Opcon: Chinese Snowman enters as 10% owner of Opcon through directed share issue

• Decision by the Board to issue 34 441 415 shares at 0,78 SEK/share
• Builds a foundation for continued development of strategic cooperation in order to get Opcon technology to the Chinese market

As authorized by the annual general meeting of shareholders, Opcon’s Board has decided to carry out a directed issue of 34,441,415 new shares at a price of SEK 0.78 per share. The shares are issued for Hong Kong Snowman Technology Ltd. a fully owned subsidiary of Fuijan Snowman Co. Ltd, Fuzhou, Fuijan, China.

After the registration of the new shares, the total number of issued shares in Opcon Aktiebolag (publ) will amount to 344,414,145.

Ever since the summer 2011, the energy and environmental technology Group Opcon’s Center of Excellence for compressor technology, Svenska Rotor Maskiner (SRM), has built a closer cooperation with Snowman in China for development of cutting-edge, energy-efficient cooling compressors for manufacturing in China. With Snowman alone, SRM has signed development and licensing agreements over the past two years where the agreement-related revenues amount to around SEK 90 million, of which SEK 75 million covers development. Revenues could be significantly higher over time depending on the customer’s sales and the assessment is that royalties during 2014-2024 from this customer will amount to over SEK 100 million. Just recently the cooperation was expanded to also include the development of high-pressure compressors for industrial heat pumps.

The rights issue aim at building a foundation for a continued development of the long-term strategic cooperation that has been initiated and to tie both companies even closer together. At the same time it strengthens Opcon’s financial position and helps creating resources for present focus areas like the marine version of the Opcon Powerbox.

“Snowman is fast becoming what could be the single most important customer of the Opcon Group where we also see that we will have significant business with each other in the years to come. Both regarding further development and as a result of the license agreement already signed. With what we see of Snowman’s plans and investments I believe this license agreement might be SRM’s largest and most important one ever, where success for Snowman will mean success for Opcon. We also see further opportunities where we discuss an expansion of the cooperation to other areas where the Chinese market is of great interest to us,” says Rolf Hasselström, President and CEO of Opcon AB.

“SRM’s technology is cutting-edge, world leading and an important part of our offer to our customers. With our investment in Opcon we want to secure and build a foundation for long-term development of the very good cooperation we have initiated where SRM and Opcon are and will be of strategic importance to us. A state-of-the-art development of energy- and environmental technology is of utmost importance for China and Snowman as a company,” says Rujie Lin, President and Managing Director of Fuijan Snowman Co. Ltd.

The price of the share issue has been set to 0,78 SEK/share which will raise SEK 26 864 303,70 for Opcon before costs. As the rights issue due to its size demands the issuing of a prospectus before the shares can be registered for trading such a prospectus will be issued. Issuing of shares and registration for trading is expected by the beginning of June.

The company’s share capital will increase by SEK 43.051.769,75. Since the subscription price for the issue has been set at an amount below the shares’ nominal value, SEK 16.187.465,05 shall be transferred to the company’s share capital through a transfer from shareholders’ equity.

Fuijan Snowman Co. Ltd was founded in 2000 and is listed on the Shenzen stock exchange. The Group has around 650 employees. Snowman is one of China’s largest actors in industrial cooling. Marketing of its goods and services is primarily done through the brand Snowkey.

   
For further information, please contact
Niklas Johansson, vice president, Investor Relations, Opcon AB, tel. +46 8-466 45 00,+46-70-592 54 53

Opcon AB, Box 15085, 104 65 Stockholm, Sweden
Tel. +46 8-466 45 00, fax+46 8-716 76 61
e-mail: info@Opcon.se
www.Opcon.se

  
The Opcon Group

Opcon is an energy and environmental technology Group that develops, produces and markets systems and products for eco-friendly, efficient and resource-effective use of energy.

Opcon has activities in Sweden, China, Germany and the UK. There are around 400 employees. The company’s shares are listed on Nasdaq OMX Stockholm. The Group comprises two business areas:

Renewable Energy focuses on the following areas: electricity generation based on waste heat, bioenergy-powered heating and CHP plants, pellets plants, drying of biomass, handling systems for biomass, sludge and natural gas, industrial cooling, flue gas condensation, treatment of flue gases and air systems for fuel cells.

Engine Efficiency focuses on energy-efficient solenoid technology and ignition systems for combustion engines including ethanol, natural gas and biogas engines.

About SRM

Svenska Rotor Maskiner AB (SRM) is Opcon's Center of Excellence for compressor technology. In 2008, SRM celebrated 100 years of industrialization and development of technology for effective and resource-efficient energy usage. SRM was founded in 1908 as AB Ljungströms Ångturbin, in order to develop the double rotation steam turbine which was invented by Birger Ljungström and that was later sold to what today is the turbine manufacturer, Siemens Industrial Turbomachinery AB. For over 100 years, SRM has developed a number of products for the world market and since the 1930s has developed compressor technologies, with major licensees such as Howden, Kobe Steel, Atlas Copco, Hitachi, IR, Carrier, York, Trane, Kobelco, among others. This technological basis today forms an important part of the Renewable Energy business area's efforts in Waste Heat Recovery and production of electricity from waste heat, including Opcon Powerbox.

Opcon AB (publ) is obliged to disclose the information in this press release in accordance with the Swedish law governing the securities markets and/or trading in financial instruments.
The information was submitted for publication at 14.00 (CET) on Tuesday 23 January 2013.