Carnegie seeks to raise $6m

Carnegie Wave Energy has unveiled plans to raise up to $6 million through a share purchase plan, with the proceeds earmarked for the further development of its wave power technology.

The Fremantle-based company said its shareholders could purchase between $1,500 and $15,000 worth of Carnegie shares at 5 cents per share under the terms of the SPP.

The offer price is a 14 per cent discount to the company’s closing share price on March 24.

Carnegie’s stock dropped 12 per cent on the news to about 5.1 cents per share.

The company said funds from the SPP would be used for the development of its CETO 6 project, and for general working capital purposes.

Carnegie announced last week that is had secured a $20 million, five-year loan from the Clean Energy Finance Corporation, which would also be used to partly fund CETO 6.

The company’s CETO wave energy technology is a submersible offshore unit that captures wave power to pump water at high pressures and drive turbines and generators to produce electricity.

Three 240kW CETO 5 units will be utilised as part of the Perth Wave Energy Project, which is expected to be commissioned by June.

However, the CETO 6 units are expected to deliver four times the capacity, or 1,000kw, of their CETO 5 counterparts.

Demonstration of CETO 6 is slated for 2016 with the company aiming for commercial production by 2018.