VPhase raises £3.5m boost

May 15 2008 by Alex Turner, Liverpool Daily Post

CHESTER-BASED technology firm VPhase has raised £3.5m from a shares issue as it seeks to develop its product range.

The company, a subsidiary of Energetix Group, which is also based at Capenhurst Technology Park, develops energy saving devices for the home and small commercial applications.

The 70m new ordinary shares, at 5p per share, represent 10.1% of the total share capital and have been placed with institutional investors.

Existing shareholders also received £1.6m after Novum Securities placed 31.72m shares at the same price.

The VPhase technology is designed to sit alongside fuse boxes and stabilise voltage to a lower level, which the company claims has two main benefits.

It limits energy being wasted, as many products do not benefit from a higher voltage, and by reducing the voltage, it could extend the life of the device.

Chief executive Dr Lee Juby said: “Appliances don’t need the higher voltage. A fridge doesn’t get colder with a higher voltage supply, and a television’s picture doesn’t become any clearer.

“Throughout 2007, we have been testing prototypes. We have found there is a very high saving, for example fridges and low energy lightbulbs save about 16-17%.

“On the whole, we believe the average saving is about 10% of a household’s electricity bill.”

The company has been listed on the Alternative Investment Market (AIM) since last September following a reverse takeover of Flightstore. Previously the company was Energetix Voltage Control.

VPhase plans to launch its product later this year and begin volume production in 2009, and the new capital will allow the company to develop more quickly.

“We had enough capital to develop the product and bring it to market,” said Dr Juby. “We have recognised that there are significant other opportunities, and we want to expand our geographic reach and the product portfolio.”

alex.turner