Today, Devgen issued 1,753,339 new shares for a total amount of € 14.7 million in a private placement. The new shares were placed with pre-identified investors at the average price of Devgen shares over the past 30 days, i.e. € 8.38 per share.
The pre-identified investors include O.G.B.B. A. van Herk B.V., Biovest CVA, represented by Mr. Rudi Mariën, member of the board of directors of Devgen nv. and Mr. Thierry Bogaert, managing director of Devgen nv.
With this transaction, the amount of shares increases with 9.8%. The shares will be issued and paid for at the closing of the transaction on 6 October 2009. It is expected that the shares will be admitted for listing on Euronext Brussels on or around the aforementioned date.
The proceeds of the offering will be used to grow Devgen’s seeds and crop technology business in line with its business plan, in particular to accelerate the growth of its premium hybrid rice seed business and the introduction of its biotech traits in rice in the Indian subcontinent and South-East Asia.
Devgen was assisted in the transaction by KBC Securities (lead manager) and Kempen & Co (co-lead manager).
About Devgen
Devgen’s mission is to enable farmers to sustainably grow more food on less land, with less water, agrochemicals and labour.
Devgen uses advanced biotechnology and molecular breeding technology to make high yielding seeds and crop protection solutions with a superior environmental profile.
Devgen brings this technology to the market in the world’s major food and feed crops through two complementary strategies:
- Licensing Devgen technology for use in corn, cotton and soy and selected other crops in exchange for R&D funding, and milestone and royalty payments.
- Producing and selling its premium hybrid seeds in major field crops such as rice, sunflower, sorghum, and pearl millet, in the Indian subcontinent and South-East Asia.
In its Crop Protection unit, Devgen developed and has taken to market a novel nematicide, an agro-chemical product that protects crops from damage by parasitic nematodes.
Incorporated in 1997, Devgen has offices in Ghent (Belgium), Singapore, Hyderabad (India) and Delaware (US) and employs more than 200 people
This press release may contain forward-looking statements containing the words “anticipates”, “expects” , “intends”, “plans”, “estimates”, “may” and “continues” as well as similar expressions. Such forward looking statements may involve known and unknown risks, uncertainties and other factors which might cause the actual results, performance or achievements of Devgen to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: agricultural risks and difficulties, including weather factors, diseases and pests, the costs and requirements of regulatory compliance and the speed with which approvals are received; public acceptance of biotechnology products; political, economic and social developments in countries where Devgen operates and other risks and factors detailed in the company’s most recent annual report.
These forward looking statements speak only as of the date of publication of this document. Devgen disclaims any obligation to update such forward looking statements in this document to reflect any change in its expectations, conditions or circumstances on which such statement is based, unless required by law or regulation. This document does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any securities issued by Devgen NV.
