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Eden Energy secures $1.6 million through capital raising

Eden Energy (ASX: EDE) has closed a non-renounceable pro-rata rights offer raising $647,793.10, with further offers set to increase this amount to $1.6 million.

A total of 12.9 million shares at $0.05 each were taken up under the offer, with each share having an attached option with an exercise price of $0.20 and an expiry date in June 2014.

The offer was partially underwritten to 18.6 million shares, also at $0.05 for a total value of $933,000, along with 18.6 million accompanying options. These shares and options will be issued to the underwriters in accordance with the underwriting agreement.

In addition, Eden reserved the right in its prospectus to place any shortfall securities within three months of the closing date of the offer.

Since the closing date of December 8, 2011, applications have been received for 1.6 million of shortfall securities, for a total of $84,586.80.

Funds raised through the offer will be used for working capital as well as to settle outstanding obligations.

Concrete strengthening technology

Eden recently had a breakthrough with its concrete strengthening nano-carbon technology, with U.S. subsidiary Hythane Company refining the dispersion technique.

This allows for better coverage in reinforcing applications, overcoming a major hurdle in the development of bulk commercial applications for the nano-carbon products.

Eden is targeting concrete reinforcement as a potential major market.

Initial tests of Eden’s carbon products in certain concrete formulations showed increases in flexural strength of between 15% and 30% seven days after treating.

Increasing the flexural strength of concrete is a boon for the construction industry, allowing for reduced concrete beam dimensions and consequently thinner floors, reducing overall building height.

Opti-blend dual fuel

In addition, the company recently secured its first large order in the U.S. for Opti-blend dual fuel units.

OptiBlend, produced by Hythane Company, is a dual fuel system that displaces up to 70% of diesel with natural gas in diesel engines.

An international drilling company has advised Eden to expect an initial order for 12 OptiBlend units, worth about US$300,000, for use in land-based drilling operations, with follow up orders planned after installation.