Trading Update & Subscription to Raise 1m (2216Y)

TIDMBIP

RNS Number : 2216Y

Biofutures International plc

20 December 2010

Biofutures International plc

("Biofutures" or "the Company")

Trading Update and Subscription to raise GBP1m

Biofutures is pleased to announce that commissioning of the plant is occurring in line with previous announcements and the plant is expected to be operational by the end of the year. The Company also announces that it has raised GBP1m through the issue of equity.

Trading Update

The commissioning process has progressed in line with expectations and it is now moving into the final stages following which the plant will be fully operational. Major components such as the generator, steam boiler and air compressor unit have been tested. Hydrostatic testing has also taken place. Flushing of pipes, refinery electrical and instrumentation tests are scheduled to be completed within the week, following which air test and lop checks will commence. Crude palm oil will then be fed into the refining system to be refined into RBD Palm Oil followed by the contractual performance test. The Company expects the plant to be fully operational by the end of the year.

Once the plant is fully operational, the Company initially will carry out third-party contract refining. Refined palm oil is more stable and hence may be stored for longer than crude palm oil and the Company has expressions of interest from a number of mill owners who currently have insufficient or no refining capabilities.

The next step will be for the Company to progress to refining its own palm oil. The intention is to do this under agreed customer arrangements.

Details of the Subscription

The Company has raised GBP1m, gross of any expenses, through the subscription by an existing investor for 15,385,000 new ordinary shares (the "Subscription Shares") at 6.5p per share. As part of the subscription, the investor will also receive warrants over a further 15 385,000 new ordinary shares at an exercise price of 10p, exercisable in whole or in part at any time in the next twelve months.

The funds raised by the subscription, together with the Company's existing and unused facilities of approximately GBP4m, will be used to acquire the initial feedstock for the plant once it has become operational.

Application has been made for the admission to trading on AIM of the Subscription Shares and admission is expected to occur, and trading commence, at 8.00am on 22 December 2010. Once issued, the Subscription Shares will rank pari passu with the ordinary shares currently in issue.

Following the issue of the Subscription Shares, the Company will have an issued share capital of 166,445,000 ordinary shares of 1 p each.

For further information, please contact:

 
 Biofutures International plc        Tel: + 6012 315 0626 
 Joe Wong, Chief Executive Officer 
 www.biofuturesplc.com 
 Daniel Stewart & Company plc        Tel: + 44 (0) 20 7776 6550 
 Oliver Rigby/Antony Legge (Nomad) 
 Colin Rowbury (Broker) 
 www.danielstewart.co.uk 
 

The construction update and photographs are also available on the Company's web site at http://www.biofuturesplc.com/construction_update

This information is provided by RNS

The company news service from the London Stock Exchange

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