RUSNANO and I2BF Global Ventures Invest in Nesscap Energy Inc.
Seoul, South Korea
RUSNANO and I2BF Global Ventures today announce an investment agreement with Nesscap Energy Inc. (TSX-V:NCE), a global leader in research, development and manufacturing of ultracapacitor products.
Rusnano and I2BF respectively subscribed for $19 million and $1 million worth of Nesscap common shares, respectively. Proceeds from this financing will be used as to approximately $15 million for the establishment of a full scale production facility for ultracapacitors and fundamental research center in the Russian Federation and as to approximately $5 million for the expansion of Nesscap’s current manufacturing and core R&D operations in Korea and for general corporate purposes. Proceeds from this financing will be held in escrow until certain conditions have been fulfilled by Nesscap including, without limitations, the establishment of a wholly-owned subsidiary in the Russian Federation.
Under the terms of the investment agreement, the Managing Director of RUSNANO Mr. Georgy Kolpachev will join Nesscap’s board of directors.
In addition, RUSNANO will also provide an additional $11,5 million loan to Nesscap’s subsidiary in the Russian Federation to be used in connection with the establishment of its production facility. As additional consideration for providing the loan facility and subject to approval by the TSX Venture Exchange, Nesscap has agreed to issue 820,123 bonus common shares to RUSNANO as a warrant for granting this loan.
“Today’s world is clearly demanding new energy storage solutions and Nesscap is one of the few companies that have managed to develop and bring to the global market a truly disruptive technology. Products from the new plant in Russia will be supplied to the growing European and Asian markets for use within the automotive sector and renewable energy markets. We already have supply contracts and joint development agreements with some of the largest industry players. Nesscap’s energy storage solutions address a number of Russia’s strategic needs and are a great fit into RUSNANO’s overall technology strategy,” said Georgy Kolpachev.
The project is aimed towards the growing transportation industry, grid stabilization and renewable energy applications. The new plant in Russia will manufacture a wide range of high capacity ultracapacitor cells and modules based on Nesscap’s proprietary technology. Nesscap’s products have a variety of applications, including power systems for vehicles with hybrid powertrains, compact and scalable energy storage systems and various types of stop-and-go systems for conventional engines, as well as stabilization of line voltage and stand-by power. Ultracapacitors can also be effectively used in conjunction with batteries to operate at peak loads, which allows such combined systems to achieve an increased service life (typically two to three times over standard battery-only systems).
“Partnering with RUSNANO is a natural fit, enabling Nesscap to access the technological depth of Russian science and direct access to market opportunities in the CIS region,” said Dennis Orwig, the newly-appointed Chief Executive Officer of Nesscap Energy, Inc. “We are excited to expand Nesscap’s manufacturing operation and R&D efforts in Korea and getting established in Russia to bring world class technology and products to our customers around the world.”
"Rusnano is a welcome addition to our already strong syndicate of shareholders, which among others include Hyundai-Kia Motors and Singapore Technologies,” added Ilya Golubovich, a member of Nesscap’s Board of Directors and managing partner of I2BF Global Ventures. “Throughout the entire process of putting together this round they have proven themselves as an extremely capable partner and I have every reason to believe that Rusnano will be a powerful force behind the next wave of Nesscap’s success.”
Since its inception in 1999, Nesscap Energy Inc., has become an award winning global leader in technology innovation and product development of ultracapacitors. Attributes of the ultracapacitor allow for the technology to be used in applications where power, life cycle requirements or environmental conditions limit the suitability of batteries or capacitors. Uniquely structured, Nesscap products are used to replace or enhance the performance of energy and power needs for modern applications ranging from portable electronic devices to high-tech ‘green’ cars and are available in both cells and modules. Nesscap features the widest array of standard commercial products in the market from 3 farads to 6,200 farads with industry recognized alternative organic electrolytes. Customers of the Company include transportation, power, and consumer markets.
For more information, please visit www.nesscap.com.
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Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has in any way approved or disapproved of the contents of this press release.
Included in this news release are matters that constitute “forward-looking” information within the meaning of Canadian securities law. Such forward-looking statements may be identified by words such as “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may” or words of a similar nature. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include among others, regulatory risks, risk inherent in foreign operations, commodity prices and competition. Most of these factors are outside the control of the Company. All subsequent forward-looking statements attributable to the Company or its agents are expressly qualified in their entirety by these cautionary comments. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
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I2BF Global Ventures is an international clean technology asset management group with a global investment mandate and operates two separate divisions: I2BF Venture Capital and I2BF Public Equities; focused on venture capital and public equity activities respectively. Established in 2005, I2BF has over USD 150 million in assets under management. I2BF Global Ventures seeks out game-changing technologies and invests in the most innovative and competitive companies within its target sector. In keeping with its worldwide focus, I2BF retains a team of technology and sector experts as well as renewable energy researchers across teams in New York, London, Moscow and Dubai.
For more information, please visit www.i2bf.com
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RUSNANO was established in March 2011 as an open joint-stock company through reorganization of Russian Corporation of Nanotechnologies. RUSNANO’s mission is to develop the Russian nanotechnology industry through co-investment in nanotechnology projects with substantial economic potential or social benefit. The Government of the Russian Federation owns 100 percent of the shares in RUSNANO. Anatoly Chubais is CEO and Chairman of the Executive Board of RUSNANO.
Work to establish nanotechnology infrastructure and training for nanotechnology specialists, formerly conducted by the Russian Corporation of Nanotechnologies, has been entrusted to the Fund for Infrastructure and Educational Programs, a non-commercial fund also established through reorganization of the Russian Corporation of Nanotechnologies.