$5 million - I thought the original documents stated they needed to find 3.5 million. I guess once you add in KM fee they'll need an additional 1.5Million. :/
So who is going to buy into that - Mike Fitzpatrick and co? Surely based on the last capital raise normal "mums n dads" style investors are unlikely to want to put more money into this - although maybe that is really the only option we have now to save what skin we have invested. If DOCA doesn't raise the funds, Carnegie is at serious risk of liquidation aswell unless there is an option to merge with someone with cash - ENEL perhaps? The announcement doesn't state who that capital raise will be available to. ie all shareholders/ general public or a limited group - ie the likes of Mike Fitzpatrick possibly even Mike Ottaviano as he still has a significant ownership of shares and it is not in his interest to see this capitulate. It would be funny if he came in and saved the company.
I would suggest management need to provide some sort of battle plan about CETO and what they believe they can implement and when. Surely if they survive DOCA then we are 12-18mths before ceto can be in the water based on previous timelines.
So options presently are possibly...
1) Albany - is it still a prospect - ie if Carnegie self funded their entire side of the original project is that a possible avenue of development? As I understood the WA Govt funding deal was killed so assume a wave energy centre is still on the cards. Technically the Wave energy centre was open to all companies and organisations rather than just Carnegie. Perhaps if CCE restructure then WA Govt may agree to a limited new deal. ie Carnegie spend money, then govt reimburse them (like the R&D tax rebate approach.)
2) Garden island ceto as per plan prior to move to Albany. They still hold licenses to develop GI into a ceto 6 and that would surely assist with their commitment to Department of Defence.
3) Mauritius/ Cornwall/ other minor development paths - Obviously brexit is big decider in Cornwall. If brexit occurs perhaps trade deal with UK may facilitate easier path for ceto there. If brexit fails then funding from EU may help. Mauritius - last I heard they had installed a wave monitoring buoy - did anyone ever recover that thing or is it still bobbing around the ocean??
I suggest that Carnegie rename the company to Carnegie Wave Energy again or come up with something new. If they go back to their core wave business then their name should reflect that - although a shift in branding may cost too much.
