AEC completes $3.5m capital raising

PERTH-BASED Advanced Engine Corporation has closed its 17.5 million share prospectus offer with subscriptions exceeding the required $3.5 million capital raising. In a statement to the ASX, director Tony Middleton told shareholders that the company faced a buoyant future, with cash flows imminent from a number of business sources. He said that rising oil prices – now tipped to reach $US100 a barrel – meant that alternative transport fuels such as natural gas were becoming ever more significant as economical, environmentally friendly, longterm energy sources. The company said it was targeting sales of more than $4 million in the 2006 financial year through its partnerships with First Auto Works and Weichai Power, regarded as two of China’s largest engine and vehicle manufacturers. Mr Middleton said AEC was currently in the final stages of planning the factory to be established in China to assemble natural gas engine components for its Chinese partners. AEC would also generate revenue of $1.3 million via orders from European bus and coach manufacturer, Irisbus, Mr Middleton said.