AINC Applied Intel.

RNS Number:6725H
Applied Intellectual Capital plc
14 November 2007

14 NOVEMBER 2007



                          APPLIED INTELLECTUAL CAPITAL

             ESTABLISHMENT OF REDOX BIOFUELS LTD., TO COMMERCIALISE
                  AIC'S MMR TECHNOLOGY IN BIOFUEL APPLICATIONS

Applied Intellectual Capital ("AIC") (AIM: AINC) is pleased to announce the
formation of a wholly-owned subsidiary RedOx Biofuels Limited ("RedOx"), the
purpose of which is to commercialise AIC's proprietary metal mediated redox 
("MMR") technology for use in the production of biofuels from a variety of
ligno-cellulosic feedstocks.

RedOx is establishing operations in the UK and US, initially using AIC's
facilities.  Stephen Clarke, AIC's Chief Executive, will be elected to RedOx's
Board as Chairman, Kim Ogaard-Nielsen formerly of Group Lotus plc, will be
appointed as its Chief Operating Officer, Richard Varjian will act as CTO and
Robert Clarke will lead the Technical Advisory Board.

Separately, on 12th November 2007, AIC executed a Heads of Agreement ("HoA")
with the majority shareholders and Board of Directors of an AIM listed cash
shell whose shares are currently suspended and which holds approximately $7M in
cash and liquid assets.  The HoA outlines the acquisition of RedOx by the cash
shell, which will constitute a Reverse Takeover under the AIM Rules, on the
following key terms:

* The cash shell will change its name to RedOx Biofuels plc 
("RedOx plc") and trading of its ordinary shares will then recommence on AIM;

* RedOx plc will acquire the rights, associated know-how, patents,
patent applications and other proprietary information ("Background IP") that
will enable it to fully exploit and commercialise AIC's MMR technology in
biofuel applications;

* In exchange for the transfer of such rights, together with US$5
million in development funds, AIC will be issued with new ordinary shares in
RedOx plc, representing 85 per cent. of RedOx plc's enlarged issued share
capital;

* AIC will have exclusive rights to the Background IP for use in
applications outside of biofuels.

AIC and RedOx have now begun formal due diligence activities with the cash
shell, upon the successful completion of which, an estimated timetable for the
completion of the transaction will be announced.

MMR technology has been used by AIC and its founders for the electrochemical
synthesis of a number materials including complex organic molecules such as
anthraquinone.  AIC believes that it is unique in using electrochemical
synthesis in biofuel production and that its approach provides for more optimal
processing of the cellulose, hemicellulose and lignin components of
ligno-cellulosic feed stocks.  In turn, this should allow RedOx to achieve
better yields and higher value fuels from a broader range of feedstocks than is
currently possible with either acid hydrolysis or enzymatic processes.

On 23 April 2007, AIC announced that it had conducted successful laboratory
tests of the MMR process.  Waste cotton was converted into an ethanol feedstock.
Waste cotton cloth was deliberately chosen by AIC as an example of a low cost,
non-food feedstock for biofuels.

AIC has now developed the technology to the point that it believes it can scale
up its process to produce ethanol economically from a commercially useful range
of feed stock options.  Importantly, AIC already has pilot scale and full scale
equipment designs for MMR systems at an advanced stage of development and is
currently building a number of mobile demonstration systems.  Sized at 800-4000
liters per day of production, the first of these systems is planned for
deployment during 2008.

The Directors of AIC believe the proposed transaction to be entirely consistent
with its strategy of accelerating value creation from its core portfolio of
electrochemistry technologies.  AIC seeks to transfer the rights to exploit
these technologies, which have already undergone stringent laboratory testing
and which have real and immediate commercial applications, to entities with
resources and know-how to exploit them.  In each case, AIC retains a significant
degree of control and a financial interest, allowing shareholders to benefit
from any future upside.

Dr Stephen Clarke, CEO of AIC, commented:

"Unlike other players in this space, we believe that our unique and proprietary
MMR technology can deliver a significantly cheaper solution from raw materials
which are currently considered to be waste. To our knowledge, we are the only
business that has delivered electrochemical synthesis of biofuels as a viable
and near-term commercial alternative to acid hydrolysis and enzymatic
approaches."



ENQUIRIES:


Applied Intellectual Capital:  Dr. Stephen Clarke                 Tel. +1 925 639 9399
Pelham Public Relations:       Archie Berens                      Tel. +44 (0)207 743 6679
Nabarro Wells:                 Marc Cramsie / Harry Stockdale     Tel. +44 (0)207 710 7400



NOTES FOR EDITORS



About AIC



AIC is an AIM listed company that funds, develops, patents and commercialises
electrochemical and advanced separations technologies in clean energy,
electricity storage, water treatment, metals recovery and other emerging
markets.  AIC listed on AIM in January 2007 and currently has a market
capitalisation of approximately #106 million.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

MSCBJBJTMMBBTBR

Grafico Azioni Applied Intel. (LSE:AINC)
Storico
Da Mag 2024 a Giu 2024

Grafico Azioni Applied Intel. (LSE:AINC)
Storico
Da Giu 2023 a Giu 2024