1st Aug 2007 07:01
Energetix Group plc01 August 2007 For Immediate Release 1 August 2007 Energetix Group plc ("Energetix" or the "Company" or the "Group") Placing to raise £12 million First Commercial micro CHP Agreements Introduction Energetix Group plc, (AIM:EGX), a leading developer of new and sustainablealternative energy products is pleased to announce both a placing of inaggregate 10,000,000 new ordinary shares of 5p each ("Ordinary Shares") at aprice of 120p per share (the "Placing") to raise £12 million (before expenses)together with significant commercial progress in its Genlec subsidiary. Energetix has two main operating subsidiaries, Energetix Genlec Limited("Genlec") and Energetix Pnu Power Limited ("Pnu Power"). Genlec has developed afully operational, wall hung micro CHP (combined heat and power) boiler whichproduces electricity when operating thereby generating reductions in energybills and carbon emissions. Pnu Power has developed a UPS (uninterruptible powersupply) unit based on compressed air. The proceeds of the Placing will be used to help fund additional opportunitiesfor Genlec and Pnu Power and the working capital requirements of the Company tofurther develop its portfolio of energy technologies and progresscommercialisation. BankOra Limited ("BankOra") is broker to the Placing. First Commercial micro CHP Agreements Energetix is delighted to announce that Genlec has entered into letters ofintent with two European boiler manufacturers to further the development of itsmicro CHP boiler system. Daalderop BV ("Daalderop"), a supplier of innovative heating equipment in theNetherlands, and Energetix Genlec Limited have signed a letter of intent to worktogether to launch GenlecTM micro CHP enabled Daalderop boiler appliances to theDutch and Belgium markets in the second half of 2008. Initially Genlec willdeliver its micro CHP units to Daalderop in Holland and then both parties willcollaborate to build test units for Daalderop to run in its test facilities inHolland later this year. The parties see this arrangement as the start of a longterm partnership to grow micro CHP in these countries. This market is considered by the Directors to be especially important as theDutch Government has already stated its intention to have 10,000 micro CHP unitsinstalled by 2009. The Company is also pleased to announce a second letter of intent with anothermajor mainland European boiler company to produce and test Genlec enabledboilers. Confidentiality clauses do not permit the Company to reveal furtherdetails at this point in time. Genlec will be working with both of the above boiler companies with a view tohaving test boilers undergoing field trials by the end of 2007. All boiler unitswill be designed along the same lines as the successful unit recently fieldtrialled by Energetix, in that they will be light weight, wall hung and make useof mass manufactured standard components. Furthermore, the unit will beinstaller friendly as it will easily connect into existing gas and powersupplies. By working with the current boiler companies, Genlec is looking to make use ofexisting manufacturing facilities and supply chain routes, both to themanufacturers and indeed to the end consumer. Reasons for the Placing Since the Company's IPO, the Board has become increasingly aware of the growingopportunities and prospects for both of its main operating subsidiaries, Genlecand Pnu Power. Whilst the Company retains sufficient cash on its balance sheetto meet commitments made at the time of its Admission to AIM, the additionalfunds raised should enable Genlec to engage with more potential partners acrossEurope and for Pnu Power to meet and follow an increasing number of leads fromacross the world. Pnu Power will also be able to look at newly identifiedmarkets for its product outside of uninterruptible power. The strengthened balance sheet will benefit the Company when negotiating withpartners and suppliers and enable the Directors of Energetix to continue toresearch and source applicable technologies focused on the increasinglyimportant sustainable alternative energy sector. Details of the Placing The Company has entered into a placing agreement with BankOra and Zeus CapitalLimited, under which BankOra as sole agent to the Company has agreed to use itsreasonable endeavours to procure placees for 416,667 new Ordinary Shares of 5peach to be issued pursuant to the VCT placing (the "VCT Placing Shares") and9,583,333 new Ordinary Shares of 5p each to be issued pursuant to the GeneralPlacing (the "General Placing Shares") together being the ("Placing Shares") ata price of 120p per share ("Placing Price"). The Placing Price represents adiscount of 10.1 per cent to the official closing market price of 133.5p of anexisting Ordinary Share on 31 July 2007, being the latest practicable date priorto the release of this announcement. Assuming the maximum number of PlacingShares is issued pursuant to the Placing, such shares will represent 18.2 percent of the Company's enlarged issued share capital and following the Placing,the Company will have a total of 55,000,000 Ordinary Shares in issue. The Placing is subject to the terms of the Placing Agreement between BankOraLimited, Zeus Capital Limited and the Company which contains, inter alia,warranties and indemnities in favour of BankOra Limited and Zeus Capital Limitedin relation to the Group. The Placing is conditional and is not beingunderwritten. Settlement and dealings Separate application will be made to the London Stock Exchange for the VCTPlacing Shares and the General Placing Shares to be admitted to trading on AIM("Admission"). It is expected that Admission will occur, and dealings in the VCTPlacing Shares will begin at 8.00am on 6th August 2007 and that Admission willoccur and dealings in the General Placing Shares will begin at 8.00 am on 7thAugust 2007. The Placing Shares will, when issued, rank pari passu in all respects with theexisting Ordinary Shares in issue, including the right to receive any dividendsand other distributions declared following Admission. Comment Commenting on the developments and placing, Adrian Hutchings, Chief ExecutiveOfficer of Energetix said: "The progress of the development of Genlec and Pnu Power from a technical andcommercial perspective is testament to the focus of both the Genlec and PnuPower teams. Since our IPO in August 2006, the Group has met or exceeded itsstated milestones and has both field trialled a Genlec system under domesticconditions and produced market ready products in Pnu Power. The fact that Genlec has now come to a number of material agreements withpartners who have the ability to assist in the commercialisation of this systemis testament to this. We are delighted to be working with these partners andlook forward to developing a highly competitive product which will give majorsavings to the consumer and significant environmental benefits. We look forward to updating the market on the commercial progress of both mainoperating subsidiaries. We are also delighted to announce a further institutional placing - and wewelcome our new shareholders to the Group. These extra funds will help us takeadvantage of both the growing opportunities and prospects for Genlec and PnuPower and to extend our reach in the new energy market. " For further information please contact: Energetix Group plc Adrian Hutchings, Chief Executive Officer 0151 348 2111Richard Smith, Chief Financial Officer 0151 348 2116 BankOra LimitedMichael Brennan 020 7099 1942Henry Turcan 020 7099 1943 Zeus Capital 0161 831 1512Nick CowlesBen Thompson Buchanan Communications 020 7466 5000Ben WilleyBen Romney Notes to Editors: About Energetix Group Energetix floated on the AIM market of the London Stock Exchange in August 2006,raising £5.4m after expenses at a price per share of 40p. Since listing, theGroup has made significant progress in the development of its alternative energytechnologies, which include Genlec, its micro CHP system and Pnu Power, anuninterruptible power supply system based on compressed air. Since IPO, theCompany has also progressed Energetix Voltage Control, a technology whichincreases the energy efficiencies of domestic energy consumers and continues tolook at other technologies in this sector. The Group has recently announced the completion of its GenlecTM field trial,where its micro CHP unit was tested under normal household conditions for anextended period of time. This trial exceeded management expectations withoperational efficiencies reaching 90-95 per cent., in addition to supplying datato the Energetix technical team that will enable further size reductions andoperational improvement to the next generation of the system. The Genlec systemhas the ability to save a household up to £200 per year in utility bills.Energetix is now planning a wider field trial, to be conducted across the winterof 2007-08, which will provide further data to the Group as well as potentialpartners. Energetix has a strong board including individuals experienced in the formationand delivery of new technology businesses, with specific market knowledge andgovernmental influence. A team is in place with over 80 man years of experiencein alternative energy product development. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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