12/10/2009 - 09:08

Carnegie founder steps down

12/10/2009 - 09:08


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The founder of Carnegie Wave Energy, chairman Alan Burns, has decided to step down, ending his Australian public company career, as the acquisition of Renewable Energy Holdings is formalised.

The founder of Carnegie Wave Energy, chairman Alan Burns, has decided to step down, ending his Australian public company career, as the acquisition of Renewable Energy Holdings is formalised.

Carnegie Wave Energy was formerly known as Carnegie Corporation.



The announcement is below:


Wave Energy developer Carnegie Wave Energy Limited (ASX: CWE) is pleased to announce that the Board of Carnegie has appointed Mr Grant Mooney as the Company's non-executive Chairman effective immediately and the retirement of Mr Alan Burns as a director and Chairman of Carnegie.

Mr Burns was the founder of Carnegie and the inventor of CETO. Mr Mooney is currently a non-executive director of Carnegie.

Mr Mooney said today:

"After floating Carnegie and overseeing the Company's development including the invention of CETO, Alan has chosen to step down at a time when the Company has matured and is undergoing further transformation largely attributable to his vision and foresight. On behalf of the Board and staff of Carnegie, I wish him well and thank him for his tremendous contribution. I am delighted to have been offered to opportunity to take over the role as Chairman of the Board and look forward to overseeing Carnegie's continued growth over the coming years."

Mr Burns said:

"I am delighted in the progress of the CETO wave energy project and the partners it has attracted internationally. Carnegie is on a sound financial footing and has a high quality board, management and technical staff and it is time for me to step down and hand over the chairmanship to Grant Mooney. This resignation ends my Australian public company career and I thank the shareholders for their support over the years."


Carnegie signs formal agreement to acquire 100% Ownership of CETO from REH

- Carnegie and REH sign formal Technology Acquisition Agreement

- Carnegie now global owner of CETO Intellectual Property

- Issue of Consideration Shares and Settlement to follow

Wave energy developer Carnegie Corporation Limited (ASX: CWE) is pleased to announce that it has today signed the formal Technology Acquisition Agreement ("Agreement") with AIM-listed Renewable Energy Holdings Plc (AIM: REH).

The Agreement formalizes the previously announced Heads of Agreement and results in Carnegie now being the technology developer and global owner of the CETO Wave Technology. In consideration for the acquisition, Carnegie will now issue 235 million fully paid shares to REH, making REH Carnegie's largest shareholder with 32% ownership.

Settlement of this transaction and issue of the Consideration shares is expected to be issued in the coming weeks. These shares will be held in escrow and will not be tradeable for 12 months.

The execution of the Agreement also paves the way for Carnegie to assume REH's role as the co-developer of CETO projects in the Northern Hemisphere with EDF EN, acquiring REH's CETO project site pipeline. Formal license and collaboration agreements are expected to be signed in the coming weeks.

The acquisition of the intellectual property and development rights allows Carnegie a unique global opportunity at a time when global demand for clean energy and awareness of clean energy opportunities is peaking.

Carnegie's CEO & Managing Director, Dr Michael Ottaviano, said: "This transaction delivers significant value to Carnegie shareholders in opening up Northern Hemisphere opportunities for Carnegie in the United States, Europe and across Asia. It simplifies the CETO ownership structure and allows Carnegie for the first time to have 100% ownership of CETO."

"Many locations in the Northern Hemisphere have very attractive markets for renewable energy including some with targeted wave energy feed-in tariffs. We look forward to working with EDF EN in developing these Northern Hemisphere markets."

REH's Chief Executive Officer, Mike Proffitt, said: "We are delighted to become Carnegie's largest shareholder and intend to be long term, strategic holders. Upon CETO reaching commercialisation, this transaction will allow
REH Shareholders to continue to participate in the future revenues generated by its world-wide roll-out."

The execution of the formal Agreement follows the satisfaction of conditions precedent over recent months including:

- Completion of satisfactory due diligence by both parties;

- The Independent Expert's report confirming that the Transaction is fair and reasonable to non-associated shareholders of Carnegie;

- Shareholder approval by Carnegie shareholders;

- REH executing a restriction agreement with respect to all of the shares to be issued to it by Carnegie;

- The appointment of Mr Jeff Harding to Carnegie's Board as a Non-Executive Director and an REH nominee;

- Carnegie having sufficient funds to fund the CETO Operating Budget; and

- REH receiving Foreign Investment Review Board approval for the Transaction.


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