6 Apr 2011 07:00
6 April 2011
Leaf Clean Energy ("Leaf" or the "Company")
Investment Update - MaxWest Environmental Systems ("MaxWest")
Leaf is pleased to announce that one of its portfolio companies, MaxWest, has completed a $32.5 million equity funding round through a private placing of preferred stock with certain funds managed by Invesco Asset Management Limited ("Invesco"). As part of the transaction, these funds will also invest US$900,000 to acquire 1.8 million common shares in MaxWest from Leaf.
MaxWest is a renewable energy company that owns, operates and develops technology to convert wastewater treatment residuals ("biosolids") into green energy, creating long-term, sustainable disposal solutions for municipal and commercial wastewater treatment facilities. MaxWest is in development phase and reported an unaudited loss of US$6.2m for the year ending 2010.
MaxWest's first, commercial-scale facility is operating in Sanford, Florida and offers a cost-effective and more environmentally friendly alternative to incineration, landfill or land application of biosolids. This proven technology captures the energy contained in biosolids and recycles it for use on-site, while reducing the waste volume by over 90%. MaxWest's system can decrease operating costs and minimize or eliminate traditional greenhouse gas emissions sources, while converting sewage sludge into a sustainable, thermal energy to displace fossil fuels.
The funds will be used to construct new commercial plants using MaxWest's wastewater treatment technology and to repay a $4m bridge loan due to Leaf from Maxwest.
Bran Keogh, Leaf's Executive Director, commented:
"Leaf is extremely pleased that through this investment MaxWest will be able to accelerate its commercial deployment. MaxWest has a robust pipeline in a substantial worldwide market that needs sustainable, cost-effective solutions."
Leaf provided an initial investment in MaxWest in 2008 and has since made follow-on investments. During this time, Leaf has supported MaxWest's development, providing strategic guidance during the evolution of the technology and the team.
About Invesco
Invesco is a wholly owned subsidiary of Invesco Ltd., one of the world's largest independent investment management groups. Invesco is an asset management company which is authorised and regulated by the Financial Services Authority. Its clients include investment companies with variable capital, investment trusts, unit trusts as well as institutional clients. It manages its clients' assets pursuant to investment management agreements with individual clients. Invesco is at all times acting as agent for and on behalf of discretionary managed clients. As at October 2010, Invesco had over £60 billion worth of assets under management.
Related Party Transaction
Invesco is a substantial shareholder of Leaf and the investment by the certain funds managed by Invesco in MaxWest represents a related party transaction under the AIM Rules for Companies. The Directors of Leaf consider, having consulted with Cenkos Securities plc, its nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.
Cenkos Securities plc, which is authorised and regulated by the Financial Services Authority, is acting for MaxWest and for no-one else in connection with the transaction and will not be responsible to anyone other than MaxWest for providing the protections afforded to customers of Cenkos Securities plc.
Enquiries:
Leaf Clean Energy
Bran Keogh, Executive Director +1 202 289 7881
Cenkos Securities plc
Ivonne Cantú/Liz Bowman +44 20 7397 8980