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Thanks Trojan for flagging up this new ARA video interview:-
"Aura Renewable Acquisitions "very hopeful" of making a transaction this year
Tom Warner
10:07 Wed 19 Apr 2023
Aura Renewable Acquisitions PLC (LSE:ARA) non-executive Chairman John Croft speaks to Thomas Warner from Proactive following the release of the main market listed SPAC's maiden results.
Aura aims to acquire businesses in the renewable sector, particularly in energy storage and battery technologies. The company was set up in 2021 and has been actively looking for potential opportunities, despite the challenges in the capital markets in 2022.
Croft says that he's "very hopeful" of making a transaction this year and expresses optimistim about the opportunities in the renewable sector."
https://www.proactiveinvestors.co.uk/companies/news/1012600/aura-renewable-acquisitions-very-hopeful-of-making-a-transaction-this-year-1012600.html
A very bullish and confidence-inspiring interview, and the 'transaction this year' optimism suggests that they have identified multiple attractive RTO targets.
Moreover, 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.
Some extracts from the new video interview with ARA's Chairman John Croft:-
"... The renewables sector is a hot sector ... there's a lot of interest, a lot of excitement around the sector, and there are some great companies that are coming into the market.
... we've been in touch with a number of companies across the globe, looking at potential opportunities.
... We don't have many costs. We had some costs around the IPO itself, but apart from that there are no fees being paid to directors or anything like that, so our cash is pretty well preserved.
... we disclosed that we had over eight hundred thousand pounds of our original million still in the bank, and that will last us a very long time.
... we've been working quite hard in the background.
... 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
This extract from the new ARA interview looks uber bullish:-
"... 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
For ARA, these are the 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 5p per share.
The shell TMOR is a good comparator here, and earlier this month it announced a positive update on its intended RTO progress:-
23rd Sep 2022 7:45 am RNS Acquisition - Megasteel and Suspension of Trading
" ... Proposed Acquisition values the current issued share capital of More at GBP2.81 million (vs GBP1.19 million at closing on 22 September 2022) or over 2.3 times the Company's current net cash ..."
https://www.lse.co.uk/rns/TMOR/acquisition-megasteel-and-suspension-of-trading-ccsbb9s9yt991oi.html
17th Apr 2023 7:00 am RNS Update on Proposed RTO
"Further to the announcement on 23 September 2022 regarding the proposed acquisition by More of Megasteel Limited ("Megasteel") (the "RTO" or the "Proposed Acquisition"), the Company is pleased to confirm that preparations for the publication of a prospectus and admission of the enlarged group to trading on the London Stock Exchange are now well advanced. ..."
https://www.lse.co.uk/rns/TMOR/update-on-proposed-rto-54ucf4fr63oezdz.html
ARA look to have narrowed down their area of focus considerably since they floated just over a year ago:-
"... The sectors that we're particularly interested in are in energy storage generally, but particularly in battery technologies. ..."
https://www.proactiveinvestors.co.uk/companies/news/1012600/aura-renewable-acquisitions-very-hopeful-of-making-a-transaction-this-year-1012600.html
This suggests that they have identified this as the most attractive and prospective area for a valuable and successful RTO, and that the discussions with potential RTO target companies they have referenced are wholly or partly in this area.
Due to market conditions, there has been a lack of such floats last year and this, which should mean a good choice of quality RTO candidates in this area.
One such could potentially be Superdielectrics, which had to abort its intended IPO last year due to market conditions:-
"Spencer’s electric windfall
Jamie Nimmo
Sunday September 19 2021, 12.01am, The Sunday Times
Icap billionaire Lord Spencer of Alresford is in line to double his money as an energy technology company he backed last year eyes a £500 million float.
Superdielectrics, which is developing supercapacitors — alternatives to batteries that use an electric field instead of chemicals and are expected to play a big part in electric cars and renewable energy — has hired WH Ireland for a possible Aim listing that could see it raise up to £100 million, sources said.
The Cambridge-based company, funded by former ITM Power boss Jim Heathcote, received a £15 million cash injection last year led by Spencer, 66, that valued it at about £250 million. ..."
https://www.thetimes.co.uk/article/spencers-electric-windfall-x9v7wrlf6
"STORING SUSTAINABLE ENERGY WITHOUT COSTING THE EARTH
A BREAKTHROUGH ENERGY STORAGE TECHNOLOGY
Clean technology that complements existing solutions and solves the world’s renewable energy storage problem"
https://superdielectrics.com/
Some very relevant and encouraging news last week for ARA from PNPL, a shell with significantly less cash than ARA, but a market cap. well over four times higher (£2.28M. at 2.74p):-
24th Apr 2023 8:00 am RNS Proposed RTO of Element 2 Limited
"Heads of Terms signed
Proposed Reverse Takeover of Element-2 Limited
Suspension of Listing
The Company is pleased to announce that as of 21 April 2023 it has entered into a non-binding heads of terms with Element 2 Limited ("E-2" or "Element 2"), based in Yorkshire in the United Kingdom, to acquire 100% of the outstanding shares in E-2 in an all-share transaction, subject to legal, financial and other due diligence and entry into a legally binding sale and purchase agreement (the "Proposed Acquisition"). As no binding agreement has yet been reached, the Company cannot guarantee that the Proposed Acquisition will complete.
About Element 2
Element 2 is the UK's leading hydrogen refuelling business. The company works closely with vehicle manufacturers, transport operators and fleet owners to identify and develop hydrogen refuelling sites and provide a regular supply of fuel cell grade hydrogen. ...
The Proposed Acquisition
Following recent discussions, on 21 April, 2023 Pineapple Power entered into non-binding heads of terms with E-2 for the acquisition of 100% of the issued share capital of Element 2 for a consideration of £120 million, to be satisfied by the allotment and issue of new ordinary shares in Pineapple Power to the shareholders of E-2. It is envisaged that, in conjunction with the Proposed Acquisition, there will be an equity financing to fund future investment and working capital requirements of Element 2. ..."
https://www.lse.co.uk/rns/PNPL/proposed-rto-of-element-2-limited-2xmjlet2m6zdoyh.html
The UK's first Lithium-Ion battery recycling plant has just been approved.
And the s.p. of its part owner, Technology Minerals (TM1), has more than doubled recently, from 0.875p on 24th. March, to 2.25p today (market cap. £34M.)
This is a sign that investor enthusiasm for battery stocks is returning, and that this essential industry is developing strongly.
In which case an ARA RTO in this area could be perfect timing, and hugely profitable.
25th Apr 2023 7:00 am RNS EA Approves Lithium-ion Battery Recycling Plant
"EA Approval for Lithium-ion Battery Recycling Plant
UK's first industrial scale lithium-ion batteries recycling facility to commence operations after securing EA permit and ABTO status
Technology Minerals Plc (LSE: TM1), the first listed UK company focused on creating a sustainable circular economy for battery metals, is pleased to announce that its 48.25% owned battery recycling business, Recyclus Group Ltd ("Recyclus"), has received final clearance from the Environment Agency ("EA") to commence full operations at its lithium-ion ("Li-ion") battery recycling plant in Wolverhampton, West Midlands. Recyclus has also been awarded Approved Battery Treatment Operator ("ABTO") status by the EA, allowing it to commence recycling operations immediately, with on-site treatment and processing of spent Li-ion batteries.
The EA permit allows Recyclus a daily storage limit of 140 m3 (c.100 tonnes) and to process up to 22,000 tonnes of Li-ion batteries per annum. It is expected that 8,300 tonnes will be processed in the first year, utilising a single shift pattern of labour during the standard working week. Applications for licence variations to operate additional shifts will be considered in due course as will the potential to increase processing capability.
The approval from the EA for the Wolverhampton plant is a major milestone for Recyclus, making it the first industrial scale plant in the UK with the capability to recycle Li-ion batteries. Operations will commence on completion of the fire prevention systems installation which is expected shortly. This will be followed immediately by a plant commissioning phase, which is expected to commence in June this year.
Following commencement of operations, Recyclus anticipates the receipt of gate fees for collection and storage of Li-ion batteries, and from the sale of black mass, produced from the recycling process. Black mass contains critical battery metals that can be sold back into the battery supply chain. ..."
https://www.lse.co.uk/rns/TM1/ea-approves-lithium-ion-battery-recycling-plant-k9j12sx5b2uq0al.html
25th Apr 2023 7:00 am RNS EA Approves Lithium-ion Battery Recycling Plant
"... Recyclus owns the IP for both the process and the plant which is designed to process most Li-ion battery types. Recyclus will manufacture all plants, including those designed specifically for OEM clients, here in the UK. Recyclus's aim is to increase the UK processing capability to c.50,000 tonnes per annum through the construction of five more Li-ion recycling plants.
BIS Research latest study, Black Mass Recycling Market - A Global and Regional Analysis, states the global black mass recycling market, valued at $9.22bn in 2022, is projected to reach $53 bn by 2031.
Robin Brundle, Chairman of Technology Minerals, said: "We are pleased to announce that we have received final EA approval to commence full automated operations at our Li-ion battery recycling plant in Wolverhampton. This is a significant moment for the Company and the UK. The Wolverhampton plant has become the first facility in the UK with the capability to recycle Li-ion batteries on an industrial scale.
"Given the global shift towards electrification and the growing demand for Li-ion batteries, we believe we have a compelling first mover advantage in this burgeoning market. Our aim is to establish enduring partnerships with businesses and organisations, both in the UK and internationally, offering them an environmentally friendly solution for their end-of-life batteries. With feedstock stored and ready to be processed, everything is in place to ramp up operations at the facility and start generating revenues." ..."
https://www.lse.co.uk/rns/TM1/ea-approves-lithium-ion-battery-recycling-plant-k9j12sx5b2uq0al.html
ARA's RTO target selection has been subtly but noticeably advanced and refined this year, as is shown by a comparison of the company's mid January and mid April updates.
On 16th. January, ARA simply gave battery tech. companies as an EXAMPLE area of interest, albeit the only such example named.
But by 19th. April, ARA had moved on to specify this as their PARTICULAR area of interest... i.e. no longer merely just an example.
Reading between the lines, it looks like discussions and evaluation to date in this area have been productive, and the next significant step could be the signing of heads of terms.
16th Jan 2023 7:00 am RNS Post Year End Operational Update
" ...The Company has actively and selectively reviewed potential international acquisition targets since listing and at the same time the Board has taken soundings from the investor community to seek to best fit investment appetite with the opportunities available.
Amongst others, and by way of example, companies in the energy storage sector, developing next-generation battery technologies, have drawn the Company's attention. Batteries play an essential role in the energy sector supply chain, facilitating the transition to a net zero economy and a more sustainable environment.
Many countries, including the United States and the United Kingdom, have realised the importance of secure domestic supply chains and have introduced legislation, government grants and other incentives to support their battery industries - an example being the Inflation Reduction Act under the President Biden Administration. ..."
https://www.lse.co.uk/rns/ARA/post-year-end-operational-update-f1xlki1k79z5hfg.html
From the 19.4.23 ARA video interview:-
"... The sectors that we're particularly interested in are in energy storage generally, but particularly in battery technologies. ..."
https://www.proactiveinvestors.co.uk/companies/news/1012600/aura-renewable-acquisitions-very-hopeful-of-making-a-transaction-this-year-1012600.html
Another battery stock enjoying enhanced investor enthusiasm this year is Ilika (IKA): it's s.p. has doubled this year, from 24.25p to 48.5p (market cap. £76.57M.)
The company has recently made its first customer shipments of its stacked Stereax® M300 batteries from its UK manufacturing facility.
11th May 2023 7:00 am RNS First Customer Shipments of Stereax M300 Batteries
"First Customer Shipments of Stereax® M300 Stacked Batteries
Ilika (AIM: IKA), a pioneer in solid-state battery technology, announces it has made a number of first customer shipments of stacked Stereax® M300 batteries from its UK manufacturing facility. Further to its announcement of 11 April 2023, these shipments are the first of a series of planned deliveries of Stereax M300 batteries to customers including CubeWorks, the developer of millimeter-scale smart sensing solutions for IoT, and Lura Health, a leading developer of wearable intraoral biosensors for salivary diagnostics. Stereax batteries can be configured such that they can be stacked, which provides customers with the flexibility to adapt the battery capacity for their application.
The small form factor of M300 batteries is of particular interest to Ilika's customers due to their compact, high-density and high-power characteristics. CubeWorks is designing CubiSensTM, a next generation sensing platform, aiming to transform biopharma cold chain logistics, security control, asset protection and environment monitoring. ..."
https://www.lse.co.uk/rns/IKA/first-customer-shipments-of-stereax-m300-batteries-eg3vpb6lf9wotxb.html
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.