Wave tech firms to raise $7.5m

02/11/2015 - 14:26

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Wave technology companies Stonehenge Metals and Carnegie Wave Energy have released details of their plans to raise up to a combined $7.5 million.

Wave tech firms to raise $7.5m
Carnegie Wave Energy managing director Michael Ottaviano. Photo: Attila Csaszar

Wave technology companies Stonehenge Metals and Carnegie Wave Energy have released details of their plans to raise up to a combined $7.5 million.

Carnegie is seeking to raise up to $5 million through a share purchase plan at 4.2 cents a share, representing a 10 per cent discount to its 30-day volume-weighted average price.

The proceeds of the raising will be used to fund development of its Ceto 6 wave technology project on Garden Island, as well as its Garden Island 'microgrid' project.

Managing director Michael Ottaviano said the company would continue to innovate over the next year with development of its commercial wave product platform and integration into the microgrid project.

“In addition to our UK and Eurpean Ceto project development work, we’ve recently announced relationships with the governments of Mauritius and Seychelles for Ceto and microgrid collaboration,” Mr Ottaviano said.

“We would expect to convert these sorts of opportunities into project work over the next 12 months. Being well capitalised is crucial to securing these opportunities.”

Meanwhile, Stonehenge has engaged CPS Capital Group as lead manager to its upcoming minimum $2.5 million public offer, with expressions of interest to-date totalling $1.5 million.

In a statement, Stonehenge said the interest was received from a US-based fund manager and an existing unnamed substantial shareholder.

Stonehenge also announced that the California Wave Energy Test Center project, of which it is a member, had received $US1.5 million in funds from the US Department of Energy, on top of a previously granted $US750,000, to support ongoing work of the project.

Other members of the project include Pacific Gas and Electric Co, Vandenberg Air Force Base, and the California Natural Resources Agency.

Stonehenge shares were 16.6 per cent lower to 2.5 cents each, while Carnegie shares lost 12 per cent to 4.4 cents each at the close of trade.

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