The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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AGM not AGP*
New note out from Cenkos according to research tree. Has there been a change to their price target of 260p?
Was just having a look at AGP vs DCTA revenues from the last full year results,
AGP around £0.1m and market cap £16m
DCTA around £6m and market cap £66m
The last raise, from what I gather from RNS's was mainly an aquasition event with the 51% purchase of Setcar. There followed a General Meeting weeks later after the announcement for shareholder approval. A similar GM would be required for a future raise as it was not mentioned at the last AGM
Recurring contract is great news. The HC’s get to be reused as well.
€800k pa on top of existing cashflow is significant.
Be great if they land another customer.
I was expecting a raise by now. It wouldn’t necessarily need a vote if in articles of association. I don’t remember a vote for previous raise.
It’s possible that a pick up in revs ‘post’ the worse of covid has meant it can be put off/not needed.
Cash would not be an issue as it could all come from PSS’s loose change!
Update on roads must be due soon.
Trek
And there is yet another Grafysorber contact.
I believe this tech alone will be a company maker and hopefully we shall see this increase market penetration over the rest of this year.
You mention the expectation for the company to raise funds. But at the AGM there was no provisions/no resolution for a fundraise.
How then would funds be raised? Would it require a prospectus and EGM?
There is a great Cenkos note out on research tree. I get it on email. Here is an extract...
“Despite COVID Directa Plus continues to trade well with revenues of €2.8m for the first four months of FY21 showing the company is on track to exceed our prior full year expectation and we have upgraded our FY21E and FY22E revenue expectations by 4%. Directa Plus has demonstrated material conversion in two key environmental technology business lines which we believe, and demonstrate in this report, each alone justify the current market capitalisation:
In environmental remediation, its unique Grafysorber technology is a commercially-proven low-cost solution to separate oil from water effectively with current customers OMV Petrom and Lukoil expected to continue to expand contracts to cover all sludge and emulsion production. The next phase of commercialisation will see the technology marketed to major O&G players. With the potential to recover nearly $40bn pa in valuable hydrocarbons from expensive to treat waste streams, even small market shares in the next decade could generate significant shareholder value.
In energy storage, its graphene materials have been chosen by NexTech after NexTech performed a global search and evaluation of available graphene materials. With a commercial supply agreement signed and NexTech commencing commercial production of its highly energy dense and cost-effective Lithium Sulphur technology at its first giga factory this year, once again, even small market shares in the next decade should generate significant shareholder value.
? It is positive to see Directa Plus start the year strongly with an increasingly robust and diversified customer mix enabling us to upgrade expectations. This also provides greater confidence that the company is funded to profitability on current expectations.
? We increase our DCF valuation to 250p from 160p previously as we now include estimates for the supply of graphene to NexTech following the announced commercial supply agreement. This would give the company a market capitalisation of c£150m which we believe would start to put the company in line with the valuations attributed to other IP based technology businesses exposed to the environmental and electrification macro themes.”
I like this bit....40bn!
“Grafysorber has huge global potential
We believe the market is not yet appreciating the highly significant global value Grafysorber can provide by recovering valuable hydrocarbons that would otherwise have significant costs (financial and energy/carbon) associated with processing or disposal. The Grafysorber technology is low cost, easily scaled and highly environmentally friendly and we estimate in this report the market potential for this is likely to exceed $40bn pa as calculated by hydrocarbons that could be recovered.”
Then this...
“DCF of Grafysorber alone underpins group valuation”
Looking at the accounts though I expect them to raise 3-5m & I expect it will be open