XL Tech’s second spin-out

TyraTech, producer of a range of natural insecticides, will be the second company that business-builder XL TechGroup has floated on the market.

TyraTech, which develops products derived from natural plant oil that kill or repel parasites, is looking to lure up to £30 million from investors through a placing that will value the company between £100 million and £150 million. At the moment XL Tech owns 61 per cent of the company.

Chief executive Douglas Armstrong said TyraTech is floating now to strengthen the balance sheet and raise profile to help commercialise its 24 products in collaboration with larger partners. These presently include Syngenta Crop Protection and Kraft Foods.

Armstrong added that the offering is ‘truly revolutionary’ and will provide ‘an economic and environmental safety profile demanded by consumers, corporates and governments alike’.

XL Tech’s first spin-out, greenhouse gas offsetting venture Agcert, is down from a 252p high last year to 51p today, almost a third of its original float price.