Eden Innovations plans $9.8m capital raising

31/01/2019 - 15:31

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Clean technology company Eden Innovations has announced it is planning to raise $9.8 million through a share placement and rights issue after running down its cash balance to $1.35 million at the end of December.

Eden Innovations plans $9.8m capital raising
Eden Innovations led by chairman Greg Solomon has developed sustainable admixture EdenConcrete, diesel fuel kit OptiBlend, low emission fuel hythane and strong plastic EdenPlast. Photo: Attila Csaszar

Clean technology company Eden Innovations has announced it is planning to raise $9.8 million through a share placement and rights issue after running down its cash balance to $1.35 million at the end of December.

Eden Innovations main product is EdenCrete, a sustainable concrete admixture.

It will raise $1.5 million through a share placement and a further $8.3 million through a rights issue, with both priced at 5.4 cents per share.

Shares in Eden Innovations were trading at 5.7 cents at 3:25pm AEST.

One free placement option will be exercisable at 8 cents on or before two years after issue for every two placement shares bought.

EAS Advisors acting through Odeon Capital Group acted as the placement agent.

Patersons Securities will underwrite the rights issue and Eden Innovations’ largest shareholder Noble Energy intends to participate as a sub-underwriter for $1.6 million and interests associated with the directors will be sub-underwriters for $0.4 million.

Eden Innovations has had success in the United States with product approval for EdenCrete from 11 departments of transport and Federal Highway Authority approval in Georgia.

The company is anticipating selling EdenCrete to Australia in the second quarter of the year and is considering distributing to Korea and Europe.

The company led by chairman Greg Solomon has also developed OptiBlend, a dual fuel kit for diesel generator sets, hythane which is a low emission fuel made from hydrogen and natural gas and the strong plastic EdenPlast.

In the 2018 December quarter, Eden Innovations earnt $1 million from sales and spent $2.6 million in operating costs leaving $1.35 million in the bank at the end of the quarter.

Cost estimates for the next quarter are similar to the last at $2.8 million.

The company postponed a $6 million capital raising in February 2018 because of the volatility of the global markets.  

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