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    CARBN   NO0010778095

CARBON TRANSITION ASA

(CARBN)
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Carbon Transition ASA makes strategic entry into the carbon capture market by investing in the leading carbon capture technology company «CO2 CAPSOL»

10/12/2021 | 01:02am EST
Oslo, 12 October 2021Carbon Transition ASA ("Carbon Transition") has made its third investment under
its new strategy by investing NOK 40 million in CO2 Capsol AS ("CO2 Capsol") and
thereby supporting their pre-IPO financing round to accelerate CO2 Capsol's
growth. The investment provides Carbon Transition with a 6.8% fully-diluted
ownership in CO2 Capsol.
 
CO2 Capsol's patented carbon capture technology has been developed since 2003
into an internationally leading solution based on the Hot Potassium Carbonate
technology ("HPC technology"). The HPC technology offers the uniqueness of not
having to use amine in the carbon capture process which is attractive for HSE
reasons. In addition, CO2 Capsol's patented system offers an estimated 40% cost
advantage relative to alternative processes. This is possible mainly due to
their proprietary technology which re-uses energy in the carbon capturing
process. 

CO2 Capsol will license its technology to its customer base and it will actively
cooperate with internationally leading EPCI companies which will conduct the
engineering and construction of the carbon capture facilities. CO2 Capsol
currently has one project under contract and is involved in more than 40
projects with different sizes and maturities. This is within industries such as
waste-to-energy, cement, fossil power and steel.
 
In July 2021, Stockholm Exergi, Stockholm's waste-to-energy company, announced
that it has decided to start the front-end-engineering-and-design («FEED») phase
for a bio-carbon capture facility at one of its heat and power plants, which
will capture the emitted CO2. CO2 Capsol's End of Pipe solution was selected as
the carbon capture technology for Stockholm Exergi's CO2 capture facility. In
conjunction with this and after a competitive FEED evaluation which involved
multiple global EPCI companies, Stockholm Exergi awarded the FEED contract to
Petrofac for the CO2 capture facility.  

Subsequent to the Stockholm Exergi selection process, Petrofac and CO2 Capsol
announced that they had signed an agreement in September 2021, which enables
collaboration for the sales and marketing of additional carbon capture projects
worldwide.
 
"The investment into CO2 Capsol marks the strategic entry into the carbon
capture market for Carbon Transition.  The investment offers Carbon Transition
shareholders a very attractive exposure to a growth sector over the next decade
with a very large global addressable market. CO2 Capsol with its unique low-cost
system and HSE-friendly HPC technology, is a very attractive solution for the
marketplace. We expect CO2 Capsol to be one of the leading international carbon
capture technology companies, and create value for Carbon Transition
shareholders" says Gisle Grønlie, Chairman of the Board for Carbon Transition.
 
"We are delighted to welcome Carbon Transition as a leading investor into CO2
Capsol, supporting the expansion of CO2 Capsol's business development
initiatives. This funding round will help accelerate the growth of CO2 Capsol"
says Jan Kielland, CEO of CO2 Capsol.
 
The private placement of shares in CO2 Capsol was done at NOK 11 per share,
giving a post-money market capitalization of NOK 494 million based on current
outstanding shares and NOK 590 million on a fully-diluted basis. CO2 Capsol is
expected to have approximately 100 million in cash holdings after this financing
round when contributions from expected warrant and option exercises are
included. The company has no financial indebtedness. CO2 Capsol has announced
that it expects to list its shares on Euronext Growth Oslo in the near term. We
refer to CO2 Capsol's corporate communication on this matter.

The investment in CO2 Capsol will be funded through available cash holdings. The
proceeds from a contemplated private placement in Carbon Transition raising a
minimum of NOK 35 million and a maximum of NOK 50 million in gross proceeds will
strengthen the company's cash holdings and ability to do new investments. The
private placement will be directed towards a limited number of existing
shareholders and new investors.

Carbon Transition has received undertakings from its majority shareholders,
Middelborg AS, Tigerstaden AS, F2 Funds AS,  Tiveden AS, Beck Asset Management
AS, Ginny Invest AS, Philip Holding AS, Ballista AS, Q Capital AS and Livermore
Invest AS, against a guarantee commission of 2%, to underwrite the minimum
amount of the private placement with a subscription price not lower than NOK
1.30. The guaranteed minimum subscription price is at a premium to the closing
price 11 October 2021 of 10.2%. The final subscription price will be set
following a book-building process. It is expected that the private placement
will be launched later this week. Carbon Transition has engaged SpareBank 1
Markets AS to assist with the private placement.
 
The investment in CO2 Capsol is the third and largest investment for Carbon
Transition under its new strategy and makes the carbon capture market a
strategic focus area for Carbon Transition. It takes the total investments of
Carbon Transition in pre-IPO companies to just below NOK 100 million (including
the value of a stock option agreement). Thereby, Carbon Transition has succeeded
in creating a significant investment portfolio in highly attractive companies
within its strategic target markets. In addition, Carbon Transition has its
legacy ocean bottom node seismic business (a business unit now classified as an
investment in Carbon Transition's corporate structure) which includes attractive
OBN multiclient surveys in the North Sea (Norway) and the Gulf of Suez (Egypt)
as well as an OBN contract seismic unit. This has laid a strong foundation for
the future growth of the company.

A corporate presentation of CO2 Capsol is attached to this announcement.

Contacts
Ronny Bøhn, CEO
Ronny.Bohn@carbn.no
+47 905 58 517

Nils Haugestad, CFO
Nils.Haugestad@carbn.no
+47 977 04 439

About Carbon Transition ASACarbon Transition ASA ("CARBN") is an investment company listed on Euronext
Expand. CARBN has a strategy to invest in companies and technologies which
contribute to significant reductions of carbon emissions. The company may also
invest more broadly in the "energy transition" space. CARBN has a legacy seismic
business operating under the name Axxis Geo Solutions, with both an ocean-bottom
seismic contract business and a multi-client data library.
More information on www.axxisgeo.com

This information is subject to the disclosure requirements pursuant to Section
5-12 of the Norwegian Securities Trading Act.

Click here for more information

© Oslo Bors ASA, source Oslo Stock Exchange

Stocks mentioned in the article
ChangeLast1st jan.
CARBON TRANSITION ASA -2.50% 1.326 Real-time Quote.-77.70%
CO2 CAPSOL AS -3.45% 28 End-of-day quote.0.00%
PETROFAC LIMITED -8.49% 109.9 Delayed Quote.-13.03%
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Financials (USD)
Sales 2020 92,8 M - -
Net income 2020 -3,13 M - -
Net Debt 2020 28,1 M - -
P/E ratio 2020 -11,5x
Yield 2020 -
Capitalization 35,0 M 35,0 M -
EV / Sales 2019 0,13x
EV / Sales 2020 0,35x
Nbr of Employees 10
Free-Float 87,1%
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Managers and Directors
Ronny Bøhn Chief Executive Officer
Nils Christian Haugestad Chief Financial Officer
Bjorn Gisle Gronlie Chairman
Rick Dunlop Executive Vice President-Operations
Njål Sævik Director