Admission to AIM
February 28 2006 - 3:00AM
UK Regulatory
RNS Number:0211Z
Clean Air Power Limited
28 February 2006
For Immediate Release 28 February 2006
Clean Air Power Limited
("Clean Air Power" or the "Company")
ADMISSION TO AIM
Placing of 10,000,000 common shares at 100 pence per common share
Clean Air Power (AIM:CAP), the company behind Dual-FuelTM technology, is pleased
to announce its successful flotation on AIM today, in conjunction with a placing
of 10,000,000 common shares at 100p pence per common share, raising #10.0m
(gross). Clean Air Power will have a market capitalisation of approximately
#26.3 million at the placing price on admission.
Placing statistics:
Placing Price 100p
Number of Common Shares in issue prior to the Placing 16,318,479
Number of Placing Shares being placed on behalf of the Company 10,000,000
Number of Common Shares in issue following Admission 26,318,479
Gross proceeds of the Placing receivable by the Company #10,000,000
Market capitalisation of the Company at the Placing Price on Admission #26,318,479
Percentage of enlarged issued share capital subject to the Placing 38%
Clean Air Power provides Dual-FuelTM technology that enables heavy-duty diesel
engines to operate on a combination of diesel and natural gas without
jeopardising diesel engine performance. The current and forecast cost
differential between diesel and natural gas provides significant fuel cost
savings to operators and there is further benefit in the emissions reduction
associated with natural gas vehicles.
Management, significantly enhanced in 2005 and early 2006 with the addition of
John Pettitt as CEO, Steve Whelan as Technology Director and Peter Rowse as
Financial Director, have strong commercial and technical expertise including 25
years' collective experience in diesel engineering and Dual-FuelTM technology.
Chairman Rodney Westhead is chairman of Carter & Carter plc and a senior
non-executive director of Mouchelparkman plc and has served as Group Chief
Executive of Ricardo plc.
The proceeds of the placing will be used for product development, test
facilities, marketing and for general corporate purposes.
Canaccord Adams Limited is acting as Nominated Adviser and Broker to Clean Air
Power.
John Pettitt, Chief Executive Officer, commenting on Clean Air Power's admission
to AIM, said:
"Our unique technology offers operators an opportunity to realise highly
significant cost savings. The prospects for developing our presence in UK,
Australian and US markets are exciting and we look forward to delivering
reductions in both costs and emissions to customers."
For further details
Clean Air Power
John Pettitt, Chief Executive Tel: +44 (0) 1772 624499
Peter Rowse, Finance Director
Buchanan Communications
Charles Ryland/Ben Willey/Elly Williamson Tel: +44 (0)20 7466 5000
Canaccord Adams
Robert Finlay/Erin Needra Tel: +44 (0)20 7518 2777
NOTES TO EDITORS
* Fuel costs, which are approximately one third of operating costs for a
heavy-duty truck, constitute the only significant variable cost element to
the operator, and savings are compounded by the distances that long-haul
heavy-duty trucks cover annually. Further savings can also be realised
through using tax credits and other governmental incentives.
* A typical user in the UK may realise cost savings of as much as #11,000
per truck per annum.
* Around 590,000 heavy-duty diesel trucks are sold each year in the world.
The total global diesel engine market is worth $40 billion and diesel
engines form the backbone of most economies: both the UK and the US move 80
per cent or more of all freight by heavy-duty diesel engine powered
transport.
* The Company plans to increase its market penetration in the UK, Australia
and the US. Its goal is to become a major global provider of combined diesel
and natural gas technology solutions to truck hauliers worldwide by offering
operators a generic retrofit Dual-FuelTM solution, known as "Genesis" while
developing partnerships with leading engine OEMs.
* Dual-FuelTM technology enjoys considerable competitive advantages,
including:
- Fuel cost savings that result in a conversion cost payback period
as short as 12 months and an average payback period of between one
and two years.
- Diesel-like performance and efficiency alongside the benefit of
emissions reduction associated with natural gas vehicles.
- Proven technology, with more than 1,600 trucks fitted with
Dual-FuelTM converted engines worldwide.
- No need for any major modifications to the existing platform and
the ability to switch seamlessly between natural gas and diesel.
- Forecast continuation of a significant price differential between
diesel and natural gas over the next 25 years.
- Proprietary technology, know-how and strategic relationships across
all business lines.
* In addition to combined diesel and natural gas fuel systems for heavy-duty
vehicles, the Company focuses on two further product lines: a profitable
natural gas engine components business and an emissions reduction technology
business focused on reducing the emissions of heavy diesel engines used in
power generation and pumping.
"The release, publication or distribution of this announcement in certain
jurisdictions may be restricted by law and therefore persons in such
jurisdictions into which this announcement is released, published or distributed
should inform themselves about and observe such restrictions.
The content of this announcement has been prepared by and is the sole
responsibility of the Company.
This press release has been approved by Canaccord Adams Limited solely for the
purposes of section 21 of the Financial Services & Markets Act 2000.
Canaccord Adams Limited is acting as nominated adviser and broker to the Company
and will not regard any person other than the Company as its customer or be
responsible to anyone other than the Company for providing the protections
afforded to customers of Canaccord or advice in relation to the proposed
Admission.
No offer, invitation or inducement to acquire shares or other securities in the
Company is being made by or in connection with this announcement. Any offer,
invitation or inducement to acquire shares in the Company will be made solely by
means of the admission document published on 22 February 2006, as updated by any
supplementary admission document, and any decision to keep, buy or sell shares
in the Company should be made solely on the basis of the information contained
in such document(s).
Certain statements made in this announcement are forward looking statements.
Such statements are based on current expectations and are subject to a number of
risks and uncertainties that could cause actual results and performance to
differ materially from any expected further results or performances, express or
implied, by the forward looking statements. Factors that might cause forward
looking statements to differ materially from actual results include, among other
things, regulatory and economic factors. The Company assumes no responsibility
to update any of the forward looking statement contained herein. Further, any
indication in this announcement of the price at which common shares have been
bought or sold in the past cannot be relied upon as a guide to future
performance.
This announcement is not for distribution or transmission, directly or
indirectly, in or into the United States, Canada, Australia, Japan, New Zealand
or the Republic of South Africa and does not constitute, or form part of, an
offer to sell or the solicitation of an offer to subscribe for or buy and any
securities ("Securities"), nor the solicitation of any vote or approval in any
jurisdiction, nor shall there be any sale, issue or transfer of the Securities
referred to in this announcement in any jurisdiction in contravention of
applicable law.
The Securities have not been and will not be registered under the US Securities
Act of 1933, as amended (the "Securities Act") and may not be offered or sold in
the United States unless registered under the Securities Act or an exemption
from such registration is available. No public offering of Securities of the
Company is being made in the United States."
This information is provided by RNS
The company news service from the London Stock Exchange
END
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