Plant Health Care PLC
11 October 2004
For immediate release: 11 October 2004
PLANT HEALTH CARE ACQUIRES VAMTech Inc.
Plant Health Care plc ('PHC' or the 'Company'), a leading provider of natural
products for plants and soil, has completed the acquisition of VAMTech Inc, for
a consideration of $1,950,000 (approximately £1.1 million) plus payment of
$775,000 in interest free debt (approximately £430,000) over five years.
VAMTech specialises in the synthesis of formononetin, a compound that stimulates
the growth of mycorrhizal fungi already existing in the soil. The acquisition
includes all technology and patents surrounding VAMTech's production of
formononetin.
Formononetin has been demonstrated to increase the yields of row crops such as
corn, soy beans and cotton, even when used in very small quantities and PHC will
be aggressively targeting this commodity crop market throughout the world. The
acquisition of VAMTech will open up the agriculture market to PHC with the
VAMTech technology enhancing PHC's existing natural product line.
John Brady, Chief Executive of PHC said: 'VAMTech has historically been an R&D
company and PHC will now provide routes to market through our own existing sales
channels. In addition, we will be able to target new markets, the most important
of which is agriculture.
'While this acquisition is relatively small in cash terms, its impact on PHC
will be significant. It means we now own the right to a very powerful patented
product that has broad applications across all of our extensive product lines,
making them even more effective'.
PHC's technology is based on mycorrhizal fungi which are an essential part of
all plant growth. In natural soil, mycorrhizal fungi are readily available to
plants, however, in urban landscapes, degraded lands and most agricultural
lands, mycorrhizal fungi are often not present in adequate quantities. Studies
have shown that stimulating plant roots with mycorrhizal fungi products can
increase the surface area of the root system and improve the health and
survivability of plants, but no method was previously available for reproducing
the fungi in the amounts required for commercial use.
PHC has developed processes that isolate and concentrate VAM
(Vesicular-Arbuscular Mycorrhizal) fungal spores allowing PHC to produce
products that have a longer shelf life than similar products. VAM Spores can be
mixed effectively with other biological (e.g. bacteria) and non-biological (e.g.
biostimulants) ingredients enabling PHC to diversify its product portfolio.
Formononetin is already a key ingredient in a number of PHC products.
For further information please contact:
Plant Health Care plc Tavistock Communications
John Brady, CEO Jeremy Carey/Katy Pratt
Tel: 001 603 525 3702 Tel: 020 7920 3150
Email: kpratt@tavistock.co.uk
Notes to Editors
About PHC
Plant Health Care plc ('PHC') is a leading provider of natural products for
plants and soil. Established in 1995 in Pittsburgh (Pennsylvania) in the United
States, PHC currently has approximately 60 employees and has operations in the
US, Mexico, UK and the Netherlands with technical support in Austria. The Group
has two principal operating subsidiaries in the US - PHC Inc (PA) and PHC
Reclamation. The Company listed on the AIM market of the London Stock Exchange
in July 2004.
PHC's products are aimed at the horticulture, agriculture, turf grass,
commercial landscaping, forestry and land reclamation industries and are both
environmentally beneficial and on the whole more cost effective than synthetic
chemical alternatives. Through the commercialisation of these products, PHC is
capitalising on current long-term trends toward natural systems and biological
products for plant care and soil and water management uses.
PHC Reclamation is an environmental and reclamation engineering consulting firm
providing cost effective, biologically based solutions for the reclamation and
restoration of lands disturbed by mining, construction and other activities. PHC
Reclamation was established in 1997 to exploit PHC's products and technology.
This information is provided by RNS
The company news service from the London Stock Exchange
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