ReNu Energy (ASX:RNE) Announces Q4 2024 Activities and Strategic Transactions
MBO Proposal and Governance
ReNu Energy has received a non-binding indicative offer for a management buyout (MBO) of its wholly owned subsidiary, Countrywide Hydrogen Pty Ltd. An Independent Board Committee, excluding Boyd White, has been established to evaluate the proposal, considering market feedback, financial position, and funding requirements for the Hydrogen HyWay#1 project.
Sale of Geothermal Assets
On 24 December 2024, ReNu Energy entered an agreement with Hydro Lit Pty Ltd to sell its legacy geothermal assets for $700,000, payable in cash and convertible notes. The first tranche of convertible notes valued at $200,000 was received post-quarter. This sale aims to enhance value and invest in Hydro Lit’s lithium projects while maintaining ReNu Energy’s ownership below 10% upon conversion.
Financial Performance
During the quarter, ReNu Energy received proceeds from a $395,000 share placement and a $355,000 loan note issuance, which converted into 443,750,000 ordinary shares and options. The company also obtained a Tax R&D refund of $420,000, netting $110,000 after loan repayments. The cash position stood at $98,000 as of 31 December 2024.
Corporate Developments
ReNu Energy implemented its Corporate Execution Plan, achieving significant cost reductions in staff, administration, and corporate expenses. Additionally, PAC Partners continues to advise on capital options, and related party payments amounted to $111,000 during the quarter.
Outlook
For the next quarter, ReNu Energy aims to finalize discussions on the MBO proposal and a strategic transaction, continue assessing value realization opportunities from investee companies, and uphold cost discipline through the Corporate Execution Plan.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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