News
AgCert™ Closes Debt Financing
Dublin, Ireland - 05 January 2007
The Board of AgCert™ International plc ("AgCert™" or "the Company") is pleased to announce that, further to the information provided in the trading update released 21 December 2006, the company has now agreed and finalised the first component of its proposed €70m debt funding programme.
- Completion and funding have occurred for a senior secured debt facility of $25m USD, equating to approximately €19m, provided by Laurus Master Fund Ltd. ("Laurus"). The Loans mature in May 2008.
- The funding is divided into two parts of which $10m may be converted (at the lender's option) into equity at an average price of 135% of the base price of 149p (the "Base Price").
- AgCert™ has also granted options in respect of 4,228,872 ordinary shares (€0.0001 each) exercisable by Laurus over the five (5) year period from 29 December 2006 at an average exercise price of 130% of the Base Price.
- Interest is payable on a current basis and is indexed to the US Prime Rate.
Discussions regarding the remainder of the proposed €70m debt funding programme continue progressing. The Company will update the shareholders in due course.
ENQUIRIES:
| AgCert™ Plc |
|
| Bill Haskell, CEO, AgCert International | + 353 1 245 7400 |
| Paul D'Alton, CFO, AgCert International | + 353 1 245 7400 |
| College Hill | |
| Mark Garraway/Anthony Parker | +44 (0)207 4572020 |
The shares of AgCert™ International plc (the "Shares") have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The Shares may not be offered or sold in the United States, or to, or for the account or benefit of, U.S. persons as such term is defined in Regulation S under the Securities Act except (1) in a transaction meeting the requirements of Regulation S under the Securities Act, (2) pursuant to an effective registration statement under the Securities Act, or (3) pursuant to an available exemption from the registration requirements of the Securities Act, in each case in accordance with all applicable securities laws, including applicable state securities laws of the United States.
About AgCert™
AgCert™ International plc was founded in 2002 to produce and sell reductions in greenhouse gas emissions (referred to as "offsets") from agricultural sources on an industrial scale. These offsets are intended to satisfy the requirements of the Kyoto Protocol and be capable of being traded on the European cap and trade system, the European Union Emissions Trading Scheme ("EU-ETS").
AgCert™ has identified agriculture as one of the largest commercial opportunities for Offset production and expects to be a leading supplier of offsets from this sector. Agriculture is responsible for around 20 per cent of the world's annual greenhouse gas emissions. Under the Kyoto Protocol, any reductions in greenhouse gas emissions derived from this sector qualify as CERs provided they are derived from projects that have been validated by a DOE and Registered by the UN Executive Board and are properly verified and certified according to the stringent requirements laid down by the UN.
The Group's strategy is to expand rapidly its offset production and resultant sales capacity by commencing the modification of Animal Waste Management Systems ('AWMS') on farms where it has already entered into arrangements with farmers and by rolling out its turnkey AWMS modification methods both geographically and across additional livestock species beyond its current focus on swine through the entry into contracts with additional farms.