27/05/2009 - 13:28

Carnegie Corp to raise nearly $6m

27/05/2009 - 13:28

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High investor demand has lifted Carnegie Corporation's capital raising target to nearly $6 million with funds to be used to acquire the intellectual property rights to a wave energy technology.

Carnegie Corp to raise nearly $6m

High investor demand has lifted Carnegie Corporation's capital raising target to nearly $6 million with funds to be used to acquire the intellectual property rights to a wave energy technology.

The company had originally intended to raise $5 million through a placement however, with strong interest from potential participants the amount has increased to $5.75 million.

Shares will be priced at 22 cents a share.

Patersons Securities and new stockbroking firm Blackswan Equities are joint lead managers to the raising.

Earlier this month, Carnegie finalised a deal with acquire the IP and global development rights for the CETO wave energy technology from UK-based Renewable Energy Holdings.

 

 

The announcement is below:

 


Wave Energy Developer, Carnegie Corporation Limited (ASX: CNM) is pleased to announce a $5.75 million share placement at an issue price of 22 cents per share ("Placement"). The Placement was arranged by Joint Lead Managers Blackswan Equities Pty Ltd and Patersons Securities Limited.

The Placement received strong interest from potential participants with firm commitments having now been received for the entire amount. The company originally intended to raise an amount of up to $5 million, however due to demand and after scalebacks the company has now accepted oversubscriptions to raise a total of $5.75m. The new issue has been placed to a select group of institutions and sophisticated investors pursuant to Section 708 of the Corporations Act.

Carnegie Corporation's Managing Director, Dr Michael Ottaviano, said: "We are extremely pleased with the strong response to this capital raising initiative. It reflects an ever increasing understanding in the marketplace of Carnegie and the significant role that wave energy could play in Australia's future energy mix and globally."

The capital raising allows the funding requirement condition precedent in the recently announced CETO IP acquisition to be satisfied. Under the terms of Carnegie's binding Heads of Agreement with REH for the 100% purchase of the CETO IP, Carnegie was required to have a minimum cash balance to cover the remaining 2009 CETO operating budget upon completion of the transaction which was expected to be approximately $2m.

Under these terms, REH will continue to fund CETO development until the completion of the IP purchase transaction expected to be in September.

Funds raised from the Placement will be applied towards the final phase of the CETO technology development and general working capital requirements. It is anticipated that settlement of application funds and issue of shares will take place on or about 29 May 2009. The Placement will be completed within the Company's 15% share issue capacity pursuant to ASX Listing Rule 7.1.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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