Reply email from CCE

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Hi Aaron

Carnegie’s Board has considered a number of options to develop EMC through to being a sustainable, profitable entity.  During the last capital raise and roadshow we discussed that both organic and M&A growth options were on the table. Since the capital raise, this transaction has emerged as the best option.  Whilst EMC is growing rapidly (revenues ~$15m this year) profitability will still take some time and require more working capital.  Merging EMC with a company more than twice its size gives it the best chance to be profitable quickly, removes the burden on CCE shareholders to fund more working capital and gives shareholders direct ownership of both a wave energy company and a solar/microgrid company.  We believe that Tag/MPower will be re-rated by the market significantly once people discover its scale and the market opportunity.  As a shareholder you have the ability to retain your shares in CCE and also will receive shares in the combined MPower/EMC company.

Regards
Michael Ottaviano
CEO & MD, Carnegie Clean Energy