Another Australian player diversifying from geothermal
Weatherford drilling rig 828 on site in Australia (source: Greenearth Energy)
Francisco Rojas
24 Aug 2015
The company is looking beyond geothermal into NCF and getting ASX industrial classification.
Greenearth Energy Ltd has identified three near-term corporate objectives that are being undertaken to more clearly align Greenearth’s public positioning with its operating activities. These will also enhance internal governance and business structures with the aim of increasing shareholder value.
With the evolution of the company’s focus from geothermal exploration and development to commercialising renewable and clean technologies, both Vivid Industrial and NewCO2Fuels (“NCF”) are delivering continued success.
Accordingly, these three near-term corporate objectives are:
Review Board composition to suit strategic direction
- Greenearth’s current operating activities and accelerating commercial achievements have necessitated a review of Board composition
- The Board has identified specific experience and qualities required from potential incoming Directors that are aligned to our strategic direction and operating activities
- Greenearth will provide updates to this process in the near future
Transition to ASX industrial classification
- For reporting purposes, Greenearth’s ASX listing is currently categorised as a “mining entity” (due to its historical geothermal exploration and development activities)
- The company’s ASX shares are currently classified in the “Utilities” sector and industry group, in accordance with the Global Industry Classification Standard (GICS)
- Greenearth is reviewing these classifications due to its focus on Vivid Industrial and NCF, as such an industry classification aligned with the commercialisation of industrial technology is now more appropriate
- A reclassification will provide greater clarity for existing shareholders and investors on the company’s operating activities
- A reclassification will further enable market participants to consider a more appropriate peer group, with aligned reporting, to enable ease of comparison and analysis
- Greenearth’s company name is also being reviewed to ensure it more clearly communicates the company’s identity
- A decision on the name change will be announced by (or at) the company’s AGM to be held later in the year.
Improved NewCO2Fuels investment structure
- Greenearth and Erdi Fuels currently each hold 33.33% of the equity in NCF, with the balance held by the Weizmann Institute and technology team / founders
- With NCF moving towards commercialisation, Greenearth and Erdi Fuels will combine their holdings via a new joint investment entity
- This new entity will be 50% owned by Greenearth and 50% owned by Erdi Fuels, and will hold 66.67% of the equity in NCF.
- This new structure will provide a better platform for future NCF growth and increase opportunities for both Greenearth and Erdi Fuels to realise value from NCF Greenearth’s day-to-day activities of growing the business for the benefit of shareholders remains our priority, these activities are gaining considerable momentum.
To read the full press release, please follow the link below.
Source: Press Release by Greenearth Energy
