REG - Libertine Holdings - Trading Update

Libertine HoldingsAnnouncement

22/03/2024 12:30

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RNS Number : 9995H  Libertine Holdings PLC  22 March 2024

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR").

Libertine Holdings PLC

("Libertine" the "Company" or the "Group")

Trading Update

Libertine Holdings PLC (LSE AIM: LIB), a developer of Linear Generator
technology, today provides an update on trading and operations for the year
ending 31 March 2024 ("FY24").

During the year, Libertine completed its Phase 1 support for the KARNO™
linear generator with Hyliion Holdings Corp. (NYSE: HYLN, "Hyliion"), and the
KARNO Hypertruck vehicle demonstrator was exhibited at the ACT Expo in
Anaheim, California in May 2023. In October 2023 Hyliion changed its strategic
focus to concentrate solely on stationary power generation applications using
the KARNO linear generator technology.

As announced on 7 February 2024, in January 2024 Libertine entered into a
completion cost agreement ("CCA") with Hyliion on its existing Phase 1
statements of work ("SOWs"). Payment for the completion costs was received in
February 2024 and extends Libertine's expected cash runway through to July
2024. Also in January 2024, the Company entered into an additional SOW
("January SOW") to support continued testing of the HEXAGEN linear e-machine
and control sub-systems supplied by Libertine and incorporated within
Hyliion's KARNO generator.

 

Hyliion plans to build production units for the entire linear generator system
in-house, and the January SOW extends the option period that Hyliion has to
negotiate IP licensing rights with Libertine to 31 July 2024 ("Hyliion option
period"), four months into the next financial year.

 

The Company remains committed to developing its intelliGEN™ and HEXAGEN
technology platforms which the Company provides to its OEM customers for their
development of Linear Generator and Linear Motor products. The Company has
recently implemented intelliGEN and HEXAGEN platform performance and
durability enhancements, which are planned to satisfy stage-gate performance
requirements for entry into OEM new product development programmes expected to
commence in 2024.

 

Whilst commercial interest in the Company's technology platforms remains good,
and the Company has made both technical and business development progress in
the year, the extension of the Hyliion option period coupled with the timing
of business development and sales activities have impacted the expected timing
of new revenues, such that full year revenues for FY24 are expected to be
below market expectations, at c.£0.3m (FY23: £0.9m).

As of 28 February 2024, the Group had cash reserves of £0.9m, which provide
the Group, absent any additional revenues, with the funds required to maintain
current operations through to July 2024. The Company is currently reviewing
options to extend its funding position.

 

Sam Cockerill, Chief Executive of Libertine, commented: "We have made good
technical and business development progress in the year and recent platform
enhancements provide us with confidence that we can commence further customer
programmes in FY25.

Whilst automotive applications could ultimately provide the majority of
Libertine's addressable market share, battery electric vehicle market
evolution uncertainties are feeding into customer product strategies and the
timing of automotive product development programmes.

The addressable market potential for our technology continues to expand, with
the emergence of dispatchable power generation applications, informed by
inbound enquiry from multiple energy service businesses and engine OEMs across
a number of geographic regions. Linear Generator technology is increasingly
recognised as an important technology solution for data centres and other
behind-the-meter dispatchable power generation applications.

We expect that the strategic partnership agreement recently signed with
BASEBATT will support business development and pilot programme delivery in
FY25."

 

 

For more information, please visit www.libertine.co.uk
(http://www.libertine.co.uk) or contact:

 Libertine Holdings PLC                               via Tavistock
 Sam Cockerill, Chief Executive Officer
 Gareth Hague, Chief Financial Officer

 Panmure Gordon (NOMAD and Broker)                    +44 20 7886 2500
 James Sinclair-Ford
 Dougie McLeod
 Hugh Rich (Corporate Broking)

 Tavistock (Public Relations and Investor Relations)  +44 207 920 3150
 Rebecca Hislaire                                     libertine@tavistock.co.uk
 Saskia Sizen

 

About Libertine

Founded in 2009, Libertine provides technology platform solutions for Original
Equipment Manufacturers ("OEMs"), enabling efficient and clean power
generation from renewable fuels, and more effective energy storage devices and
gas compressor systems. Libertine was admitted to trading on the AIM market of
the London Stock Exchange in December 2021.

Libertine has created two technology platforms, each using the same core
technology elements, which the Company provides to its OEM customers for their
development of Linear Generator and Linear Motor products:

-       The intelliGEN™ platform enables the creation of clean, highly
efficient and fuel-flexible Linear Generator products including:

•      Heavy-duty hybrid powertrains of trucks, buses, tractors,
construction and mining equipment;

•      Medium and light-duty hybrid powertrains of commercial vehicles
operating over longer distances;

•      A proportion of the passenger automotive market where vehicle
use and recharging constraints are a barrier to battery electrification; and

•      A wide range of off-grid, portable power and distributed power
generation applications.

 

-       The HEXAGEN(TM) platform enables more effective energy storage,
thermal power generation, waste heat recovery and gas compression products
including:

•      Stirling Engine power generators and thermal energy storage
systems;

•      Linear motor reciprocating compressor (LMRC) systems for
hydrogen refuelling stations; and

•      Organic Rankine Cycle waste heat recovery systems.

 

These two platforms are a result of over a decade of development and
performance validation of Libertine's proprietary core technology elements
including its linear electrical machines, controls and developer tools.

The potential market for Linear Generator products goes well beyond the
distributed power generation applications where Linear Generators are already
in commercial use today, complementing intermittent renewable power with
clean, on-demand power generation. Linear Generators also have the potential
to complement battery electrification in hybrid powertrains, providing
on-board power generation to address the practical and economic barriers to
rapid adoption of clean electric propulsion using battery electric powertrain
technology alone.

Working with OEMs from an early stage in the development cycle ensures
Libertine's technology is effectively integrated into OEM products, maximising
the performance and economic benefits provided by Libertine's platform
technology. Libertine has developed a portfolio of over 30 granted patents in
addition to a significant body of technical know-how generated since the
Company's formation. The Company's senior management team and board includes
executives with decades of deep technical experience in the automotive and
energy industries.

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