15/12/2015 - 10:02

Eden to raise $6.1m, clear debt

15/12/2015 - 10:02

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Eden Energy, which is seeking to commericalise its innovative concrete product, is looking to wipe out its debt by completing a $6.1 million capital raising, with its major shareholder committing to over a third of the offer.

Eden to raise $6.1m, clear debt
Eden Energy produces its EdenCrete concrete product at a facility in Colorado.

Eden Energy, which is seeking to commericalise its innovative concrete product, is looking to wipe out its debt by completing a $6.1 million capital raising, with its major shareholder committing to over a third of the offer.

Eden plans to raise $657,125 through the placement of about 11.9 million shares at an issue price of 5.5 cents each, coupled with options.

By way of a rights issue, the company will also offer eligible shareholders one ordinary share for every 10 held, at the same issue price, to raise a further $5.45 million.

Noble Energy, Eden’s major shareholder with a 44.2 per cent stake, intends to subscribe for $2.4 million of the rights issue.

In a statement, Eden said the rights issue would extinguish a $1.7 million debt owed to Noble, leaving it debt free.

“The net funds, after repayment of the debt to Noble, raised by the rights issue will be used to fund both Eden’s ongoing working capital requirements and also the expansion of the EdenCrete production facility at the Eden Innovations plant in Colorado,” Eden said.

Eden produces its EdenCrete product at a facility in Colorado, which is an admixture of concrete that offers strength advantages without compromise to compressive strength, permeability, or corrosion resistance.

Last week, Eden announced it had received approval from the Georgia Department of Transport for use of its EdenCrete product in the department’s construction and maintenance projects, including field tests on cement concrete pavements and concrete white topping.

It followed positive results achieved from a trial use of the EdenCrete product on an interstate highway in Georgia in August.

Eden shares were 5.2 per cent lower to 5.4 cents each at 10am.

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