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the reality is the board and ellwood dont know their **** from their elbow....
regardless of the funding environment this is a total **** show. advisers are criminal (literally) - whole thing is a disgrace. best of delisting and returning whatever cash is left. shouldnt spend another penny on advisory fees.
Shells just appear to have have a torrid few years, and with interest rate increases spooking the equity markets, the difficulty in raising money for such small companies, with promising projects just hasn't come to fruition like people may have thought it would.
It's easy said that this always looked to be a failure in hindsight, but how many chances should a board get to deliver an RTO and future value to shareholders?
This is soon to have had 3 bites at the cherry. Is it third time lucky? I'm not sure.
Or is he still lining the pockets of our Shyster advisers???
The Letter of Intent
The LOI is non-binding save for, inter alia,due diligence to be completed by 16 February 2024, the costs in relation to the Acquisition are to be borne solely by QuiaPEG, exclusivity restrictions that cover QuiaPEG engaging in discussions or agreements with third parties on alternative transactions, and other customary terms of an agreement of this nature, such as confidentiality and governing law.
Not sure what's next on the agenda here, but they missed the DD deadline without an update. I'm not sure if that's a positive or a negative!
Sagetrade. I'm thankfully not invested here for precisely the points you make.
As an outsider looking in I always felt this deal was beyond the capabilities of the parties involved. I feel for the people who got sucked into this one.
Surprise surprise.... sh 1t show !
Lazy, I agree regarding the difficulty in securing equity funding for small cap businesses, but as you also highlight, deals are still being done.
Unfortunately there is likely disparity on the valuation of Line Hydrogen vs what the existing directors think the business is worth.
With interest rates at the levels they are, investors need stronger gurantees of the prospective returns they are chasing from speculative investments... Does Line Hydrogen provide that? I'm not entirely sure, given lack of any accounts/financials, which is concerning to me as a holder in NZI.
Wish you a Happy New Year in advance and hopefully a strong return for all holders in NZI for 2024!
Hmm. I must admit I’m a little disappointed with progress or lack thereof….
Markets have been tough certainly, but deals are still being done in the city.
Axis are the brokers involved in securing the funding for the deal, but I can’t help wondering if they’re the best placed to get it over the line. If it was me, I’d be trying to cast my net as wide as possible. I’m not entirely convinced that everything that could be done , is being done.
Maybe we’ll have good news early in the new year…..
L.
sage, it's a main market listing not aim and would like to think that the advisory firm in questions has shored up its dealings having had the fca on their ****s.
.... but get your point regarding the lack of action from shells delivering rto's over the last 24 months, still advisors, directors earning their compensation regardless of outcome...
Nope. Still progressing. Funding arrangements have though, proved difficult last couple of months.
L.
Gone remarkably quiet, has it fell through?
We’re only into the 4th month. Normally these things take around 6 months or so.
FCA have been in receipt of a 2nd draft of the prospectus for about 3 weeks now, so I’d anticipate us hearing something pretty soon now.
As I’ve said before the only thing I could see holding it up is whether the financiers get spooked by the recent escalations between Israel/hamas. A wider escalation of that situation could have knock on effects on markets globally….
Let’s hope it stays contained….
L
This one has been taking its time Lazy.
I did think listing by September would be very optimistic given the DD surrounding an overseas business. I wonder what's holding it up.
Yeah, I'm not too sure about the California reference.
I like that he makes it pretty clear there would be no shortage of partners within Europe entertaining a JV with Line, which could be a real benefit for them getting into Europe or the UK. That could be a game changer.
It sounds to me like the priority is Tasmania for now, which they are looking at raising 10 million for.
What's interested me, is that a former director of NZI, James Wharton, is tory politician. Not sure if he was involved with the visit to number 10, but I don't think it's a place you can just waltz into without having some connections...
Puzzled by the California reference though….
L
Yep, Brendan had been at 10 downing st to explain their business models, future plans and so on last Wednesday. Met with a number of special advisors to do with alternative energy sources that report in to the cabinet.
Sounds like behind the scenes they have some very smart people working there, even if you don’t think much of the ministers themselves lol
L
Agree with your logic Lazy, there needs to be some clarification regarding the 40 million valuation.
How is the company getting to that number? I've not seen any of their accounts, and given they are Aus incorporated, there isn't to my knowlddge a 'company house' equivalent, which would give this detail.
This could be the downfall, of the overall deal...
I think the main risk to the success of the RTO will be confirming the financing for it.
If you examine the news link on the line hydrogen website for their production facility in Tasmania, at the bottom of that article is mention of the RTO, but it also talks about a 43 million pre money valuation. Which is a sizeable figure to raise, but not unheard of.
I just hope that this weekend’s flare up between Israel and Hamas doesn’t have a wider effect on global markets and spook the investors they’ve already lined up to pull out at the last minute.
Out of interest, and this is just a guess, but given that there is 60.7 million shares already in issue in NZI, if they were to propose an additional 939.3 million shares as part of the RTO at say somewhere between 4 and 5p, that would provide for the pre money valuation, with an offer price not too far above the original 3p price of NZI shares when they first came to market …
Food for thought…..
L
That's a blunt synopsis Sagetrade, I too have had my doubts at times I must admit, so we'll just have to see how it all plans out.
Thanks for the update Lazy. That's very reassuring news.
I had dinner with Mike Ellwood, & Brendan and Gina from Line Hydrogen on Wednesday.
It’s safe to say I think that it’s still on. Prospectus is with the FCA in its 2nd draft format .
Without specifics, I think we’ll be hearing fairly soon.
What is interesting is just how ambitious Brendan and Gina appear to be.
My impression is that we could be in for quite an exciting journey with the Line/NZI RTO.
came away quite upbeat. I think this is probably going to be a much better deal than the previous one that fell through last year.
L
Looking forward to seeing a prospectus, if indeed this transaction is still going to go ahead.
Found it. On his LinkedIn account.
L