Wednesday 22 July 2009

Carbon Planet, m2m to create $117m firm

Adelaide Advertiser
Tuesday 21/7/2009 Page: 30

Carbon Planet will merge with Melbourne-based telecommunications investor, m2m Corporation, in a deal expected to create a $117 million, stock market-listed carbon trading company. The SA-based carbon management services company said the deal would make it a close to 60% shareholder in technology investment company m2m Corporation, through the issue of 464 million m2m Corporation shares. The merger was expected to go through by the end of the year.

Carbon Planet chief executive Jim Johnson said yesterday the merged entity would have a market cap of $117 million, with most value attributable to Carbon Planet. "The value represents the money that Carbon Planet has received in investment funds from shareholders in the past 12-18 months," Mr Johnson said. In a complicated scrip and capital-raising deal, m2m Corporation will consolidate its shares by 20 to 1, valuing each share at 12c based on yesterday's closing price of 0.6c.

After the consolidation, m2m Corporation expects to raise $10 million from investors at 20c each - 8c more than the current consolidated trading price, m2m Corporation's market capitalisation at close of trade yesterday was $7.9 million. Carbon Planet said yesterday it expected to make a profit this financial year. Its financial statement to the end of June 2008 - submitted to the Australian Securities and Investments Commission - showed the company had incurred accumulated losses of about $6 million with current liabilities exceeding assets by $20,020.

In a presentation to m2m Corporation shareholders, Carbon Planet said it had 25 Reducing Emissions from Deforestation and Degradation (REDD) projects in Papua New Guinea expected to generate $1 billion annually, with another eight REDD MOUs in Indonesia. "These are firm contracts on paper," Mr Johnson said. The company said it had only two projects in PNG less than a month ago, m2m Corporation, incorporating Carbon Planet, will be the first Australian-listed entity providing full services in carbon trading activities, the companies said yesterday.

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