Accsys secures transformational capacity expansion
€68m of Tricoya® funding agreed and a Firm Placing and Open Offer to raise up to €14m
Accsys is pleased to announce that it has entered into agreements to build, operate and finance the world’s first Tricoya® wood chip manufacturing plant (the “Tricoya® Project”), progress with the expansion of our Accoya® plant in the Netherlands and a Firm Placing and Open Offer to raise up to €14 million (before expenses) at the Offer Price of €0.69 per New Ordinary Share.
· The Tricoya® Project agreements follow Accsys’ strategy which includes increasing its manufacturing capacity and commercialising its proprietary intellectual property in order to generate significantly higher revenue and maximise returns for shareholders
· The significant increase in manufacturing capacity will allow Accsys to meet demand from the substantial and growing markets for Accoya and Tricoya globally
· Comprehensive financing arrangements fully fund the building of a new Tricoya® chip plant in Hull, including a combination of debt and equity from BP, Medite, BGF and Volantis and debt from RBS
· Partnerships with BP, Medite and Solvay Acetow, together with funding, endorse Accsys’ patented Accoya® and Tricoya® technology and prospects for the future
· Expansion of Arnhem Accoya® plant continues to progress with completion of the fully funded first stage of expansion to 60,000m3 of annual capacity expected by the end of 2017
· Future success of the projects is reinforced by minimum offtake agreements with Medite and Solvay Acetow
· Loan interest payments delayed until the new plants are expected to be in operation
· Firm Placing and Open Offer of new Accsys shares to raise up to €12.2 million (net of expenses), strengthening the Company’s balance sheet in the context of the two significant capital projects, including funding working capital and maintaining optimal inventory levels
Accsys has today also announced an update on trading, with sales volumes of Accoya® reaching 31,599m3 in the ten months from 31 March 2016 to 31 January 2017, an increase of approximately 20% compared with the same period in the previous year.
Paul Clegg, Chief Executive, commented:
“We are delighted to update our shareholders on these two transformational projects to secure new manufacturing capacity for Tricoya® wood elements and additional capacity for Accoya® solid wood. These developments will allow us to take advantage of the growing market opportunity for both Tricoya and Accoya which we believe to be substantial with demand continuing to grow for both products.
“Our ongoing relationship with industry leaders, BP, Medite and Solvay Acetow, and new financial backing from BGF, Volantis and RBS, are a strong endorsement of Accsys’ unique expertise and technologies. As a result, we are extremely well placed to capitalise on the significant growth potential for the benefit of our shareholders.
“These strategic initiatives are underpinned by strong revenue and demand growth, announced in this morning’s trading update and we are excited about the transformational developments reflected in today’s announcements.”
Read the full notice here