08/05/2008 - 12:14

Carbon Conscious closes IPO after successful raising

08/05/2008 - 12:14

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Perth-based carbon offset provider Carbon Conscious Ltd has closed its IPO after raising more than $7 million and is expecting to list on the Australian Securities Exchange late next week.

Carbon Conscious closes IPO after successful raising

Perth-based carbon offset provider Carbon Conscious Ltd has closed its IPO after raising more than $7 million and is expecting to list on the Australian Securities Exchange late next week.

Carbon Conscious Executive Director Daniel Stevens said the company had raised $7.25 million plus seed capital of
$600,000, well in excess of the $5 million minimum.

"The capital raise provides an excellent financial base for the execution of the business plan," Mr Stevens said uin a statement.

He said "despite challenging share market conditions, Carbon Conscious had managed to achieve a fantastic result ahead of its official listing."

He said "Carbon Conscious will become the first ASX listed biosequestration
company to raise capital via an IPO."

"The strong support we've experienced throughout the process of listing has clearly demonstrated investors are
looking for ways to back solutions that aim to tackle some of Australia's biggest challenges - the effects of climate
change and issues such as salinity and farm soil erosion," he said.

"We're very excited that Carbon Conscious will join C02 Australia Ltd as the only two ASX listed companies in the
bio-sequestration industry. This reinforces the importance of this rapidly emerging market in Australia."

Carbon Conscious released its Prospectus in March offering prospective shareholders a chance to tap into the
growing worldwide carbon credit industry worth $64 billion in 2007.

In Australia, the federal government has confirmed that a mandatory Emissions Trading Scheme will be
introduced in 2010.

Carbon Conscious expects that companies producing emissions over a pre determined level will
be required to reduce emissions to below this level.

Companies unable to meet this mandatory target may be required to make other arrangements to mitigate their carbon emissions including the purchase of carbon credits from market suppliers such as Carbon Conscious.

The Company will develop large-scale carbon sinks (or "carbon estates") in Western Australia's wheatbelt region,
through its trade-marked Carbon Capture Program.

"The program is based on planting native Mallee Eucalypt trees to store or 'sequester' carbon from the atmosphere,"
Mr Stevens said.

"It's an exciting business model that involves us partnering with farmers, major carbon emitters and business to
create value for all stakeholders."

Mr Stevens said "a key advantage of Carbon Conscious is its access to large areas of suitable land through the
strong strategic relationships that have been formed with farmers and rural land holders in the wheat belt over many
years by its related company, Australian Agricultural Contracts Ltd."

"These established relationships have given us the ability to work closely with farmers to help them gain access to
the carbon credit market, while at the same time offering environmental solutions to issues such as salinity," he said.

AACL operates one of Australia's largest broad acre cropping operations, with some 200,000 hectares of wheat and
barley expected to be planted in 2008. AACL raises capital from investors who enter into a type of share-farming
agreement with large family farming operations, sharing both the risks and the rewards.

Mr Stevens said "In addition to its access to suitable land, Carbon Conscious had secured the supply of Mallee
Eucalypt seed, seedlings and planting capacity to cover the next four years."

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