EQS-Adhoc: Leclanché provides 2017 revenue guidance and funding update


EQS Group-Ad-hoc: Leclanché SA / Key word(s): Financing
Leclanché provides 2017 revenue guidance and funding update

26.10.2016 / 06:28
Release of an ad hoc announcement pursuant to Art. 53 KR.


---------------------------------------------------------------------------

Leclanché provides 2017 revenue guidance and funding update.

YVERDON LES BAINS, Switzerland, 26th October 2016: Leclanché SA, the
leading vertically integrated energy storage solution company, announced
today an update to its forward guidance for revenue growth in 2017
following the most recent corporate presentation uploaded on the Company
website - http://www.leclanche.com/investor-relations/financial-reports-
publications/presentations/

  - The Company has strong momentum to deliver over 85 MWh in 2017 equating
    to >75% revenue growth.

  - This growth is supported by six contracted projects and backlog
    totalling 85 MWh, plus ongoing negotiations in excess of 300 MWh of
    which up to 50 MWh has the potential to convert in 2017 providing some
    buffer for the current backlog plus support for 2018.

  - Management believes that its electric Bus opportunity continues to be
    substantial, with expected recognized revenue toward the end of 2017.

  - The Company anticipates breakeven EBITDA profitability above 100 MWh
    production, currently envisaged during or before 2018, due to the
    Company's continued focus on improving profit margins from volume and
    efficiency gains.

  - Leclanché Board has approved a comprehensive program to complete the
    funding of its current business plan, drawing upon a combination of
    project finance, corporate debt, licensing income from IP around
    upstream manufacturing partnerships and equity.

To achieve its growth funding requirements, the Company has recently
secured project finance funding from Swiss Green Electricity Management
Group (SGEM), an independent owner and operator of energy storage assets,
for one project in North America and is in discussions on a broader project
financing partnership to facilitate further non-recourse capital. This
complements the CHF 11.1 million private placement of equity announced in
August 2016, which brought in new institutional investors including Baring
Asset Management Limited, Herald Investment Trust Plc, KBI Global Investors
Ltd (formerly Kleinwort Benson Investors) and Shamir Capital alongside
further investment and loan conversion from existing shareholders ACE &
Cie, Bright Cap SICAV SA, Jade Crest Limited and Recharge A/S.

In addition, the Company is in discussions on a strategic joint venture for
volume manufacturing in Asia, including a possible IP licensing agreement.

To execute the comprehensive funding program, the Company is augmenting the
corporate advisory and equity financing being raised through the assistance
of  Alexa Capital LLP with further project and corporate debt financing
being arranged by Canaccord Genuity Investment Banking, which brings
further capital markets resources to support the Company's funding needs.
 
Anil Srivastava, CEO of Leclanché SA, said: "We continue to be confident on
our growth outlook as our full energy storage solution capabilities are
being well received by our customers globally. We are also focused on
optimizing our capital structure to support our growth, including through
project finance and debt, with our objective to improve capital efficiency
as we expand."

Growth targets are subject to a number of factors, including delivery of
the Company's supply chain (cell and module capacity including 3rd party
supplies) and secured funding for the business plan, expected from a
combination of debt and project finance, equity and, also possibly
complemented by technology licensing fees. The Company maintains its focus
on capital efficiency and limiting shareholder dilution in funding growth.

* * * * *

About Leclanché
Leclanché is one of the world's leading fully vertically integrated battery
energy storage solution providers. It delivers a wide range of turnkey
energy storage solutions for homes, small offices, large industries,
electricity grids, as well as hybridization for mass transport systems such
as bus fleets and ferries. Established in 1909, Leclanché has been a
reliable partner for battery energy storage solutions for over 100 years.
Founded in the tradition of Georges Leclanché, the inventor of the dry cell
battery, Leclanché today has a rich portfolio of Battery Energy Storage
Systems (BESS) that include bespoke battery systems from industry leading
lithium-ion solutions.

Leclanché is listed on the Swiss stock exchange. SIX Swiss Exchange: ticker
symbol LECN | ISIN CH 011 030 311 9

Disclaimer
This press release contains certain forward-looking statements relating to
Leclanché's business, which can be identified by terminology such as
"strategic", "proposes", "to introduce", "will", "planned", "expected",
"commitment", "expects", "set", "preparing", "plans", "estimates", "aims",
"would", "potential", "awaiting", "estimated", "proposal", or similar
expressions, or by expressed or implied discussions regarding the ramp up
of Leclanché's production capacity, potential applications for existing
products, or regarding potential future revenues from any such products, or
potential future sales or earnings of Leclanché or any of its business
units.
You should not place undue reliance on these statements. Such forward-
looking statements reflect the current views of Leclanché regarding future
events, and involve known and unknown risks, uncertainties and other
factors that may cause actual results to be materially different from any
future results, performance or achievements expressed or implied by such
statements. There can be no guarantee that Leclanché's products will
achieve any particular revenue levels. Nor can there be any guarantee that
Leclanché, or any of the business units, will achieve any particular
financial results.

* * * * *

Contacts

Hubert Angleys / Florent Gaillard

Tel.: +41 (0) 24 424 65 00
E-Mail: invest.leclanche@leclanche.com


---------------------------------------------------------------------------

End of ad hoc announcement

---------------------------------------------------------------------------


   Language:    English                     
   Company:     Leclanché SA                
                Av. des Sports 42           
                1400 Yverdon-les-Bains      
                Switzerland                 
   Phone:       +41 (24) 424 65-00          
   Fax:         +41 (24) 424 65-20          
   E-mail:      investors@leclanche.com     
   Internet:    www.leclanche.com           
   ISIN:        CH0110303119, CH0016271550  
   Valor:       A1CUUB, 812950              
   Listed:      SIX Swiss Exchange          
 
 
   End of News    EQS Group News Service  
---------------------------------------------------------------------------

514585 26.10.2016