Wasabi Energy subsidiary set for TSX-V listing

THE BOURSE WHISPERER: Power producer Wasabi Energy (ASX: WAS, AIM: WAS) has paid approximately US$5.6 million on behalf of Wasabi New Energy Asia (WNEA) for the first payment to purchase 50.5 per cent of Shanghai Shenghe New Energy Resources Science & Technology (SSNE).

SSNE is the licensee for Wasabi Energy’s Kalina Cycle for China, Macau, Taiwan and Hong Kong.

The payment was partly settled by the issue of just under 39 million Wasabi shares at 1.8 cents per share.

Wasabi announced in November 2012 that WNEA is being established to advance the use of the Kalina Cycle and SSNE’s patented Enhanced Rankine Cycle power technology throughout the Asian region.

Around this time Wasabi also announced its intentions of listing WNEA on the TSX.

The company said it has now entered into a Letter of Intent with TSX-V-listed Lions Bay Capital Inc, for it to become WNEA.

The regulatory process for this transformation is currently being undertaken, which Wasabi anticipates to be completed in Q1 of 2013.

Wasabi also flagged its intention to list WNEA on an Asian stock exchange.

“Wasabi Energy is entering into a new phase of its evolution as a leading power producer utilising our proprietary Kalina Cycle technology with the establishment of Wasabi New Energy Asia,” Wasabi Energy executive chairman john Byrne said in the company’s announcement to the Australian Securities Exchange.

“The Asian market offers significant opportunities especially within China.

“WNEA commences operations with a strong, capable proven management team at SSNE and will be enhanced by an experienced management team in Asia.

“For the shareholders of Wasabi Energy, WNEA offers an opportunity for leveraging our proprietary Kalina Cycle technology into an Asian-based company that will be separately listed on the TSX-V and subsequently on an Asian stock exchange.

“By having a separate listing WNEA will be responsible for its own fund raisings and not be dilutive to Wasabi Energy.

“The value created within WNEA should be reflected back into Wasabi Energy.

“We are very excited by the commencement of WNEA and look forward to its growth as a power company within Asia.”