AIM: AXS
NYSE Euronext Amsterdam: AXS
19 September 2014
ACCSYS TECHNOLOGIES PLC
("Accsys" or "the Company")
Diamond Wood Licence agreement
Accsys, the chemical technology group, focused on the acetylation of wood, today makes a further announcement in respect of the arbitration tribunal (the "Tribunal") appointed in relation to the dispute between Accsys and Diamond Wood China Limited ("Diamond Wood").
In July the Company reported that the Tribunal delivered a ruling (the 'Ruling') that, in response to Diamond Wood's claim for damages in excess of €100 million, Diamond Wood can only claim for limited damages, if any, up to a maximum of €250,000. However, the Tribunal also ruled that the licence agreement between the two parties is to continue.
The Tribunal has now issued a final award in respect of costs relating to the Ruling which are payable to Diamond Wood, being approximately £1.6m. Accsys has also incurred approximately £0.6m of legal costs in the current financial year in respect of the Arbitration.
Subsequent to paying the award, the company's financial position will continue to be strong and we remain confident of achieving a cash-flow positive position in the foreseeable future, as our sales continue to grow.
Ends
For further information, please contact:
Accsys Technologies PLC |
Paul Clegg, CEO Hans Pauli, COO Will Rudge, FD |
via Blytheweigh |
Numis Securities |
Nominated Adviser: Oliver Cardigan Corporate Broking: Christopher Wilkinson Ben Stoop |
+44 (0) 20 7260 1000 |
Blytheweigh |
Paul Weigh Alexandra Shilov |
+44 (0) 20 7138 3204 +44 (0) 7989 129 658 +44 (0) 7989 394 027 |
Off the Grid (The Netherlands) |
Frank Neervoort Giedo Van Der Zwan |
+31 681 734 236 +31 624 212 238 |
Notes to editors:
Accsys Technologies PLC(www.accsysplc.com) is a chemical technology group focussed on the development and commercialisation of a range of transformational technologies based upon the acetylation of solid wood (Accoya®) and wood elements (Tricoya®) for use as class leading, environmentally sustainable construction materials. Accsys's primary focus is on the production of Accoya® wood and technology licensing via its subsidiary, Titan Wood Limited, which has manufacturing operations in Arnhem, the Netherlands (through its subsidiary Titan Wood B.V.), a European office in Windsor, United Kingdom, and an American office in Dallas, Texas (via its subsidiary Titan Wood, Inc). All group subsidiaries are ultimately 100% owned by Accsys and trade as Accsys Technologies. Any references in this announcement to agreements with Accsys shall mean agreements with either Accsys or its subsidiary entities unless otherwise specified. Accsys Technologies PLC is listed on the London Stock Exchange AIM market and on Euronext Amsterdam by NYSE Euronext, under the symbols 'AXS'. Accsys' operations comprise three principal business units: (i) Accoya® wood production; (ii) technology development, focused on a programme of continuous development of and improvements to the process engineering and operating protocols for the acetylation of solid wood and the development of technology for the acetylation of wood elements; and (iii) the licensing of technology for the production of Accoya® wood and Tricoya® wood elements across the globe.
Accoya® wood (www.accoya.com) is produced using Accsys' proprietary patented acetylation technology, that effectively converts sustainably grown softwoods and non-durable hardwoods into what is best described as a "high technology wood". Distinguished by its durability, dimensional stability and, perhaps most importantly of all, its reliability (in terms of consistency of both supply and quality), Accoya® wood is particularly suited to exterior applications where performance and appearance are valued. Unlike most tropical and European hardwoods, its colour does not degrade when exposed to ultraviolet light. Moreover, the Accoya® wood production process does not compromise the wood's strength or machinability. The combination of UV resistance, dimensional stability, durability and retained strength means that Accoya® wood offers a wealth of new opportunities to architects, designers and specifiers. These benefits result in lower maintenance and total cost of ownership while using a higher sustainable and environmental responsible building material. For a full archive of Accoya® news, visit www.accoya.com/news.asp.
Tricoya® Wood Elements(www.tricoya.com) are produced using Accsys' proprietary technology for the acetylation of wood chips, and particles for use in the fabrication of wood based composites, including panel products. These composites demonstrate enhanced durability and dimensional stability which allow them to be used in a variety of applications that were once limited to solid wood or man-made products. Exploitation of Accsys' proprietary technology relating to Tricoya® Wood Elements is carried out through Tricoya Technologies Limited, a joint venture between Accsys and INEOS Industries Holdings Limited. Tricoya® Wood Elements are lauded as the first major innovation in the wood composites industry in more than 30 years.
Wood Acetylation is a process which increases the amount of 'acetyl' molecules in wood, thereby changing its physical properties. When carried out to a sufficient level throughout the wood, this process protects wood from rot by making it "inedible" to most micro-organisms and fungi, without - unlike conventional treatments - making it toxic. It also greatly reduces the wood's tendency to swell and shrink, making it less prone to cracking and ensuring that, when painted, it requires dramatically reduced maintenance.
Accsys Technologies is the trading name of Titan Wood Limited. ACCOYA®, TRICOYA® and the Trimarque Device are registered trademarks owned by Titan Wood Limited ("TWL"), a wholly owned subsidiary of Accsys Technologies PLC, and may not be used or reproduced without written permission from TWL, or in the case of the Tricoya® registered trademark, from Tricoya Technologies Limited, a joint venture between TWL and INEOS Industries Holdings Limited with exclusive rights to exploit the Tricoya® brand.
