Proventec Plc

Proventec Plc

May 26, 2006 02:05 ET

Proventec Plc-Reduction of Holding in Hardide

LONDON, UNITED KINGDOM--(CCNMatthews - May 26, 2006) - Proventec Plc (AIM:PROV), a provider of specialist steam cleaning and coatings technologies, today announces that it raised Pounds Sterling 1.0 million (after expenses) by the sale of 8,598,350 ordinary shares at 12.5 pence per share in Hardide plc ("Hardide") via an institutional placing to investors. The original holding of 29.9% in Hardide was held through Proventec's subsidiary, Flintstone Management Services Limited ("FMS"). Post the placing, FMS retains 31,499,725 ordinary shares in Hardide which equates to 21.5% of the increased share capital of the company. FMS has undertaken not to dispose of any further ordinary shares in Hardide, without the permission of Hardide's broker, Daniel Stewart & Co plc, before 30 November 2006.

AIM-listed Hardide provides and applies tungsten carbide coatings to a wide range of engineering components. The Company's patented technology is unique in that it combines both abrasion and corrosion resistant properties in one coating. When applied to components, the technology is proven to offer dramatic cost savings through reduced downtime and extended component life. Customers include leading companies operating in oil and gas exploration and production, valve and pumps manufacturing and general engineering.

David Chestnutt, Chief Executive of Proventec, said: "Through our FMS subsidiary we have been long term original holders in Hardide and have been financially supportive through the company's corporate development. The reduction of our holding makes strategic sense for both parties, allowing Proventec to realise a net profit of Pounds Sterling 580,000 for our shareholders whilst at the same time allowing Hardide to diversify its current shareholder base with a number of additional institutional holders.

"As part of the Company's stated strategy, the proceeds of this sale will be used to develop Proventec's core businesses in hygienic solutions and preventative coatings."

For further information, please contact:
Proventec Plc
David Chestnutt, Chief Executive Tel: + 44 (0) 151 706 0626

Collins Stewart Limited
Andrew Smith / Martin Eales,
Corporate Finance Tel: + 44 (0) 20 7523 8350

Media enquiries:
Henry Harrison-Topham Tel: +44 (0) 20 7398 7700

Notes to editors

Proventec is a specialist and innovative provider of steam cleaning and coatings technologies. The Company was formed as a result of the reverse takeover of InnoCleaning Magma Holdings BV and OspreyDeepClean Limited, a group of fire retardant coatings and specialist steam cleaning businesses, by Flintstone Technologies plc in August 2005.

Proventec provides solutions to a number of markets including the food retail and preparation market, hospitality industries, and healthcare which includes hospitals and suppliers of hospital equipment, transport infrastructure, construction materials and consumer products. The cleanings solutions are designed to target and combat the spread of common food bacteria and HAI (Hospital Acquired Infections), including MRSA. The coating businesses have an emphasis on preventative environmentally friendly solutions for its clients delivering demonstrable health and/or cost benefits.

Proventec also provides coatings solutions such as fire retardants, anti-abrasion and corrosion materials for industrial use. In addition to developing the technology and supplying the products, Proventec also provides training support and financing options to its customers.

Through its subsidiary, Flintstone Management Services Limited, Proventec has investments in the following companies: Biocote Limited, Firestop Chemicals Limited, Hardide plc, Oxis Energy Limited and the Ultra Motor Company Limited.

Contact Information