CBD Energy
CBD Energy (ASX: CBD) is a diversified renewable energy and energy storage company providing integrated sustainable solutions for fossil fuel and CO2 emission reduction. CBD has offices in Melbourne and Sydney. CBD aims to develop a portfolio of operating assets in which we hold minority interest and earn ongoing cash flows. Projects developed should benefit the communities in which CBD operates.
CBD Energy to raise up to $27.5m for acquisition, projects
Diversified renewable energy company CBD Energy (ASX: CBD) is strengthening its balance sheet after announcing plans to raise between $18m and $27.5m in new capital to fund the strategic acquisition of eco-Kinetics Pty Ltd and its current project pipeline.
The capital raising will be by way of placement and share purchase plan. CBD’s acquisition of eco-Kinetics broadens its business base and significantly adds to revenue, earnings and the geographic spread of the business.
eco-Kinetics forecasts to achieve revenue of $40m for the year ending 30 June 2010 with the recent $20m contract (estimated) in Shepparton to contribute to revenue in 2010 and 2011.
The acquisition of eco-Kinetics also represents a significant step in CBD implementing its business model of being a diversified renewable energy company, covering projects in solar, wind and energy storage.
Funds raised through the placement and the SPP will further strengthen CBD’s balance sheet and allow it to pursue its growth initiatives. Specifically, the capital raising is required in order to facilitate the purchase of and meet working capital requirements of eco-Kinetics.
The acquisition of eco-Kinetics marks the end of CBD’s restructuring phase and positions it as a company with revenue and earnings which will support a growing list of renewable energy projects in Australia, China and New Zealand and fund development at King Island, Chatham Island, Adjungbilly and Shannon’s Flat.
The funds raised will also deliver to CBD the flexibility to take advantage of new business opportunities as they arise.
CBD Managing Director Gerry McGowan said the capital raising allowed CBD to complete the acquisition of eco-Kinetics as well as continue new projects in Australia, China and New Zealand.
“In launching this capital raising it has been gratifying to receive strong support from existing and new shareholders who share our confidence in the growth of the renewable energy sector, including cornerstone investors Washington H. Soul Pattinson and Hunter Hall,” Mr McGowan said.
“The Company is hoping the expanded shareholder base combined with CBD’s move to profitability and significant project pipeline, will see the true reflection of the Company’s worth reflected in our share price.
“The level of interest from the government and the general public in supporting the use of renewable energy also creates a favourable business environment for CBD in Australia and internationally."
CBD’s placement is subject to shareholder approval at an extraordinary general meeting to be held on 20 January 2010.
Register here to be notified of Proactiveinvestors One2One Forums.
Other CBD Energy articles
Other CBD Energy news
-
09/03/10 CBD Energy's eco-Kinetics wins Ergon solar contract
-
01/02/10 CBD Energy completes $18m raising, company transforming eco-Kinetics acquisition
-
23/11/09 CBD Energy takes foothold on renewable energy sector with latest acquisition
-
19/11/09 CBD Energy purchases 20% of Planet Power
-
17/11/09 CBD Energy shares up 16% after signing agreement with Chinese utility group
-
09/11/09 CBD Energy receives $15.28 million Federal Government grant for King Island Project
-
10/09/09 CBD Energy looks at second wind farm project in Australia