TIDMWAS
RNS Number : 7571L
Wasabi Energy Limited
15 August 2013
15 August 2013
Wasabi Energy Limited
("Wasabi," "the Group" or "the Company")
UPDATE ON WASABI NEW ENERGY ASIA AND ISSUE OF SHARES
The Directors of Wasabi Energy Limited (ASX: WAS, AIM: WAS,
OTCQX: WSBLY), advise that the next instalment of RMB18 million
(US$2.85m) has been paid by its subsidiary, Wasabi New Energy Asia
(WNEA), for the purchase of Shanghai Shenghe New Energy Resources
Science and Technology Limited (SSNE).
As previously announced in November 2012, Wasabi, through its
subsidiary, Wasabi New Energy Asia Limited, agreed to purchase
50.5% of SSNE for approximately US$30 million. To date US$22
million has been paid (US$8.2 million in cash, and WNEA has issued
30 million shares at US50c each). The balance of RMB53 million
(US$8.30m) is due before 30 November 2013. WNEA has appointed an
international brokerage house in Hong Kong to complete a pre-IPO
fundraising within this timeframe. It is planned to list WNEA on
the Singapore stock exchange in the first half of 2014.
Wasabi granted an option for the vendors to take 31.25% of their
WNEA share consideration in Wasabi shares at A1.8c per share (WNEA
Option). The vendors have exercised this option and as a result the
vendors have been issued 288,001,844 new Wasabi shares at A1.8c per
share.
Following the exercise of the WNEA Option, Wasabi owns 40
million shares (66.67%) in the issued share capital in WNEA. In
addition, Wasabi has provided loan funds of $5.6m to WNEA in order
to facilitate a proportion of the above payments. This loan will be
converted into additional shares in WNEA at the time of the IPO at
US50c per share.
Wasabi New Energy Asia is being established to address the
energy efficiency and renewable power needs of the Asian market.
SSNE has been operating within the market in China since 2007 and
has already completed a number of projects including the successful
powering of the Shanghai Corporate Pavilion at the World EXPO held
in Shanghai in 2010 with a Kalina Cycle(R) power plant using a
solar thermal array as the heat source.
Comments from the Chairman, John Byrne:
"Wasabi is establishing WNEA as a significant power producer in
the Asian region utilising its unique ownership of the Kalina
Cycle(R) and Enhanced Rankine cycle technologies.
The establishment of WNEA is progressing the Wasabi plan of
regional subsidiaries to expand into key global regions. WNEA is in
the process of a pre-IPO funding round and our plan is to list WNEA
on the Singapore market during 2014. Wasabi Energy intends to hold
a significant shareholding in WNEA which will raise its own capital
with the value of WNEA being reflected back into the Wasabi Energy
balance sheet.
The Asian markets, and in particular China offer an enormous
opportunity for the Kalina Cycle(R) . We are in advanced
discussions with a number of significant leading industrial
companies on the application of the Kalina Cycle(R) to their
operations."
Wasabi New Energy Asia
WNEA has been established as a regional subsidiary and covers
the Asian region. In addition to owning 50.5% of SSNE, WNEA also
own the revenue stream from the SSNE Kalina Cycle(R) license which
covers China, Taiwan, Hong Kong and Macau. It also has a Kalina
Cycle(R) license for the rest of Asia, namely Japan, South Korea,
Indonesia, Philippines, Thailand, Vietnam, Malaysia, Singapore,
Myanmar, Cambodia, Laos, Brunei, North Korea and Mongolia.
Under the current 12(th) Five Year Plan the Chinese Government
is mandating energy efficiency across a range of industries and
renewable power. The transformational phase in China presents a
unique opportunity for SSNE to pursue opportunities for power
generation within China and Taiwan and to use this base and
engineering capability to launch into other parts of Asia.
SSNE is in the final stages of commissioning of a 7.5 MWe
Enhanced Rankine power plant at China Building Materials Group's
Guizhou cement plant. The Enhanced Rankine process offers
significant percentage gains over the traditional Rankine steam
cycles. In addition the 4 MWe Kalina Cycle(R) power plant at the
Sinopec Hainan Petrochemical Facility is under construction with
the civil works completed. SSNE is in advanced stages of
discussions for a number of projects, including Chinese authorities
on the development of an oilfield in China that has potential for
geothermal power using the hot water within the field. The
estimated power from this heat source is in excess of 1000MWe using
Kalina Cycle(R) technology.
WNEA, through Recurrent Engineering, expects to be awarded
shortly an engineering contract by the Geothermal Energy Research
& Development organisation (GERD) as a follow up to the EcoGen
Kalina Cycle(R) unit that is installed at the Matsunoyama onsen in
Japan. This plant was installed in December 2011 and has undergone
significant testing to refine the design for the micro power
geothermal market.
The Ecogen Kalina Cycle(R) 50 kWe power plant has been
specifically designed for use on hot springs. The geothermal power
potential in the hot spring market within Asia is vast with over
27,000 occurrences in Japan alone. The enhanced thermodynamics of
the Kalina Cycle(R) presents an opportunity for the establishment
of micro power Ecogen Kalina Cycle(R) plants in Asia. Based on
estimates by GERD and Wasabi Energy the existing Japanese hot
spring market could potentially sustain approximately 718 MW of
power generation potential which represents more than 14,000 EcoGen
Kalina Cycle(R) units.
Japan will be a key focus area for WNEA given the high feed in
tariffs that are in excess of US$0.50 per Kilowatt hour for
geothermal power generation.
Following admission of the above shares, expected to be on 21
August 2013, the Company will have 3,718,173,710 Ordinary Shares of
no par value in issue. The figure of 3,718,173,710 may be used by
shareholders in the Company as the denominator for the calculations
by which they will determine if they are required to notify their
interest in, or a change in their interest in, the share capital of
the Company under the FCA's Disclosure and Transparency Rules.
For further information, please contact:
Australian Enquiries
Mr. John Byrne / Diane Bettess
Wasabi Energy Limited
Ph: +61 (0)3 9663 7132
U.K. Investor Enquiries
Ivonne Cantu / Neil McDonald
Cenkos Securities plc
Ph: +44 (0)207 397 8900 / +44 (0) 131 220 9778
U.K. Media Enquiries
Mr. Josh Royston / Ms. Hilary Millar
Newgate Threadneedle
Ph: +44 (0) 207 653 9850
This information is provided by RNS
The company news service from the London Stock Exchange
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