A COMPANY WITH THE RIGHT IDEAS BUT NEEDS FUNDS TO DEVELOP
Sydney - Monday - September 24: (RWE Aust Business News)
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OVERVIEW
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Idealistic objectives don't generally make money for
shareholders overnight because it often take years to get an end result.
One company still struggling in the marketplace for support is
Carnegie Corporation (ASX:CNM).
The company says its strategy is to make money for its
shareholders by investing in and developing clean energy projects.
The world market for clean energy technologies and projects is
undergoing rapid growth and Carnegie tells shareholders it is well
positioned to capitalise upon this growth through its involvement with
the CETO wave energy technology and its low-emission, coal-fired power
generation technology, Cleaner Coal Power.
Carnegie's goal is to develop a portfolio of clean energy
projects that represent a mix of profitable, revenue producing projects
and exciting clean energy technology developments.
On Friday Carnegie directors sent a letter to shareholders
exhorting them to take up some more shares at a small discount.
The Board decided to raise additional funds towards funding its
research and development commitments, particularly the CETO wave energy
project and any associated working capital requirements.
Shareholders will be able to subscribe for up to 50,000 new
shares at 10c each, a discount of about 17.5 per cent discount to the
average market price calculated over the previous five days on which
sales were recorded on the ASX before September 21.
Directors see many advantages to smaller shareholders of
subscribing for shares under the share purchase plan, including:
* Small shareholders may 'top up' their holdings to a marketable
parcel; and
* No brokerage or transaction costs are payable on shares
purchased under the SPP.
The maximum number of shares offered under the SPP is 87,701,560
which will raise $8,770,156.
Carnegie has an agreement with Stripe Capital Pty Ltd to
partially underwrite the SPP, such that the total amount raised under
the SPP will not be less than $3 million.
The issue of shares to the underwriter is subject to shareholder
approval.
If acceptances for more than 87,701,560 shares are received,
directors intend to scale back the maximum amount permitted.
SHARE PRICE MOVEMENTS
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Shares of Carnegie Corp on Friday slipped 0.5c to 11.5c. Rolling
high for the year is 22c and low 2.7c. The company has 293.5 million
shares on issue with a market cap of $33.76 million.
Meanwhile the company also released an activity update to
shareholders with the purchase plan details.
Highlights have been:
* Proposed $10 million capital raising announced to complete
CETO wave energy technology development;
* Significant milestones achieved on the development of the CETO
technology; and
* Continued strong progress on the 100 per cent-owned Cleaner
Coal Project.
Carnegie Corporation is focused on developing and
commercialising clean energy technologies.
CETO Wave Energy Technology was invented by Carnegie chairman
Alan Burns and has has been under development for nearly 10 years.
Carnegie was one of the early backers of the CETO technology and
in 2005 swapped its minority, direct interest in CETO for equity in
UK-listed Renewable Energy Holdings plc (REH) which it continues to
hold.
The creation of REH ensured the continued funding of CETO during
a time when market awareness of sustainable technologies was low.
The CETO technology is now nearing the end of its development
phase requiring an estimated 12-18 months and $6-$8 million to complete.
A commercial scale demonstration project in Australia is then
planned to follow.
In May Federal Minster for Industry, Ian Mcfarlane, visited the
CETO R&D facilities in Fremantle to gain a better understanding of the
technology's potential.
He described CETO's ability to generate base-load zero-emission
power as the holy grail of southern Australia's future energy needs.
In August Carnegie announced a collaboration agreement with REH
that delivers Carnegie direct exposure to CETO once again.
Upon commercialisation, it allows Carnegie to take up to 90 per
cent of every CETO project in the southern hemisphere in return for
funding the balance of the development activities up to a maximum of $10
million.
BACKGROUND
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Carnegie Corporation was listed on the Australian Stock Exchange
on October 26, 1993.
Carnegie's executive team and directors have considerable
experience in technology commercialisation and corporate leadership
providing a strong platform for further growth.
Unlike other wave energy systems currently under development
around the world, the CETO wave power converter is the first unit to be
fully-submerged and to produce high pressure seawater from the power of
waves.
By delivering high pressure seawater ashore, the technology
allows either zero-emission electricity to be produced (similar to
hydroelectricity) or zero-emission freshwater (utilising standard
reverse osmosis desalination technology).
It also means that there is no need for undersea grids or high
voltage transmission nor costly marine qualified plants.
Cleaner Coal Power is a low-emission, coal-fired, power
generation technology that consists of a novel steam generator and
turbine system.
It has the potential to generate electricity at significantly
higher thermal efficiencies than existing technologies, and therefore
with lower greenhouse emissions, and with a lower capital cost than
conventional coal-fired power plants.
The unique design of the technology allows high-pressure steam
to be created by the rapid heat transfer from pressurised gas through a
thin-walled, high surface area vessel.
The technology also includes a novel turbine design incorporating
a heat exchange system which could be used in series with
the steam generator or as a separate commercial product.
The technology is currently patent applied for as a result of a
provisional patent application which was filed in 2006.
As with Carnegie's other technology developments, it is expected
that international patent protection process will begin within 12 months
when final design considerations are further advanced ahead of
subsequent national patent applications.
The Pursuit Jet Drive started life as a marine propulsion device
conceived, designed and developed by Carnegie.
Subsequent testing proved it to be widely applicable across a
range of industries such as the food industry and in fire-fighting.
The drive utilises steam to deliver a supersonic force with no
moving parts that can be used to propel objects and materials incredibly
efficiently.
Carnegie sold down its investment for a significant profit to
the UK-listed Pursuit Dynamics Plc and retains a royalty entitlement.
ENDS
CNM
carnegie corporation limited
