OREANDA-NEWS. October 10, 2011. RUSNANO and I2BF Global Ventures today announce an investment agreement with Nesscap Energy Inc. (TSX-V:NCE), a global leader in research, development and manufacturing of ultracapacitor products.

Rusnano and I2BF respectively subscribed for USD 19M and USD 1M worth of Nesscap common shares, respectively. Proceeds from this financing will be used as to approximately USD 15,000,000 for the establishment of a full scale production facility for ultracapacitors and fundamental research center in the Russian Federation and as to approximately USD 5,000,000 for the expansion of Nesscap’s current manufacturing and core R&D operations in Korea and for general corporate purposes. Proceeds from this financing will be held in escrow until certain conditions have been fulfilled by Nesscap including, without limitations, the establishment of a wholly-owned subsidiary in the Russian Federation.

Under the terms of the investment agreement, the Managing Director of RUSNANO Mr. Georgy Kolpachev will join Nesscap’s board of directors.

In addition, RUSNANO will also provide an additional USD 11,500,000 loan to Nesscap’s subsidiary in the Russian Federation to be used in connection with the establishment of its production facility. As additional consideration for providing the loan facility and subject to approval by the TSX Venture Exchange, Nesscap has agreed to issue 820,123 bonus common shares to RUSNANO as a warrant for granting this loan.

“Today’s world is clearly demanding new energy storage solutions and Nesscap is one of the few companies that have managed to develop and bring to the global market a truly disruptive technology. Products from the new plant in Russia will be supplied to the growing European and Asian markets for use within the automotive sector and renewable energy markets. We already have supply contracts and joint development agreements with some of the largest industry players. Nesscap’s energy storage solutions address a number of Russia’s strategic needs and are a great fit into RUSNANO’s overall technology strategy,” said Georgy Kolpachev.

The project is aimed towards the growing transportation industry, grid stabilization and renewable energy applications. The new plant in Russia will manufacture a wide range of high capacity ultracapacitor cells and modules based on Nesscap’s proprietary technology. Nesscap’s products have a variety of applications, including power systems for vehicles with hybrid powertrains, compact and scalable energy storage systems and various types of stop-and-go systems for conventional engines, as well as stabilization of line voltage and stand-by power. Ultracapacitors can also be effectively used in conjunction with batteries to operate at peak loads, which allows such combined systems to achieve an increased service life (typically two to three times over standard battery-only systems).

“Partnering with RUSNANO is a natural fit, enabling Nesscap to access the technological depth of Russian science and direct access to market opportunities in the CIS region,” said Dennis Orwig, the newly-appointed Chief Executive Officer of Nesscap Energy, Inc. “We are excited to expand Nesscap’s manufacturing operation and R&D efforts in Korea and getting established in Russia to bring world class technology and products to our customers around the world.”

"Rusnano is a welcome addition to our already strong syndicate of shareholders, which among others include Hyundai-Kia Motors and Singapore Technologies,” added Ilya Golubovich, a member of Nesscap’s Board of Directors and managing partner of I2BF Global Ventures. “Throughout the entire process of putting together this round they have proven themselves as an extremely capable partner and I have every reason to believe that Rusnano will be a powerful force behind the next wave of Nesscap’s success.”