News Archive
AGM STATEMENT
Overview
- Two revenue generating licensing agreements signed with companies in the USA and Greece
- Field trials to be conducted in Greece and Portugal in a joint venture with a leading Greek winemaker
- Team strengthened with the appointment of a new Projects Manager
Eden Research plc, the agrochemical and pharmaceutical company, held its Annual General Meeting ('AGM') today and all resolutions were duly passed. At the meeting, Chairman Craig Herron said:
The Company continues to make significant progress in the development of its terpene-based compounds used in the treatment of plant diseases and nematode control. Accordingly, it gives me great pleasure to announce that we have signed one development and two licensing agreements, which we hope will contribute significantly to the Company by generating revenue and expanding the development and range of our product offering.
The licensing contracts, with US-based Thallo Eco Products Corp ('Thallo') and Aeiforos ('Ecogen') S.A. of Greece, are part of our strategy of building a global distribution network to take full advantage of the commercial potential of our product offering. Both companies will market and distribute our Intellectual Property, which includes all our terpene compounds, our proprietary method of encapsulating the compounds in a powder or concentrated liquid, and our unique method of delivering the compounds through irrigation systems.
In the USA, Thallo, which has been established by people with the relevant experience in commerce and industry, has been appointed as a replacement for Arista Biologics Inc as Eden's Californian distribution partner for an immediate licence fee of US$250,000, with a further $250,000 to be paid on 1 April 2005. The Company will receive a royalty of 20% of the net margin sold in the territory each year, totalling a minimum targeted $15 million over 10 years.
Thallo also has the option at any time to extend the territory from California to the whole of the USA for non-refundable licence fees of US$250,000 and a further US$750,000 on the third anniversary of this agreement. Upon extending the territory, the minimum royalties shall be increased by the addition of the aggregate sum of US$10 million payable over the remainder of the 10 years of the Agreement. After 10 years, and if minimum royalties have been met, Thallo has the right to extend the term by a further five years with the same minimum royalty requirements.
In Europe, Ecogen, established by one of the Boutari family, has signed an option agreement that expires on 31 December 2005 to be the exclusive agent for the wholesale distribution of Eden's terpene-based products in Greece and Portugal for a consideration of EUR50,000. A further EUR200,000, less funds spent by Ecogen under the agreement, will be paid to Eden on exercise of the option for a 15 year exclusive agency agreement. Under the agreement, Eden will receive a 20% commission on net sales, and over the 15 years, Ecogen must achieve not less than 50% of their projected sales targets in the territory.
Wholesale customers will be invoiced by Eden at the net price, which will be equal to or less than 70% of the list (retail) price of the compounds to account for all marketing and distribution margins.
Furthermore, Eden has entered into a joint venture development agreement with Ecogen and John Boutari & Son, Wineries S.A. ('BW'), one of the most prominent wine growers in Greece. For the period to 31 December 2005, the three companies will conduct field trials of Eden's compounds in Greece and Portugal, particularly focusing on downy mildew, powdery mildew and botrytis.
Eden and Ecogen will each cover 50% of the associated costs, up to an aggregate total of EUR250,000 or until the end of the agreed period. All data and intellectual property derived from the field trials will belong to Eden. This joint venture agreement is a great deal for us, as it marks our next step towards a full registration for our products in Europe.
Field trials in the USA for the treatment of Pierce's disease and downy mildew are ongoing. The field data collected so far have shown positive results and we hope to give a full update soon. We also continue to produce data from research using our compounds in several other disease areas including eutypa, powdery mildew and turf grass.
As the Company's activities gain momentum, we have recognised the need to expand our team to maximise Eden's potential. Therefore, I am delighted to welcome Steven Vaux as our new Projects Manager. Stephen is a respected agronomist with over 20 year's experience, 16 of which were with Booker Tate Ltd as Agricultural Manager. He has an in-depth knowledge of all stages of the product cycle in the agrochemical sector and has worked in operational management in Africa and Asia.
I would like to thank everyone involved in the Company, especially the shareholders who have supported us through our development stage, and I look forward to the future with confidence.
The Directors of Eden Research plc accept responsibility for this announcement
CONTACTS
| Tim Griffiths | Eden Research plc | Tel: 01993 868844 |
| Hugo de Salis/ Isabel Crossley |
St Brides Media & Finance Ltd | Tel: 020 7242 4477 |