LONDON (Alliance News) - Clean Air Power Ltd Thursday said it has sold its subsidiaries to Hardstaff Dual Fuel Technology Ltd, a subsidiary of Vayon Holdings Ltd, for GBP250,000 plus the company's net cash at completion.
The developer of compression-ignited natural gas systems and software for heavy duty vehicles said that the selling price will be subject to a US lease renegotiation and transaction fees "such that the return to shareholders is expected to be minimal".
Clean Air intends to cancel its admission to trading on AIM "as soon as reasonably practicable".
"As noted in previous trading updates, the fall in oil prices globally has had a drastic impact on sales in the US and Russia. This significant challenge to the business was compounded by our customer on the South East Asian programme deciding in June this year to extend testing rather than to proceed directly to the full production programme as anticipated. These circumstances created significant pressure on the group's cash flows," Chairman Rodney Westhead said in a statement.
"The board, supported by KPMG, has conducted an exhaustive strategic review, exploring a range of refinancing and restructuring options to maximise the value of the group, but the response from potential investors and buyers was disappointing. The group could not continue without financial support and, therefore, the board is satisfied that this was the best course of action," he added.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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