Shares in Carnegie Wave Energy were lower after the company announced a discounted $6 million share purchase plan for an expansion of its Perth Wave Energy Project (CETO 6).
Existing shareholders will be able to purchase between $1500 and $15,000 worth of new shares at five cents each, a 14 per cent discount to their last traded price before the announcement.
"The capital raised in the share purchase plan will be utilised as matched funding alongside the recently signed $20 million Clean Energy Finance Corporation five-year loan facility and any potential future Government grants for the CETO 6 project," the company said.
"It could also be used for an international CETO 6 project should one proceed."
Carnegie's managing director Michael Ottaviano said it was an exciting period for the company as it moved ahead with CETO unit assembly, testing and installation of the CETO 5 Perth Wave Energy Project as well as the development of the commercial CETO 6 unit.
"It is essential that we are able to accelerate the commercial unit design and its demonstration," he said.
"Beyond its planned demonstration in 2016, the 1MW CETO unit will allow Carnegie and its licensee partners to roll out profitable wave power projects globally."
Carnegie's patented CETO wave power technology uses submerged buoys tethered to seabed pump units. The buoys move with the motion of the passing waves and drive the pumps. The pumps then pressurise fluid which is used to drive hydro turbines and generators to produce electricity.
Carnegie shares were off 0.6 cents, or 10.35 per cent, to 5.2 cents at 9.05am.