Solar energy co HelioFocus raises $11.5m

China's Zhejiang Sanhua became the company's second largest shareholder, after Israel Corp. unit IC Green.

Modular solar thermal systems developer HelioFocus Ltd. has raised $11.5 million, including $9.25 million from China's Zhejiang Sanhua Co. Ltd. (Shenzhen: 2050). The financing round was made at a company value of $45 million, after money.

HelioFocus controlling shareholder, Israel Corporation (TASE: ILCO) subsidiary IC Green Energy Ltd. (ICG), will invest $2.31 million. ICG invested $8 million in the company in 2008 to acquire just over a 56.5% stake in it. ICG is now investing another $2.31 million. Zhejiang Sanhua will become the second largest shareholder in the company with the present investment.

HelioFocus founder and CEO Dr. Ory Zik said, "Zhejiang Sanhua is a strategic partner with proven manufacturing capacity, which will enable us to move quickly to production, while substantially lowering costs."

Zik added that Zhejiang Sanhua was one of the world's largest manufacturers of climate control systems. Traded on the Shenzhen Stock Exchange, it has a market cap of about $1 billion.

HelioFocus will use proceeds from the investment to continue product development.

Last month, HelioFocus won a $800,000 grant from the US Department of Energy and Israel-United States Binational Industrial Research and Development Foundation (BIRD-F) for a joint project with Capstone Turbine Corporation (Nasdaq: CPST).

Published by Globes [online], Israel business news - www.globes-online.com - on January 5, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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