Round 1 SEIS Offer Now Open to Raise £150,000 at £1,000 per share with HMRC Advanced Assurance

Kinetic Energy Recovery Boosting

Following 2 years of R&D by Professor Alasdair Cairns, the project is focused on delivering an automotive-ready solution, in line with the industry established Automotive Technology Readiness Levels, (Complete guide in Schedule 4 of the IM). This aligns R&D project deliverables to industry accepted parameters for technology acceptance into manufacturing. In particular, it lays out the required level the technology must achieve and the parameters it must deliver on prior to industry adoption, and therefore commercialisation. Should the solution deliver on all of its targets, this process facilitates a straightforward and industry accepted route for integration into manufacturing, and therefore monetisation of the technology.

The Company proposes to raise an initial £150,000 via a single SEIS raise by issuing 150 Ordinary Shares at £1000 per share. This will fund Phase 1 Rig testing to Technology Readiness Level 4 (TRL4) at a budgeted cost of £125k and cover the period April 2017- April 2019.  This is a ‘Go – No Go’ break point. If the trial is successful it will deliver sufficient results to move the project onto Phase 2 and a further EIS round of funding by the end of 2018.

HMRC Advanced Assurance for Seed Enterprise Investment Scheme (SEIS) has been confirmed.

What is the opportunity & why does it exist?

  • The automotive manufacturing industry is being driven by global legislation to reduce the amount of CO2 their vehicles emit
  • Efforts to date have produced mixed results, but many manufacturers have not reached the 130g/km required. Post 2015 legislation requires a further 30% reduction from the 130g/km figure to 95g/kg
  • As seen in the recent news Volkswagen, Audi, Hyundai, Seat and many others manufacturers are unable to meet the emission requirements today without ‘CHEATING’
  • Engine right-sizing is a key trend in the automotive industry, both in the Light and Heavy duty sectors, this will see the majority of road cars fitted with new engine solutions in Europe and other key regions by 2020

What is the technology and how proven is it?

  • The VN-KERB-TS uses existing technologies to recover vehicle braking energy, and then utilises this energy to spin-up the turbocharger ready for the next acceleration event, thereby eliminating turbocharger lag in a clean and efficient way.
  • Following 2 years of R&D by Professor Alasdair Cairns, the project is focused on delivering an automotive-ready solution, in line with the industry established Automotive Technology Readiness Levels, (Complete guide in Schedule 4 of the IM).
  • A successful proof of concept study has delivered TRL 3 status.
  • A prototype turbocharger has now been retrofitted with the Pelton system and is being prepared for steady state rig tests

What will the Round 1 £150k investment deliver?

  • This will fund Phase 1 Rig testing to Technology Readiness Level 4 (TRL4) at a budgeted cost of £125k and cover the period April 2017- April 2019. This is a ‘Go – No Go’ break point. If the trial is successful it will deliver sufficient results to move the project onto Phase 2 and a further EIS round of funding by the end of 2018. The next stages from TRL4 on involve:
    • Steady state and transient cold rig testing, with full analysis
    • Engine dynamometer testing (steady state and transient, cold and warm)
    • Vehicle demonstration with OEM and supplier support (e.g. APC funding bid)

How and When will the project make money?

  • With 2 Patent applications already applied for, VN-KERB-Turbo solutions will deliver revenue by licence sales to Passenger Car Automotive Manufacturers
  • 3-5 years in development before revenues generated
  • Achievement of TRL 6 will deliver the first potential investor exit via a trade sale

How large is the market?

  • Market Research carried out by VN-KERB-TS, shows that there are 68m new cars manufactured every year. Annual growth within the Global Automotive manufacturing industry over the long term is projected to be approximately 2% pa.
  • The global market in terms of value for on-highway turbocharger is estimated to be USD 13.6 Billion in 2015 and is projected to grow to USD 22.1 Billion by 2020, at a CAGR of 10.21% for the period 2015-2020.