Carnegie raising oversubscribed

Carnegie Wave Energy has completed an oversubscribed $9 million capital raising as it continues development of its CETO 6 wave power technology.

The Fremantle-based company announced in February that it planned to raise $6 million through a share purchase plan but said today that it had accepted a further $1.6 million in subscriptions to the plan.

It has also accepted commitments for a further $1.5 million private placement, predominantly to existing shareholders.

The offer price for both the share purchase plan and the placement represented a 14 per cent discount to the company’s closing share price immediately prior to announcing the capital raising.

Carnegie managing director Michael Ottaviano said the company was delighted by the strong response from its shareholders.

The funds will be used for the design and development of CETO 6 and for working capital purposes.

The company’s CETO wave energy technology is a submersible offshore unit that captures wave power to pump water at high pressures and drive turbines and generators to produce electricity.

Carnegie recently received $20 million in debt funding from the federal government's Clean Energy Finance Corporation to partially fund the project.

Its shares were steady at 5.4 cents at 11:20am WST.