29/10/2008 - 12:43

Carnegie plans $17m capital raising

29/10/2008 - 12:43

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Clean power developer Carnegie Corporation Ltd plans to raise just over $17 million through a share purchase plan, with funds to be applied to the development of its CETO Wave Energy Technology.

Clean power developer Carnegie Corporation Ltd plans to raise just over $17 million through a share purchase plan, with funds to be applied to the development of its CETO Wave Energy Technology.

The company said each shareholder can subscribe for up to 40,000 new shares priced at 12.5c each, valued at $5000.

Shares in the company, which were previously in a trading halt, were steady at 14c.

Carnegie said it will issue up to 136.1 million shares under the SPP to raise $17.05 million, with the majority of the funds to be used for research and development of CETO.

CETO technology uses submerged units anchored to the sea floor that move with the motion of passing waves, driving the pumps which in turn pressurise seawater that is delivered ashore through a pipeline.

The high-pressure seawater is used to drive hydroelectric turbines and generate base-load electricity.

Additionally, the company said it is in advanced stages of establishing a line of credit of up to $5 milli9on, which it will be able to draw down over the coming five years and convertible to shares based on the prevailing share price when funds are drawn.

The terms of credit facility are subject to board approval.

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