Carnegie opens share offer in first step to wave power reboot

Australian wave power company Carnegie Clean Energy has launched a $5.5 million recapitalisation round, taking a first step in its bid to re-float the business that sank into voluntary administration in March this year.

Carnegie released a prospectus on Friday, marking the end of its period under administration and fleshing out plans to deliver a commercial ready version of its CETO wave energy technology.

The company said it hoped to raise a minimum of $5.5 million through the new offer, and – if successful – resume trading on the ASX, and get back to the business of making wave energy generation competitive with comparable renewables, starting with offshore wind.

“Our plan is simple, to move the technology development into a hi-tech pathway of building a digitised virtual prototype using emerging computational means such as artificial intelligence (Machine Learning) and leveraging our important strategic relationships,” a statement from Carnegie chair Terry Stinson said.

“This pathway is intended to be significantly quicker and require substantially less funds.”

As reported here last week, Carnegie will offer existing shareholders the option of purchasing new shares in the company, through a 4-for-1 offer at just 0.1 cents per share as it seeks to recapitalise the business after the company’s foray into solar microgrids ended in disaster.

Despite this, the company appears to have retained the support of key backers, and in particular their faith in the world-leading 1.5MW CETO6 wave energy unit.

The decision to off-load the “loss-making” Energy Made Clean solar engineering business was also considered vital to a newly streamlined business, with “reduced headcount and lower operating costs,” the company said.

The offer closes on September 04.