduce new regulations to reduce the amount of industrial
and commercial waste going to landfill to 85 per cent. of 1998 levels.
Legislation has recently been passed increasing the current landfill tax of #
12 per tonne by #1 per tonne per year and forbidding the use of landfill sites
for certain waste materials - notably clinical waste and liquid waste.
Businesses producing these waste products are therefore obliged to search for
alternative ways to dispose of their waste products, and recycling is becoming
an increasingly attractive alternative method of disposal.
Defined terms used in this announcement have the meanings given to them in the
prospectus of Recycled Waste plc dated 8th December 2001, unless the context
dictates otherwise.
-Ends-
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