ST. JOHN’S, NL and ROSTOCK, GERMANY–(Marketwired – May 17, 2017) – Kraken Sonar Inc. (TSX VENTURE: PNG) is pleased to announce that it has acquired a minority interest in ENITECH Subsea GmbH of Rostock, Germany; and that the company has been renamed Kraken Power GmbH. Under the agreement, Kraken has taken a 19.9% equity interest and provided a EUR110,000 convertible loan. The loan pays interest at 5% per annum and has a term of three years. Through the conversion of the loan to equity and a further investment capped at EUR200,000, Kraken can choose to increase its ownership stake to 75% of the common shares of Kraken Power GmbH.
Kraken Power GmbH, led by Dr. Carl Thiede, has been working on pressure tolerant technology and products for the subsea market for the past 10 years. They are internationally recognized for their specialized deep-sea components for Autonomous Underwater Vehicles (AUVs) and Remotely Operated Vehicles (ROVs). Pressure tolerant components are electronic components or assemblies that can operate satisfactorily under high pressure (hyperbaric or hydrostatic, such as oil baths), without the need of a high-pressure enclosure. These components include pressure tolerant thrusters, drives, batteries, battery management systems and electronics. The company’s unique pressure tolerant moulding technology enables 6,000 meter rated encapsulation in silicone instead of oil compensated or titanium pressure housings. The technology results in packaging solutions that are less expensive, more compact, lighter and less prone to underwater corrosion and bio-fouling.
Kraken Sonar CEO Comments
“This strategic investment represents a low risk, but significant ROI opportunity,” said Karl Kenny, Kraken’s President and CEO. “Kraken Power’s technology and products enable a significant reduction in bill of material costs for our ThunderFish™ AUV. In addition, Kraken Power will continue to sell its products to the subsea industry. We plan to leverage Kraken Power’s pressure tolerant moulding technology into next generation products targeted to deep-sea oil and gas, ocean energy/renewables and ocean science markets.”
Kraken’s investment triggered the release of additional funding in Germany that will provide Kraken Power with working capital for operations, hiring of additional personnel and funds for the purchase of inventory and capital assets. This is yet another example of how Kraken has used partnerships, small investments, acquisitions and licensing to build a world-class team with innovative technologies for the underwater robotics industry.
Karl Kenny continued, “Kraken Power represents our 3rd significant German technology partnership in 2017. With the establishment of Kraken Robotik GmbH and a strategic partnering and licensing agreement with Fraunhofer, Kraken Power represents key additional component capabilities. As we execute our Sensors to Systems strategy, Kraken now has key sensor, software and component technologies in place to be a vertically integrated supplier of high performance, differentiated AUVs and other underwater vehicles.”
Kraken Power Management Comment
“For us, this partnership is a great opportunity,” said Dr. Carl Thiede. “As a leading manufacturer of rim driven thrusters, underwater propulsion and energy supply systems based on pressure tolerant moulding technology, we are looking forward to a new chapter of the company’s development.”
About ENITECH Subsea GmbH (now renamed Kraken Power GmbH)
Based in Rostock, Germany, ENITECH Subsea GmbH (or “ENISEA”), was founded in the summer of 2016 to acquire the marine technology assets of the insolvent ENITECH Energietechnik-Elektronik GmbH (“ENITECH”). The original ENITECH had been in business since 2001 supplying industrial control cabinets, industrial automation equipment and marine technology. The marine business grew out of the PhD work of Dr. Carl Thiede and had seen more than EUR3 million of R&D invested in this business.
For the marine market, ENITECH’s drives, propulsion and power supply systems have been developed and sold to research institutes, defence contractors and oil and gas commercial customers. Customers have included Atlas Elektronik (SeaOtter MKII AUV), DeBeers Marine (Atlas Maridan AUV M600), Fraunhofer IOSB, DFKI/GTR (Flatfish AUV), Bosch Rexroth, Marum, Geomar, AWI, IOW and many others.
ABOUT KRAKEN SONAR INC.
Kraken Sonar Inc. (TSX VENTURE: PNG) is a marine technology company, founded in 2012, that is dedicated to the production and sale of software-centric sensors and underwater robotic systems. For more information, please visit www.krakensonar.com, www.krakenrobotik.de, www.krakenpower.de.
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company’s current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company’s public disclosure documents. Many factors could cause the Company’s actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provide (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, please contact:
Sean Peasgood
Investor Relations
(416) 565-2805
[email protected]
Stephen Harpur
Investor Relations
604-306-6142
[email protected]
Greg Reid
Chief Financial Officer
(416) 818-9822
[email protected]
Glenda Leyte
Marketing Manager
(709) 757-5757 extension 288
[email protected]
