Kraken Sonar acquires majority stake in Enitech Subsea

Under the agreement, Kraken has taken a 19.9 percent equity interest and provided a EUR 110'000 convertible loan. The loan pays interest at 5 percent per annum and has a term of three years. Through the conversion of the loan to equity and a further investment capped at EUR 200'000, Kraken can choose to increase its ownership stake to 75 percent of the common shares of Kraken Power GmbH. Kraken Power GmbH, led by Dr. Carl Thiede, has been working on pressure tolerant technology and products for the subsea market for the past 10 years. The company's pressure tolerant moulding technology enables 6'000 meter rated encapsulation in silicone instead of oil compensated or titanium pressure housings. The technology results in packaging solutions that are less expensive, more compact, lighter and less prone to underwater corrosion and bio-fouling. "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. We plan to leverage Kraken Power's pressure tolerant moulding technology into next generation products targeted to deep-sea oil and gas, ocean energy/renewables and ocean science markets." 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. "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."