Issue of Equity

RNS Number:6107U
AeroBox plc
25 January 2004

 
26 January 2004 
 
Contact:     Jeremy Porter, Seymour Pierce     [phone]
             David Bick, Holborn               [phone]
          
 
Aerobox plc
 
Share placing to fund expansion
Strategic Partnership with Kelvin Technologies Inc
 
AeroBox plc has completed a share placing to raise #2.24 million, before
expenses, through the issue to investors of 7,000,000 new Ordinary Shares at 32p
per share. The net proceeds of the issue will be used to fund working capital
and new product development. This follows the announcement made on 21 January
that the first sales, subject to contract, of the AeroBox LD3 cargo container
had been achieved with Aer Lingus and Virgin Atlantic. The air cargo container
industry is worth around US$200m per annum. The first AeroBox product, the LD3
unit, addresses half of that market.
 
AeroBox has also entered into a strategic partnership with Kelvin Technologies
Inc to determine the feasibility of producing a refrigerated air cargo container
that actively controls product temperature for use by the pharmaceutical, food
and related industries.
 
The AeroBox LD3 cargo container is the result of a decade of research and
development into composite structure panels. The strength and thermal resistance
of these panels enables AeroBox to develop custom made packaging systems for a
wide range of applications. Kelvin Technologies is an industry leader in cold
chain product management, widely used throughout the pharmaceutical industry.
 
In the market for temperature sensitive products, around 7% wastage occurs due
to temperature control difficulties. The World Health Organisation estimates
that 50% of all vaccines are lost in transit due to temperature problems. The
development of a temperature controlled product would therefore represent a
significant new market for AeroBox.
 
Bob Bushman, Chief Executive of AeroBox, commented:
 
"We have increased production capacity by investing in new machinery and moving
to new facilities. The partnership with Kelvin Technologies is a timely
additional opportunity to broaden our product portfolio and reach new markets."
 
Application will be made for the 7,000,000 new Ordinary Shares issued under the
Placing to be admitted to trading on AIM.  Dealings are expected to commence on
30 January 2004.
 
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