CBD Energy Raises US$6.25M Through Convertible Note Issue

SYDNEY, Australia, June 11, 2012 /PRNewswire-Asia/ -- CBD Energy Limited (ASX: CBD), a diversified renewable energy company, has raised US$6.25 million under a convertible note facility.  Partners for Growth ("PFG"), a San Francisco-based financing group with a focus on technology and life science companies, is the lead investor in the facility and is expected to participate in subsequent closings under the facility.  The initial funding enables CBD to accelerate its domestic and international growth strategies.

CBD expects to use the proceeds from the initial and subsequent funding under the facility to:

• fund expansion of its restructured residential solar businesses which has new opportunities for growth;
• progress opportunities within the commercial solar market in Australia, Europe and the U.S.;
• move forward with its wind farm development program in Australia, including completion of the initial development and ownership transfer of the Taralga Wind Project;
• accelerate sales growth in both the U.S. and Australia for integrated solar panels produced by Westinghouse Solar Inc., which is being acquired by CBD pursuant to a merger agreement announced in May 2012; and
• maximize opportunities to deliver on a large pipeline of European solar projects, including the accelerated completion of 5 MW of projects currently under construction.

According to CBD Managing Director, Mr Gerry McGowan: "The funding is timely for enabling CBD to create value from its substantial international project pipeline and also reflects confidence  of a major US institution in the business model CBD has developed. Achieving funding in this market at a premium to our current share price is a positive reflection on the team we have built and the opportunities we have created," Mr McGowan concluded.

The convertible notes are secured and have a term of 36 months with a conversion price of A$0.053. Interest is payable at the rate of 9.75% per annum. Under the facility, warrants equal to 25% of the conversion shares are issuable with each convertible note and are excisable for five years at a price of $A0.053.

The conversion of the convertible notes and exercise of the attached warrants is conditional on shareholder approval to the extent CBD has insufficient capacity to issue new shares in accordance with ASX Listing Rules. CBD plans to announce a special meeting of shareholders shortly and in the notice of meeting will provide additional details on the terms of the agreements.

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