Carnegie revises prospectus plans

04/09/2019 - 15:31

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Carnegie Clean Energy, which is seeking to raise up to $11.5 million after going into voluntary administration earlier this year, has issued a supplementary prospectus that tones down some of the key claims it made to investors only six weeks ago.

Carnegie went into administration in March.

Carnegie Clean Energy, which is seeking to raise up to $11.5 million after going into voluntary administration earlier this year, has issued a supplementary prospectus that tones down some of the key claims it made to investors only six weeks ago.

Non-executive chairman Terry Stinson’s letter to shareholders in Carnegie’s original prospectus dated July 31 said the company had developed a plan around its flagship CETO wave-power technology.

“(Carnegie) is seeking to significantly improve the CETO performance and cost by utilising a low-cost digital development pathway that requires substantially less capital than the previous heavy engineering approach of iteratively building large physical prototypes,” Mr Stinson said.

But in the supplementary prospectus released yesterday, Mr Stinson removed the word “significantly” from the statement and said the company's goal was to improve CETO's "unit design” rather than its "performance and cost".

The original prospectus made several other assertions, including that key management personnel had prepared a two-year development pathway around the CETO design and that the company would seek to establish licence or royalty agreements with large original equipment manufacturers.

Additionally, Mr Stinson said machine learning (a subset of artificial intelligence) would be applied to its operations with “an aim of reducing design cycle life and cost”.

The supplementary prospectus removed mention of the two-year development pathway, licence or royalty agreements, and machine learning.

However, he added information that Carnegie intended to operate the Garden Island Microgrid under its existing arrangement with the Department of Defence.

Carnegie is undertaking a rights issue to raise between $5.5 million and $11.5 million at 0.1 cents per share as it seeks to recapitalise, after it went into administration in March.

Carnegie did not respond to Business News’ queries before publication.

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