Low Carbon Accelerator (LON:LCA), the AIM listed investment group that backs fast-growing low carbon businesses, has injected a further £250,000 in Proven Energy Ltd in the form of a convertible loan note. This move takes LCA's total investment in Proven Energy to £9,5m of which £9.25m represents an equity stake of 81.05%, or 75.08% on a fully diluted basis. Proven Energy is also attaching warrants to the convertible loan, meaning that if the loan is converted into equity, and the warrants are exercised, LCA's equity stake would rise to approximately 85%.

The new cash will allow Proven Energy to speed up the delivery of its largest wind turbine to the market, capable of generating in excess of 35,000 kWh per year, to ensure that it takes maximum advantage of the UK's new feed-in tariffs (FITs) regime. LCA said that following the introduction of FITs in the UK in April 2010, Proven Energy had gained excellent traction as the leading supplier of quality small scale wind turbines and remains on track to deliver the strong growth expected from the introduction of FITs. The company's order book is currently stronger than at any time in its history. At the same time, Proven Energy's management team has recognised that delays in the planning process for all parties looking to install small-scale wind turbines may lead to pent-up demand in the marketplace, although it is expected this timing difficulty will be addressed by national and local authorities in the near-term.

The latest investment follows a string of similar deals by LCA since the start of 2010. In early June it made a further investment of US$240,000 (£166,000) in lighting specialist LUMEnergi Inc. as part of an overall funding round of US$450,000 with its existing co-investor, Noventi Ventures. That investment was an extension to existing convertible loan note investments, which were made in August 2009, December 2009 and April 2010, and took LCA's total stake in LUMEnergi to 25.3%.

In April, LCA made a further equity investment of £150,000 into gas turbine specialist Vykson Ltd as part of a £500,000 funding round that took its stake to 21.21%. And in March, LCA invested £500,000 in Vigor Renewables Ltd, which gave it rights over 90% of the company’s distributable profits. Vigor was formed to take advantage of UK feed-in-tariffs by partnering with land and property owners to…

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