Leclanché overcomes rocky patch with new board members and growth strategy

Leclanché overcomes rocky patch with new board members and growth strategy

Leclanché overcomes rocky patch with new board members and growth strategy Energy Storage Journal

 

Leclanché, the Swiss-based energy storage company, announced a new growth plan and the appointment of three new members to its board of directors during its annual general meeting on July 26.

The company is hoping fresh investment and new faces will help it overcome a poor first half to the year, when it said it went into a “short-term balance-sheet-based technical insolvency” under Swiss CO725.2.

A Leclanché announcement said it had “solved these issues and its trajectory to profitable growth remains unaffected” after accumulated losses from the past and a delay in raising new equity hit the company in the first six months of 2017.

The company also hopes new board members Pierre-Alain Graf, who will become an independent director, and finance professionals Tianyi Fan and Cathy Wang, from Golden Partner, will help in its recovery.

Leclanché announced it had secured fresh investment of Sfr18.5 million ($14.6 million) in July from existing shareholders Golden Partner and Bruellan at the annual general meeting.

The company is also planning to raise a further Sfr30 million ($23.7 million) in October and is reviewing the options of a rights issue, private placement with institutional shareholders and an asset sale.

This was despite a record 56% increase in revenue in 2016, more than 2.5 times its 2014 figure.

The shareholders also approved the proposals of LECN Co-Invest and ACE EE to readopt article 5 of the Articles of Association with regards to opting up, moving from 33 to 49%.

The growth strategy also includes a potential second listing on a North American exchange and the acquisition of an unnamed energy management storage software company.

Leclanché’s growth strategy for the second half of 2017 will also includes the completion of its utility scale stationary storage projects, including its 20MW Marengo project in Chicago, US, and the 13MW Ontario Independent Electricity System Operator project in Canada.

The latest round of investments will also allow Leclanché to continue with its 95MWh ($50 million) order book, and its qualified pipeline of more than 450MWh.