Jun. 30, 2017
Eden Research plc (EDEN) announces that it has signed multiple new commercial and development agreements with its partner, Sipcam SpA (“Sipcam”), representing a significant expansion of the Company’s existing relationship with them.
In addition to expanding the commercialisation “footprint” for 3AEY to include Australia, the companies are formalising their relationship as collaborators, and Eden is granting Sipcam the right to exclusively distribute Eden products in a range of new countries, including some of the largest markets for agrochemicals in the world. As part of Sipcam’s overall commitment to the relationship with Eden (in addition to the Subscription (defined below)), in connection with the signed agreements, financial terms have been agreed which include an upfront cash payment to Eden of €0.6m and potential further future fees which are dependent upon which rights, if any, Sipcam decides to take.
The Company also announces that it proposing to raise in aggregate c.£2.4m (before expenses) through a subscription of up to 20,494,330 new ordinary shares of 1 pence each in the Company (“Ordinary Shares”) (the “Subscription Shares”) and an institutional placing of up to 1,915,888 new Ordinary Shares (the “Placing Shares”) (the “Placing”) both at a price of 10.7 pence per new Ordinary Share. Sipcam is proposing to make a strategic investment of c.£2.2m in the Company and to enter into a subscription agreement to subscribe for the Subscription Shares (the “Subscription”).
Sean Smith, Chief Executive of Eden, said: "We are pleased to increase the breadth and depth of the commercial and collaborative development arrangements that we have with Sipcam. They have proven to be an excellent partner, and will be able to help us commercialise our products and technologies in certain key parts of the world at a much faster pace.
“The move from a licensing relationship to a distribution model in Italy and Spain is in line with management’s announced strategy and will allow Eden to generate greater returns for the Company and its shareholders which will, in turn, enable us to build the business at an increased pace. In the short term, we will also be expanding this relationship to include Australia, the world’s fifth largest producer of wine. Subject to further commercial and technical evaluations, Sipcam shall also have the right to commercialise 3AEY in additional key countries, subject to existing agreements and evaluations that are already underway.
“Sipcam is a well-established sales, marketing and distribution partner, as well as a formulator, to many of the leaders in the agrochemical industry and, as such, we are confident that they will continue to be excellent partners in this expanded relationship.
“The significant resource and knowledge that Sipcam has at its disposal, as well as the substantial investment they are making in the commercialisation of Eden’s products and technology, will also serve us well in developing and, ultimately, distributing Eden’s products and technologies in countries in which Sipcam has a presence and will also allow Eden to leverage those capabilities in countries where they do not."
Giovanni Affaba, Chief Executive Officer of Sipcam-Oxon Group, said: “We have had significant experience with Eden’s products in Italy and Spain beginning in 2016 and resulting in the first product commercialisation in 2016. We recognized immediately the efficacy of the products on key targets and also the innovative technology Eden has developed. The potential of a joint effort focussed on developing new solutions and exploiting new markets became evident when Sipcam-Oxon and Eden put together their know-how and capabilities. The broad collaboration we have agreed upon is a cornerstone for developing and commercialising new and innovative products in the market in the next years.”