Hey folks, just a few reasons why I'm invested in KPO. >>> The...

Hey folks, just a few reasons why I'm invested in KPO.

>>> The Technology <<<
The KALiNA Cycle is a proven technology and has been successfully deployed across a range of industries. A total of 15 plants worldwide either in operation or under construction. To date US$126M has been spent. Therefore, no scale up issues or 'does the tech work?' concerns.

Quote from Technip Technical Report:
"The technology is robust, it's advantages are substantial and give the extent of technology validation performed to date, Technip believes with appropriate technical and commercial support, there is a potential for the KALiNA Cycle to be adopted on an industrial scale worldwide."

Market leader ORMAT: (NYSE) / Market Cap ~ US$2.1B
KALiNA Cycle is 20-40% more efficient than Organice Rankine Cycle ("ORC") as used by a handful of other companies including ORMAT.

>>> The Renewable Energy Industry <<<
Quote from Global Trends In Renewable Energy Investment 2016 (courtesy of @Rx7driftking
"In 2015, renewable energy set new records for investment and new capacity added. Investments reached nearly $286 billion, more than six times more than in 2004, and, for the first time, more than half of all added power generation capacity came from renewables."

Targeting markets with supportive regulatory regimes with either funding availability (Japan, Canada) or legislated energy efficiency requirements (China, USA - California).


>>> Capital Structure <<<
SOI - 305M (T20 = 59.91%)
Options 97.5M - expiring Aug 17 @ 5c (T20 = 62.87)
Current MC @ 14c - $42.7M ($56.3M fully diluted)
Cash on Hand - $5.2M
Major Shareholders. (Harrington Global 27.09%, John Byrne 8.85% (approx), Pan Andean Capital 6.87%)

During the year, KPO issued a total of 172M new FPO's (approx). This included 15M shares via a private placement, 151M shares via Rights Issue & private placement and 5.4M shares to creditors.

Of the 172M new shares issued since the 2015 Annual Report:
Harrington Global = net increase 50.8M
Pan Andean Capital = net increase of 10M shares
Some of the remaining 110M shares would have gone to existing holders who took up their Rights Issue, but the majority were issued to Hartleys clients.

Approx 60% of SOI held by T20 results in reasonably tight capital structure. The remaining 40% (or approx 122M shares) provides the necessary liquidity to drive the SP higher.

>>> Management <<<
A very impressive Management team and key personnel with CEO Ross MacLachlan and Directors Jeffry Myers & Geoff Scott all having previously worked together at Pristine Power (developed 600MWe / sold for US$300M). Timothy Horgan & John Byrne both with extensive industry experience. Jeffry Myers is a senior operating partner at Stonepeak Infrastructure Partners (US$5.7Bn infrastructure fund).

Cheers,
Rob