Clean Air Power Limited Successful Placing to raise £5 million (3367M)
August 23 2013 - 2:00AM
UK Regulatory
TIDMCAP
RNS Number : 3367M
Clean Air Power Limited
23 August 2013
23 August 2013
Clean Air Power Limited
("Clean Air Power" or the "Group")
Successful Placing to raise GBP5 million
Clean Air Power (AIM: CAP), the developer and global leader in
Dual-Fuel engine management software for heavy duty vehicles, is
pleased to announce the placing of 51,948,000 new Common Shares at
a placing price of 9.625 pence per share to raise approximately
GBP5 million before expenses (the "Placing").
The Company is particularly pleased that two new strategic
investors took part in the Placing; Ervington Investments Ltd
("Ervington"), whose ultimate beneficial owner is Roman Abramovich,
and Ms Zara Shvidler. Together, these two investors committed to
subscribe, if necessary, for the entire Placing which contributed
significantly to the successful fundraising. As a result of
significant institutional interest, the subscriptions of each of
Ervington and Ms Shvidler were scaled back and they will each have
an interest in approximately 1.5 per cent. of the enlarged share
capital of the Company.
The net proceeds of the Placing will be used to strengthen the
Group's balance sheet ahead of future partnerships, to supplement
working capital and to support marketing and sales activities in
Russia and the US. Russia is an increasingly important market for
Clean Air Power with demand for natural gas vehicles expected to
grow significantly as major Russian gas companies plan to invest
heavily in expanding the gas refueling network.
In the US, Clean Air Power recently announced an agreement with
an international parcel delivery company to install and trial 10 of
its trucks with the Group's US version of its Dual-Fuel system.
Commercial production of a US Genesis-EDGE product is expected to
start in early 2014.
The Directors were not able to participate in the Placing as the
Company is in a close period until the publication of its half
yearly statements.
Details of the Placing
The Company has raised approximately GBP5 million before
expenses, by way of a placing of 51,948,000 new Common Shares at
9.625 pence per share. The Placing shares will represent
approximately 22.7 per cent. of the enlarged share capital of the
Company.
The Placing price of 9.625 pence per share was the closing share
price on 21 August 2013 and represents a premium of 10.1 per cent.
over the average share price over the last 30 business days.
Application has been made to the London Stock Exchange for the
admission of 51,948,000 Common Shares which are expected to be
admitted to trading on AIM on 28 August 2013 ("Admission").
Following Admission, the Company will have a total of 229,001,469
Common Shares in issue.
Pursuant to their engagement terms, Peat & Co has been
granted 944,510 warrants to subscribe for Common Shares at no
consideration, exercisable once the Company's share price exceeds
12 pence.
John Pettitt, Chief Executive of Clean Air Power said:
"We are delighted to have completed a successful fundraising
with strong support from existing and new shareholders. The
investment by Ervington Investments and Ms Shvidler confirms the
huge potential of our Dual-Fuel(TM) technology and firmly endorses
our strategy to develop markets in Europe, US and Russia. The trend
towards the adoption of natural gas vehicles around the world is
growing, driven by cost savings, reductions in emissions and
increasing investment in new refuelling stations by major gas
supply companies. With the support of our existing and new
investors we are well placed to execute our commercial strategy
across our target markets and deliver value to our
shareholders."
For further information, please contact:
Clean Air Power Tel: +44 (0)1772 624 499
John Pettitt, Chief Executive
Peter Rowse, Finance Director
Citigate Dewe Rogerson Tel: +44 (0)20 7282 2867
Malcolm Robertson
Chris Gardner
Cantor Fitzgerald Europe Tel: +44 (0)20 7894 7000
David Foreman / Mark Percy (Corporate
Finance) Tel: +44 (0)20 7894 7632
David Banks / Paul Jewell (Corporate
Broking)
Tel: +44 (0)20 3540 1721
Peat & Co
Charlie Peat
Andy Cuthill
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.
Initially founded in the USA in 1991, around GBP50m has been
invested in developing the technology with the result that 65
patents are currently held or pending. The holding company of the
Group is based in Bermuda with operational subsidiaries in the UK,
the USA and Australia. The Group was admitted to the AIM market of
the London Stock Exchange in February 2006.
Further information on Clean Air Power is available at
www.cleanairpower.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCDMGZRNZLGFZM
Clean Air (LSE:CAP)
Historical Stock Chart
From Sep 2024 to Oct 2024
Clean Air (LSE:CAP)
Historical Stock Chart
From Oct 2023 to Oct 2024