Low Carbon Accelerator Limited Agreement to sell assets (5667V)
January 15 2013 - 4:15AM
UK Regulatory
TIDMLCA
RNS Number : 5667V
Low Carbon Accelerator Limited
15 January 2013
15 January 2013
LOW CARBON ACCELERATOR LIMITED
Agreement to sell assets
The Board of Low Carbon Accelerator Limited ("LCA" or the
"Company") today announces that it has entered into a Stock
Purchase Agreement with Sterling Planet Holdings, Inc. to sell its
entire holdings in Sterling Planet Holdings, Inc., Lumenergi, Inc.
and Vigor Renewables Limited(the "Assets") for a total cash
consideration of US$4.4m (c.GBP2.74m). A first payment of
US$1m(c.GBP0.62m) is scheduled to be paid on 17 January 2013 and
the remaining payments will be made at the end of each of February
2013 (US$1m), March 2013 (US$1.2m) and June 2013 (US$1.2m). The
Assets sold under this agreement represent substantially all of the
value in the Company's portfolio and have been sold at a
substantial discount to book value. It has been the stated
objective of the Company to arrange for the sale of the assets and
the distribution of capital and the Company has been actively
marketing its assets since May 2012 in a process managed by Cogent
Partners. This has been a lengthy process that involved a thorough
and wide search by Cogent Partners for buyers. Potential purchasers
were identified and after a period of detailed due diligence and
negotiation of terms, the Company has agreed to sell the Assets to
Sterling Planet Holdings, Inc..
In addition, LCA has this month received a payment of GBP150,000
arising from the sale of Quantasol Limited and this week expects a
further c.GBP70,000 as a final payment associated with the sale of
Vaperma Inc. These payments, together with the first payment of
US$1m (c.GBP0.62m)due under the Stock Purchase Agreement, will give
LCA a net cash balance of GBP1.4m after estimated liabilities and
liquidation costs ("Net Cash"), before the further US$3.4m
(c.GBP2.12m) is received under the completion terms as stated in
the first paragraph.
The Company will be issuing a Circular to shareholders in due
course to outline its plans for the distribution of capital, the
liquidation of the Company and the cancellation of LCA's admission
to trading on AIM. The Circular will provide a detailed account of
the timings and amounts of the distribution of capital, and the
Board expects to distribute substantially all of its Net Cash as a
first interim distribution.
Enquiries:
Low Carbon Investors Limited Steve Mahon, CIO
Tel: +44 (0)20 7631 2630
Grant Thornton UK LLP Philip Secrett, or Colin Aaronson
Tel: +44 (0) 20 7383 5100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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