22/03/2010
Trading Update

 

                            

 

Green Chemicals plc

 

(the "Company")

 

 

Scheduled Announcement of Financial Results; Trading for the Year Ending 31 March 2010

Signing of Co-operation Agreement

 

 

green chemicals plc, the PLUS-quoted developer of "cleaner, greener and safer" alternatives for widely-used chemical processes, will issue the preliminary announcement of its results for the financial year to 31st March 2010 as soon as practicable following the end of the accounting reference period. The loss before tax for the year is anticipated to be in line with management's expectations and not to exceed £850,000, of which a significant part will be represented by non-cash items (amortisation of goodwill).

 

The Company is pleased to announce a co-operation agreement (the "Agreement") with Clariant International Ltd. ("Clariant"), the Basel-based multi-national which last year had sales of  £4.07 billion (Swiss Francs 6.6 billion).

 

The parties have entered into the Agreement with the intention of bringing to market a new generation

of flame retardant for the treatment of cellulose and cellulose-based materials, including paper and fabrics containing cotton. The product will be based on the technology for a durable flame retardant developed and patented by the Company; this technology is less environmentally hostile than conventional fire retardant treatments as it neither contains, produces nor uses formaldehyde or halogen products, the former being a known carcinogen and the latter being bio-accumulative.

 

Clariant is a global company with over 100 subsidiaries spanning five continents; as such, the Directors view it as an ideal partner with which to work in the final stages of product development. Both parties intend that, at the end of a successful, six-month collaboration, Clariant shall have the right to enter into and the Company shall grant to Clariant an exclusive, worldwide licence to produce and market the product under a conventional licensing agreement.

 

The commercial terms of the Agreement are confidential between the parties. The Company may, however, disclose that it receives a payment upon signing and further, monthly payments during the six months' currency of the Agreement.

 

Describing the Agreement as a "major step forward", CEO Stephen Winston said,  "We are pleased that a leader within the chemical sector has chosen to formalise the process of developing a new fire retardant solution using our technology. We see this as a significant recognition of the commercial

potential of our scientific team's work."

 

 

 

Dr. Alison Fielding,

 

Chairman, green chemicals plc

London, 22 March 2010

 

 

 

This announcement has been made by green chemicals plc after due and careful enquiry and the Directors of the Company accept responsibility for its contents.

 

 

Enquiries:

 

Stephen Winston, FCA, green chemicals plc: +44 (0)7968 864 914

 

Daniel Briggs, Relig‹re Capital Markets plc: +44 (0)20 7444 0503

 

 

 

 

 

END

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