I have been a shareholder in Carnegie since 2008 and have followed this thread. I sold 6 million shares during the capital raising and kept about 100000 to keep the dream alive!
I sold for two reasons:-
$18 mil was raised in Apr 17 at 6.8c per share, 3 times the prospectus amount. In Apr 18 a further Capital Raising of $6 mil at 3c per share was announced. Loans were organized to build GI solar and Northam. The $18 mil must have gone into EMC with zilch return.
Seabased, https://www.seabased.com/, I looked through the various links and realized how far ahead of Carnegie they are to the point where they have a contract to install a 100 MW wave farm and a few other smaller instillations. The device uses linear induction and produces energy on up and down strokes. Faraday would be pleased! Those who are interested can follow the links.
Even a dreamer like me felt I had to save something.
The letter to Shareholders and the prospectus left me thinking CCE was indicating that $6 mil would be enough to get EMC to profitability. I had given up on Ceto in view of the Seabased information.
Next we have a 1:49 in specie distribution of EMC to shareholders wrapped up in M Power via TAG. I note that some on this thread equate that to $4 mil in value. If EMC is worth that why not sell it? The fact is it couldn't be sold for a meaningful amount, if at all. CCE couldn't get rid of EMC before a Capital raising as they knew the share price would be trashed and they wouldn't be able to raise sufficient capital to keep the Company afloat.
Bonus, post #: 34154454 , kindly reprinted an email from MO which I thought was very frank and honest.
The board found a way to salvage a company, which in my interpreted words of MO, was heading rapidly toward bankruptcy if they couldn't unload EMC.
I'm sure the board had legal advice prior to the Capital Raising. They took in $5.2 mil and on paper, propose to give back $4mil to shareholders.
I sold the rest of my shares last week due to the threat of legal action. I hope that doesn't eventuate. I would expect quasi government grants for the development of CETO would be held in abeyance pending resolution of any legal issues. Who knows how long that would take.
I hope Carnegie overcomes the current difficulties and shareholders have an opportunity to at least get their money back.
CCE Price at posting:
1.9¢ Sentiment: None Disclosure: Not Held
