Kalina Power (ASX:KPO) has secured a significant vote of confidence from its major shareholder Harrington Global Opportunities Fund as the power technology company pursues a fundraiser aimed at a revised business strategy.
Harrington has committed to underwrite a rights offer by Kalina to A$2.5 million.
Harrington will lend the company up to $2.5 million in advance of the completion of the offer, with any balance drawn down contributing to the underwriting commitment
This loan, however, will not be used for the underwriting then repayable from the proceeds of the rights issue.
The loan will convert provided a minimum of $5 million is raised through the rights issue. If the rights issue does not complete for any reason, funds lent by Harrington will be repayable in 12 months.
The rights issue – expected to raise about $5.3 million – will be priced at $0.10 per share with a free attaching warrant exercisable at 10 cents for a period of 12 months from the date of issue.
Kalina stock was last trading at A$0.051.
Proceeds will be applied to a newly revised business strategy which aims to enhance international marketing via a plan to deliver better quality control for project execution through work with preferred equipment vendors and engineering companies.
This effort is expected to enable better management of project delivery and substantially improve profit margins for the company.
Kalina’s focus is on its Kalina Cycle technology, which uses waste heat generated from industrial processes to produce electricity to supplement the purchased power requirements of manufacturing facilities.
This helps reeduce the facilities overall operational costs.
The technology can also be used to generate power from renewable energy sources such as geothermal and solar thermal.
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