August 1 (Renewables Now) - Carnegie Clean Energy (ASX:CCE) is inviting existing investors to participate in the recapitalisation of the wave energy company with the hope to raise up to AUD 11.5 million (USD 7.9m/EUR 7.1m) gross.
On August 9, the company plans to open a non-renounceable pro rata entitlement offer of four new shares for every one share held by eligible shareholders at the record date of August 6. The issue price has been set at AUD 0.001 per new share and Carnegie expects to raise at least AUD 5.5 million. The offer will close on September 4.
Earlier this year, Carnegie Clean Energy placed into voluntary administration the company and the units that make up its Energy Made Clean (EMC) solar and microgrid business. Non-executive chairman Terry Stinson explained in a letter to shareholders on Wednesday that the loss-making EMC business was the reason why Carnegie could not complete its Albany wave energy project and not any failure or loss of confidence in its core technology.
Now that the EMC business has been wound down, the company wants to reboot its core operations of wave energy development and intends to use the proceeds of the planned offering to finance activities over the next 12 months. Stinson pointed out in the letter that key personnel of Carnegie has come up with a two-year development pathway that focuses on the creation of a new and improved CETO unit design. This new unit will make use of advances in machine learning and certain supercomputer level simulation capabilities that are present and growing in Western Australia. Moreover, the new design will incorporate the same low-cost electrical generator components that are currently being used in electric vehicles (EVs).
The ultimate goal of the company is to eventually reach the point where its technology can compete with offshore wind power in large or similar scale deployments.
Stinson further noted that the recapitalisation proposal has been developed with funding and support from two of the company’s key shareholders -- Mooney & Partners Pty Ltd, a firm associated with director and shareholder Grant Mooney, and Asymmetric Credit Partners Pty Ltd.
(AUD 1.0 = USD 0.685/EUR 0.621)