14 May 2009 07:00
| For Immediate Release | 14 May 2009 |
Clean Air Power Ltd
("Clean Air Power" or "the Company")
Placing
Clean Air Power Limited (AIM: CAP), the developer of Dual-FuelTM combustion technology that enables heavy-duty diesel engines to run on a combination of both diesel and natural gas, is pleased to announce that it has placed firm 10,883,706 new Common Shares ("Placing Shares") at 21.85 pence per share with institutional investors, including Endeavor Capital Management LLC ("Endeavor") (together the "Placing"), raising approximately £2.38 million before expenses. Application has been made for admission to trading of 10,883,706 Common Shares on the AIM market of the London Stock Exchange and admission is expected to occur today, 14 May 2009.
Following admission of the Placing Shares, Clean Air Power will have 55,217,616 Common Shares of US$0.001 each in issue, of which Endeavor Capital Management LLC ("Endeavor") will hold 19,603,700 Common Shares representing 35.5% of the enlarged issued share capital in the Company.
In addition,in accordance with the terms of the Placing, 5,441,853 warrants have been issued to the institutional investors and Endeavor. Following this Endeavour will hold 7,400,833 warrants to subscribe for Common Shares. In total the Company has 14,171,210 warrants outstanding, representing 19.2% of the total fully diluted share capital of the Company.
This placing completes the obligations of Endeavor under the terms of the financing package agreed with it, as first announced on 13 March 2008.
The proceeds of the placing will be used to further advance in-house product development, provide working capital to support existing operations and to provide resources for our manufacturer cooperation activity.
John Pettitt, CEO of Clean Air Power, commented: "I am very pleased to have concluded this financing package, ahead of schedule, under the present difficult market conditions. We believe this further endorses our belief in the exciting future prospects of the company"
For further information please contact:
Clean Air Power +44 (0)1494 527110
John Pettitt, Chief Executive
Peter Rowse, Finance Director
Buchanan Communications +44 (0)20 7466 5000
Charles Ryland
Ben Willey
Ben Romney
Canaccord Adams Ltd +44 (0)20 7050 6500
Robert Finlay
Guy Blakeney
Notes to Editors
About Clean Air Power
Clean Air Power is the developer and provider of Dual-Fuel™ combustion technology for heavy duty diesel engines. Dual-Fuel™ 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 £40m has been invested in developing the technology with the result that 63 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