Greenscape Announces 40% Acquisition of CapTherm Systems

August 23, 2011 by Jeff Shepard

Greenscape Capital Group Inc. announced that it has entered into a letter of intent (LOI) to acquire a 40% interest in the issued and outstanding shares of CapTherm Systems Inc. for the sum of $1.9 million at a pre-money valuation of $2.85 million. Greenscape will also have the option to increase its shareholding to a maximum of 46% pursuant to the next scheduled CapTherm financing, expected to take place approximately 24 months after Greenscape’s initial acquisition of stock.

CapTherm has developed what it describes as a revolutionary technology applicable to the high-power electronics cooling industry. Applications of this technology can range from the IT sector (chip-level cooling of servers, workstations, desktops & mobile devices) to Electric Vehicles (thermal management of batteries, insulated gate bipolar transistors & cabinet climate control) to LED lighting to the Military/Space sectors (laser, radar & micro-gravity environments) to Medical Devices (eg. MRIs).

CapTherm’s cooling systems employ a "multiphase" technology to cool high-power electronics. Its increased effectiveness, as compared to traditional air-cooling and recent liquid-cooling systems, can be measured by a factor of thousands and hundreds, respectively. In addition, CapTherm’s technology is powered by a solid-state pump (no moving parts) which the company says provides a significant increase in reliability over competing systems. Finally, unlike its older competitors, the multiphase system requires no auxiliary power as the problem (i.e. the heat) provides the fuel to run the system.

The IT sector will be CapTherm’s initial focus since that sector has a desperate need for more efficient cooling technologies. Cooling accounts for approximately 30% of energy consumption in the average server datacentre (i.e. those used to host websites, services like YouTube, Netflix, etc...), equating to approximately $12.9 billion/year on a global basis. CapTherm’s technology can provide energy savings of up to 35% on those costs.

CapTherm has already negotiated distribution agreements for 12 countries with conditional purchase orders in place. CapTherm expects to launch its products both in the retail market as well as with OEMs (original equipment manufacturers, examples of which include HP, Dell & Apple).

Greenscape announced that it is arranging a $1.65 million financing via a private placement of 10 million shares at $0.165 per share.