AIM-quoted Eden Research (LON: EDEN) is raising up to £9.5m via a placing and retail offer at 6.5p/share – a 13% discount to the market price. The sustainable biopesticides company is raising money on the back of positive news in recent weeks that has helped the share price jump 57.9% this year.
There has already been £9m raised and the retail offer to existing shareholders will add up to £500,000.
The retail offer opened at 5pm on 28 July and closes at 10am on 2 August. Cenkos is coordinating the offer. A list of authorised intermediaries can be found at EDEN RESEARCH PLC Authorised Brokers – BookBuild. Many of the intermediaries listed on Sunday are classed as awaiting confirmation, which may happen on Monday. Other intermediaries can register at www.bookbuild.live.
Ecovelex
The cash will be used to launch Ecovelex and fund new product development. Ecovelex has not got full EU regulatory approval, but if it receives emergency use authorisation there could be revenues this year.
Ecovelex was developed with Corteva Agriscience, and it uses the company’s terpene ingredients and Corteva’s microencapsulation technology. EU authorisation was applied for in May. The seed treatment deters birds from eating the seeds and a rival product is likely to be withdrawn from the market.
Ecovelex has a larger market potential than other products developed by the company because it can be used on larger crops, such as maize. Eden Research believes that the total value of potential seed treatments is more than €40m.
The company has been making progress with other products. Earlier this year, Eden Research appointed Anasac Colombia as exclusive distributor of Mevalone and it will seek regulatory approval for its use on freshly cut flowers to prevent Botrytis cinerea. Colombia exported $1.73bn worth of cut flowers in 2021.
Eden Research has received regulatory approval for the use of Cedroz on fruit and vegetables in California and Florida, as well as Mevalone for use on Botrytis on grapes in Florida. Sales should commence in 2024. Mevalone has been authorised in Italy for home garden use to control fungal pathogens. This is the first product authorisation for home gardens.
In 2022, revenues were £1.8m and the loss was £2.3m. Cenkos forecasts 2023 revenues of £2.8m and a loss of £2.5m. Many of the above approvals and deals will not contribute fully until 2024. Cenkos believes that there will still be £3.7m in the bank at the end of 2024.