Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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"Work will start in May". There's nearly two weeks to go - so no rush then?
Hi LedZep, I’m sure that the share of profits from the SPV company will be split in accordance with the % of the shareholding. Surely after all this time they can’t still be haggling over the % shareholding of the SPV!
Correction to my 10.46 post.
Last sentence should be "if the loan is not repaid........"
i.e. if it is repaid we stay with the existing licence fee agreement.
Piltick:
I think the last paragraph of your 9.03 post has been the issue for the last 4 months. i.e. agreeing what % of revenue or adjustment to the licence fee is acceptable.
i would imagine Peel NRE have all the test data and can extrapolate that into a commercial unit operation, but IMO, they may want to see real data after the unit has been running a while before they commit to a binding share of revenue.
Hence, the interim way to move forward is for PHE to provide a loan to the SPV to allow things to move forward and the existing agreement re: licence fee remains as is, with no share of revenue.
If the loan is repaid that may well be alongside an agreement regarding the share of revenue, along with any other funding partners, when the FOAK has proved its mettle (or plastic - bad pun).
Yes it does seem confusing....
I'm confused..
But what I do know it will be one massive Global company ..
New Technology..
The factory plant will get a move on now and so will the sp price ,, has been a bumpy ride so far sorting out this build ..
A slow creeper from now before the Hurd arrives and some large investors £1 Will be broken in no time ...
The world needs these plants before it's to late..
Supply and demand ..
NCYT went from 6p to £12 in 11 months supply and demand ..
Expectations on the Horizon ...
Happy Days
My understanding of the structure, shareholding, loans & financing etc. is as follows:
Peel have established a company named "Peel NRE Hydrogen Ltd." which will act as the parent company for all of the SPVs that will become the operating companies for the DMG installations throughout the UK.
Under this company, Peel have also established a company named "Protos Plastics To Hydrogen No1 Ltd." which is the SPV for the FOAK DMG installation at Protos. Presumably subsequent SPVs for other sites will be numbered No.2, No.3, etc.
It is my understanding that the shareholding of the SPV "Protos Plastics to Hydrogen No. 1 Ltd." is to be shared between "Peel NRE Hydrogen Ltd." and PHE, and perhaps one other investor yet to be identified. It is this SPV company that PHE has made the loan of £3.8M to, and I would expect (although not confirmed) that this loan will become part of PHE's shareholding at a later date.
PHE will therefore have a share of the profits from the SPV company, as well as its £500k annual fee from the SPV. All of the project income and costs will be channeled through the SPV as a separate entity. Although it hasn't been specifically stated, I would expect that the lease for Plot 10B will be held by the SPV company and that the rent for the site will be paid by the SPV to Peel.
For reference regarding PHE's investment in the SPV, see the RNS dated 14th January, under the heading "Use of Funds":
" Powerhouse will apply the net funds from the Fundraising to invest alongside Peel NRE Environmental Limited" which would suggest PHE intends to invest a total of £10M into the SPV and not just the £3.8M loan. Also:
"This investment in the Protos SPV will give the Company access to extra revenue via participation at project level on the first commercial deployment, rather than simply as licensor of the DMG technology" which clarifies the point that PHE will be entitled to a share of the profits as well as the annual licence fee.
Operastar
I read somewhere that the total cot is £26m, including the (expensive) unit to produce hydrogen rather than just electricity and heat.
Not a reliable figure perhaps, but a lot more than the £8m being talked about on this site when I first arrived about 6 months ago. I think that is probably a 35 tonne per day unit. These figures from memory.......
I may have misunderstood the RNS, but I assumed that PHE were using £3.8m OF the fund raise to provide a loan to the SPV.
Why is PHE raising the loan if Peel are the developer? One can only guess or ask..... I reckon Peel lost a lot of rental income last year. (See their accounts signed off in Autumn 20) That probably coincided with the price of a DMG going up, and we can only guess by joining the dots up.
Hi Valuation
Can you tell me what you think the final bill for the FOAK DMG now is? Back in 2017-18 I think I saw £15M for a 25tonne /day electric only and £20M for Electric+H2. With the fund raises of £15M and this latest loan of £3.8M that would have been almost enough! I have not heard the magic words "Financial Close" for a while but at least the SPV has been stated which IS Peel.
Hi Valuation
Can you tell me what you think the final price for the FOAK DMG is? Back when I first invested in 2017 -2018 I saw prices of £15M for Electric only and £20M for Electric+H2.(25 Tonne) If that was the case now, they would have all the cash needed! The two fundraises of £15M plus this latest loan of £3.8M bring it near. Why is PHE raising the loan if Peel are the developer??. Well that applies to the fund raises as well I suppose. As you say , why haven't any of those long lead items been purchased ?( or maybe they have but it's not been announced) I have not seen the magic words "Financial Close" for a while.
Another step away from the licensing model?
It also appears Peel have not yet signed the license agreement and the long lead times items have still not been ordered despite the plcing several months ago.
The price of a DMG has rocketed......................
There is a lot hanging in the balance here. What a mess.
Clearly Peel either haven`t got any money, and their accounts are not pretty and the Peel company PHE are dealing with is a poorly financed subsidiary of the Isle of Man head company, or the agreement is unclear as to responsibility for financing the construction of the first, and perhaps subsequent, plants. The Peel Directors are not technical people and reading between the lines there is an odour that caused me to substantially reduce my shareholding today.
Again many thanks Led Zep. They, at least Peel talk as if they are already engaged in w 2 t. I expect that someone will post
that they still have another two weeks for a start in May.
It will take more than the completion of the first dmg to cause any great improvement in the price. It is sales which will count.
Hi Stumbler:
Wish I could report some encouraging news of the Staggering Steps of Progress, however, ..........alas.......
Bluetoff and I walked the Plastic Park on Friday, last, and talked all things PHE, but it is all pretty much as before, as far as Plot10b is concerned.
There are 67 portacabins on Plot9B all serviced up with some sign of life and a dozen or so Sisk portacabins on Plot 11, with a little activity, with more vehicles on the various car park compounds.
These of course could be related to the major work, piling etc. going on, on Plot 8, Covanta.
Stayed tuned pop pickers, just to quote Alan Freeman.
Thanks Led Zep for your very good report on the Protos problems. We hear a lot of very good reports but only seeing is believing. You are most familiar with the site and we should be glad to hear if you have seen any progress since your last report.
Slowly we inch forward towards the possible reality of a FOAK DMG unit at Protos. Helsby Hill is growing at a faster rate!
We're not really seeing the following from the RNS of Jan 14th:
"The Directors have undertaken the Fundraising to provide funds that they believe will expedite signifcantly financial close of the funding of the first commercial scale DMG installation utilising the Company’s technology, which is targetted to be reached during the first quarter of 2021."
DR was saying in his interview, I think, towards the end of March " we are ready to go".
We may be ready to go , but apparently Peel NRE do not appear to be of the same mind.
If this loan facility unblocks the constipated process then all well and good, but PHE are the first to provide funding to the SPV, where are Peel and their partners and the funding for the FOAK.
One issue thats been puzzling me since the Jan 14th cash raise, is if PHE are funding the procurement of the long lead time items, what was to be the effect on the financial agreement re: annual fee and % share of revenue, to which I only received a vague (non)answer from DR.
If this has been a matter for lengthy deliberation between PHE and Peel NRE, is the loan facility the way out of the deadlock (Peel then still retain 100% of revenue and PHE stick with the annual fee) therefore allowing subsequent speedy progress on other fronts.
As long as it gets things moving!