First North announcement #16, October 29th, 2007
Copenhagen, October 29th, 2007
Summary: Quarterly announcement Q3 2007.
Aresa has had a very busy and intense 3rd quarter of this fiscal year. The
company has focussed largely on transferring the RedDetect® functionality from
Arabidopsis thaliana (the model organism used up until now) to Petit Havana, a
Tobacco species. The purpose of this was to achieve a more robust growth and to
have full control over the desired change of plant colour from green to red when
exposed to explosives.
During the summer of 2007, growth tests were conducted on Arabidopsis thaliana
ecotypes from all over the globe. The tests indicated that it would be
advantageous to transfer the entire system to a stronger organism. A year ago,
Tobacco was identified as being a plant with several advantages to optimize the
functionality of RedDetect®.
During the 3rd quarter of this fiscal year, Aresa has worked intensively to
optimize the sensibility of the plant and has identified increasingly efficient
promoters to detect explosives. Aresa has successfully identified 3 different
genes that react to TNT-based explosives. Now the company is investigating
further opportunities to achieve optimal gene selection.
Aresa expects to complete the transfer of RedDetect® to Tobacco during the 1st
quarter of 2008. Furthermore, it is expected that the optimized
functionality—with the optimal promoter in the plant—will be ready by the 3rd
quarter of 2008. Aresa expects that RedDetect® will then be ready to use in
practical mine clearance immediately afterwards.
As stated in the First North announcement #12, 2007, Aresa has been awarded
funding from DANIDA1 Danish International Developement Aid to research TNT
leakage from landmines under various circumstances. The funding of half a
million DKK has enabled Aresa to map TNT leakage from landmines in different
situations, including Scandinavia, the Balkans, and several locations in Africa.
The research has been conducted in cooperation with military units,
universities, local governments, and mine action centres in the different areas.
The project is expected to be finalized in January 2008, when Aresa will arrange
for an international seminar on the subject.
Aresa has, during the last quarter, significantly strengthened its relationships
with potential customers and partners. In a unique agreement, the Serbian
authorities have approved Aresa's application to conduct open air GMO tests at
Aresa's test sites in Novi Sad, Serbia. The company is also running active test
sites in Croatia and in Jægerspris in Denmark.
Aresa's financial result for the 3rd quarter of 2007 is in line with previously
communicated expectations and is considered by the management to be
satisfactory. The result year-to-date is a deficit of 10.6 million DKK. Aresa
expects the deficit for the entire year of 2007 to be in the range of 14-17
million DKK.
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| Aresa A/S | | |
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| Amounts in DKK 1,000 | Year-to-date 3rd | Year-to-date 3rd |
| | quarter 2007 | quarter 2006 |
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| Net revenue | 0 | 0 |
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| EBIT | -11,223 | -8,023 |
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| Net financial | 645 | 774 |
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| EBT | -10,578 | -7,246 |
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| Total assets | 44,868 | 58,722 |
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| Total equity | 42,426 | 57,532 |
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| Equity primo | 53,004 | |
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| YTD net result | -10,578 | |
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| Equity ultimo | 42,426 | |
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Aresa has chosen to focus an even larger portion of its overall resources on the
commercialization of RedDetect® in order to achieve results with the product as
soon as possible.
On November 1st, 2007, the new CEO of Aresa, Steen Thaarup, will begin his new
position. With his unique military background combined with a research
education, his professional experience, and a strong commercial track record,
Steen Thaarup will be able to contribute the right competencies for Aresa's next
phase of development (see the First North announcement #15, 2007).
At the boardmeeting held today, it was decided to make a warrant program
available to Mr. Steen Thaarup. Within the framework of the current warrant
program 40.000 pcs has been allocated. The warrants are to be exercised with one
third for each of the coming three years at a price corresponding to the average
market price of the share during the last 10 trading days prior to the
commencement of Mr. Steen Thaarup's term.
The first task of the new CEO will be to streamline Aresa's strategy to bring
RedDetect® and other Aresa products onto the market as soon as possible.
The company expects to announce the year end result for 2007 on February 28th
2008.
Best regards,
Aresa A/S
Ole Andersen
Chairman of the Board
For more information, contact Ole Andersen, Chairman for Aresa A/S, tel: +45
7022 7747 or +45 4058 0214. The company's financial advisor is HSH Corporate
Finance A/S, Morten Kjærulff, Director, tel: +45 3344 9431.
About Aresa
Aresa is a plant biotech company established in 2001 by the company's current
CSO, Carsten Meier. Its origins come from the Institute of Molecular Biology at
Copenhagen University.
Aresa has developed two plant-based technology platforms: BioSensor for the
detection of substances in soil, including leakage of explosives from landmines;
and BioPharma, a tool for the optimisation and production of antibodies and
proteins in plants.
Aresa was listed on the Copenhagen OMX-First North market place in 2006. Aresa
is based at Symbion Science Park in Copenhagen and has greenhouse facilities on
the outskirts of Copenhagen and test areas in Denmark, Croatia, and Serbia.
Aresa has 16 employees, 8 in research & development and 5 in landmine
operations.
