Clean Air Power Limited Successful Placing to raise £1.6 million (9290S)

TIDMCAP

RNS Number : 9290S

Clean Air Power Limited

29 November 2011

For immediate release 29 November 2011

Clean Air Power Ltd

("Clean Air Power" or "the Company")

Successful Placing to raise GBP1.6 million

Introduction

Clean Air Power Limited (AIM:CAP), the developer and provider of Dual-Fuel(TM) combustion technology for heavy duty diesel engines, is pleased to announce that it has successfully placed through Seymour Pierce Limited, acting as the Company's Nominated Adviser and Broker to the Placing 40,064,099 Common Shares at a placing price of 4 pence each with institutional and other investors to raise approximately GBP1.6 million before expenses. The placing was oversubscribed.

Background to and reasons for the Placing

The net proceeds of the placing will be used to supplement working capital and to support existing and potential new projects, including the recently announced start of production with a European OEM.

Details of the Placing

The Company has raised approximately GBP1.6 million before expenses, by way of a placing of 40,064,099 new Common Shares.

The placing shares will represent approximately 29.6 per cent. of the share capital of the Company as enlarged by the placing.

Application has been made to the London Stock Exchange for the admission of 40,064,099 Common Shares which are expected to be admitted to trading on AIM in two tranches; 10,650,000 Common Shares on 2 December 2011 and a further 29,414,099 Common Shares on 5 December 2011. Following the admissions the Company will have a total of 135,089,619 Common Shares in issue.

The issue price of 4 pence per new Common Share equals the closing mid market price per Common Share on 28 November 2011, being the latest practicable date prior to the publication of this announcement.

Directors Participation

All of the Directors have agreed to participate in the placing on the basis set out below:-

 
Name              Existing Holding  No of Placing  Shareholding  Percentage 
                                     Shares         following     of Enlarged 
                                                    Placing       Issued Share 
                                                                  Capital 
----------------  ----------------  -------------  ------------  ------------- 
John Pettitt      1,376,567         350,000        1,726,567     1.28% 
----------------  ----------------  -------------  ------------  ------------- 
Peter Rowse       180,532           50,000         230,532       0.17% 
----------------  ----------------  -------------  ------------  ------------- 
Rodney Westhead   171,109           65,000         236,109       0.17% 
----------------  ----------------  -------------  ------------  ------------- 
Ulrich Wohr       166,109           68,750         234,859       0.17% 
----------------  ----------------  -------------  ------------  ------------- 
Karl-Viktor 
 Schaller         24,631            16,250         40,881        0.03% 
----------------  ----------------  -------------  ------------  ------------- 
Bernard Lord      246,897           200,000        446,897       0.33% 
----------------  ----------------  -------------  ------------  -------------

Commenting on the placing, John Pettitt, CEO of Clean Air Power, said:

"We are delighted to have had such a successful fund raising strongly supported by new and existing shareholders. The response to this placing underlines the continued support and belief that the company and its shareholders have in the long term fundamentals of our business."

For further information please contact:

 
 Clean Air Power                        Tel: +44 (0)1772 624 499 
  John Pettitt, Chief Executive 
  Peter Rowse, Group Finance Director 
 Buchanan                               Tel: +44 (0)20 7466 5000 
  Charles Ryland 
  Ben Romney 
 
  Seymour Pierce                         Tel: +44 (0)20 7107 8000 
  Freddy Crossley/ 
  Mark Percy 
  David Banks (Corporate Broking)

Notes to Editors

About Clean Air Power

Clean Air Power is the developer and provider of Dual-Fuel(TM) combustion technology for heavy duty diesel engines. Dual-Fuel(TM) engines substantially cut fuel costs and carbon emissions without sacrificing the original engine's characteristic efficiency or reliability. Clean Air Power is well positioned to assist corporations and governments to deliver on their environmental commitments while at the same time reducing transport operators' overheads.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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