Coalbank Ltd.agreed to invest A$1 million to acquire a 25% interest in biogas energydeveloper Utilitas Pty. Ltd., according to a July 15 release.
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.