£1.0m convertible loan agreement

Symphony Environmental Tech. PLC

18 October 2023

 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. It forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this information is considered to be in the public domain

18 October 2023

SYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC

("Symphony" or the "Company")

£1.0 million Convertible Loan Agreement

Symphony Environmental Technologies Plc (AIM: SYM), global specialists in technologies that make plastic products "smarter, safer and sustainable", is pleased to announce it has entered into an additional convertible loan agreement ("Loan") with Sea Pearl Ventures Limited ("Sea Pearl").

Key terms of the Loan, are similar to the previous £1.0 million convertible loan announced on 13 March 2023, namely:

·      Loan principal: £1.0 million (unsecured) to be drawn down as to £500,000 immediately and £500,000 on or before 31 March 2024

·      If not repaid on or before 30 September 2024, conversion on that date

·      Conversion price: 80% of the volume-weighted average share price for the 3 months prior to 30 September 2024

·      Interest: 7% per annum, payable as accrued on repayment and/or conversion

·      Repayment of the Loan, in full or in part solely at Symphony's discretion

The proceeds of the Loan will be used to strengthen the Group's cash position for ongoing working capital purposes and will further support the Group to deliver on its many commercial opportunities.

Also, the current £1.0 million convertible loan, announced on 13 March 2023, has been amended so that the term of that previous loan is now co-terminus with the new Loan, terminating on 30 September 2024.

Sea Pearl is based in the Bahamas, and is currently interested in 17.4% of Symphony's issued share capital. Accordingly, Sea Pearl is considered a substantial shareholder under the AIM Rules and provision of the Loan being a related party transaction. The board of directors of the Company consider, having consulted with the Company's nominated adviser, that the terms of the Loan are fair and reasonable insofar as the Company's shareholders are concerned.

Enquiries:

Symphony Environmental Technologies Plc
Michael Laurier, CEO	Tel: [phone]
Ian Bristow, CFO
www.symphonyenvironmental.com
Zeus (Nominated Adviser and Joint Broker)
David Foreman, Kieran Russell (Investment Banking)	Tel: [phone]
Dominic King, Victoria Ayton (Sales)	Tel: [phone]

The person responsible for arranging the release of this information is Michael Laurier, CEO of the Company.

NOTES TO EDITORS:

About Symphony Environmental Technologies plc

www.symphonyenvironmental.com

Symphony has developed a range of additives, concentrates and master-batches marketed under its d₂p® ("designed to protect") trademark, which can be incorporated in a wide variety of plastic and non-plastic products so as to provide protection against many different types of bacteria, viruses, fungi, algae, moulds, and insects, and against fire.  d₂p products also include odour, moisture and ethylene adsorbers as well as other types of food-preserving technologies. For an overview see www.d2p.net   Symphony has launched d₂p anti-microbial household gloves and toothbrushes and "Symfresh" food-packaging and is developing a range of other d₂p finished-products for retail sale.

Symphony has also developed a biodegradable plastic technology which addresses the problem of persistent microplastics, by turning ordinary plastic at the end of its service-life into a waxy substance which is biodegradable. It is then no longer a plastic and can be bioassimilated in the open environment in a similar way to a leaf without leaving microplastics behind. The technology is branded d₂w® and appears as a droplet logo on many thousands of tonnes of plastic packaging and other plastic products around the world, much of which has been recycled. In some countries, most recently Saudi Arabia, oxo-biodegradable plastic is mandatory for short-life plastic products.

d₂w technology was studied for three years in the Oxomar project, sponsored by the French government, which concluded that plastic made with Symphony's d₂w oxo-biodegradable technology will biodegrade in seawater significantly more efficiently than conventional plastic. See https://www.biodeg.org/subjects-of-interest/agriculture-and-horticulture/the-marine-environment/ 

Following this report, the scientists allowed bacteria commonly found in the open environment access to d₂w oxo-biodegradable plastic containing Carbon 13.  They found Carbon 13 in the carbon dioxide exhaled by the bacteria, proving beyond doubt that the plastic had been bioassimilated by the bacteria.

Symphony has complemented its d₂w and d₂p product ranges with d₂c "compostable resins and products" that have been tested to US and EU composting standards and has invested in Eranova - a French company extracting starch for making plastics, out of algae.

Symphony has also developed the d₂Detector®, a portable device which analyses plastics and detects counterfeit products.  This is useful for government officials tasked with enforcing legislation, and Symphony's d₂t tagging and tracer technology is available for further security.

Symphony has a diverse and growing customer-base and has established itself as an international business with over 70 distributors around the world. Products made with Symphony's plastic technologies are now available in nearly 100 countries and in many different product applications. Symphony itself is accredited to ISO9001 and ISO14001.

Symphony is a member of The BPA (www.biodeg.org) and actively participates in the Committee work of the British Standards Institute (BSI), the American Standards Organisation (ASTM), the European Standards Organisation (CEN), and the International Standards Organisation (ISO).

Further information on the Group can be found at www.symphonyenvironmental.com and twitter @SymphonyEnv   See also Symphony on Instagram. A Symphony App is available for downloading to smartphones.

 

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