In April 2006 Commoditrade acquired a contractual interest in the profits of the largest LME trading team for initial aggregate consideration of £24.4 million satisfied £14 million in cash and by the issue of 83.4 million new ordinary shares at 12.5p each. In addition, 6 million deferred consideration shares may be issued on the achievement of certain performance criteria.

In order to satisfy the cash consideration in respect of the acquisition, and to provide working capital for the enlarged group, the Company’s brokers placed an 144 million new ordinary shares with institutional investors at 12.5p per share raising £18 million before expenses.

The LME Trading Team is well established and successful, with an in-depth knowledge of the markets on which it is represented and has developed strong client and market relationships. This has resulted in the achievement of strong growth in the level of profits achieved by the LME Trading Team over recent years increasing from £2.1m in 2003 to £7.0 in 2005.

Commoditrade was incorporated on 6 January 2005 and its shares were admitted to trading on AIM as an investment company on 8 March 2005 when it raised £515,000 before expenses, by way of a placing at 5 pence per share. The Company was established with the primary objective of building, through investment and acquisition, a group specialising in the commodities sector.