TIDMTYR TIDMTYRU
RNS Number : 6236J
TyraTech, Inc.
13 September 2016
Strictly Embargoed until 07.00: 13 September 2016
TyraTech, Inc.
("TyraTech" or the "Company")
Interim Results for the Six Months Ended 30 June 2016
TyraTech Inc. (AIM: TYR, and TYRU), a life sciences company
focused on nature-derived insect and parasite control products,
today announces its interim results for the six month period ended
30 June 2016.
Operational Highlights
-- Sales of Vamousse(R) are 31% higher than the corresponding period in 2015
-- Vamousse same store sales in the US outpacing category growth
-- Launch of Vamousse Lice Elimination powder with CVS
-- Launch of Vamousse in France
-- Expansion of Vamousse distribution network in the UK, with sales outpacing category growth
-- Inclusion of Vamousse in NHS Minor Ailments Scheme
-- Successful field testing of the first PureScience(TM) products
-- Launch of three new PureScience products
Financial Highlights
-- Total gross revenue for the six month period to 30 June 2016
was $4.1 million (2015: $3.5 million)
-- Gross product sales increased 21% to $4.0 million (2015: $3.3 million)
-- Vamousse unit sales increased by 47% over the corresponding
period 2015 primarily through expansion of product range and
distribution
-- Vamousse product sales increased by 31% over the
corresponding period 2015 reflecting expanded distribution within
the channel
-- Net product sales were $3.2 million an increase of 10% over
the corresponding period (2015: $2.9) after deduction of fees for
the new products sold in new distribution channels
-- Gross profit increased 10% to $2.2 million (2015: $2.0 million)
-- Overall operating expenses remained steady for the six month
period at $3.8 million (2015: $3.7 million) primarily related to a
slight increase in marketing costs offset by reductions in
administrative costs
-- Net loss from operations reduced to $1.5 million (2015: $1.7 million)
-- Cash and cash equivalents were $2.1 million (30 June 2015:
$1.3 million, 31 December 2015: $4.0 million)
Commenting on the results Jose Barella, Non-Executive Chairman
said:
"Since becoming Chairman in April of this year, I have had the
opportunity to learn more about the Company's products, its
technology and the capabilities of its team. What has been
accomplished by this small and dedicated group with the resources
available to date is remarkable. I also believe TyraTech has
developed a valuable technology portfolio over the years, some
elements of which are not currently core to our current strategic
direction. One of our tasks over the coming year will be to release
this value to allow us to further exploit our positions of strength
in the personal care sector and to progress the opportunities in
animal health, which we see as the larger opportunity over the
longer term."
Commenting on the Outlook and Market Conditions, Bruno Jactel,
CEO added:
"As previously indicated, the Board expects the second half to
be stronger than the first as we enter the "back to school" period
for Vamousse sales and we actively promote our animal health
portfolio. The company has shown impressive year on year growth on
its key KPIs and we are making significant progress in achieving
our stated strategic goals.
Nevertheless, the board believes that rate of growth will be
lower than previously anticipated in market forecasts. This is
principally due to the fact that recent data over the past two to
three months has shown a slowdown in the overall market for head
lice products in the US compared with strong growth during this
period in prior years.
"The Board believes that this arises from natural variability in
the head lice population in the US and expects the slowdown to
reverse at some stage. However, the slowdown increases the
difficulty in forecasting future sales, especially for young fast
growing products like Vamousse, so we feel it prudent to adopt a
cautious approach to forecasts. For these reasons we anticipate
that both revenue and net loss for the full year will be below
current expectations."
For further information:
TyraTech Inc.
Bruno Jactel, Chief Executive Tel: +1 919 415
Officer 4340
Erica Boisvert, Chief Financial Tel: +1 919 415
Officer 4287
www.tyratech.com
SPARK Advisory Partners Limited
(Nominated Adviser) Tel: +44 20 3368
Matt Davis / Mark Brady 3551
Allenby Capital Limited (Joint
Broker) Tel: +44 20 3328
Chris Crawford 5656
Whitman Howard Limited (Joint
Broker) Tel: +44 20 7659
Ranald McGregor-Smith 1234
Belvedere Communications (PR)
John West / Kim van Beeck Tel: +44 20 3567
0510
Chairman's Statement
TyraTech continued to make good progress in the first half of
the year. The Vamousse range of head lice products delivered an
increase of 31% in sales over the corresponding six month period in
2015 and continued to gain market share in both the US and UK
despite strong competition. Other highlights included our first
sales in France, and Vamousse achieving Drug Tariff Part IX listing
from the NHS (National Health Service) Business Services Authority
for England and Wales and Drug Tariff & Minor Ailment Scheme
listing in Scotland.
We also made our first sales of the PureScience production
animal health products and although the initial roll out of the
expanded product range was slower than expected, the first three
planned products are now being actively promoted.
Since becoming Chairman in April of this year, I have had the
opportunity to learn more about the Company's products, its
technology and the capabilities of its team. What has been
accomplished by this small and dedicated group with the resources
available to date is remarkable. I also believe TyraTech has
developed a valuable technology portfolio over the years, some
elements of which are not currently core to our current strategic
direction. One of our tasks over the coming year will be to release
this value to allow us to further exploit our positions of strength
in the personal care sector and to progress the opportunities in
animal health, which we see as the larger opportunity over the
longer term.
With each passing year, TyraTech's technology becomes more
relevant to the needs of the markets for safe and effective
solutions to the control of insects and parasites. However, it is
clear that there are challenges for us in predicting the growth
rates of the head lice market and the precise timing of market
adoption. For these reasons we have taken the decision to adopt a
more conservative approach to our forecasts. We recognize that we
still have much work ahead of us, but we remain very excited by the
prospects for the Company; its products; and its world-leading
technology.
Jose Barella
Non-executive Chairman
13 September 2016
Chief Executive Officer's Statement
During the first half of 2016, TyraTech started to implement the
strategy of unlocking the value of its technology through increased
market share of the Vamousse brand, expansion of its product range,
geographical extension and entry into the animal health market.
TyraTech has made significant progress toward all of these
objectives.
Vamousse is gaining significant market share in the US,
benefiting from the full impact of its expanded distribution in
Walgreens, CVS and Rite Aid. Similarly, in the UK, we have
increased distribution in Tesco, Sainsbury and Morrison's. The new
Vamousse Lice Elimination powder, launched in CVS in the second
quarter, is a non-toxic aid for families to clean non-launderable
household items in conjunction with treating a child for an
infestation. The full range of Vamousse products has now been
launched in France through the independent pharmacy channel and we
expect to see the benefit of this in our sales numbers in the next
financial year.
Sales of Vamousse were 31% higher in the first half than the
same period in 2015, in a market place which is overall showing
only single digit growth (source: IRI Worldwide).
Additionally, TyraTech is for the first time entering the animal
health market which represents a large, diversified and growing
opportunity. In the production animal segment, the market is driven
by an increase in global meat production linked to population
growth while shoppers are simultaneously demanding healthier food.
Insects and parasites are negatively impacting the productivity of
the animals, either directly or indirectly by transmitting
diseases. The control of these insects is largely dependent upon
chemical pesticides that have lost their efficacy to insect
resistance and are increasingly under scrutiny by regulators for
their toxicity.
This creates an opportunity for Tyratech's innovative technology
and its PureScience range of products, offering true alternatives
to traditional chemical pesticides. By enhancing the well-known
natural insecticidal properties of plants, PureScience products
provide a high level of efficacy and a recognized profile of safety
for the animals, the food chain, humans and the environment.
The commercialization process of PureScience products differs
greatly from that successfully applied to Vamousse. It requires
extensive field tests and trials by producers of meat (poultry,
swine, and cattle) or eggs in a business to business environment.
It is a slower process that requires technical expertise and time
in a notoriously conservative industry, but it opens a larger
market and global opportunities.
In this regard, the first half of 2016 has been focused on
finalizing the field testing of three new products with several
major poultry and swine producers in the US. These products were
subsequently launched at the end of the period with our partner
MWI, the biggest distributor of animal health products in the US.
The impact on sales is only modest in the first half, but will ramp
up over time. Similarly, TyraTech is currently completing the field
testing for its novel formulation horse fly repellent product,
OutSmart with our partner SmartPak (part of the Henry Schein
Group).
As we implement our strategy, we will have to manage two very
different market dynamics.
First, the growth of Vamousse relies heavily upon consumer
marketing, a large distribution network for ready point of purchase
access, acceptance of the expanded product range by retailers and
geographical extension.
So far we have been successful in expanding our distribution
network, to reach a total of more than 30,000 outlets in the US and
the UK. We have launched new products and expanded into new
territories. Vamousse is up more than 30% in the first half of the
year, within an overall market segment that grew in only single
digits. As a product generating high margins, the Vamousse brand is
creating significant value for TyraTech.
We are pleased to note that Vamousse has also been included in
the UK's National Health Service Drug Tariff Part IX after
assessment supporting the product's cost effectiveness. This paves
the way to minor ailment scheme listing allowing pharmacies to
provide Vamousse to low income families on a reimbursement basis.
This minor ailment scheme listing has already been achieved in
Scotland which runs a national scheme.
Second, as referred to above, PureScience's success, in a
business to business environment, is dependent on successful trials
at the farm level and adoption by major animal producers which are
often international players. The brand growth will be driven by the
expansion of the product range to cover the major nuisance insects
and to adapt to the different animal species, from poultry to swine
and cattle. It will also rely upon a measured geographical
rollout.
Outlook
We expect Vamousse to continue to grow during the second half of
the year, yet at a slower pace mainly due to an unexpected category
contraction in the US. It will impact our top line sales and we are
adjusting our level of expenses accordingly, notwithstanding these
actions the board believes the net loss for the year will also be
significantly below current market expectations. With the back to
school season starting, the market could revert to stronger growth,
but given the challenges of making an accurate prediction for the
end of the year we believe it is prudent to adopt a more cautious
approach to our growth forecasts. However, we do still expect good
growth of our sales year over year, yet at a slower pace than
previously expected
Bruno Jactel
Chief Executive Officer
13 September 2016
Financial Review
Revenue
Total gross revenue for the six month period to 30 June 2016 was
$4.1 million (2015: $3.5 million). Gross product sales were $4.0
million of which $3.1 million were sales in the US and $0.8 million
in the UK. Other EU countries contributed $0.1 million in the
period (2015: $2.6 million US and $0.7 million UK), with net
product sales of $3.2 million (2015: $2.9). Collaborative revenue
remained steady at $164,000 (2015: $167,000). Collaborative revenue
includes upfront license fee amortisation and cost reimbursement
from our Envance Technologies and Mondelez Global (Kraft)
agreements.
UK revenues were impacted by the decline in Sterling against the
US Dollar. In constant currency, we estimate that this has reduced
the translated dollar revenues by approximately $ 0.1 million. In
addition, we have deferred sales revenue of approximately $0.2
million under the sale or return conditions associated with a new
customer. The half year also included "slotting fees" of
approximately $0.3 million, which have reduced net product
revenues. These fees are due to the introduction of new products to
new stores.
Unit sales of the Vamousse range of products were 47% higher in
the first half than in the same period in 2015. In financial terms,
the sales were 31% higher in a market place which showed only
single digit growth. The difference between the unit and dollar
sales is due to the higher rate of increase in Vamousse Shampoo
sales (a lower margin product) coupled with the effect of the
weaker Sterling vs. Dollar exchange rate on UK revenues as
explained above.
Cost of sales and gross profit
Material and manufacturing costs for product sales were $1.1
million (2015: $0.9 million) and costs related to collaborative
revenue remained steady at $0.1 million (2015: $0.1 million). Gross
profit increased to $2.2 million, with a margin on net revenue of
66% (2015: $2.0 million and 66%). Margin on net product sales was
66% (2015: 68%).
Operating expenses
Overall operating expenses from continuing operations remained
steady for the six month period at $3.8 million (2015: $3.7
million). This is primarily related to a slight increase in
marketing costs offset by reductions in administrative costs.
Operating expenses for the six months included non-cash equity
compensation of $0.1 million (2015: $0.1 million) and depreciation
and amortisation of $0.0 million (2015: $0.1 million).
Loss for the period
Operating loss for the half year reduced by $0.2 million to $1.5
million (2015: $1.7 million). Net loss before and after tax was
unchanged at $1.5 million with the first half of 2015 benefitting
from a gain of $125,000 on the sale of a share in the Envance joint
venture and a gain of $23,000 from the revaluation of warrants.
Liquidity and cash flow
Cash used in operations for the period was $1.7 million compared
to $0.9 million in the first half of 2015, a $0.8 million increase
from the first half of 2015. This increase in cash used in
operations is primarily due to investment in new products and
expanded product distribution, resulting in higher levels of
inventory and accounts receivable. There is also a seasonal
component to the Company's product sales which can impact
liquidity. There was no sale of common stock in the period (2015:
$4.5 million) and the Company currently has no committed external
source of funds.
Based on the Company's existing cash ($2.1 million at June 30,
2016); its current operating plans; anticipated revenues from
product sales and collaborative arrangements; and the ability to
control costs; the Company's forecasts indicate that it will have
sufficient cash resources for at least the next twelve months.
The Company invests its cash resources in deposits with banks
with the highest credit ratings, putting security before absolute
levels of return.
Erica H. Boisvert
Chief Financial Officer
13 September 2016
TYRATECH, INC.
Consolidated Statements of Operations and Comprehensive
Loss
in $000's
(Unaudited) (Unaudited) (Audited)
six months six months year
ended ended ended
30-Jun-16 30-Jun-15 31-Dec-15
--------------------------------------- ------------ ------------ ----------
Gross revenue:
Product $ 3,977 $ 3,283 $ 7,108
Collaborative 164 167 335
--------------------------------------- ------------ ------------ ----------
Total gross revenue 4,141 3,450 7,443
Less: sales, discounts,
returns, and allowances 731 394 708
--------------------------------------- ------------ ------------ ----------
Total net revenue 3,410 3,056 6,735
Cost of revenue:
Product 1,106 912 1,959
Collaborative 56 115 137
--------------------------------------- ------------ ------------ ----------
Total cost of revenue 1,162 1,027 2,096
--------------------------------------- ------------ ------------ ----------
Gross profit 2,248 2,029 4,639
Costs and expenses:
General and administrative 1,681 1,823 3,285
Business development 1,468 1,367 2,726
Research and development 617 534 1,042
------------
Total costs and expenses 3,766 3,724 7,053
--------------------------------------- ------------ ------------ ----------
Loss from operations (1,518) (1,695) (2,414)
--------------------------------------- ------------ ------------ ----------
Other income (expense):
Other income - 9 1
Gain on partial sale of
Envance ownership - 125 129
Change in fair value of
warrant liabilities - 23 23
------------ ------------
Total other income - 157 153
--------------------------------------- ------------ ------------ ----------
Loss before income taxes (1,518) (1,538) (2,261)
Income tax expense - - -
------------
Net loss $ (1,518) $ (1,538) $ (2,261)
--------------------------------------- ------------ ------------ ----------
Other comprehensive loss:
Foreign currency translation
adjustments (78) - (7)
Comprehensive Loss (1,596) (1,538) (2,268)
--------------------------------------- ------------ ------------ ----------
Net loss per common share
Basic and diluted ($0.00) ($0.01) ($0.01)
--------------------------------------- ------------ ------------ ----------
Weighted average number of common
shares (000's)
Basic and diluted 366,582 261,239 273,946
--------------------------------------- ------------ ------------ ----------
The accompanying notes are an integral part
of these consolidated financial statements.
TYRATECH, INC.
Consolidated Balance Sheets
in $000's
(Unaudited) (Unaudited) (Audited)
six months six months year
ended ended ended
30-Jun-16 30-Jun-15 31-Dec-15
--------------------------------------------- ------------ ------------ ----------
ASSETS
Current assets
Cash and cash equivalents $ 2,091 $ 1,331 $ 3,955
Accounts receivable 1,324 781 1,117
Inventory 1,386 810 829
Prepaid expenses 205 211 218
--------------------------------------------- ------------ ------------ ----------
Total current assets 5,006 3,133 6,119
Property and equipment, net
of accumulated depreciation 21 23 32
Intangible assets 161 - 129
Long term deposits 69 69 69
Total assets 5,257 3,225 6,349
--------------------------------------------- ------------ ------------ ----------
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities
Accounts payable 686 1106 591
Accrued liabilities 900 889 704
Deferred revenue 215 70 70
--------------------------------------------- ------------ ------------ ----------
Total current liabilities 1,801 2,065 1,365
Deferred revenue and other
long-term liabilities 20 55 20
------------
Total liabilities 1,821 2,120 1,385
--------------------------------------------- ------------ ------------ ----------
Shareholders' equity
Common stock, at $0.001 par
authorized 480 million; 367.7
million shares issued, 366.6
million shares outstanding
(30 June 2015: Common stock,
at $0.001 par authorized
380 million; 262.3 million
shares issued, 261.2 million
shares outstanding) 367 261 367
Additional paid in capital 91,964 87,413 91,896
Accumulated deficit (88,699) (86,458) (87,181)
Accumulated other comprehensive
income (83) 2 (5)
Treasury stock of 1.1m shares
(2015: 1.1 m shares) (108) (108) (108)
Total Tyratech, Inc. shareholders'
equity 3,441 1,110 4,969
--------------------------------------------- ------------ ------------ ----------
Non-controlling interest (5) (5) (5)
------------ ------------ ----------
Total shareholders' equity 3,436 1,105 4,964
Total liabilities & shareholders'
equity $ 5,257 $ 3,225 $ 6,349
--------------------------------------------- ------------ ------------ ----------
The accompanying notes are an integral
part of these consolidated financial statements.
TYRATECH, INC.
Consolidated Statements
of Cash Flows
Six months ended 30 June
2016 and 2015
in $000's
(Unaudited) (Unaudited) (Audited)
six months six months year
ended ended ended
30-Jun-16 30-Jun-15 31-Dec-15
----------------------------------- ------------ ------------ ----------
Cash flows from operating
activities:
Net loss $ (1,518) $ (1,538) $ (2,261)
Adjustments to reconcile
net loss to net cash
used in operating activities:
Depreciation 12 47 42
Amortisation of intangible 6 - -
assets
Amortisation of stock
awards 68 72 132
Change in fair value
of warrant liability - (23) (23)
Loss on sale of fixed - 16 -
assets
Gain on partial sales
of unconsolidated sub - - (125)
Net loss from unconsolidated
subsidiary - - (4)
Changes in operating
assets and liabilities:
Accounts receivable (207) 128 (208)
Inventory (557) 115 96
Prepaid expenses and
long-term deposits 13 (20) (27)
Accounts payable and
accrued liabilities 290 360 (340)
Deferred revenue and
other long-term liabilities 145 (36) (71)
----------------------------------- ------------ ------------ ----------
Net cash used in operating
activities (1,748) (879) (2,789)
----------------------------------- ------------ ------------ ----------
Cash flows from investing
activities:
Intangible asset acquisition
costs (38) - (129)
Purchase of property
and equipment - (2) (2)
Proceeds from sales of
equipment - - 16
Proceeds from partial
sale of unconsolidated
sub - - 125
Net cash used in investing
activities (38) (2) 10
----------------------------------- ------------ ------------ ----------
Cash flows from financing
activities:
Net proceeds from sale
of common stock - - 4,385
Equity warrants issued - - 144
------------ ------------
Net cash provided by
financing activities - - 4,529
----------------------------------- ------------ ------------ ----------
Net (decrease) increase
in cash (1,786) (881) 1,750
Cash and cash equivalents,
beginning of the period 3,955 2,212 2,212
Accumulated other comprehensive
income (78) - (7)
Cash and cash equivalents,
end of the period $ 2,091 $ 1,331 $ 3,955
----------------------------------- ------------ ------------ ----------
The accompanying notes are an integral part
of these consolidated financial statements.
TYRATECH, INC.
Consolidated Statements
of Shareholders' Equity
(Deficit)
Six months ended
30 June 2016 and
2015
in $000's
Accumulated
Additional Other Total
Common Paid-in Accumulated Treasury Non-controlling Comprehensive Equity
Stock Capital deficit Stock Interest Income (Deficit)
Balances as of 30
June 2015 $ 261 $ 87,413 $ (86,458) $ (108) $ (5) $ 2 $ 1,105
------------------- ------- ----------- ------------ --------- ---------------- ------------------- -----------
Proceeds from
issuance
of common stock,
net of expenses 106 4,279 - - - - 4,385
Equity warrants
issued
(also reduces
proceeds
above) - 144 - - - - 144
Stock based
compensation
- SARS - 60 - - - - 60
Foreign currency
translation - - - - - (7) (7)
Consolidated net
loss - - (723) - - - (723)
Balances as of 31
December 2015 $ 367 $ 91,896 $ (87,181) $ (108) $ (5) $ (5) $ 4,964
------------------- ------- ----------- ------------ --------- ---------------- ------------------- -----------
Stock based
compensation
- SARS - 68 - - - 68
Foreign currency
translation - - - - - (78) -
Consolidated net
loss - - (1,518) - - - (1,518)
Balances as of 30
June 2016 $ 367 $ 91,964 $ (88,699) $ (108) $ (5) $ (83) $ 3,436
------------------- ------- ----------- ------------ --------- ---------------- ------------------- -----------
The accompanying notes are an integral
part of these consolidated financial
statements.
Notes to the Interim Consolidated Financial Statements
1. Basis of Preparation
The financial statements of TyraTech, Inc. (the Company) have
been prepared in accordance with accounting principles generally
accepted in the United States of America (US GAAP) and the attached
financial statements have been prepared on a consolidated
basis.
The Company holds a 13.33% share of an unconsolidated jointly
owned enterprise (Envance Technologies, LLC.) with AMVAC Chemical
Corporation, a wholly owned subsidiary of American Vanguard
Corporation. This unconsolidated entity is accounted for under the
equity method of accounting. In 2013, the Company's investment in
Envance was reduced to zero and the equity method was
suspended.
The results for the year ended 31 December 2015 have been
extracted from the audited consolidated financial statements of
TyraTech, Inc. for the year ended 31 December 2015 which were
prepared in accordance with US GAAP.
The unaudited interim consolidated financial statements for the
six months ended 30 June 2016 and 2015 were prepared on the basis
of the accounting policies set out in the most recently published
consolidated financial statements of the Company for the year ended
31 December 2015. As permitted, this interim report has been
prepared in accordance with AIM rules. Certain information and note
disclosures normally included in annual financial statements
prepared in accordance with US GAAP have been omitted pursuant to
the AIM's rules and regulations for interim reporting. These
unaudited interim consolidated financial statements should be read
in conjunction with the consolidated financial statements and
related notes for the year ended 31 December 2015.
The unaudited interim financial statements were approved by the
Board of Directors on 10 September 2016.
2. Liquidity and Capital Resources
At 30 June 2016 the Company had $2.1 million (30 June 2015: $1.3
million, 31 December 2015: $4.0 million) in cash and cash
equivalents and no indebtedness. The Company currently has no
committed external source of funds.
The Company's operations have been funded through a combination
of common stock issuances, product sales, collaborative
arrangements, and proceeds from technology licensing
agreements.
The Company's future capital requirements will depend on many
factors. For example, i) the level of product sales of the
Company's currently marketed products and any additional products
that may be marketed in the future; ii) the scope, progress,
results, and costs of development activities for current product
candidates; iii) the costs of commercialisation activities
including product marketing, sales, and distribution; and iv) the
costs of preparing, filing, and prosecuting patent applications and
maintaining, enforcing, and defending claims to intellectual
property.
Based on the Company's existing cash, its current operating
plans, anticipated revenues from product sales and collaborative
arrangements, and the ability to control costs, the Company's
forecasts indicate that it will have sufficient cash resources for
at least the next twelve months.
3. Loss per Common Stock
The calculation of the basic and diluted earnings per ordinary
share outstanding is based on the Company's loss, excluding the
effect of losses attributable to non-controlling interests, of $1.5
million for the six months ended 30 June 2016 (six months ended 30
June 2015: loss of $1.5 million; year ended 31 December 2015: loss
of $2.3 million), on approximately 366,582,000 (30 June 2015:
261,239,000; 31 December 2015: 273,946,000) common shares, the
weighted average number in issue and ranking for dividend during
the period.
Potentially dilutive shares consist of the incremental common
shares issuable upon the conversion of SARs and warrants.
Potentially dilutive shares are excluded from the computation if
their effect is antidilutive. At 30 June 2016 total common stock
equivalents that were excluded from computing diluted net loss per
share were approximately 5,830,000 (30 June 2015: 0, 31 December
2015: 0).
4. Envance Technologies, LLC
The Company accounts for its investment in Envance using the
equity method of accounting. In 2013, the Company's investment in
Envance was reduced from $0.4 million to zero and the equity method
was suspended. No additional losses will be recorded until either
the Company contributes additional capital or Envance records net
income equal to the share of net losses not recognized during the
period in which the equity method was suspended. As of 30 June
2016, the Company's inception to date investment loss in Envance is
$1.3 million (June 30, 2015: $1.4 million, 31 December 2015: $1.6
million). If Envance subsequently reports net income, the Company
will resume applying the equity method only after its share of that
net income equals the share of net losses not recognized during the
period the equity method was suspended. For the period ended June
30, 2016 the Company's share of Envance net losses not recognized
was $0.6 million (June 30, 2015: $0.1 million, December 31, 2015:
$0.9 million).
In April 2015, the Company and AMVAC announced that they had
updated their commercial relationship and amended the Limited
Liability Company Agreement (the "Amendment") relating to Envance.
As a result, TyraTech received approximately $500,000 in cash in
repayment of loans and consideration.
Under the terms of the Amendment, TyraTech and AMVAC agreed that
Covering Capital Contributions made subsequent to the formation of
Envance would be converted to Membership Interests. With this
conversion, the Membership Percentage Interests in Envance would be
adjusted from AMVAC owning 60 percent and TyraTech owning 40
percent to AMVAC owning 83.77 percent and TyraTech owning 16.23
percent.
Contemporaneous with the Amendment, AMVAC offered to purchase,
and TyraTech agreed to sell, approximately 3 percent of its
remaining ownership interest in Envance. Subsequent to this
transaction, AMVAC will have a Membership Percentage Interest of
86.67 percent, and TyraTech will have a Membership Percentage
Interest of 13.33 percent.
5. SARs Issuance
During 2016, the Company issued 5,335,000 Stock Appreciation
Rights (SARs) to various employees and a non-executive director.
Total SARs expense recognized for the six months ended 30 June 2016
was approximately $68,000 (30 June 2015: $72,000, 31 December 2015:
$132,000).
6. Subsequent Events
We have evaluated all events and transactions through 13
September 2016, the date the consolidated financial statements were
available to be issued. Based on such evaluation, no events have
occurred that in the opinion of management warrant disclosure in or
adjustment to the consolidated financial statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SFLFUEFMSEFU
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