CAP.L Regulatory News (CAP)

28 Feb 2006 08:00

Clean Air Power Limited28 February 2006 For Immediate Release 28 February 2006 Clean Air Power Limited ("Clean Air Power" or the "Company") ADMISSION TO AIM Placing of 10,000,000 common shares at 100 pence per common share Clean Air Power (AIM:CAP), the company behind Dual-FuelTM technology, is pleasedto announce its successful flotation on AIM today, in conjunction with a placingof 10,000,000 common shares at 100p pence per common share, raising £10.0m(gross). Clean Air Power will have a market capitalisation of approximately£26.3 million at the placing price on admission. Placing statistics: Placing Price 100pNumber of Common Shares in issue prior to the Placing 16,318,479Number of Placing Shares being placed on behalf of the Company 10,000,000Number of Common Shares in issue following Admission 26,318,479Gross proceeds of the Placing receivable by the Company £10,000,000Market capitalisation of the Company at the Placing Price on Admission £26,318,479Percentage of enlarged issued share capital subject to the Placing 38% Clean Air Power provides Dual-FuelTM technology that enables heavy-duty dieselengines to operate on a combination of diesel and natural gas withoutjeopardising diesel engine performance. The current and forecast costdifferential between diesel and natural gas provides significant fuel costsavings to operators and there is further benefit in the emissions reductionassociated with natural gas vehicles. Management, significantly enhanced in 2005 and early 2006 with the addition ofJohn Pettitt as CEO, Steve Whelan as Technology Director and Peter Rowse asFinancial Director, have strong commercial and technical expertise including 25years' collective experience in diesel engineering and Dual-FuelTM technology.Chairman Rodney Westhead is chairman of Carter & Carter plc and a seniornon-executive director of Mouchelparkman plc and has served as Group ChiefExecutive of Ricardo plc. The proceeds of the placing will be used for product development, testfacilities, marketing and for general corporate purposes. Canaccord Adams Limited is acting as Nominated Adviser and Broker to Clean AirPower. John Pettitt, Chief Executive Officer, commenting on Clean Air Power's admissionto AIM, said: "Our unique technology offers operators an opportunity to realise highlysignificant cost savings. The prospects for developing our presence in UK,Australian and US markets are exciting and we look forward to deliveringreductions in both costs and emissions to customers." For further details Clean Air PowerJohn Pettitt, Chief Executive Tel: +44 (0) 1772 624499Peter Rowse, Finance Director Buchanan CommunicationsCharles Ryland/Ben Willey/Elly Williamson Tel: +44 (0)20 7466 5000 Canaccord AdamsRobert Finlay/Erin Needra Tel: +44 (0)20 7518 2777 NOTES TO EDITORS • Fuel costs, which are approximately one third of operating costs for a heavy-duty truck, constitute the only significant variable cost element to the operator, and savings are compounded by the distances that long-haul heavy-duty trucks cover annually. Further savings can also be realised through using tax credits and other governmental incentives. • A typical user in the UK may realise cost savings of as much as £11,000 per truck per annum. • Around 590,000 heavy-duty diesel trucks are sold each year in the world. The total global diesel engine market is worth $40 billion and diesel engines form the backbone of most economies: both the UK and the US move 80 per cent or more of all freight by heavy-duty diesel engine powered transport. • The Company plans to increase its market penetration in the UK, Australia and the US. Its goal is to become a major global provider of combined diesel and natural gas technology solutions to truck hauliers worldwide by offering operators a generic retrofit Dual-FuelTM solution, known as "Genesis" while developing partnerships with leading engine OEMs. • Dual-FuelTM technology enjoys considerable competitive advantages, including: - Fuel cost savings that result in a conversion cost payback period as short as 12 months and an average payback period of between one and two years. - Diesel-like performance and efficiency alongside the benefit of emissions reduction associated with natural gas vehicles. - Proven technology, with more than 1,600 trucks fitted with Dual-FuelTM converted engines worldwide. - No need for any major modifications to the existing platform and the ability to switch seamlessly between natural gas and diesel. - Forecast continuation of a significant price differential between diesel and natural gas over the next 25 years. - Proprietary technology, know-how and strategic relationships across all business lines. • In addition to combined diesel and natural gas fuel systems for heavy-duty vehicles, the Company focuses on two further product lines: a profitable natural gas engine components business and an emissions reduction technology business focused on reducing the emissions of heavy diesel engines used in power generation and pumping. "The release, publication or distribution of this announcement in certainjurisdictions may be restricted by law and therefore persons in suchjurisdictions into which this announcement is released, published or distributedshould inform themselves about and observe such restrictions. The content of this announcement has been prepared by and is the soleresponsibility of the Company. This press release has been approved by Canaccord Adams Limited solely for thepurposes of section 21 of the Financial Services & Markets Act 2000. Canaccord Adams Limited is acting as nominated adviser and broker to the Companyand will not regard any person other than the Company as its customer or beresponsible to anyone other than the Company for providing the protectionsafforded to customers of Canaccord or advice in relation to the proposedAdmission. No offer, invitation or inducement to acquire shares or other securities in theCompany is being made by or in connection with this announcement. Any offer,invitation or inducement to acquire shares in the Company will be made solely bymeans of the admission document published on 22 February 2006, as updated by anysupplementary admission document, and any decision to keep, buy or sell sharesin the Company should be made solely on the basis of the information containedin such document(s). Certain statements made in this announcement are forward looking statements.Such statements are based on current expectations and are subject to a number ofrisks and uncertainties that could cause actual results and performance todiffer materially from any expected further results or performances, express orimplied, by the forward looking statements. Factors that might cause forwardlooking statements to differ materially from actual results include, among otherthings, regulatory and economic factors. The Company assumes no responsibilityto update any of the forward looking statement contained herein. Further, anyindication in this announcement of the price at which common shares have beenbought or sold in the past cannot be relied upon as a guide to futureperformance. This announcement is not for distribution or transmission, directly orindirectly, in or into the United States, Canada, Australia, Japan, New Zealandor the Republic of South Africa and does not constitute, or form part of, anoffer to sell or the solicitation of an offer to subscribe for or buy and anysecurities ("Securities"), nor the solicitation of any vote or approval in anyjurisdiction, nor shall there be any sale, issue or transfer of the Securitiesreferred to in this announcement in any jurisdiction in contravention ofapplicable law. The Securities have not been and will not be registered under the US SecuritiesAct of 1933, as amended (the "Securities Act") and may not be offered or sold inthe United States unless registered under the Securities Act or an exemptionfrom such registration is available. No public offering of Securities of theCompany is being made in the United States." This information is provided by RNS The company news service from the London Stock Exchange