New Distribution Agreement
Symphony Plastic Technologies PLC
01 February 2005
1st February 2005
SYMPHONY PLASTIC TECHNOLOGIES PLC
NEW NORTH AMERICAN DISTRIBUTION AGREEMENT
Symphony Plastic Technologies Plc ('Symphony' or 'the Group'), the degradable
plastics company, is pleased to announce that it has entered into an exclusive
product supply agreement with Degradable Plastic Products Inc. (DPPI) in Canada
and the United States. Following extensive negotiations this 15 year agreement
supersedes all previous distribution agreements in this territory.
Under the terms of the agreement, DPPI will become the exclusive supplier of d2w
(R) products and additives throughout North America. An initial payment of
US$50,000 has been received together with the issue of 1.1 million shares in
DPPI, representing approximately 25% of the total equity of the company. A
further payment of US$550,000 is to be made by DPPI during the second half of
2005. DPPI has been granted an option for one year, subject to Symphony board
approval, to purchase up to 4 million Symphony shares at a price of 30p.
The agreement between DPPI and Symphony also states that DPPI is to list on a
national securities exchange in the United States or Canada within a two year
period.
Michael Laurier, Chief Executive Officer, said:
'This contract greatly enhances Symphony's exposure to the lucrative North
American market without exposing the Group to the risks inherent in establishing
its brand in a new territory. This contract for Symphony's d2w(R) degradable
technology and products is another significant step forward in a major market
and demonstrates Symphony's progress in expanding its products and services
across the globe. We look forward to creating a long term relationship with DPPI
to establish Symphony's d2w(R) technology as the market leader throughout North
America.'
Earl Chapman, DPPI Founder, President and Chairman of the Board, said:
'We are extremely pleased to be announcing this deal between Symphony and DPPI.
This technology will allow us to address one of the most important environmental
hazards in North America and around the world. We look forward to working with
Symphony to market a cost effective solution to this global waste problem.'
For further information, please contact:
Symphony
Michael Laurier, Chief Executive Tel: 020 8207 5900
Ian Bristow
Citigate Dewe Rogerson
Patrick Toyne-Sewell Tel: 020 7638 9571
Ged Brumby
Ends
Information on Symphony:
Symphony develops and supplies environmentally responsible plastic packaging
products, which are distributed primarily to the retail, local authority and
health related sectors. The Group's main technology, d2w(R), allows plastic to
degrade, leaving only water, a minimal amount of carbon dioxide and trace
amounts of non-toxic biomass over a controlled time period. The current d2w(R)
product range now includes additives, carrier bags, refuse and waste sacks,
mailing wrap, stretch film, aprons, and packaging films.
Symphony has a strong blue-chip customer base in the UK and has successfully
established itself as an international business with agreements in Brazil,
Colombia, New Zealand, South Africa, the Caribbean and the Middle East.
Further information on Symphony can be found at www.degradable.net
Information on Degradable Plastic Products Inc.:
DPPI is a privately held Canadian company based in Toronto, Ontario. The company
is majority owned and operated by the company's management team. It was
established in November 2003 to exploit 'd2w(R) technology' exclusively in
Canada.
Earl Chapman, DPPI President and Chairman, has worked primarily in sales and
marketing for the past twenty years for such organizations as Bell Canada,
Lucent Technologies and Tucows International.
The DPPI management and Advisory Board collectively represent an experienced
group which has proven marketing skills, broad experience in business management
and finance, and in dealing with all levels of government. Several members have
extensive knowledge of polymer chemistry.
Further information on DPPI can be found at: www.dppi.ca
This information is provided by RNS
The company news service from the London Stock Exchange