Eden Research Plc
("Eden" or "Company")
Product approval in Kenya and first commercial-scale order
· Eden's partner, Lachlan Kenya Limited ("Lachlan"), has received approval for 3AEY in Kenya
· Kenya is the major exporter of cut flowers to the European Union supplying 38% of all cut flower imports in the EU
· The first commercial order for 3AEY has been placed with Eden
· Eden will derive revenue from product sales and royalties
Eden Research plc (AIM: EDEN), the AIM-listed company that provides breakthrough natural microencapsulation technologies to the global agrochemicals, animal health and consumer products industries, announces that its partner, Lachlan Kenya Limited, has received approval to commence sales of 3AEY in Kenya (where it will be sold under the trade name Hawk®). 3AEY is a fungicide formulated from plant-derived actives and a natural microencapsulation system that primarily targets Botrytis on various edible and inedible crops.
The approval allows Lachlan to sell 3AEY into markets in Kenya through its distribution network. Lachlan will initially be targeting the treatment of peas, beans and cucurbits (i.e. the plant family which includes cucumbers, squashes, pumpkins, courgettes and various melons) before expanding into the cut flower market for export to Europe and further afield. Kenya exports over $500 million of cut flowers each year with over 125,000 tonnes of products shipped and flown around the world, with a significant amount going to the major supermarkets in the EU.
Under the existing licence agreement between Eden and Lachlan, Eden is now due a milestone payment and will receive royalties based on net sales of 3AEY. Eden will also supply Lachlan with 3AEY from the UK using its network of toll manufacturers and suppliers and has received an initial order to provide enough 3AEY to treat an area of approximately 1,667 hectares.
Sean Smith, Chief Executive Officer of Eden, said: "The approval in Kenya, the order from Lachlan, and the subsequent sales of 3AEY are all key milestones which represent Eden's progression from being an IP development company to a commercial operation. We expect that growers, retailers and consumers will all appreciate and benefit from the safety and efficacy of our naturally-derived plant protection products. We eagerly anticipate the arrival of the first produce treated with 3AEY in the UK and the rest of Europe as an exciting milestone for Eden and our shareholders.
"This is the first commercial order for 3AEY which will generate product sales revenue and royalties. We expect this to be the first of many such orders not only from Kenya, but also from our other partners in Europe in due course."
Richard Stone-Wigg, Chief Executive Officer of Lachlan, said: "Lachlan has been working with 3AEY for a number of years and we have been very impressed with its safety profile and efficacy. Marketing trials with customers have confirmed this, and we are pleased to now be in a position to get this product into a market which is demanding zero pesticide residues, especially on exported fresh produce to Europe."
Eden Research plc |
www.edenresearch.com |
Sean Smith, Chief Executive Officer |
Tel: 01993 862 761 |
Alex Abrey, Chief Financial Officer |
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Shore Capital and Corporate Limited |
www.shorecap.com |
Stephane Auton/Patrick Castle |
Tel: 0207 408 4090 |
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Walbrook PR Ltd |
Tel: 020 7933 8780 or [email protected] |
Paul McManus |
Mob: 07980 541 893 |
Lianne Cawthorne |
Mob: 07584 391 303 |
Notes:
Eden is an early stage revenue company with intellectual property and expertise in encapsulation, terpenes and environmentally friendly technologies to provide naturally occurring solutions to the global agrochemicals industry, the animal health industry, and consumer products.
Eden's encapsulation technology harnesses the biocidal efficacy of naturally occurring chemicals produced by plants (terpenes) and can also be used with both natural and synthetic hydrophobic compounds. The technology uses yeast cells that are a by-product of numerous commercial production processes to deliver a slow release of natural compounds for agricultural and non-agricultural uses. Terpenes are already widely used in the food flavouring, cosmetic and pharmaceutical industries.
Historically, terpenes have had limited commercial use in the agrochemical sector due to their volatility, phytotoxicity and poor solubility. Eden's platform encapsulation technology provides a unique, environmentally friendly solution to these problems and enables terpenes to be used as effective, low-risk agrochemicals.
With leading consultants in their respective fields, the Company is developing these technologies through innovative research and a series of commercial production, marketing and distribution partnerships.
The Company has a number of patents and a pipeline of products at differing stages of development targeting specific areas of the global agrochemicals industry. To date, the Company has invested in the region of £12m in developing and protecting its intellectual property and seeking regulatory approval for products that rely upon the Company's technologies. Revenues earned by the Company have been modest whilst the Company has concentrated on securing patent protection for its intellectual property, gaining regulatory approvals, identifying suitable industrial partners, and entering into licence agreements.
In May of 2013, the three actives that comprise Eden's first commercial product, 3AEY, were approved as new ingredients for use in plant protection products. This represents a major milestone in the commercialisation of Eden's technology and is a significant accomplishment for any company. To illustrate this point, one should note that in all of 2013, Eden's approvals represented 3 of only 10 new active ingredients approved by the EC.
Eden was admitted to trading on AIM on 11 May 2012 and trades under the symbol EDEN.
For more information about Eden, please visit www.edenresearch.com
Lachlan is a specialized marketing and distribution company in East Africa, contracted by manufacturers to promote, position and sell agricultural inputs, after technical development and registration.
Lachlan's vision is to source and offer unique proprietary products and services to enable customers, large and small, to benefit from advanced technologies and concepts that, through Fusion Farming, will merge the use of biologicals and botanicals with reduced toxicity pesticides and fertilizers to enable African farmers compete in a demanding world of quality, residue free food.
Lachlan understands that farmers need effective, robust solutions to optimize yield and therefore income and will encourage farmers to adapt new, environmentally friendly crop protection solutions and new nutritional concepts for sustainable farming, even in adverse conditions.
For more information on Lachlan, please visit www.lachlanafrica.com
Lachlan Kenya Ltd
Sunflag Industrial Park, Mombasa Road, Godown No. 1,
P.O. Box 49470 - 00100 Nairobi, Kenya
Richard Stone-Wigg Chief Executive Officer
Contact: +254 722 522 749
Email: [email protected]
