VANCOUVER, Sept. 8, 2009 /CNW/ - LGC Skyrota Wind Energy Corp. ("LGC
Skyrota" "the Company") (TSX-V: LGS) today announced it has completed the
acquisition of the business and assets of Limavady Gear Company ("LGC"), a
leading European provider of wind turbine maintenance services.
Terms of the acquisition include a cash payment of $680,000 and
15,686,500 common shares and 2,000,000 warrants. The Company also closed a
concurrent public offering of $3,500,000 at 12.5 cents per share.
LGC Skyrota operates two business divisions:
- LGC, which rebuilds gearboxes for large wind turbines
- Skyrota, which manufactures a revolutionary 5kW small vertical-axis
wind turbine (www.skyrota.com).
"This deal brings together two businesses that have excellent
opportunities in the rapidly growing wind energy sector. The European market
in particular has a number of compelling aspects, including much higher
electricity rates than North America, dedicated government support and a large
installed base," said Thomas Braun, President and CEO of LGC Skyrota. "LGC is
strongly positioned to service the approximately 3,500 large utility-size wind
turbines currently operating in the UK and Ireland - each of these turbines
will require gearbox rebuilding at least twice in their lifetimes, at an
average rebuild cost of about $50,000 each time. And there are several
thousand more large turbines in the planning stages as governments across
Europe pursue renewable energy strategies to meet targets set by EU Directives
and the Kyoto Protocol."
"The innovative Skyrota turbine was originally developed by LGC to meet
the growing demand for small wind systems. The market potential for Skyrota is
tremendous according to a recent British Wind Energy Association study. From a
cumulative total of 10,000 small wind systems deployed in the UK in 2005, the
association estimates more than 600,000 could be installed in the next 10
years. We are confident that our advantages in each of our two divisions will
capture these market opportunities and drive our future growth," said Mr.
The Skyrota 5 kW high-efficiency vertical-axis wind turbine was a
prominent feature at Glastonbury 2009, providing power to the event from
beside the main Pyramid stage. The Skyrota turbine was also recently chosen
for the Long Sutton Earth-Sheltered Social Housing Project for its
revolutionary design. It is currently sold exclusively through distributors in
Ireland, the UK and Italy. The Company is currently expanding its distribution
network throughout Europe and has plans to enter the North American market at
a later stage.
LGC is a fully equipped engineering firm that is applying its 30 years of
experience in manufacturing replacement gears for the heavy industrial and
marine industries to servicing utility-scale wind farms in Ireland and the UK
from its base in Northern Ireland. It is ISO certified and is a member of the
British Gear Association. LGC's current customers include Vestas, the largest
wind turbine manufacturer in the world, along with Airtricity, Viridian Power,
and Hibernian Wind Power.
Forward Looking Statements
This news release contains statements and information that, to the extent
that they are not historical fact, may constitute "forward-looking
information" within the meaning of applicable securities legislation.
Forward-looking information may include financial and other projections, as
well as statements regarding future plans, objectives or economic performance,
or the assumption underlying any of the foregoing. Forward-looking information
involves known and unknown risks, uncertainties and other factors that may
cause the actual results, performance or achievements to differ materially
from any future results, performance or achievements expressed or implied by
the forward-looking information. A complete discussion of risk factors is
available in the Company's prospectus available on SEDAR.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release
For further information:
For further information: Thomas Braun, CEO, LGC Skyrota Wind Energy
Corp., Telephone: (604) 605-1635