Press releases 2009
23 November 2009
Environmental Recycling Technologies Publicly Censured
Environmental Recycling Technologies ("Environmental" or the "Company"), has today been publicly censured for numerous breaches of the AIM Rules for Companies between July 2007 and June 2008.
In particular, Environmental did not inform the market of price sensitive information relating to the material underperformance of its business and the alternative use of the proceeds from a placing of shares.
Specifically, the Company:
- failed to notify the market that funds raised in July 2007 to pay off a significant loan had instead been used to meet working capital needs and pay off other outstanding debt
- misleadingly suggested in announcements that the loan would be or had been repaid
- did not inform the market that shares were being issued to pay down the outstanding loan
- failed to submit the required applications to the Exchange for the admission of the issued shares to trading on AIM or to make associated announcements required under the AIM Rules
- failed to notify the market without delay as to its trading underperformance in the second half of 2007
- failed to liaise appropriately with its Nomad
A year prior to the matters referred to in the censure, the Company had provided confirmation, in response to a private warning letter to the company from the Exchange, that it understood its disclosure obligations under the AIM Rules.
Nick Bayley, Head of UK Regulation at London Stock Exchange Group, said:
"Environmental Recycling Technologies failed to keep the market properly informed of price sensitive information, failed to announce the issuance of new shares and didn't liaise properly with its Nomad. These are clear breaches of a number of key AIM rules which are designed to protect investors and ensure AIM companies maintain high standards of disclosure. We are determined to ensure that companies take their obligations of being on a public market seriously."
In determining the appropriate sanction against the Company the London Stock Exchange took into account the various factors set out in the censure, including the fact that the number, nature and duration of the breaches demonstrate a disregard for the AIM Rules and amount to reckless conduct. However, in light of the Company's financial position, the Exchange has not, in this case, sought the imposition of a fine.
Full details of the breaches can be found in the censure
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For further information please contact:
Alastair Fairbrother Press Office +44 (0)20 7797 1222
newsroom@londonstockexchange.com
Notes to editors
Background to Environmental Recycling Technologies
The company's shares were admitted to trading on AIM on 23 October 2002. The company (formerly known as 3DM Worldwide plc) is a developer of technologies focusing on plastic waste recycling.
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