Wave energy developer Carnegie Corporation Limited (CNM) will acquire 100% of the intellectual property and global development rights for the CETO Wave Energy Technology under the terms of a binding Heads of Agreement (“HoA”) signed with Renewable Energy Holdings Plc. Under the HoA, Carnegie will purchase the CETO Technology intellectual property rights, REH’s potential CETO project site pipeline and assume REH’s rights and obligations under its joint venture license agreement with EDF EN. In consideration for the acquisition, Carnegie will issue 252 million fully paid shares to REH making REH Carnegie’s largest shareholder with 35% ownership.
Carnegie’s Managing Director, Dr Michael Ottaviano, said, “This transaction will deliver significant value to Carnegie shareholders in opening up Northern Hemisphere opportunities for Carnegie in the United States, Europe and across Asia. It simplifies the CETO ownership structure and allows Carnegie for the first time to have 100% ownership of CETO. We look forward to working closely with EDF EN in developing the Northern Hemisphere markets.” REH’s Chief Executive Officer, Mike Proffitt, said, “We believe that it is a logical development to combine both the IP and the know-how in a single entity while crystallising value for REH Shareholders.”