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Wasabi Energy raises $4.8m in UK placement for Kalina work

Wasabi Energy raises $4.8m in UK placement for Kalina work Kalina geothermal power plant, Húsavík, Iceland (source: flickr/ ThinkGeoEnergy, creative commons)
Alexander Richter 12 Feb 2011

Australian Wasabi Energy, listed on the Australian ASX and the AIM market in London, announces the successful placement of shares worth US$4.8m intended to be used for the commercialization of the Kalina cycle technology.

In a release by the company, Australian Wasabi Energy (ASX: WAS, AIM: WAS) announces  “that it has raised $4,807,0001 (£3,024,000) before expenses through a strategic placing of 112,000,000 new ordinary shares in the Company to institutional investors in the U.K. at a price of 2.7p ($0.04291) per share (the “Placing”). The Placing price represents the closing price of the Company’s shares traded on AIM on 2nd February 2011, being the last trading day before dispatch of placing letters to the institutions who participated in the Placing.

The funds raised through the Placing are primarily intended to provide the Company with additional financial resources to continue the rapid commercialisation of the Kalina Cycle®2. The Company continues to make significant commercial progress with the Kalina Cycle® technology, as well as having recently moved to a 100% ownership position in Global Geothermal Limited, the company that owns the rights to the technology’s intellectual property. On the 10th of January this year, Wasabi announced the acquisition of its first power plant – the Husavik Kalina Cycle® geothermal power plant (figure 1), representing a key milestone in the establishment of the Company’s power generation portfolio.

The Directors believe the additional funds raised through the Placing will provide the Company with increased flexibility when evaluating Wasabi’s participation in Kalina Cycle® projects and/or development opportunities. In addition, the Placing satisfies increased demand from institutional investors.

The Company’s share price has performed strongly since listing on AIM in early December 2010 and the board believes that the listing has been successful in enhancing the profile of the Company and its technologies as well as providing the Company with exciting opportunities, particularly in relation to its development as an Independent Power Producer (IPP).

The Company has made the Placing in accordance with Rule 7.1 of the ASX listing rules that allows the Company to issue up to 15% of its issued capital without shareholder approval.

An application has been made to the London Stock Exchange for the new ordinary shares, which will rank pari passu with the existing shares on issue, to be admitted to trading on AIM.

Executive Chairman of Wasabi Energy and Director of Global Geothermal Limited, Mr. John Byrne commented: “We are delighted with the strong institutional support Wasabi has received in relation to this placement. Our ability to place a significant number of new shares to institutional investor at the same price as the prevailing market price (on AIM), highlights the level of interest in the development of Wasabi.”
“We are reassured by the fact that our institutional shareholders recognise the magnitude and diversity of the opportunities available to Wasabi through our platform of core technologies, most notably, the Kalina Cycle®. The additional funds raised will assist Wasabi to capitalise on a number of these opportunities. ”

Source: Company release (pdf)