Further re Trading Statement

 

TIDMAINC 
 
RNS Number : 0488N 
Applied Intellectual Capital Ltd 
10 February 2009 
 

10 February 2009 
 
 
 
APPLIED INTELLECTUAL CAPITAL LIMITED 
 
 
Working Capital Update 
 
 
Applied Intellectual Capital Limited ("AIC") (AIM: AINC) funds, develops, 
patents and commercializes electrochemical and advanced separations technologies 
in clean energy, electricity storage, water treatment, metals recovery and other 
emerging markets. 
 
 
As announced on 19 January 2009, AIC is in continuing discussions with ITI 
Scotland Ltd ("ITI") regarding GBP3.86m owed to ITI by AIC and which is due for 
repayment on 1 July 2009. In addition, discussions continue with parties 
potentially interested in funding one or more individual ventures. 
 
 
AIC has also previously announced the resignation of its NOMAD effective 3 March 
2009 and the likely implications of this, including suspension of its shares on 
3 March 2009 and cancellation of admission to AIM on April 3 2009. 
 
 
The Board has sought and continues to seek a resolution to this situation such 
that the company would not face removal from AIM. This has included the 
feasibility of raising additional working capital by the end of March to satisfy 
the AIM rules  The Board believes it is appropriate to disclose estimates of the 
funds which AIC would need to raise in order to secure working capital of an 
amount adequate to enable AIC to remain on AIM, based on some possible 
scenarios. 
 
 
The figures provided below are for illustrative purposes only: 
 
 
Scenario1: would require approximately US$15-17 million of new funds before the 
end of March, assuming the GBP3.86m debt owed to ITI Scotland Ltd (ITI) is 
repaid on 1 July 2009, as currently proposed; or 
 
 
Scenario 2: would require approximately US$9m-10m of new funds before the end of 
March. This scenario assumes that negotiations to secure funding for one or more 
ventures could be concluded by that date; or 
 
 
Scenario 3: would require approximately US$8m-US$10m of new funds before the end 
of March. This scenario assumes that venture funding is not secured by that 
date but the ITI debt is eliminated; or 
 
 
Scenario 4: would require approximately US$2m-US$4m of new funds before the end 
of March. This scenario assumes that both venture funding is secured and the ITI 
debt is eliminated by that date. 
 
 
Given the company's present circumstances and current market conditions, the 
Board believes that it is not likely to secure sufficient funding for any of 
these scenarios in time to enable AIC to remain on AIM. The Board is also 
mindful of the significant dilution of current shareholders' interests which 
would result from equity funding in present circumstances. 
 
 
It is in this context that the circular to shareholders dated 19 January 2009 
called for the voluntary cancellation of trading of the Company's shares on AIM 
by shareholder vote for the reasons provided in the circular (including cost 
savings and the presently low valuation of AIC shares on AIM). As noted in the 
circular, unless relevant circumstances intervene, the directors recommend that 
shareholders vote in favour of the resolution to cancel trading of the Company's 
shares on AIM, as they have undertaken to do in respect of their own 
shareholdings. 
 
 
 
 
 ENQUIRIES: 
 
 
Applied Intellectual Capital Limited: Robert Stoffregen Tel. [phone] 
 
Perlgut Group:  Mark Perlgut Tel. [phone] 
 
Ambrian Partners:  Marc Cramsie Tel. [phone] 
 
 
Mirabaud Securities: Peter Krens. Tel. [phone] 
 
 
 
 
 
 
END 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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