Coalbank Ltd.agreed to invest A$1 million to acquire a 25% interest in biogas energydeveloper Utilitas Pty. Ltd.
Under the terms, the company will subscribe for 7,072,365shares of Utilitas. The investment will entitle the company to appoint itsrepresentative on the energy developer's board and a preemptive right in futurecapital raisings.
The settlement is expected to occur within the next fivedays after legal due diligence is completed.
Coalbank's major shareholder Treasure Wheel Ltd. hasprovided the A$1 million funding for the investment, the company said.
The funds have been advanced as an unsecured loan that willbe converted to a convertible note, subject to shareholder approval.