Kraken Sonar has acquired a minority interest in Enitech Subsea GmbH of Rostock, Germany, and the company has been renamed to Kraken Power GmbH.
Under the agreement, Kraken has taken a 19.9% equity interest and provided a €110,000 convertible loan. The loan pays interest at 5% per annum and has a term of three years.
Through the conversion of the loan to equity and a further investment capped at €200,000, Kraken can choose to increase its ownership stake to 75% of the common shares of Kraken Power GmbH, the company said.
“This strategic investment represents a low risk, but significant ROI opportunity,” said Karl Kenny, Kraken’s president and CEO. “Kraken Power’s technology and products enable a significant reduction in bill of material costs for our ThunderFish AUV. In addition, Kraken Power will continue to sell its products to the subsea industry.”
Kraken’s investment triggered the release of additional funding in Germany that will provide Kraken Power with working capital for operations, hiring of additional personnel and funds for the purchase of inventory and capital assets.
“For us, this partnership is a great opportunity,” said Dr. Carl Thiede of Kraken Power. “As a leading manufacturer of rim driven thrusters, underwater propulsion and energy supply systems based on pressure tolerant moulding technology, we are looking forward to a new chapter of the company’s development.”