Renewable Energy

Renewable Energy: entered into a conditional subscription agreement with Grand Sea International, for the issue of 108m new shares (13% of enlarged share base) at $0.05 per share, representing a 7.4% discount to the last closing price before the trading halt on 30 Apr. Grand Sea is a BVI company, whose sole sh/h is Mr Xu Shenghua, a Chinese investor and businessman. He is involved in the business of importing and sale of machinery and eqpt for the offshore engg industry. Net proceeds of $5.35m will be used for invmt in new solar power plant projects (75%) and general working capital (25%). The co has been loss making since FY09. It trades at c.1.5x P/B (post placement). The stock is +5.6% at $0.057, but down from an earlier high of $0.066. As an aside, the subscription agreement was signed on 24 Apr 2013. One wonders why the stock was halted only a wk later for the announcement to be released.