Carnegie attempts comeback with wave tech

Carnegie CETO 6
Carnegie Clean Energy's CETO 6 wave energy project

Carnegie Clean Energy is appealing to investors to purchase shares in the troubled wave energy company, saying it has a “renewed opportunity to create value for shareholders as marine energy continues to mature around the world”.

The company went into voluntary administration in March this year, just days after the Western Australian Government terminated its $16 million contract with the company for its Albany project.

But, the company says it has developed a considered plan to reboot the operations of the company and is seeking to significaltly improve the CETO performance and cost by utilising a low-cost, digital development pathway that requires less capital than the previous heavy engineering approach.

“With the failed EMC Business now removed, the directors believe that Carnegie will be much better placed to deliver its core business objective – the development and commercialisation of the CETO technology, with a significantly lower capital requirement,” a letter to shareholders reads.

Carnegie attributes the failure of Albany Wave Energy Project to the significant cash losses incurred by the EMC business and proposed R&D tax changes.

To provide Carnegie with funding to execute the rebooted business strategy over the next 12 months, the company says it is undertaking a non-renounceable pro rata entitlement offer of four new shares for every one share held by eligible shareholders at the record date at an issue price of $0.001 per new share to raise a minimum of $5,500,000 (before costs) and a maximum of approximately $11,525,810 (before costs).