Wasabi Energy closing on acquisition of SSNE in China
Wasabi Energy announces payment on Chinese acquisition on behalf of Wasabi New Energy Asia (WNEA) and planned listing of WNEA on the TSX and subsequently on an Asian stock exchange.
Wasabi Energy Limited (ASX:WAS, AIM: WAS), “announces that it has paid approximately US$5.6 million, on behalf of Wasabi New Energy Asia (WNEA) for the first payment to purchase 50.5% of Shanghai Shenghe New Energy Resources Science & Technology Co Ltd (SSNE), the Kalina Cycle® licensee for China, Macau, Taiwan and Hong Kong. This payment was partly settled by the issue of 39,767,756 Wasabi shares at 1.8c per share.
As announced on 13 November 2012, WNEA is being established to advance the use of the Kalina Cycle® and SSNE’s patented Enhanced Rankine Cycle power technology throughout the Asian region. Following the establishment of WNEA, Wasabi will hold over 50% of WNEA and will have the right to appoint a majority of the Board.
On 13 November 2012, Wasabi announced that it intended to list WNEA on the TSX and that it had identified a suitable listed vehicle to do so. Wasabi has now entered into a Letter of Intent with Lions Bay Capital Inc, a company listed on the TSX-V for it to become WNEA. The regulatory process for this transformation is currently being undertaken and is expected to be completed in Q1 of 2013. Wasabi also intends to list WNEA subsequently on an Asian stock exchange.
John Byrne, Executive Chairman of Wasabi commented on the progress of WNEA: “Wasabi Energy is entering into a new phase of its evolution as a leading power producer utilising our proprietary Kalina Cycle® technology with the establishment of Wasabi New Energy Asia (WNEA). The Asian market offers significant opportunities especially within China. WNEA commences operations with a strong, capable proven management team at SSNE and will be enhanced by an experienced management team in Asia.
For the shareholders of Wasabi Energy, WNEA offers an opportunity for leveraging our proprietary Kalina Cycle® technology into an Asian based company that will be separately listed on the TSX-V and subsequently on an Asian stock exchange. By having a separate listing WNEA will be responsible for its own fund raisings and not be dilutive to Wasabi Energy. The value created within WNEA should be reflected back into Wasabi Energy.
We are very excited by the commencement of WNEA and look forward to its growth as a power company within Asia.”
Source: Company release (pdf)