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20th Jul 2023 2:42 pm RNS Holding(s) in Company
"... 3. Details of person subject to the notification obligation iv
Name N. Fitzpatrick
City and country of registered office (if applicable) West Yorkshire
4. Full name of shareholder(s) (if different from 3.) v
Name Redmayne Bentley Nominees
City and country of registered office (if applicable) West Yorkshire
5. Date on which the threshold was crossed or reached vi: 18 July 2023
6. Date on which issuer notified (DD/MM/YYYY): 19 July 2023
7. Total positions of person(s) subject to the notification obligation
% of voting rights attached to shares (total of 8. A)
% of voting rights through financial instruments(total of 8.B 1 + 8.B 2)
Total of both in % (8.A + 8.B)
Total number of voting rights held in issuer (8.A + 8.B) vii
Resulting situation on the date on which threshold was crossed or reached
3.0476
nil
3.0476
320,000
Position of previous notification (if applicable) ..."
https://www.lse.co.uk/rns/ARA/holdings-in-company-202sziegvvinptc.html
Brilliant news just out: a huge boost for the British battery sector.
And the timing could hardly be better for an imminent battery technology RTO deal by ARA.
"Jaguar Land Rover-owner to spend £4bn on UK battery factory
1 hour ago Comments
By Simon Jack & Lucy Hooker
BBC News
Jaguar Land Rover-owner Tata has confirmed plans to build its flagship electric car battery factory in the UK.
The new plant in Somerset is expected to create 4,000 UK jobs and thousands more in the wider supply chain.
Tata said it will invest £4bn in the site but it is understood that the government is providing subsidies worth hundreds of millions of pounds.
The plant is described as the most important investment in UK automotive since Nissan arrived in the 1980s.
The new gigafactory, at 40GWh, will be one of the largest in Europe and will make batteries for Jaguar Land Rover vehicles like Range Rover, the Defender and the Jaguar brands.
The plan is to supply other car manufacturers as well, with production at the new factory is due to start in 2026.
Tata have been in negotiations for months to secure state aid for the project.
Prime Minister Rishi Sunak said: "With the global transition to zero emission vehicles well underway, this will help grow our economy by driving forward our lead in battery technology whilst creating as many as 4,000 jobs, and thousands more in the supply chain."
Liberal Democrat Treasury spokesperson Sarah Olney MP said: "This is a welcome move by Jaguar Land Rover after years of the south west being neglected by Government investment."
The plant is Tata's first outside India and, it is hoped, will help the car manufacturing sector transition from petrol and diesel to making electric vehicles.
Batteries typically account for more than half of the value of an electric vehicle, so a reliable supply is expected to be vital for the future of the UK car industry.
The government has been criticised for lacking a clear industrial strategy and falling behind the US and EU in attracting investment in low-carbon technologies.
Some industry insiders hope that the Tata battery investment will open the door to further battery investments in the UK. ..."
https://www.bbc.co.uk/news/business-66237935
ELEG wasn't the only shell that suspended for a RTO on 7th. July; MCI did as well - and under seven months after it floated.
And moreover, MCI's proposed RTO is a pivot from life sciences to lithium, saying this on its website:-
"At Medcaw we recognise the significant role that lithium plays in the global transition to sustainable energy solutions."
In addition, MCI's suspension was accompanied by a placing at 8p, a premium of 88% to its suspension price of 4.25p.
A nice fat premium indeed.
Or perhaps I should say 'a two fat ladies premium' ...
MCI's market cap. at the placing price of 8p would be £1.77M. - compared to a probable cash level of under £1M.
7th Jul 2023 4:12 pm PRN Potential acquisition of near-term Lithium production asset
https://www.lse.co.uk/rns/MCI/potential-acquisition-of-near-term-lithium-production-asset-3abtddio02ebwe2.html
Recent Share Trades for Aura Renew Acq (ARA)
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
18-Jul-23 10:00:19 5.80 45,000 Buy* 5.00 6.00 2,610 O
18-Jul-23 08:03:01 5.825 3,433 Buy* 5.00 6.00 199.97 O
More ARA buying today, lifting the s.p. back up to 5.75p.
For shells, which tend to be very lightly traded, such relatively persistent and steady buying as ARA has seen recently tends to be a very positive sign.
"Searchlight Capital buys UK asset manager Gresham for £470mn
Shares in London-listed group soar more than 50% after agreeing to takeover by US investment firm
Arjun Neil Alim and Sally Hickey in London 5 HOURS AGO
US investment firm Searchlight Capital has agreed to buy UK asset manager Gresham House in a £470mn deal, betting on sustained demand for renewable energy assets that the UK group is increasingly focused on.
Gresham House manages about £8bn and invests mainly in sustainable assets such as battery storage infrastructure.
Under the terms of the agreement announced on Monday, Gresham House investors will receive £11.05 in cash, a 63 per cent premium to where the group’s shares closed on Friday. Gresham House shares surged more than 50 per cent on Monday. ..."
https://www.ft.com/content/67a49bc4-a768-48af-87bf-b9c522a0e8d0
Hedgehog100 Posts: 3,032 Price: 5.25 Strong Buy
RE: Dial Square Investments (DSI) Shell Proposed 'Green' RTO at Big Premium30 Mar 2023 15:17
"If ARA's post-RTO enlarged equity is under £30M., then it would no longer be eligible for the Main Market.
It would probably therefore list on AIM, and I don't see why this couldn't be via a direct transfer, with no full delisting in between. ..."
https://www.lse.co.uk/ShareChat.html?ShareTicker=ARA&share=Aura-Renew-Acq&page=2
This is what the shell ELEG seems to be proposing; ELEG floated last year, and suspended for a RTO last week:-
7th Jul 2023 8:00 am PRN Proposed RTO
"Heads of Terms signed
Proposed Reverse Takeover and Suspension of Listing
Reverse Takeover
ELEG is pleased to announce that as of 6th July 2023 it has entered into a non-binding heads of terms to acquire (through a reverse takeover subject to regulatory and shareholder approval and due diligence) all the outstanding shares in 3radical Limited ("3radical") in an all-share transaction ("Transaction").
The Transaction is in line with ELEG's strategy set out at the time of its IPO last year. On completion of the Transaction, ELEG's intention is to cancel its listing on the Standard List and seek admission of its ordinary share capital, as enlarged following completion of the Transaction, to trading on the AIM Market of the London Stock Exchange ("Admission").
The heads of terms place an initial valuation on 3radical of £3 million, subject to adjustments.
Suspension of Listing
The Transaction, once completed, would constitute a reverse takeover under the Listing Rules. As ELEG is not yet able to provide full disclosure under Listing Rule 5.6.15, it has requested from the Financial Conduct Authority, and been granted, a suspension of listing in its shares with immediate effect pending either the issue of an announcement providing further details on the Transaction, the publication of a prospectus, or an announcement that the Transaction is not proceeding. ..."
https://www.lse.co.uk/rns/ELEG/proposed-rto-nq9sjzex464lvng.html
LSE % Gainers Top Lists
EPIC Name %
SPMU Spiritus Mundi +60%
After finishing second yesterday, today SPMU is the top riser: up another 3p, to 8p: market cap. £3.94M.
For ARA, this market cap. would equate to a s.p. of 37.5p.
"ARA: 5.75p, market cap. ££603,750.; cash 31.12.23 £809K."
Amendment:-
That should of course say 31.12.22.
And ARA's cash burn is very low, so the cash shouldn't have diminished much in the interim.
LSE % Gainers
Top Lists
EPIC Name %
IIG Intuitive Investm... +68%
SPMU Spiritus Mundi +43%
Today's top two risers are an investment company (IIG) & a shell (SPMU).
And compare SPMU to ARA:-
Spiritus Mundi Share Price (SPMU)
https://www.lse.co.uk/SharePrice.html?shareprice=SPMU&share=Spiritus-Mundi
SPMU: 5p, market cap. £2.47M.; cash 31.3.23 £739,812.
ARA: 5.75p, market cap. ££603,750.; cash 31.12.23 £809K.
Battery stock IES has performed well since being tipped at 35p a fortnight ago, closing at 50.5p this weekend, up from 32.5p at the start of April.
"MIDAS SHARE TIPS: Batteries that store wind power can boost your funds - Invinity Energy Systems help the UK on its path to a fossil fuel-free future
By JOANNE HART, FINANCIAL MAIL ON SUNDAY
PUBLISHED: 21:52, 24 June 2023 | UPDATED: 17:48, 26 June 2023
... Invinity shares are 35p and should increase materially as the group rolls out its batteries not just here but across the world. ..."
https://www.thisismoney.co.uk/money/investing/article-12229641/MIDAS-SHARE-TIPS-Batteries-store-wind-power-boost-funds.html
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
07-Jul-23 10:29:32 5.84 39,100 Buy* 5.50 6.00 2,283 O
Another bargain ARA buy today.
That's 214,100 ARA shares bought in just the last 7 trading days: which is over 2% of the company.
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
06-Jul-23 10:35:07 5.88 50,000 Buy* 5.50 6.00 2,940 O
06-Jul-23 09:24:05 5.666 50,000 Sell* 5.50 6.50 2,833 O
Once again, ARA shares sold today very quickly attracted a buyer.
And in general, buying tends to be more indicative than selling.
Because sellers sell for many reasons, whereas buyers only tend to buy because they think it's a good investment.
And sellers may well have a limited choice of shares to sell, whereas buyers have a choice of thousands.
Recent Share Trades for Aura Renew Acq (ARA)
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
30-Jun-23 15:07:43 5.90 50,000 Buy* 5.50 6.00 2,950 O
30-Jun-23 13:40:14 5.6501 50,000 Sell* 5.50 6.50 2,825 O
30-Jun-23 13:39:53 5.71 50,000 Sell* 5.50 6.50 2,855 O
And today's brief intraday ARA s.p. dip was again very well-bought: lasting for under an hour and a half before a buyer again pounced on the bargain, triggering a full rebound.
It's a typical pattern with shells that some people get tired of waiting for a deal, and throw in the towel close to the bottom, shortly before a RTO is unveiled.
Experienced investors can work this pattern to their advantage though, to pick up bargains shortly before news.
Recent Share Trades for Aura Renew Acq (ARA)
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
29-Jun-23 13:51:39 6.17 50,000 Buy* 5.50 6.50 3,085 O
29-Jun-23 13:40:56 5.90 25,000 Buy* 5.50 6.00 1,475 O
29-Jun-23 13:09:42 5.6125 50,000 Sell* 5.50 6.50 2,806 O
29-Jun-23 13:08:12 5.61 59,570 Sell* 5.50 6.50 3,342 O
Today's brief intraday ARA s.p. dip was very well-bought: lasting for just half an hour before a buyer pounced on the bargain, triggering a full rebound.
And time must surely now be running out to buy in ahead of RTO news here.
Interesting to see that the battery stock IES has just received this high profile press tip, which I think endorses ARA's focus on this area:-
"MIDAS SHARE TIPS: Batteries that store wind power can boost your funds - Invinity Energy Systems help the UK on its path to a fossil fuel-free future
By JOANNE HART, FINANCIAL MAIL ON SUNDAY
PUBLISHED: 21:52, 24 June 2023 | UPDATED: 12:19, 25 June 2023
Wind power now accounts for almost a third of all the UK's electricity, overtaking every other source, including gas. Turbines have been built, capacity has increased and costs have come down. But wind is unpredictable.
On calm days, there is not enough of it. On gusty days, too much. This creates problems. When wind turbines generate more electricity than the grid can absorb or distribute, they are simply asked to stop producing.
Over the past two years alone, the process has cost around £1.5billion and huge amounts of energy has been lost, enough to power over a million households, according to think tank Carbon Tracker.
This problem is growing worse each year, making renewable energy more expensive than it should be and slowing the UK's path towards a fossil fuel free future.
Invinity Energy Systems can help to fix the issue. The company makes vanadium flow batteries, which are safe, last for years and are capable of storing electricity for hours at a time.
Invinity shares are 35p and should increase materially as the group rolls out its batteries not just here but across the world. ..."
https://www.thisismoney.co.uk/money/investing/article-12229641/MIDAS-SHARE-TIPS-Batteries-store-wind-power-boost-funds.html
Yet more good news for the UK battery sector:-
"Rishi Sunak and Joe Biden announce green funding agreement
11 hours ago
By Sam Francis
Political reporter, BBC News
UK firms could gain access to US green funding as part of plans to boost UK and US ties announced by Rishi Sunak and Joe Biden.
The pair unveiled the Atlantic Declaration, to strengthen economic ties between the two countries, at a White House press conference.
The PM said the agreement, which falls short of a full trade deal would bring benefits "as quickly as possible".
UK electric car firms may get access to US green tax credits and subsidies.
As the pair unveiled their partnership to bolster economic security, Mr Sunak said the UK-US relationship was an "indispensable alliance".
The Atlantic Declaration, includes commitments on easing trade barriers, closer defence industry ties and a data protection deal and steps up co-operation on AI. ...
New green funding
The Atlantic Declaration includes plans to mitigate some of the impact of the US flagship Inflation Reduction Act (IRA) on the UK economy, with proposals to remove barriers which affected trade in electric vehicle batteries. ... "
https://www.bbc.co.uk/news/uk-politics-65846871
And with battery technology companies being ARA's particular area of RTO interest, the timing looks ideal to boost investor commitment to such an imminent ARA RTO deal.
Thanks for the correction Jessie, and sorry for the mistake.
Small shells generally float at a single figure share price, e.g. 1p v. 10p.
Though of course it doesn't actually make any difference to the market cap.: you just have far more shares in issue at a far lower price.
I think you mean 10p Hedgehog and not 1p
It is standard practice in a RTO to give a value of a minimum of £200K.+ for the stock market listing.
That being the case, then ARA's minimum fair value with it's cash looks to be about 1p/share, i.e. the price it listed at.
So at just 6p/share this is looking well undervalued: indeed the most undervalued traded UK shell that I am aware of, but paradoxically with some of the most impressive management.
And there looks to be little chart resistance between the 6p and c. 7.5p levels.
So with ARA nicely poised at 6p, and exciting news expected soon, then a swift and strong move upwards from this level would make perfect sense.
Change % Chg Cur Bid Offer High Low Open Volume Chg Time RN NRN
0.25 4.3% 6.00 5.50 6.50 6.00 5.45 5.75 359,799 09:00:15
Another big volume share trades day today for ARA - it's second highest ever - has seen it close back up at 6p.
This makes c. a couple of million ARA shares traded in c. the last month - nearly a fifth of the shares in issue.
Such big volume ahead of an anticipated RTO deal seems very significant and exciting.
And share buying tends to be more significant than selling.
Because buyers have thousands of shares to choose from, whereas sellers may only have a few ... and in some cases may have no choice but to sell.
My gut feeling is that big, exciting RTO news here is now probably imminent, and that we are now in the 'end game' of share trading ahead of this.
Following on from PNPL's proposed hydrogen RTO just over a month ago, NZI has today also announced a proposed hydrogen RTO:-
"Possible Acquisition and Suspension of Listing
NET ZERO INFRASTRUCTURE PLC
Released 07:51:00 01 June 2023
... The Directors of the Company are pleased to inform shareholders that it has signed a non-binding letter of intent ("LOI") to acquire the entire issued share capital of LINE Hydrogen (Australia) Pty Ltd, a limited liability company in the renewables energy sector incorporated in Australia (the "Potential Target") in consideration for an issue of new shares in the Company (the "Acquisition"). The Acquisition, if completed, and an associated proposed private fundraise by the Company, details of which will be announced in due course, would result in the shareholders of the Potential Target having a majority interest in the enlarged group. ...
NZI's Chairman, Mike Elwood said: "Joining forces with LINE Hydrogen means we can leverage our joint resources with a view to expanding operations and driving the development of the green energy sector. Together, we believe that we are well-positioned to capitalize on the growth potential in this market and contribute to a more sustainable future."
Brendan James, Founder and Executive Chairman of LINE Hydrogen, added: "We are thrilled to announce our proposed transaction with NZI," said Brendan James, Founder and Executive Chairman of LINE Hydrogen. "The planned merger reflects our shared vision of advancing the hydrogen economy and accelerating the adoption of clean energy solutions. We believe that, by combining our strengths and expertise, we can create significant value for our shareholders and make a positive impact on the global energy landscape." ...
About LINE Hydrogen (Australia) Pty Ltd
LINE Hydrogen (Australia) Pty Ltd is an Australian-based hydrogen production company. The company specializes in the production, distribution and storage of hydrogen for various applications, offering innovative solutions that contribute towards a sustainable and decarbonized future. ..."
https://www.londonstockexchange.com/news-article/NZI/possible-acquisition-and-suspension-of-listing/15980830
"Green
Hydrogen Production
Now"
"LINE Hydrogen will deliver early market, commercial scale green hydrogen for diesel replacement in Australia."
https://www.linehydrogen.com.au/
NZI has been suspended today at a price of 1.35p, market cap. £819,450 (60.7M. shares in issue).
That's significantly higher than ARA's current market cap. of £603,750 at 5.75p, although ARA has significantly more cash than NZI.
Some more good news for the UK battery sector:-
"Jaguar Land Rover-owner to pick UK over Spain for giant car battery plant
21 hours ago
By Simon Jack
Business editor
The UK is set to win a battle with Spain to host a multi-billion-pound electric car battery plant in Somerset, the BBC understands
The boss of Jaguar Land Rover-owner Tata is expected to fly to London next week to finalise the deal.
Some in the car industry have described the plant as the most significant investment in UK automotive since Nissan came to Britain in the 1980s.
Tata's chairman is scheduled to meet the prime minister mid-next week.
Sources familiar with the matter say that although the deal has yet to be signed, engagement has moved from negotiations to drafting and choreography of how the landmark agreement will be presented.
Up to 9,000 jobs would be created at the Bridgwater site, close to the M5.
The UK government has acknowledged the urgent need for electric vehicle battery manufacturing in the UK to secure the future of the car industry.
The country's automotive sector employs up to 800,000 people directly and in the supply chain.
When pressed on the subject last week, Chancellor Jeremy Hunt told the BBC to "watch this space".
Tata was considering another site in Spain and the expected decision to choose Somerset will be presented as a major achievement for the UK government. ..."
https://www.bbc.co.uk/news/business-65698529
'Cash is king' at the moment, and ARA has it, and is trading at a significant discount to it.
And at its current very low rate of cash burn, it would take years for that discount to be eroded away.
In theory it could arrange a RTO of a profitable company without having to raise any further funds, though it will probably want to raise at least some to accompany a battery tech RTO.
But it wouldn't necessarily need to be a particularly large amount, and the enlarged entity could look to raise more later - which could be in better market conditions, after company progress, and at a higher s.p.
There is still some small cap equity investment money available, especially for good value and quality companies, and the situation seems to have improved this year. This is shown by some recent new issues this year, like Ocean Harvest Technology Group (OHT), and World Chess (CHSS).
But the IPO route can be quite risky and uncertain - if the IPO has to be aborted, due to market conditions, then the company trying to float can be saddled with huge costs but with nothing to show for it.
The RTO route, into an already listed shell like ARA, is safer and more certain.
And the fact that the company reversing in may have to give away far less equity than in a IPO can be a major attraction, especially if the price being offered is seen as low.
With regard to the choice of shell for a floating company, such companies won't have to look far to see what good value ARA is compared to other shells, as well as having very attractive management.
So it's no surprise that ARA is seeing a very healthy level of interest in reversing into it, enabling it to express deal confidence in the way that it has.
I would add that there seems to be an inverse correlation between the salaries of shell directors, and RTO success.
Unpaid directors have no incentive to spin things out to retain their salaries, but rather have a real incentive to get something done ASAP, as well as being of the highest level of integrity and professionalism.
A further 289,528 ARA shares traded today, the second highest daily volume in the company's history.
Which means that the company's two highest volume days, in well over a year since listing, have occurred on Monday and Tuesday of this week.
Which should be setting the stage for some really tasty share price action here shortly (unless the share is suspended for a RTO first, at a massive premium).
"Volume Always Precedes Price
Tom Aspray Contributor
Jan 11, 2014,03:30pm EST
This statement is one of the cardinal beliefs held by most technicians. ..."
https://www.forbes.com/sites/tomaspray/2014/01/11/volume-always-precedes-price/?sh=5fa58c3b18a3
From the recent video interview with ARA's Chairman John Croft:-
"... we're very hopeful, put it like that, that we can do a transaction in this year. The sectors that we're particularly interested in are in energy storage generally, but particularly in battery technologies.
... there's a huge opportunity there ... I'm very hopeful we'll do something this year.
... with the minimum capitalisation having been moved up to thirty million pounds, it means actually that that valuation of the SPAC in the context of an overall transaction is relatively small. So we're starting to see valuations for SPACS in transactions heading up, and recently there have been some in London where the SPAC has been valued at multiple times of its cash balance, and multiple times the value of its original market cap. at the time it came to the market. So we see that as being very encouraging, and a positive sign for our shareholders going forward. ..."
https://www.proactiveinvestors.co.uk/companies/news/1012600/aura-renewable-acquisitions-very-hopeful-of-making-a-transaction-this-year-1012600.html
Remember that to complete a RTO transaction this year, you would really need to sign heads of terms in H1, to allow time for more detailed preparations, including prospectus preparation and FCA approval of.
So a deal could potentially be imminent.
And for ARA, these are the interview multiples concerned:-
2 - 3 times current cash = c. 15p - 22.5p / share
2 - 3 times IPO price = 20 - 30p / share
Compared to the current ARA s.p. of just 6p per share.