After a placement of 13.3 million shares, West Perth-based energy company Wasabi Energy Ltd will acquire a 50 per cent interest in a new company, after raising $400,000 from the placement.
After a placement of 13.3 million shares, West Perth-based energy company Wasabi Energy Ltd will acquire a 50 per cent interest in a new company, after raising $400,000 from the placement.
The new company, unnamed in a letter from Wasabi sent to the Australian Stock Exchange this morning, will advance $325,000 to K.E. Engineering, enabling it to complete construction of a biodiesel plant in Laverton, Victoria. Wasabi expects an eventual return of $900,000 for its investment.
Wasabi managing director Tim Wise indicated in the letter that this was the first step in the new company's plan to use the best people around to secure a reliable supply of feedstock and effectively produce biodiesel plants.
The full statement is pasted below
Wasabi Energy Limited ("Wasabi" or the "Company") has raised $400,000 through the
placement of approximately 13.3 million shares at a price of 3c per share with 13.3 million
free attaching options. The options, with the same terms as existing listed options, are
exercisable at 2 cents each and expire 31 December 2006.
Wasabi will use the funds to acquire a 50% stake in a new company formed to specialise in
developing bio diesel production plants and in marketing the fuel. Wasabi will contribute
$400,000 to the new company initially.
The new company's initial venture will be to advance $325,000 to K.E. Engineering Pty Ltd
("KE") to enable KE to complete construction of its bio diesel plant that is presently being
built at Laverton, near Melbourne, Victoria. It is anticipated that the bio diesel plant will be
producing high grade fuel by September of this year.
Wasabi will receive a fee for the initial contribution to the new company by a royalty from KE
on the first 20 million litres of fuel, at a rate of approximately 4.5 cents per litre. The final
amount that Wasabi should receive from KE is approximately $900,000.
The Swann Capital Group Pty Ltd, a diversified investment and venture capital group that has
previously provided funding for KE, will receive a 25 % stake in the new company in
consideration for the assignment of its $185,000 loan to KE. The remaining 25% of the new
company will be issued to Cambrian Mining Plc for contributing its extensive research and
know how on the bio diesel and ethanol producing industries.
The group has a well formulated plan to become a major player in the alternative fuel creation
business. This first step represents a quick entrance to the market with a strategy to use the
best the people in the business to secure a reliable supply of feedstock and know how to
produce state of the art bio diesel plants cost effectively.
Wasabi is a diversified energy group with investments in uranium exploration, coal, power
generation and renewable energy technology.
Cambrian is a London-based mining finance group with extensive investments in coal
production in Canada, the US and the UK, in base and precious metal mines and projects in
Australia and Spain and energy projects in Australia and Europe.
Swann is a private capital group that manages extensive investments in agricultural, seafood,
fertilisers and other projects.
