The commercial biodiesel fuel manufacturer today said details of the proposed rights issue are yet to be finalised but the company expects proceeds will be in the vicinity of $15 million, excluding the cost of the raising.

“Funds from the transaction will be used to retire debt, provide expansionary funds and working capital,” it said.

ABG said details of the non-renounceable rights issue, including a timetable and offer prospectus, will be released to the market when more details are confirmed and proposed underwriting agreements are known.

The company said it also noticed a rise in the share price of biodiesel company securities, including those of ABG, on February 12 and an article on the biofuels industry in the Australian Financial Review the day before, in which ABG was directly referred to.

“The company confirms it was not consulted in relation to this article,” it said.

ABG mothballed one of its biofineries and its vegetable oil crushing mill in December after suffering a $13.4 million loss in 2006.