Bentley-based waste management company AnaeCo Ltd will aim to raise $5 million through a float on the Australian Securities Exchange to fund its share of the construction costs of its first waste treatment facility, the company has announced.
Bentley-based waste management company AnaeCo Ltd will aim to raise $5 million through a float on the Australian Securities Exchange to fund its share of the construction costs of its first waste treatment facility, the company has announced.
The company, which will issue 20 million shares at 25 cents each to raise the money, will also accept oversubscriptions of a further 12 million shares at 25 cents each, potentially raising a further $3 million.
AnaeCo is chaired by former ABN Amro Australia managing director Jerome Rowley, with Thomas Rudas serving as managing director. They are joined on the board by executive director Richard Rudas and Michael Dureau in a non-executive capacity.
The planned facility, to be built for Perth's Western Metropolitan Regional Council, will process 55,000 tonnes per annum of household waste, aiming to use it to generate renewable energy.
Construction of the plant started in July 2004 but a few months later was put on hold after the company was unable to raise additional funds when known as Organic Resource Technologies Ltd, 99 per cent owned by listed entity ORT Ltd back in 2003.
The company spent most of 2004 and 2005 pursuing different funding options and trying to secure a cornerstone investor.
The impediments it encountered included over-expectations about what the company was prepared to give up, such as its intellectual property rights, and a lack of understanding about the waste treatment sector.
In the interim, it was forced to issue convertible notes paying a high interest rate to meet its funding needs.
A big breakthrough came when the company entered a 10 year alliance with diversified fund manager Perpetual Ltd, who will majority finance the new WMRC facility under a 20 year Waste Supply Agreement which was signed in April 2007, as well as other facilities for which the companies will jointly tender.
The deal, which is underwritten by Martin Place Securities Pty Ltd, opened last week and is due to close on October 31.
The full text of a company announcement is pasted below
Waste management company AnaeCo Limited has announced it is seeking a November listing on the Australian Stock Exchange. AnaeCo is aiming to raise $5 million to fund its share of the construction of its first advanced waste treatment facility for the Western Metropolitan Regional Council (WMRC) in Perth.
The facility will process 55,000 tonnes per annum of household waste and will maximise the resource value of the incoming waste stream through the generation of enough renewable energy to provide power for up to 2,700 households as well as an agricultural grade compost and valuable recyclables such as aluminium and steel.
The Commonwealth Government's Renewable Energy Development Initiative has awarded a $2.7 million grant towards the WMRC facility because of the innovative way it will generate methane for conversion to electricity.
AnaeCo has entered a 10 year Alliance with diversified fund manager Perpetual Limited, who will majority finance the new WMRC facility under a 20 year Waste Supply Agreement which was signed in April 2007, as well as other facilities that the companies will jointly tender for.
Tom Rudas, Managing Director of AnaeCo says: "The alternative waste technology sector may not have the appeal of resource stocks at the moment. But when you look at the combination of growth in municipal waste being generated, together with the growing environmental and economic cost of landfill, it's easy to see the opportunity for
a company which can provide local governments with a small footprint solution that's cost effective, environmentally sustainable and wins community approval."
AnaeCo's patented DiCOM® process is a new-generation alternative waste technology, developed with assistance from a number of Australian universities, and piloted for seven years. A key advantage of the organic recycling process is that it occurs in vertical tanks which have a small footprint and can be retrofitted within existing Waste Transfer Stations - such as is the case at WMRC's Shenton Park facility.
AnaeCo is Chaired by Jerome Rowley, former head of ABN Amro bank in Australia.
20 million shares are offered at 25 cents per Share.
