cardia to spin off aquenox to raise $5m

Wednesday - May 10: (RWE Australian Business News) -
Cardia Technologies Ltd (ASX code: CNN) today announced it was
considering a public listing of its wholly-owned subsidiary, Aquenox Pty
Ltd, to raise working capital of between $3 million and $5 million.
Purpose of the IPO is to accelerate the development and
commercialisation of Aquenox's water treatment technology.
The funds will also assist Aquenox to give greater focus to the
mining industry, in particular the treatment of acid mine drainage and
waste water metals recovery.
The effect of the IPO will be to:
1. Dilute Cardia's interest in Aquenox to between 50% and 70%,
depending on the funds raised.
2. Permit Cardia's shareholders and the public to invest
directly into Aquenox.
3. Provide Cardia's shareholders with a priority allocation of
shares in the public offer.
The company is proposing to raise $500,000 immediately to assist
in the cost of preparing the IPO documentation and for additional
interim working capital purposes.
Thus, Cardia will place 25 million shares at 2c each with 25
million free options on the basis of one option for every share issued.
The options are exercisable at 10c each by December 31 2007.
This announcement was made at the close of trading