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The shell Dial Square Investments (DSI) has very recently announced RTO news that is very relevant and encouraging for ARA.
A proposed RTO at a price of 6p per share, for a 'green energy' company (as defined by the EU: https://theconversation.com/natural-gas-is-a-fossil-fuel-but-the-eu-will-count-it-as-a-green-investment-heres-why-175867 ).
Which is an 84.6% premium to DSI's current (suspended) s.p. of 3.25p (market cap. £862,875).
And that DSI market cap. is significantly more than ARA's (£603,750 at 0.575p), despite DSI having significantly less cash that ARA.
It's also interesting that DSI only floated four months ago (30.11.22), compared to nearly a year ago for ARA.
10th Mar 2023 7:56 am RNS Proposed Acquisition and Suspension of Trading
" ... Dial Square, a London Stock Exchange traded special purpose acquisition vehicle, is pleased to announce that it has entered into Heads of Terms ("Term Sheet") to acquire 100% of the issued and to be issued share capital by way of a reverse takeover ("the Transaction") of EnergyPathways Ltd ("EnergyPathways"), an English private company. EnergyPathways is an energy transition company, targeting UK gas assets, with the aim of bringing into production, in the near-term, low emission energy solutions to assist with the UK's transition to Net Zero while also providing critical supply to ensure domestic energy security. ...
Pursuant to the Transaction, it is proposed that the issued and to be issued shares of EnergyPathways be acquired for an aggregate consideration of GBP4,080,833 to be satisfied by the issue of 68,013,885 ordinary shares in the capital of the Company to the vendors of EnergyPathways at an issue price of 6 pence per ordinary share of the Company. ...
... upon completion of the Transaction, the Company would be seeking Re-admission on AIM and would have sought cancellation of its existing listing in any event. ..."
https://www.lse.co.uk/rns/DSI/proposed-acquisition-and-suspension-of-trading-qatwq9z4wudki8l.html
23rd Mar 2023 7:00 am RNS Update: Cancellation of Listing
"... As agreed with the Financial Conduct Authority, the listing of the Company's ordinary shares will remain suspended pending either: (a) cancellation of the listing prior to completion of the Transaction; or (b) if the Transaction does not proceed, re-admission of the Company's ordinary shares to the standard segment of the Official List and to trading on the London Stock Exchange's main market for listed securities, or cancellation of the listing, depending on whether the Company meets the eligibility requirements of the Financial Conduct Authority at that time. Accordingly, the cancellation of the listing of the Company's shares will not occur on 6 April 2023 as initially expected and previously announced. The Company will update Shareholders in due course. ..."
https://www.lse.co.uk/rns/DSI/update-cancellation-of-listing-pa4jujnovloin7x.html
Next results early April. BOD need to pull their finger out. They always talk a good game at listing then disappear
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.
Indeed, after ARA has been listed on the Main Market for 18 months, this transfer could be fast tracked.
From Bird & Bird LLP, 17 August 2022, re transferring from the Main Market to AIM:-
"AIM Designated Market (fast track)
procedure for transfer to AIM Market
provided shares listed for at least 18
months."
https://www.twobirds.com/-/media/pdfs/capital-markets/london-stock-exchange.pdf
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
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
DSI is completing its RTO on Wednesday of next week, combined with a transfer from the main market to AIM, a placing of £2M., and a name change to EnergyPathways (EPP).
DSI's pre new money & pre RTO market cap. at the placing price of 4p is £1.062M.
That is over four times DSI's net current assets of £230,185 as at 31.8.23.
15th Dec 2023 10:07 am RNS Update re reverse takeover and cancellation
"Dial Square Investments Plc
(to be renamed EnergyPathways plc)
Update re Reverse Takeover of EnergyPathways plc and Cancellation of the Company's Ordinary Shares from the Official List and the Main Market and proposed admission to trading on AIM
Dial Square Investments Plc ("Dial Square" or the "Company"), a London Stock Exchange traded special purpose acquisition vehicle, is pleased to announce that it has agreed to acquire the entire issued share capital and other securities of EnergyPathways Limited ("EnergyPathways"), that was announced on 10 March 2023, with such acquisition constituting a reserve takeover (the "Acquisition"). Completion of the Acquisition is conditional on the satisfaction of various conditions, including admission of the Company's entire issued and to be issued share capital to trading on the AIM market of the London Stock Exchange ("AIM"). Accordingly, the Company intends to request that the Financial Conduct Authority ("FCA") cancels the standard listing of the ordinary shares of the Company (the "Shares") on the Official List and to request the London Stock Exchange to cancel the admission to trading of the Shares on the main market for listed securities (the "Cancellation").
As part of the reverse takeover, the Company has raised £2,000,000 through a placing and subscription of 50,000,000 Shares at a price of 4p per Share (the "Fundraising").
The Company has applied for the admission of its issued Shares (as enlarged by the Fundraising and the reverse takeover of EnergyPathways) to trading on AIM ("Admission"). Cancellation and Admission will take place simultaneously and this is expected on 20 December 2023.
On Admission the expected market capitalisation of the Company based on the placing and subscription price of 4p per share is approximately £6.32 million.
Background to EnergyPathways
EnergyPathways is an integrated energy transition company, initially targeting UK gas assets, with the aim of bringing into production, in the near-term, low emission energy solutions to assist with the UK's transition to net zero while also providing critical supply to ensure domestic energy security.
EnergyPathways holds, via its wholly-owned subsidiary EnergyPathways Irish Sea Limited, a 100 per cent. interest in block 110/4a in Seaward Licence P2490 that contains the Marram gas field (the "Marram Field"), located 30km west of mainland UK, ..."
https://www.lse.co.uk/rns/DSI/update-re-reverse-takeover-and-cancellation-eq8snxz0kmrycpi.html