Eco Investor Update
A Weekly News Update for Environmental Investors
February 2013 - No 115
Tox Free Solutions
Energy World Corporation
The company has acquired seismic data for its Sengkang gas field to assist with finding new gas for its Sengkang LNG Plant. (ASX: EWC)
Carbon Conscious wants to raise up to $1.5 million with $1.2 million from the share purchase plan and $300,000 from a placement to institutional and sophisticated investors.
It will also issue a free listed option for every two shares subscribed for. The exercise price is 8 cents and the expiry date is 31 March 2015.
The capital will be used to repay $ million of the convertible notes held by Aroona Management Pty Ltd. The balance will be used in the carbon and energy efficiency markets and for working capital.
At 31 December Carbon Conscious had cash of only $348,000. (ASX: CCF)
Its longer term strategy of cash flow diversification resulted in a significant turnaround in the December quarter, it said. It received the proceeds from the sale of its 5 MW solar project in Italy and development fees and reimbursements from the Taralga wind project. Inflows from these projects were $22.6 million.
The proceeds were used to pay for development costs and working capital and to retire $11.5 million in debt.
The company said all operating businesses are responding well to restructuring initiatives, and the Australian solar installation business is growing again and good gains are expected in the second half.
However, cash at the end of the quarter was only $570,000. (ASX: CBD)
Novarise Renewable Resources
The company has reported December quarter receipts of $7.3 million and December half revenue of $26.6 million, indicating a significant fall in the December quarter. Net operating cash flows remained slightly negative. (ASX: QTM)
Ceramic Fuel Cells
The agreement is for the minimum delivery of 200 BlueGen units in 2013 and another 200 BlueGen units in 2014. The arrangement has limited exclusivity for the companys use of BlueGens in the social housing sector.
iPower is a developer of low carbon projects that use a range of technologies to reduce energy bills and carbon emissions. It offers guaranteed discounts on electricity tariffs to social housing tenants where BlueGen is installed. Installations are offered on a turnkey basis and can be fully funded by iPower.
CFCL said the agreement with iPower reflects its increased emphasis on using BlueGens in the social housing market where the cost savings can have most effect, particularly in apartment blocks where the electrical output from one BlueGen can be shared between up to four apartments.
Jon Cape, chief executive of iPower said The use of BlueGen in social housing offers real scope to bring down fuel bills for the least well off in society. We are already at the detailed design stage with the first large project under this agreement and are attracting Expressions of Interest from a number of Councils and housing associations across the UK.
iPower will use installation, sales and service partners who are approved by CFCL to deploy BlueGens across the country.
Bob Kennett, chief executive of CFCL said he looks forward to developing some key opportunities with iPower in the future.
During the December quarter, CFCL booked the sale of 43 units to revenue, bringing the half year total to 90 units. Receipts from customers were $2.2 million and $4 million for the half year. (ASX: CFU)
Micro Cap Companies
Managing director David Fisher said the company has a number of initiatives to generate sustainable revenue growth and will provide an update this month.
The company has adapted several of the products from its R&D program and platform technologies for specific customers and aims to incorporate them into their commercial products.
Each of the platforms continues to demonstrate high levels of efficacy and favourable results in third party testing compared to existing microbial control technologies, he said. Aeris is forecasting a significant growth in sales of its HVAC and refrigeration solutions, both in terms of the projections for existing customers and the progressive acquisition of new customers, particularly in the OEM sector.
Convertible notes totaling $1.88 million were converted to equity during the December quarter. Loans totaling $600,000 were made by some companys directors, $150,000 of which was the drawdown from an existing working capital line of credit of $250,000.
Cash at end of the quarter was only $303,000. (ASX: AEI)
Revenue for the six months to 31 December was $2.1 million compared to $2.2 million for the same time the previous year. (ASX: CNN)
Only one new embedded network came online during the quarter. Chief executive Tim Hunt Smith said the timing of five sites has been delayed due to regulatory constraints caused by the application of solar rebates. These five sites will now be phased in gradually and commence during this fiscal year. Further sites also are expected to come online over the next six months, which should result in an increase in the companys net operating cashflows by fiscal year end, he said. (ASX: INT)
Chief executive Dr Ron Weinberger said that as the installed base of Trophon EPR units grows, sales of consumables will add to revenue. It is early days for this shift but we are beginning to see rising revenues from consumables. This is an important aspect of our business model and revenues from consumables will grow in significance into the future, he said. (ASX: NAN)
Chairman Murray dAlmeida said the group continues to demonstrate an ability to win substantial business from the government and blue chip companies. (ASX: PEH)
Phoslock Water Solutions
Decisions are pending on a further three separate Phoslock applications in the UK worth around $200,000.
PHK had net operating cash flow of minus $241,000 for the December quarter. Receipts from customers and grants were $428,000. The cash balance was $187,000 at 31 December.
The companys working capital facility is drawn to $1,298,000, and a general meeting on 15 February will seek approval for the working capital facility to convert into shares at 4.6 cents each by 31 December this year. (ASX: PHK)
Po Valley Energy
Mr Farrell has over 30 years of experience in private and public corporates, including the mining industry at senior management and board level, and principally in the areas of finance, marketing and general management.
He is a Fellow of the Australian Society of Accountants and the Australian Institute of Company Directors. He resides in London where he is said to have strong relationships with brokers and fund managers.
Yin How is based in Nanjing, China, and is a chartered accountant with experience in corporate finance.
Managing director Charles Chen said the company will continue to search for additional qualified board members and senior management.
Vmoto has completed the development of newer versions of its electric scooters with new versions of the 80L, 80S, 120S and 120L. These have more sophisticated settings and new lithium batteries packs that are inter changeable with the silicone batteries pack.
The company said it will continue to improve its electric scooters.
Compliance testing is underway in Australia for Vmotos new E Milan, an electric version of its popular petrol Milan scooter and this is expected to launch in Australia in the second quarter.
Receipts from customers for the December half were $4.6 million. (ASX: VMT)
Gas sales were 493.3 terajoules, up 24.2 per cent on the same period last year, but down 6.5 per cent on the September quarter.
Discussions continue about the indicative takeover proposal. (ASX: WCL)
One more judicial review remains about the Temporary Operating Licence, but Lynas said there is now no injunction or stay preventing it from carrying out its operations at its Malaysian plant. (ASX: LYC)
Micro Cap Companies
Carnegie Wave Energy
Dyesol said it continues to investigate strategic investment opportunities to strengthen its balance sheet and provide financial stability for its core R&D. It is in latter stage discussion with one strategic investor with detailed negotiations advancing favourably.
As a world class chemicals company, the investor is motivated by the opportunity to secure access to the growth opportunity of dye solar cells and contract materials supply, it said. Such is the detail, information exchange and documentation, Dyesol expects to announce the investment within the next four weeks.
At the present time, the investment is expected to be in two tranches, with the first tranche providing sufficient funds to significantly eliminate the prospect of any further dilution to Dyesol shareholders during 2013. With a number of key milestones expected during that period, there is an excellent prospect of capital growth for existing shareholders.
Dyesol is also negotiating a bank facility to advance an agreed percentage of the eligible R&D tax rebate for R&D expenditure undertaken during the financial year.
Meanwhile, under their agreement, Dyesol and the Energy Research Institute at Nanyang Technological University will share resources and create scalable and commercially feasible solid state dye solar cell (DSC) technology.
Dyesol chief executive, Gordon Thompson, said NTU will provide the innovation inspiration, and Dyesol will provide the development perspiration by scaling up and testing for durability the small scale technology that NTU will develop.
It is a lot of work to go from a test cell to something that is industrially scalable, in terms of performance, durability, and cost, and that is where we spend more time in Australia. By working together to create scalable and commercially feasible solid state DSC we will open up a huge range of applications where we are currently limited with the materials we have.
NTU and Dyesol will share intellectual property and Dyesol will have the opportunity to take out commercialization rights for the new IP under the agreement.
ERI@N executive director, professor Subodh Mhaisalkar said In the upcoming projects, we aim to optimize the solid state DSC devices to high efficiency cells that are more reliable and more amenable to scaling and manufacturing than conventional liquid electrolyte based solar cells.
The project will be overseen by the inventor of dye solar cell technology, professor Michael Graetzel, who is chairman of both the Energy Research Institute at NTU's Scientific Advisory Board and Dyesol's Technical Advisory Board. (ASX: DYE)
A replacement will be nominated in due course. (ASX: GER)
The Daily Examiner reported that five protesters were arrested by police while obstructing outgoing trucks at the Glenugie drill site.
The trucks were removing drilling equipment to Metgasco's headquarters. "Protesters said they wanted to stop the trucks from going to what they say they believe is Metgasco's next drilling site at Doubtful Creek in Kyogle Shire," said The Daily Examiner.
"Three of the five protesters arrested had also been arrested on January 7 and were deemed by police to have breached good-behaviour bail conditions."
Metgasco said its Glenugie exploration well, Thornbill E04, has been completed successfully.
The Northern Star reported that "Anti-CSG protestors have shifted their focus to Doubtful Creek, the expected site of Metgasco's next drill site, after Metgasco completed drilling at Glenugie late last week.
"An activists' camp has already been established at the Doubtful Creek site and was manned throughout the weekend despite the wild weather," it said. (MEL)
Water Resources Group
At 31 December it had cash of only $21,000. The company said it is in discussions with two groups of investors and is hopeful it can close a placement this month. (ASX: WRG)
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