Proactiveinvestors recommends

Additional Information

Market:	ASX
Sector:	Alternative Energy
EPIC:	CBD
Latest Price:	0.09 (6.25% )
52-week High:	0.18
52-week Low:	0.07
Market Cap:	38.53M

1 year chart

1 day chart

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 Energy completes $18m raising, company transforming eco-Kinetics acquisition

Monday, February 01, 2010

Sydney-based renewable energy company, CBD Energy (ASX: CBD) has raised $18 million to fund its recent acquisition of eco-Kinetics Ptd Ltd and project pipeline.

Capital raised was by way of share placement and share purchase plan. Both the placement and the SPP were undertaken at a price of $0.13 per share.

eco-Kinetics is a provider of engineering design, supply and installation services to the renewable and sustainable energy markets. eco-Kinetics is profitable and expects to earn $40 million in revenues for the year ending 30 June 2010.

A$30 million-capped CBD Group expects the eco-Kintetics acquisition to be earnings accretive in the current year and for CBD to be profitable in the year to June 30 2010.

Despite the acquisition, which transfors the company into a revenue and income generating company, CBD trades at a modest market valuation.

eco-Kinetics increases CBD’s suite of products and services in the sustainable and renewable energy sectors. Both CBD and eco-Kinetics are highly complementary businesses, particularly in the engineering consulting services sector.

Funds raised in the issue will fund development of CBD's solar and wind projects and fund the commencement of the King Island renewable energy project. The latter will see the first commercial application of the company's energy storage technology.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.