23/05/2016 - 10:11

Eden raises funds for US expansion

23/05/2016 - 10:11

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Innovative concrete manufacturer Eden Energy has tapped investors for a $10.3 million capital raising to fund the expansion of its product in the United States.

Eden raises funds for US expansion
Eden Energy produces its EdenCrete concrete product at a facility in Colorado.

Innovative concrete manufacturer Eden Energy has tapped investors for a $10.3 million capital raising to fund the expansion of its product in the US.

Gregory Solomon-chaired Eden raised the funds through the placement of 45 million shares at 23 cents each, coupled with 22.5 million options exercisable at 31 cents each.

The proceeds of the raising have been allocated towards completing the expansion of the company’s production facility in the US state of Colorado, ongoing site works, design and engineering for its proposed larger-scale $US67 million facility in Georgia, and for general working capital.

The placement was brokered by US-based investment bank Maxim Group.

The raising follows news last month that Eden had received a $US25 million incentive package from the Georgia Economic Development Authority and the Augusta Economic Development Authority to put towards the construction of the facility in Georgia.

The Augusta Economic Development Authority has also provided Eden with 45 hectares of serviced land in the Augusta Industrial Park where the company plans to build the large-scale manufacturing facility.

The production plant in Georgia will be used to both manufacture Eden’s carbon-based ‘EdenCrete’ concrete additive and export the product throughout the US and globally.

The first phase of the plant is expected to handle a total output of 189 million litres of the concrete product annually.

Eden is based in Perth, but its wholly-owned subsidiary EdenCrete Industries operates in the US.

Eden shares were 10.3 per cent lower to 26 cents each at 10am.

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