Carnegie Secures Lifeline to Recapitalise Wave Business
- Business & Finance
Carnegie has raised the required $5.5 million to continue with the final phases of the recapitalisation plan.
Existing shareholders contributed approximately $4.4 million, with around $1.1 million coming from new investors under the Shortfall Offer.
The initial plan was to raise a minimum of $5.5 million (before costs) and a maximum of approximately $11.5 million (before costs).
As announced earlier, the funds raised from the offer will be utilised for the development of the CETO Technology, corporate overheads, operation of the Garden Island Microgrid, payment to the Creditor’s Trust, costs associated with the offers and working capital purposes.
The development of the CETO Technology may require additional financing in the future in order for research, development and commercialisation of the technology to progress at a competitive rate.
The issue of the new shares under the Entitlement Offer and Shortfall Offer, together with the new securities under the recapitalisation proposal are anticipated to occur on or about October 7, 2019.
The company will advise shareholders on the progress of the recapitalisation proposal and reinstatement of Carnegie’s securities to the official quotation on the ASX.
Carnegie’s CEO, Jonathan Fiévez, said: “On behalf of the board of directors, I would like to thank our shareholders and investors who have supported us as we embark on an exciting new pathway towards the commercialisation of our CETO wave energy technology.”
“With these funds we are acutely focused on progressing CETO towards a globally competitive solution to power generation from waves. We will continue to work hard over the coming weeks to complete the final requirements for reinstatement to quotation on the ASX and will advise shareholders of our progress in the coming week.”