The Ludan subsidiary develops technology to reduce emissions from power plants.
Ludan Engineering Co. (TASE: LUDN) subsidiary Lextran Ltd. has raised $2 million in its second funding round from US investment company Poleris Energy Technology Holdings Ltd. at a value of $26.5 million before money. The company raised $1.2 million at a value of $7 million in its first round, announced by Ludan last October, which means its value has increased threefold in the space of five months.
Lextran has developed a technology for the reduction of gas emissions at power plants. Poleris will now hold 7% of the company, and has undertaken to market Lextran's technology in China for a 10-year period. It will receive a further 3% gratis in Lextran if it manages to sell its technology to a 25-megawatt power plant in China. This will effectively lower the company value to $20 million.
Poleris has given Lextran an initial $250,000 out of its pledged investment, with the balance to be transferred within 60 days.
Published by Globes [online], Israel business news - www.globes-online.com - on March 13, 2008
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