Clean Air Power Limited Successful Placing to raise £3.35 million (3862N)

TIDMCAP

RNS Number : 3862N

Clean Air Power Limited

28 September 2012

 
 For Immediate Release   28 September 2012

Clean Air Power Ltd

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

Successful Placing to raise GBP3.35 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, 41,963,850 new common shares of US$0.001 each ("Common Shares") at a placing price of 8 pence each with institutional and other investors to raise approximately GBP3.35 million before expenses (the "Placing").

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 development programme to launch the Genesis EDGE system in the North American market with initial production targeted for early 2014.

Details of the Placing

The Company has raised approximately GBP3.35 million before expenses, by way of a placing of 41,963,850 new Common Shares.

The placing shares will represent approximately 23.7 per cent. of the share capital of the Company as enlarged by the Placing.

Applications have been made to the London Stock Exchange for the admission of 41,963,850 Common Shares which are expected to be admitted to trading on AIM in two tranches; 32,563,850 new Common Shares on 2 October 2012 and a further 9,400,000 new Common Shares on 3 October 2012. Following these admissions the Company will have a total of 177,053,469 Common Shares in issue.

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 of 
                                          Shares          following Placing    Enlarged Issued 
                                                                               Share Capital 
----------------  ------------------  ----------------  -------------------  ----------------- 
John Pettitt        1,876,567          500,000           2,376,567            1.34% 
----------------  ------------------  ----------------  -------------------  ----------------- 
Peter Rowse         255,158            43,750            298,908              0.17% 
----------------  ------------------  ----------------  -------------------  ----------------- 
Rodney Westhead     286,109            62,500            348,609              0.20% 
----------------  ------------------  ----------------  -------------------  ----------------- 
Ulrich Wohr         304,859            62,500            367,359              0.21% 
----------------  ------------------  ----------------  -------------------  ----------------- 
Karl-Viktor 
 Schaller           49,631             18,750            68,381               0.04% 
----------------  ------------------  ----------------  -------------------  ----------------- 
Bernard Lord        446,897            125,000           571,897              0.32% 
----------------  ------------------  ----------------  -------------------  -----------------

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

"We are delighted to have had such strong support both from new and existing shareholders enabling us to achieve such a successful fund raising. The response to this placing underlines the continued support and belief that the Company and its shareholders have in the long term objectives and potential of the 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 / Clare Akhurst 
 
  Seymour Pierce Limited 
  Mark Percy / David Foreman (Corporate    Tel: +44 (0)20 7107 8000 
  Finance) 
  David Banks / Paul Jewell (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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