Investment in Inspirit Energy

RNS Number : 9806Y

Kleenair Systems International PLC

06 January 2011

 



KLEENAIR SYSTEMS INTERNATIONAL PLC

(AIM: KSI)

KleenAir increases stake in Inspirit Energy to 18.7 per cent.

KleenAir Systems International Plc ("KleenAir" or "the Company") announces that it has made a further investment of £440,000 to acquire 1,263,333 shares in Inspirit Energy Limited ("Inspirit") ("the Investment").  Following the Investment, KleenAir holds 2,596,666 shares in Inspirit representing approximately 18.7 per cent. of the total shares in issue (previous holding - 10.55 per cent.).

Inspirit is an alternative energy company with exclusive rights over micro combined heat and power (mCHP) technology. Inspirit is committed to the development, manufacture and distribution of a small scale combined heat and power appliance for use in the SME market which it believes will complement as well as compete with existing boiler technology.

Since the first investment made in August 2010, Inspirit has made the following progress:

-     In October, Inspirit commenced the process to achieve European Gas Appliance Directive approval (widely referred to as 'GAD approval') for its energy efficient mCHP unit.  Satisfactory completion of this process will allow Inspirit Energy to supply its efficient, and environmentally-beneficial combined heat, power and hot water systems to the European market, for installation on Natural Gas in the UK or Ireland for a commercial return; and

-     Inspirit has begun to experience commercial success and has reached the early stages of taking orders for units. Inspirit continues to expect manufacturing to start in Q3 2011 and is currently finalising agreements with manufacturing and service partners. We expect to provide a substantive update before the end of Q1 2011.

Inspirit was incorporated on 17 December 2010 and prepared its first financial statements up to 30 June 2010.  These financial statements showed a loss before taxation of £19,135 and gross assets of £85,122.

John Gunn, substantial shareholder of KleenAir, is the beneficial owner and a director of Inspirit.  In addition, Sarah Pozner, executive director of KleenAir, is a director of Inspirit.  Therefore, the Investment is classified under the AIM Rules as a related party transaction.  The independent director of KleenAir, that is the Directors excluding Sarah Pozner, having consulted with its nominated adviser, WH Ireland Limited, consider that the terms of this transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Alan Dale, Director of Inspirit Energy, said:

"I am delighted with this further investment by KleenAir Systems International plc into Inspirit Energy and believe it reflects the excellent progress that Inspirit has made as well as the positive outlook for the commercial boiler market and our mCHP technology. 2010 has been a highly successful year for us - our commercialization program is on track, we have started the GAD approval process and we are on target to begin production in Autumn 2011." 

Guy Saxton, Director of KleenAir Systems International plc, said:

"We welcomed the opportunity to make an additional investment into Inspirit and look forward to continuing to offer our support to drive the business forward during this exciting period."

Contacts:
KleenAir Systems International plc	www.KleenAir-systems.com
Sarah Pozner, Executive Director	[phone]
Square1 Consulting
David Bick / Mark Longson	[phone]
WH Ireland Limited	www.wh-ireland.co.uk
JN Wakefield / Marc Davies	[phone]
Global Investment Strategy UK Limited
John Gunn	[phone]

About KleenAir:

KleenAir is an investing company which aims to invest in disruptive products or technologies that are either proven or at the latter stages of development, which own or have exclusive license to the relevant intellectual property (IP) and may benefit from feed in tariffs or other renewable energy incentives.

KleenAir's investment focus is on the UK, with potential for investment further afield.

About Inspirit:

Inspirit is a UK based company, and as well as benefiting from an experienced in house engineering team, the Company has partnerships with specialist engineering, design and production companies, both in the UK and Norway.

Based upon a kinematic Stirling engine design, Inspirit's current appliance is capable of simultaneous generation of 15kW thermal and 3kW electrical output. The appliance will make a significant impact in the area of microgeneration through the reduction of carbon emissions and improvement in overall efficiencies in local and national generation and distribution of power. The appliance is powered by gas and is designed to produce hot water, central heating and electrical output simultaneously. Commercial use of the appliance will assist businesses with reducing their carbon footprint and increasing their energy efficiency, as well as having a positive financial impact via government incentives and reliefs.

 

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