Australian wave energy developer completes capital raise

Marine and hydrokinetic developer Carnegie Wave Energy Limited has completed a capital raise of US$4 million to accelerate work on its “CETO 6” generating system.

The Australian company said the capital raising comprises a placement of 4,000 convertible notes at an issue price of $1,000 each. Each note has a 24-month expiry, pay a non-cash coupon of 6% per annum and are convertible at any time a 5.5 cents per share, which represents a 30% premium to the last closing share price.

The notes will be repaid with proceeds from an expected research and design tax refund for the year ending June 30, 2014, Carnegie said, unless otherwise converted to equity.

Carnegie’s CETO 6 units are a “next generation” of the company’s current CETO 5 units, which are being manufactured for the Perth Wave Energy Project (PWEP).

HydroWorld.com reported in July that Carnegie had ordered foundations for the project before signing an agreement in August with a hydraulic fluid supplier.

HydroWorld.com reported in May 2012 that the company and partner Triton Renewable Energy had completed tests of a CETO unit off Bermuda’s south shore.

The project is being funded by a number of entities and low emissions energy development programs. Carnegie said installation of the foundation will begin by the end of this year.

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