time for this gem to get polished, page-165

Received the following email yesterday from Tim Horgan (Director).

Good morning,

Welcome to KALiNA Power's (ASX:KPO) first news flash update. In future, we will be providing regular newsflash updates on major developments within the rapidly growing waste heat to power sector.

As you may have already seen, Ormat Technologies (NYSE: ORA, market capitalisation: US$2.9bn), which deploys the Organic Rankine Cycle (ORC), primarily within the geothermal energy sector, recently announced that the major Japanese diversified financial and investment services company, ORIX Corporation (TSE: 8591, NYSE: IX, market capitalisation: US$20.9bn), has agreed to purchase a c. 22.1% ownership stake in the company.

This announcement highlights the significant interest in the growing waste heat to power and geothermal energy sectors, as communities transition to cleaner and more efficient sources of electricity generation. Corporate activity, such as this, adds significant credibility to KALiNA's proposed industrial scale deployment of the KALiNA Cycle^® in low temperature sectors of the waste heat to power market, where the KALiNA Cycle^® holds significant competitive advantages over the ORC systems deployed by Ormat.

For your convenience we have included a brief summary of the Ormat and ORIX announcements, and the full announcements can be read by clicking the links below.

ORA: ORIX to Acquire a 22% Ownership Stake in Ormat
IX: ORIX to Acquire a 22% Ownership Stake in Ormat

Summary:

• ORIX Corporation to acquire ~22.1% ownership position in Ormat Technologies, by purchasing ~11m ordinary shares from major existing shareholders (including FIMI, Bronicki Investments and senior management)
• The final purchase price agreed was US$57 per ordinary share – representing a total consideration of ~US$627m
• ORIX and Ormat have also entered into a Commercial Cooperation Agreement which allows:
  • Ormat to have exclusive rights to build, own, operate ORIX geothermal energy projects outside of Japan
  • Ormat to have certain rights to serve as technical partner and co-invest in ORIX geothermal energy projects in Japan
  • ORIX to assist Ormat in obtaining project financing for its geothermal energy projects from a variety of leading renewable energy debt providers
• The transaction is expected to close in 3Q CY2017

Regards,
Tim

For further information, please contact:

Tim Horgan
Executive Director
Ph: +61 (03) 9236 2800
E: [email protected]