A major share placement, which raised Aus$5.75 million of capital, was announced today (27th May) by the Australian wave energy developer, Carnegie Corporation Limited. The placement, arranged by joint lead managers Blackswan Equities Pty Ltd and Patersons Securities Limited, saw just over 26 million shares at an issue price of 22 cents per share taken up by the market.

According to Carnegie firm commitments having now been received for the entire amount. The company originally intended to raise an amount of up to Aus$5 million, however due to demand and after scalebacks the company has now accepted oversubscriptions to raise a total of Aus$5.75m.

The capital raising allows the funding requirement condition precedent in the recently announced CETO IP acquisition to be satisfied. Under the terms of Carnegie’s binding Heads of Agreement with REH for the 100% purchase of the CETO IP, Carnegie was required to have a minimum cash balance to cover the remaining 2009 CETO operating budget upon completion of the transaction which was expected to be approximately $2m. Under these terms, REH will continue to fund CETO development until the completion of the IP purchase transaction expected to be in September.

“We are extremely pleased with the strong response to this capital raising initiative", said Carnegie Corporation’s Managing Director, Dr Michael Ottaviano. "It reflects an ever increasing understanding in the marketplace of Carnegie and the significant role that wave energy could play in Australia’s future energy mix and globally.”

Funds raised from the Placement will be applied towards the final phase of the CETO technology development and general working capital requirements.