Carnegie Wave Energy to Raise USD 4 Million (Australia)

Wave energy developer, Carnegie Wave Energy Limited announced a capital raising via a Share Purchase Plan (“SPP”) of up to $4 million.

The SPP will allow all existing and eligible Carnegie shareholders to purchase between $3,000 and $15,000 worth of shares at 5c per share. Based on the share price at close of trading on 30 November 2011, the offer price equates approximately to a 27% discount to the 20 day average share price and 48% to the 12 month average.

The funds raised by the Plan will be used to fund working capital purposes during the commercial demonstration project phase. The details and location of the demonstration project will be announced in early 2012.

Carnegie’s Managing Director, Dr Michael Ottaviano, said:

“Carnegie has a number of material milestones in 2012 which even in the current difficult market conditions will move the Company forward significantly. These include the decision on the location of its first revenue producing CETO project, the deployment of the next generation CETO unit by the French Government owned power utility EDF and multiple Government project grant decisions. We want to give our existing shareholders full access to participate in this capital raise given the compelling issue price”.

The offer opens on 2 December 2011 and will close on 23 December 2011. Eligible shareholders are those holding shares on the record date of 30 November 2011. The Company reserves the right for oversubscriptions of up to a further $2 million.

Full details of the SPP including offer and acceptance forms will be sent to all shareholders shortly. A company update will also be released shortly.

About Carnegie

Carnegie Wave Energy Limited is an Australian, ASX-listed (CWE) wave energy technology developer. Carnegie is the owner and developer of the CETO Wave Energy Technology intellectual property.

About CETO

The CETO system is the only fully submerged, ocean tested wave technology that generates electricity and freshwater onshore. CETO consists of arrays of submerged buoys tethered to seabed pump units.

The buoys move in harmony with the motion of the passing waves, driving the pumps which in turn pressurise water that is delivered ashore via a pipeline. High-pressure water is used to drive hydroelectric turbines, generating zero-emission electricity. The high-pressure water can also be used to supply a reverse osmosis desalination plant, replacing greenhouse gas emitting electrically driven pumps usually required for such plants.

Having recently successfully completed its demonstration of the commercial scale CETO 3 unit, the CETO technology is now ready to be demonstrated as a small, grid-connected power station.

[mappress]

Offshore WIND staff, December 01, 2011