KALiNA Power Limited (ASX:KPO) Advances AI Data Centre Projects and Secures Funding
Project Developments
KALiNA Power Limited continued to advance its portfolio addressing AI Data Centre demand with reliable electricity. The company’s Canadian subsidiary, KDP, is developing ~170 MW natural gas-fired combined cycle power plants with Carbon Capture and Sequestration. Five sites are secured, with the potential to generate up to 1.7 GW.
Strategic Initiatives
During the quarter, KALiNA Power engaged in several strategic initiatives, including selling KDP’s 60 MW Saddle Hills project site and one or more of its 170 MW Power-CCS project sites. The company also entered into AI co-siting planning with Crusoe Energy and pursued third-party financing to fund project milestones. Additionally, KDP appointed TwelveSix to manage sales campaigns for project sites, enhancing negotiations with data centre companies and strategic buyers.
Financing Activities
KALiNA Power conducted a placement of 187.5 million shares at $0.008 per share, aiming to raise $1.5 million before expenses. The company also executed a pro-rata non-renounceable entitlement offer, receiving applications for 5,475,966 new shares, representing $43,807. Net proceeds from these activities will support working capital requirements and strategic plans.
Executive Comments
KALiNA’s Managing Director, Ross MacLachlan, stated, “Interest has expanded rapidly in our portfolio of some of the best available sites in Alberta for data centres that can be readily energised by affordable power. The catalysts to realise value and deliver meaningful funding to the Company are growing. These catalysts include potential for site sales, joint venture agreements, portfolio funding from private equity interests and other financiers, and of course the progress we are making with Crusoe under the Framework Agreement. The appointment of TwelveSix has added further impetus to the advancement of our stated commercialisation strategy, and we look forward to providing further updates as discussions progress.”
Financial Performance
Cash outflows from operating activities amounted to $826,000 for the quarter, with $487,000 allocated to Alberta project development.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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