Hi Michael as a large shareholder holding a minimum of 5 million shares I am deeply concerned regarding the non performance & devaluation of EMC. Is CCE going to survive?
Will the revenue you predict come in on target for this financial year. If not the share price is toast. I have been a shareholder for 10 years and I'm worried for the future and my capital. Why aren't Lendlease supporting & partnering EMC's projects? Why do we suddenly need Mpower after a $6m capital raise which I participated in. I'm not happy but have faith in the renewable concept you have always promoted.
Cheers
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MONDAY Michael Ottaviano sent the following message at 1:02 PM
Hi ****
Appreciate your thoughts and concerns.
EMC will deliver the revenue the FY as predicted as whilst and is growing rapidly ($5m 1H revenues/ $10m 2H revenues) but a business of this nature needs to be >$30m annual revenues before it will be profitable on a sustainable basis.
In the meantime, it will require ongoing funding. Carnegie's Board has considered a number of options to develop EMC. Lendlease aren't a funding option.
We are largely immaterial to them given our relative sizes. Merging EMC with a company more than twice its size gives it the best chance to be profitable quickly, removes the burden on CCE shareholders to fund more working capital and gives shareholders direct ownership of both a wave energy company and a solar/microgrid company.
We believe that Tag/MPower will be re-rated by the market significantly once people discover its scale and the market opportunity. As a shareholder, you should receive 1 Tag/MPower share for approximately every 49 CCE shares you hold at the time of the shareholders meeting.
As a holder of both Carnegie and Tag/Mpower shares you will have option on how you to choose to invest. Carnegie will continue with its wave energy development focus and not owning EMC allows it to retain access to the R&D tax incentive for CETO.
Carnegie will also retain 100% ownership of the Garden Island Microgrid and its current 50% ownership of the Northam Solar Farm. I hope this helps.
More information will be available in the Notice of Meeting that will be sent out ahead of the shareholder meetings.
Best Mike
CCE Price at posting:
1.9¢ Sentiment: Sell Disclosure: Not Held
