TyraChem is a 50:50 joint venture to develop and commercialize products that combine TyraTech Natural pesticide technology with Chemplast plastics technology.
In the second half of 2009 we signed an agreement with Clarke Mosquito Control, to develop products to control mosquitoes. The partnership has already resulted in an
innovative product that would be suitable for use in environmentally sensitive areas and shows excellent activity against adult mosquitoes.
We are in the advanced stages of developing a new and potent product for the equine market. This product will
protect horses and riders from flying biting insects. During 2010 we expect to conclude a commercial arrangement with a specialist equine supplier in North America.
As we move to a more commercial environment we will continue to focus on our core markets and partnerships. Our knowledge base now gives us the opportunity to articulate, with much more precision, the commercial opportunities and how we should prioritize them.
In this period of commercial expansion there will be a focus on both cash and cost management. During the second half of the year there were substantial reductions in costs and this will remain a focus into the coming years.
At the end of December 2009 we had a cash balance of
$1.3 million. This low level of cash gave limited margin for slippage and threatened that the potential of the business may not be fully realized. Therefore subsequent to the
year end the Company issued 24,443,888 of new common shares of US$0.001 each for a gross amount of £2.2 million US$3.2 million and £1.9 million US$2.8 million net of cash expenses. A further 749,112 of new common shares of US$0.001 each were issued in settlement of other expenses of £67,420 US$99,781 million.
As announced in our Interim statement in September 2009, Molecular Securities' claim for $2.8 million is still being contested in court and we expect that this will be resolved in 2010, although the precise timeframe remains uncertain. We continue to believe that the claim has no merit and we are confident that TyraTech will prevail. It does however remain a significant contingency in the context of the Group's current cash resources.
BOARD CHANGES
In January of this year we announced that I had assumed the role of Executive Chairman taking charge of the day to day affairs of TyraTech, as a result of Dr. Douglas Armstrong stepping down as Chief Executive Officer. Dr. Geoffrey Vernon stepped down as Chairman and remained on the Board until 8 May 2010 when he resigned as a Non-executive Director.
SUMMARY AND OUTLOOK
We are confident of TyraTech's technology and of our ability to develop further products that our partners can commercialise. We are also committed to leveraging these products into other markets and to create significant shareholder value over the coming years.
Although difficult, 2009 has been a year of significant progress and we now have a solid platform for future growth and revenue generation. Our strong and experienced team is focused on medium-term profitability. To that end I would like to thank all our employees for their efforts throughout the year as we look forward to an exciting 2010.
Alan Reade/Executive Chairman
21 June 2010
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