Carnegie down on $6m raising plans

Shares in Carnegie Wave Energy have dropped after the company said it had raised $3.5 million, the first part of a total $6 million capital raising to fund its first wave energy plant at Garden Island.

The wave energy developer today said it had placed shares from the raising exclusively to a select group of European, American and Australian institutions, with a small balance taken by sophisticated investors.

The shares were priced at 12.5 cents. Today, shares in Carnegie, which had previously in a trading halt, fell as much as two cents, or 14 per cent, to 12.5c before climbing to 13c at 11:57 AEDT.

Carnegie said it plans to raise a further $2.5 million through a share purchase plan.

"The board took the decision to complete this placement prior to Christmas after having received interest from European institutions," managing director Michael Ottaviano said.

"We will also complete a share purchase plan before Christmas to extend the benefit of the capital raise pricing to our existing shareholder base."