Renu Energy To Raise ~$5.5 Mn For Renewable Energy Business Expansion

  • Apr 12, 2019 AEST
  • Team Kalkine
Renu Energy To Raise ~$5.5 Mn For Renewable Energy Business Expansion

On 12th April 2019, ReNu Energy Limited (ASX: RNE) announced that it would raise around $5.5 million (before costs) via a pro-rata non-renounceable shareholder entitlement offer for growing and expanding the company’s bioenergy and solar PV businesses.

The offer entitles eligible shareholders to acquire three new shares for every four existing shares held in ReNu Energy at 6.6 cents per share. The eligible shareholders on the register as at 7.00 PM (Sydney time) on Thursday, April 18, 2019, are entitled to participate. The offer is not underwritten. It will include the issuance of 83,215,306 shares (Maximum) at the issue price of $0.066 per share.

A top-up facility will allow eligible shareholders the opportunity to apply for additional new shares in excess of their entitlement at the same issue price of 6.6 cents per share, subject to the scale back at the discretion of the company.

The offer price equates to a discount of approximately 17.5% based on the share price at the close of trading on 11 April 2019, and a discount of about 18.5% to the 30 day volume weighted average price and a discount to the Theoretical Ex-Rights Price (TERP) of 10.8%.

The capital raised from the offer will be used for growing and expanding the company’s bioenergy and solar businesses, including the costs of undertaking necessary due diligence and commercial negotiations, and working capital as ReNu Energy works towards its 2019 target of adding a further 9MW of installed generation capacity and becoming earnings cash flow positive.

ReNu Energy also provided an update on the company’s activities along with financial performance. The group reported a steady revenue at $0.95 million from the previous half year and up 104% from H1 FY18. Its EBITDA improved by 30% from the previous half year to $1.45 million (loss) and by 45% from H1 FY18. Its gain/loss after tax improved by 40% from the previous half year to $1.37 million (loss) and by 53% from H1 FY18. Its cash position as at 31 March stood at $1.5 million.

The company’s CEO, Mr. Craig Ricato stated that they had developed a scalable and unique listed renewable energy platform within the Australian market. They are targeting a 9MW increase in installed generation in 2019, to increase revenue and move the company to cash flow positive earnings. To achieve this, they intend to aggressively grow the generation portfolio within their solar and bioenergy operations through continued growth of their development pipeline and acquisition of complementary assets and operations.

Under commercial opportunities, ReNu would focus on strategic investment opportunities with companies offering operational synergies and large scale solar PV and bioenergy generation asset acquisitions.

At the time of writing (on April 12, 2019, AEST: 02:00 PM), the stock of ReNu Energy is trading at $0.075, down 6.25% with a market capitalisation of ~$8.88 million. Today, it made day’s high at $0.08 and day’s low at $0.072 with a daily volume of 440,729. Its 52 weeks high was at $0.18 and 52 weeks low at $0.07 with an average volume of 48,358. Its absolute return for five years, one year and three months are -88.07%, -46.67%, and -9.09%, respectively.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK