LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street...

LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street Brisbane Qld 4000
ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699 | E [email protected] | W www.Lwptech.com
LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street Brisbane
ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699
LWP TECHNOLOGIES SECURES $6 MILLION CORNERSTONE INVESTMENT
 UK-based Lanstead Capital LP set to become a cornerstone investor in LWP, subject to shareholder approval at upcoming EGM
 $6 million placement delivers financial certainty for LWP to execute on its dual track commercialisation strategy
 Placement of 1.2 billion shares to Lanstead at $0.005 per share
 Sharing Agreement provides additional upside potential for LWP from share price appreciation.
ASX ANNOUNCEMENT 25 July 2016
Energy technology company, LWP Technologies Limited (ASX: LWP) (“LWP” or “the Company”), is pleased to announce that the Company has entered into a $6 million placement agreement with Lanstead Capital LP (“Lanstead”).
Pursuant to the placement agreement, UK-based specialist investment firm Lanstead Capital LP, will take up a placement of 1.2 billion shares at $0.005 per share. LWP will receive an initial payment of $900,000, with the remaining $5.1 million invested in the sharing agreement to be received over the next 18 months.
The sharing agreement allows LWP to secure much of the potential appreciation in the share price arising from future news flow. The value of the settlements received monthly over the next 18 months are based on a Benchmark price of $0.0067 per share calculated on the 5 day value weighted average price prior to settlement. If the price exceeds the Benchmark price, LWP will receive more than the monthly settlement due on a pro-rata basis, with no upper limit, if the price is below LWP will receive less than the monthly settlement on a pro-rata basis. It should be noted that the price paid does not impact on the number of shares issued.
LWP has agreed to make a value payment of 60 million shares as consideration for the sharing agreement.
The placement to Lanstead is subject to final documentation and agreements that are expected to be signed by Thursday the 28th July and to approval by shareholders at an EGM expected to be held on the 26th August 2016. At the time of the EGM this will give Lanstead a 19.9% shareholding in LWP.
The Company intends to strategically deploy these funds to advance the commercialisation of its unique energy technologies, namely:
 the ongoing development, commercialisation and licensing of LWP’s proprietary ceramic proppant technology; and
LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street Brisbane Qld 4000
ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699 | E [email protected] | W www.Lwptech.com
LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street Brisbane
ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699
 the development, commercialisation and licensing of its revolutionary new Aluminum-Graphene-Oxygen (air) battery technology.
LWP Chairman Siegfried Konig stated: “Securing this placement with Lanstead provides LWP with financial certainty and allows LWP to deliver on our dual track strategy of commercialising our two unique and disruptive energy technology offerings. Lanstead have a successful track record of investing in early stage ASX listed companies such as LWP, therefore it follows that Lanstead’s investment represents a solid endorsement of the Company and its technologies. I look forward to updating shareholders on our progress across the business in the coming weeks and months.”
The placement to Lanstead is subject to approval by shareholders at an Extraordinary General Meeting (EGM) to be held on 26 August 2016, as detailed in the Notice of Meeting that was filed with the ASX today.
As previously communicated, (ASX announcement 7 June 2016), LWP’s staff and the Directors have voluntarily agreed to participate in the Company’s ongoing cost reduction initiatives. Shareholder approval will therefore also be sought at the EGM for the issue of LWP shares to Directors in lieu of cash remuneration as part of the Company’s cost reduction initiatives.
LWP Chairman Siegfried Konig said: “While LWP has adequate working capital on hand, plus additional funding provided by the Lanstead placement, the directors and staff of LWP have voluntarily agreed to be paid all or part of their remuneration by way of LWP shares which will decrease LWP’s cash outflows. That support, plus all of the directors having taken up their maximum entitlements of $15,000 each under the Share Placement Plan that closed last week, provides further evidence of the confidence in the future prospects of LWP by LWP’s personnel”.
- ENDS -
For further information please contact:
Siegfried Konig
Chairman
LWP Technologies Limited
Ph: 0411 111 193
E: [email protected]
For Media & Investors please contact: Ben Jarvis, Six Degrees Investor Relations +61 (0) 413 150 448
About LWP Technologies
LWP Technologies Limited (LWP) is an Australian oil and gas technology company focused on commercialising next generation, fly-ash based, proppants for use in hydraulic fracturing (fracking) of oil and gas wells globally. LWP is seeking to commercialise its proppants as a cost effective, superior alternative to bauxite and clay based ceramic proppants, typically used in fracking operations currently. The Company commenced proppant production from its pilot scale proppant manufacturing plant in Queensland, Australia, in Q3, 2015. LWP plans to seek joint venture partners and/or licensing agreements to commercialise its proppant product, and deliver significant returns to shareholders.
LWP has also acquired a 50% share in Al-Graphene Synthesis technology, with the first application targeting Al- Graphene batteries for the electrical vehicle and home storage markets.
About Proppants
Proppants are a sand-like commodity used to ‘prop’ open fractures in shale rocks which allows oil and gas to flow. Proppants are often the single largest cost item in the fracking process and represent a multi-billion dollar global market annually. Traditional ceramic proppants are made from clay and/or bauxite. LWP Technologies ceramic proppants are majority manufactured from fly-ash, a by‐product of coal fired power plants. The Company is of the view that its unique proppant product has the potential to lead the industry due to:
 the widespread abundant availability of fly-ash, often near to oil and gas shale resources;
 the ultra-light weight of LWP fly-ash proppants; and
LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street Brisbane Qld 4000
ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699 | E [email protected] | W www.Lwptech.com
LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street Brisbane
ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699
 the ability of LWP proppants to withstand the very high pressures and heat of deep wells.
LWP proppants have been certified by Independent Experts to meet or exceed both the American Petroleum
Institute standards and the ISO standards.
About Graphene Synthesis and Aluminium-Graphene-Oxygen Battery Technology
Graphene is a monolayer of sp2 bonded carbon atoms in a honeycomb lattice which, since its discovery in 2004, has seen a surge in research over the last decade due to its high current density, ballistic transport, chemical inertness, high thermal conductivity, optical transmittance and super hydrophobicity at nanoscale. Graphene is considered to become the building block for the next industrial revolution creating bendable phones, tiny self-powered oil and gas sensors, synthetic blood and superclass battery technology. LWP’s Joint Venture, GraphenEra, has the technology rights to both the chemical synthesis/manufacturing process of quality graphene on a cost effective commercial scale and to build a proprietary designed aluminium graphene oxygen battery proto-type that will have vastly superior features compared to current Lithium based batteries, as the first steps in commercialising the suite of novel patent applications in this revolutionary technology field.