Release
Clean tech power specialist Wasabi Energy is raising up to A$9.8 million (£6.33 mln) via a placing and rights issue to invest further in its main projects.
The placing is with UK institutional investors for 300 million new shares at 1.1 pence per share (around 1.7 Australian cents) to raise gross proceeds of around A$5.1 million (£3.3 mln).
The company is also offering shareholders a rights issue at the placing price on the basis of one new share for every 10 held to raise up to A$4.7 mln (£3.03mln).
Of this, A$2.5 million is being underwritten by chairman John Byrne and A$100,000 by director Robert Vallender.
Today, Byrne told investors that he was very pleased at the "strong support" shown by the firm’s UK based institutional shareholders.
"In a difficult market, their vision to support the growth of the company as we strive towards being an independent power producer is encouraging.
"With the recent announcement of the second plant by FLSmidth in the cement sector, and the implementation of high renewable energy feed in tariffs in Japan, including between 32c and 55c per kWh for geothermal energy, there continues to be momentum for a new generation of power production.
"This momentum, when allied with our opportunities in Turkey, South Africa and elsewhere provide a solid outlook for the implementation of the Kalina Cycle globally."
Wasabi said the proceeds from the fundraising will go towards further investment in its main projects as well as for working capital and for the partial repayment of loans due to a director.
Th firm has a strong pipeline of power projects with 15MW under construction, 14.5MW at feasibility stage and around 45MW at pre-feasibility stage, it said.
"This underpins the company’s goals to have 25 MW under construction/operation within 12 months, 50MW within 3 years and more than 100MW within 5 years," it added.
It continues to develop its IP and expects to continue to lodge new patents for its technology, it also said.
Updating on trading, the company said it continued to make good progress through establishing its Kalina Cycle power plants and progress was in line with its targets for Build, Own, Operate power plants (BOO) as well as targets for Engineering, Procurement and Construction (EPC) contracts and license partners.
As previously reported, it is in ongoing discussions with a number of major groups across the world about its technology.
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