ACTA.L Regulatory News (ACTA)

12 Jul 2007 07:00

Acta S.p.A.12 July 2007 12 July 2007 Acta S.p.A. ("Acta" or "the Company") Acta raises £5.75m with Sumitomo strategic investment Acta, the AIM-listed catalyst developer, is delighted to announce that it hasraised £5.75m (before associated expenses), through a strategic investment bySumitomo Corporation, its Asian marketing partner ("Sumitomo") and via a placingto institutional investors arranged by Numis Securities Ltd ("Numis"). Under the terms of the subscription agreement, Sumitomo, one of the largesttrading and investment corporations in Japan, has agreed to subscribe for 4million shares (approximately 10%) in the Company at 115p per share (£4.6m).This investment will be made in two tranches following approval of theinvestment by Acta shareholders at an extraordinary general meeting ("EGM").Completion of the first investment is expected during the second half ofSeptember 2007, with the second tranche due to be completed six monthsthereafter. Completion is, in each case, subject to the fulfilment of certainadministrative matters and there being no breach of warranty. Acta has simultaneously raised a further £1.15m through a placing of 1 millionshares at 115p with institutional investors by Numis. The 115p price represents a small premium over Acta's three month average shareprice. At the same time, the relationship between Sumitomo and Acta has beenstrengthened by the signing of a new marketing agreement which both extends thescope of the agreement and extends the duration to an initial fixed term of tenyears. The net £5.65m raised (including the second tranche of the subscription bySumitomo) is, at current levels of cash consumption, expected to fund Acta'soperational activities into 2010. Acta and Sumitomo started working together in April 2005. Sumitomo has beenactive on Acta's behalf and has introduced Acta's HYPERMEC catalysts for fuelcells to many of the leading portable electronics, battery and automotivemanufacturers in Japan and Korea. Many of these OEMs are now evaluatingHYPERMEC. Mr Uemura, Senior Manager, Chemical & Electronics Business unit in Sumitomo,said: "We have been very encouraged by the response of the fuel cell market toActa's exciting technology and we are delighted to be able to invest in thefuture success of Acta." Paolo Bert, Chief Executive of Acta, said: "We are delighted to welcome Sumitomoas investors in Acta. Sumitomo promote Acta's HYPERMEC catalysts in Asia andthey have a unique position from which to judge the market and growth potentialof Acta's patented technology. Their investment is therefore particularlyimportant since it recognises the growing potential of HYPERMEC technology inboth the fuel cell and other markets." The date of the EGM of Acta's shareholders to approve the issue of the shares toSumitomo and pursuant to the institutional placing is expected to be on oraround 5 September 2007.For further information, please contact: Acta S.p.A:Toby Woolrych, Chief Operating Officer Tel: +44 (0) 20 7360 4900 Smithfield Consultants:George Hudson / Will Henderson Tel: +44 (0) 20 7360 4900 Numis Securities Limited (Nominated Adviser): Tel: +44 (0) 20 7260 1000David Poutney Notes to Editors: Acta S.p.A.Acta, which was admitted to AIM in October 2005, is a manufacturer ofplatinum-free catalysts for the portable electronics and renewables markets.Acta uses a patented manufacturing process to make uniquely active catalysts,branded HYPERMEC, which are able to perform as effectively as expensive platinumcatalysts. Acta's catalysts offer customers technical usage benefits,significant cost savings and allow for the first time the use of ethanol, whichis a safe and environmentally friendly fuel. Products in the target portableelectronics market include laptop computers and mobile phones, and in therenewables market include electricity supply, automotive power and hydrogengeneration. Sumitomo CorporationThrough its worldwide network, the Sumitomo Corporation Group engages in diversebusiness activities. These include various domestic and overseas transactionsand import and export of a wide range of goods and commodities, and alsoproviding a wide range of services and investing, in the fields of, such asmetals, transportation and construction systems, machinery and electricity,media, electronics and network, chemicals, mineral resources and energy,consumer goods and services, materials and real estate, and finance andlogistics.(http://www.sumitomocorp.co.jp/english/index.htm) The Acta/Sumitomo Agreement.Acta and Sumitomo Corporation entered into a marketing agreement in March 2005,through which Sumitomo promotes Acta's catalysts in Japan, Korea, Taiwan and SEAsia in return for a percentage of future revenues. The agreement was revised in2006 to extend the contract to cover China and to pave the way for theintroduction of other new products as they become commercial. The new marketing agreement signed today further deepens and extends therelationship between Sumitomo and Acta in Asia. In recognition of thesignificant investment of resource by Sumitomo in this pre-revenue phase, theinitial term has been extended to ten years, to be followed by annualextensions. The contract has further included the overseas subsidiaries ofJapanese corporations and contains a joint intention to work together in theevent of a more significant undertaking being established in Asia such as localmanufacturing, joint venture etc. The agreement contains certain usualtermination rights enabling either party to terminate in certain agreedcircumstances. This information is provided by RNS The company news service from the London Stock Exchange