27 May 2008
Investment Update Sale of Low Carbon Accelerator's stake in Heliodynamics Limited. Low Carbon Accelerator ("LCA" or "the Company") has acquired new shares in EnergyMixx AG ("EnergyMixx") with a value of up to £2.93 million in exchange for LCA's entire holding in HelioDynamics Limited ("Heliodynamics"). EnergyMixx is a Swiss renewable energy company which is listed on the Open Market of the Frankfurt Stock Exchange under the ticker EM2.
LCA has received an initial tranche of shares in EnergyMixx valued at £1.1 million. The Heliodynamics shareholding was held by LCA at a carrying value of £825,000 and accordingly the initial consideration represents an uplift in NAV.
EnergyMixx has also agreed to issue further tranches of shares to LCA:
valued at £0.96 million, conditional upon Heliodynamics meeting certain milestones, including receiving BSI certification for its technology, anticipated later this year; and
valued at up to £0.87m against the achievement of set milestones in the period to April 2009.
The initial and subsequent tranches of EnergyMixx shares received by LCA are subject to a lock-in period until the end of 2008.
EnergyMixx, which has acquired a portfolio of concessions to build over 550MW of renewable energy, sees itself as one of the main customers for HelioDynamics' solar photovoltaic system. On completion of the transaction, it will take on responsibility for developing these products through to market in large scale.
Due to the related EnergyMixx's industrialization plan, Heliodynamic's solar photovoltaic combined heat and power system will benefit from a strong reduction in cost per MW putting the system amongst the most competitive solar power solutions in the market. The system is easy to assemble, modular and scaleable, thus particularly suitable for both large power plants and stand alone solutions for private and commercial applications. HelioDynamics systems are targeted at providing zero-carbon power and climate control systems for buildings.
Steve Mahon, Chief Investment Officer of Low Carbon Investors, LCA's investment manager, said: "With this deal we have secured a strategic partner for Heliodynamics, while retaining a stake in what we think is a very bright future for its solar technology. Small companies like this need not just financial backing but technical, development, and production expertise. By partnering with an experienced and diversified developer, we are reducing the risk for LCA and accelerating the development for Heliodynamics."
Artur Dela, Chairman of EnergyMixx said: "In acquiring a stake in Heliodynamics we will be adding an innovative technology to our portfolio. This will boost our intergrated business model and create long-term value. We also welcome Low Carbon Accelerator, an experienced renewable energy investor, as a shareholder in EnergyMixx."