FBG Fibregen

    RNS Number : 1265Z
  FibreGen Plc
  15 July 2008
   



 Press Release   15 July 2008

    FibreGen plc
    ("FibreGen" or "the Company")
    Update on Emerald Bio-Energy Ltd

    Further to FibreGen's (AIM:FBG) announcement on 10 July 2008, the Company announces that it has reached agreement on two transactions.

    1.  Sale of assets to Evergreen Securities plc (AIM:EVER)

    The Company has today transferred its contractual interests in its rights to a Chinese joint venture to Evergreen Securities plc
("Evergreen"). The joint venture has constructed and commissioned a demonstration facility on land owned by a major electricity utility in
the city of Baoying, Jiangsu, China with the intention of significantly expanding the facility, and to potentially develop additional sites.
 Such expansion and development costs are not viewed as core to the Company's growth strategy.  The consideration for this transfer is the
payment of �300,000 in cash to the Company, the reduction by �200,000 of a working capital bridge financing provided to the Company by
Evergreen, and the transfer of Evergreen's entire holdings in two companies, HaloSource Inc ("HaloSource") and Waipuna Holdings Limited
("Waipuna") (together the "Securities").

    2.  Settlement of put option in respect of the 25% minority interest in Emerald Bio-Energy Ltd ("Emerald")

    The Company has settled the �4 million put option in respect of the 25% minority interest held by a minority shareholder (the "Minority
Shareholder") in Emerald, the Company's principal operating subsidiary, with the result that the Company now owns 100% of the issued share
capital of Emerald.  The consideration for this acquisition is �979,000 (including interest and advisors' fees to the Minority Shareholder
of �79,000) payable in cash, deferred consideration of �3.1m and the transfer of the Securities to the Minority Shareholder.  The deferred
consideration is payable on 22 July 2009 and is subject to an interest rate of 10% per annum.  Prior to settlement of the deferred
consideration, the amount outstanding may be reduced as a result of cash pre-payments.  Furthermore, to the extent that the Minority
Shareholder derives income from or attributable to the Securities (including a sale in connection with an IPO of Halosource or Waipuna) by
22 July 2009, any such income shall reduce the amount of deferred consideration outstanding.  If the deferred consideration is satisfied in full, any remaining Securities will be returned to the Company
by 25 July 2009.  The Securities were valued at approximately �4 million when they were acquired by Evergreen in April of this year.  As
part of this transaction, the Company has been required to give appropriate covenants to the Minority Shareholder regarding material events
relating to the Company and its group.

    3. Working capital update

    Whilst the partial cash settlement of the put option in respect of the 25% minority interest in Emerald results in the Company owning
100% of the issued share capital of its principal operating subsidiary Emerald, the Group will as a consequence have limited current working
capital available.  The Directors believe that the Company has, in the absence of unforeseen circumstances, sufficient working capital to
finance its continuing and stated commitments.  This belief is based partly upon the assumption that the Company will realise the sale of
certain non-operational assets before the calendar year end.

    The Directors will update the market in due course on the Company's recent announcement concerning Coeur D'Alene Fiber Fuels Inc.


    - Ends -

    For further information: 

 FibreGen plc
 Glenn Smith, CEO        Tel: +1 206 838 8398
 Rick Squires, Chairman  Tel: +44 7971 037116

 Landsbanki Securities (UK) Ltd  
 Nominated Advisor
 Jeff Keating/Simon Brown, Corporate Finance         Tel: +44 (0) 20 7426 9000
 Liberum Capital - Broker
 Ellen Francis / Simon Atkinson, Corporate Finance  Tel: +44 (0) 20 3100 2000 

    Media enquiries:
 Abchurch                           Tel: +44 (0) 20 7398 7700
 Joanne Shears / Justin Heath       Tel: +44 (0) 20 7398 7709
 joanne.shears@abchurch-group.com    www.abchurch-group.com  





This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
STRILFVSDLIELIT

Fibregen (LSE:FBG)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024

Fibregen (LSE:FBG)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024