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I have little doubt that MetaLeach was gift-wrapped to the “new” owners. Well, life’s like that. Nothing I can do about that, as a shareholder, so I’m conveniently ignoring it. Not completely, though, because it cleaned up the shell and exited the surplus bod.
Time to move on.
What we will soon have is a turnkey solution to energy efficiency as a service (eeaas). Businesses / organisations want to save money and the planet, overnight (almost) and with zero capital outlay. Well, now they can, and all they have to do is read through a single A4 page of contract, written in plain English, and sign on the dotted line. Nothing more.
eLight surveys the existing light fittings, designs a layout of new l.e.d. fittings and lights, then subcontracts the installation of them. Five days after project completion, their finance company pays eLight for the project and eLight pays the subcontractor. Next!!
The customer has new fittings, maintained by eLight, PLUS an 80% reduction in their monthly electric lighting bill. Half of that 80% saving is paid to the finance company.
An average secondary school refit will net them £40-50k, paid in full, five days after the refit. How many dingy NHS hospitals would welcome brand new lighting, free of maintenance, with a 40% reduction in lighting bills?
Forget MetaLeach. This is the start of something very big, imho.
Absolutely fantastic post.
The majority of RTO' s get off with a bang and then a whimper with no significant upside for longer than most would like, but this one potentially could be better than most imho...they're already ahead of the game. Gla holders Merry Christmas and a very Happy and Prosperous New Year!!!??????????????
Elight to invest €100m in projects after acquiring UK rivalEnergy-saving light specialist also intends to double workforce to 80 over next 12 monthsElight chief executive Ian McKenna said the acquisition would make the group the largest “light as a service” company in Europe
Charlie Taylor
Mon, Jul 16, 2018, 02:36
Irish energy-saving lighting specialist Elight has acquired a rival company in the United Kingdom and said the new merged entity will invest €100 million in sustainable projects over the next three years.
The Dublin-based company is also looking to double the number of people it employs to 80 over the next 12 months.
Elight, whose clients include Ires Reit and Dalata, installs and manages energy-efficient LED lighting solutions for the commercial sector. It provides a “light as a service” model in partnership with the likes of Philipsand Actavo that sees it paying upfront costs for installing LED lighting.
Founded by Ian McKenna in 2012, Elight saw sales treble to €4 million last year as profits rose to just under €1 million.
The company said it had acquired London-headquartered Energy Works Limited for an undisclosed sum and was to rebrand it as Elight Works with immediate effect.
Commercial clients
The former Energy Works had revenues of £3.5 million (€3.9 million) in 2017 and completed more than 100 projects for commercial clients in the UK and the Gulf States. Energy Works founder Harvey Sinclair is to stay on to run the UK business.
Mr McKenna, a former EY Entrepreneur of the Year finalist, said the acquisition would make the group the largest light as a service company in Europe with more than 600 projects completed and more than €60 million in energy savings generated for existing clients.
The expanded group, which is actively targeting opportunities in new markets, will have a combined turnover of €12 million.
“We are delighted to conclude this merger, which will open up new opportunities for our business to grow exponentially,” said Mr McKenna.
“This merger will increase our ability to access capital, meaning that we can deliver this service for our growing client base,” he added.
Current market cap is £2m....!!!
Elight to trade on London’s AIM after £6.6m reverse takeoverIrish-founded company, which is to rebrand as eEnergy, also raises £2m from investorsThe renamed eEnergy is expected to start trading on the AIM on January 9th.
Charlie Taylor
Fri, Dec 20, 2019, 09:30
Irish-founded energy-saving lighting specialist eLight has raised £2 million (€2.3 million) from investors and is to start trading in London early next year following a £6.6 million reverse takeover of an AIM-listed company.
The company, which is to rebrand as eEnergy Group, installs and manages energy-efficient LED lighting solutions for the commercial sector. It provides an energy efficiency-as-a-service model in partnership with the likes of Philips and Actavo that means it pays upfront costs for installing LED lighting. Clients include Ires Reit, the State’s largest landlord, and hotel group Dalata.
The firm was founded by Ian McKenna in 2012, a former EY Entrepreneur of the Year finalist, and has more than 800 client projects across Ireland and Britain.
The company is now led by Harvey Sinclair, founder of Energy Works, which merged with eLight in 2018 in a move that enabled the combined group announce plans to invest €100 million in sustainable projects over a three-year period.
The renamed eEnergy is expected to start trading on the AIM on January 9th following a reverse takeover of Alexander Mining. It also said it has raised conditionally £2 million (before expenses) through a placing of 26,666,667 new ordinary shares at 7.5 pence per share, which will be used to finance the development of the group and for working capital.
In the year to the end of June, eLight secured contracts with a total value of €7.4 million, earned revenue of € 4.5 million and generated an operating Earnings before interest, tax, depreciation and amortisation (ebitda) loss of €800,000.
The EEaaS market is estimated to be worth £25 billion and eEnergy’s directors expect regulatory, commercial and social pressures to cause this to double in the next five years.
Find it funny a business could be thriving in this sector, when photonstar couldn't give this technology away for free!? Haha
Surprised more people aren't buying. New company with 5x market cap compared to Alexander Mining.
66% Spread that put some people off buying!
Mad Chatter This is different to PSL, this is basically a company that will supply and install LED lighting then lease these lighting units to the companies at a cost difference comparable to what they pay in electric for using the older inefficient lighting units until they have been paid for in full, they will then have the option to continue service and repair agreements.
PSL was a LED lighting manufacturer trying to manufacture LED panels in the UK where the high costs involved made it unviable instead of moving production to the far east like every other manufacturer. That combined with their expenses in development is what made the company fail.
This is more like a car finance company that supplies you the car, just for lighting.
This is a basic and simple business model, tax incentive service and "green" for the customer, which in reality comes at close to no extra monthly cost to the customer.
Im sure they will also upsell all necessary components and services to meet all the newer regulations for building and fire regs aswell, I.E. emergency lighting and testing, fire ******ant enclosures, servicing, the lot.
Most of the money raised at ipo will go out to finance the new work done by the company, which will in turn generate a return over time, this is why the company is floating.
Aslong as director and management pay doesn't eat in to the profits to much and they can keep finding new customers this will work, Unlike a car finance company it has a finite lifespan, you can only upgrade so many commercial buildings, there is a finite number of buildings requiring this service. So i would hope that the company decides to pays dividends to shareholders in the boom years before relying on servicing alone, shareholders are after all the alternative to conventional private funding that elight has chosen to use.
Not in AXM, but am fascinated by the prospects of Elight, and will be keeping an eye on it, it was one of the business models that i hoped PSL would have moved to when it sold the factory, it can be a very profitable sector.
Good luck.
Description of business:
On 25 September 2019, the Company announced that it intended to dispose of its wholly owned subsidiary, MetaLeach Limited, and make an acquisition which constituted a reverse takeover under Rule 14 of the AIM Rules.
On 29 November 2019, the Company announced that it was seeking a suspension of trading in its shares on AIM and was seeking to acquire the entire issued share capital of eLight Group Holdings Limited ("eLight") and, inter alia, undertake a placing, share consolidation, disposal of MetaLeach and change of name to eEnergy Group plc, subject to shareholder approval.
Following Admission, the main countries of operation will be UK and Ireland. eLight is an "Energy Efficiency as a Service" Republic of Ireland registered company which provides commercial customers with immediate energy and cost reductions with zero upfront investment by delivering Light-as-a-Service.
eLight had revenues of approximately €4.5 million and loss before tax of approximately €1.6 million in the period to 30 June 2019. eLight has built a strong position in the UK and Ireland, offering customers the ability to switch to LED lighting technology without capital investment, improve the quality of their lighting and reduce their carbon footprint.
eLight's service agreements provide customers with a fully maintained solution for the term of the agreement. The monthly energy savings which are unlocked are more than the monthly service fee, so customers generate immediate positive cash flow in addition to reducing their carbon footprint.
Energy efficiency upgrades are typically capital intensive, which has traditionally acted as a barrier for organisations looking to reduce their energy consumption. eLight removes these barriers with its service agreement-based business model.
The market in the EU for energy efficiency services in 2017 was approximately ?25 billion and is expected to double by 2025. eLight can also provide customers with LED lighting installation services under a traditional "supply and install" service.
eLight's use of performance-insured contracts for its customers and partnerships with providers of project finance in the UK and the Eurozone enables it to generate positive cashflows upon completion of an installation, with no residual credit exposure to the customer under the service agreement.
eLight has secured contracts directly with certain of the world's leading technology manufacturers, bypassing distributors and wholesale channels to ensure a competitive advantage for its projects, and is in negotiations with a leading green and clean technology funding partner to obtain a dedicated fund for its energy service agreements.
Preferably we want the market cap of the new entity, EAAS, on listing to be much greater than AXM's current £2m market cap....the share consolidation is a matter of fact, divide the number of AXM shares you hold by 75,000 and then x by 250, to give you the number of new shares in EAAS that you will then hold.
According to the acquisition RNS, elight Directors on completion and subsequent share consolidation, will hold 86,264,528 of shares in EAAS, which represents 65.89% , which will mean there will be 115,689,358 shares in issue for the new entity EAAS. ( including the 26,666,667 placing shares which raised £2m at 7.5p a share ) which would suggest an initial listing and market cap of £8.6m at 7.5p a share....but of course this could be much much higher dependent on sentiment and demand and any positive news that might be included. Gla ;-)
The Times
Energy efficiency firm eLight to hit power button on AIM float
December 8 2019, 12:01am, The Sunday Times
Ian McKenna founded eLight in 2009
A technology start-up that helps businesses and schools save money on their electricity bills by installing new, energy-efficient lights, is to switch on for a £10m (€11.8m) float.
eLight, which sells LED lights that use less power than halogen or strip lightbulbs, is set to join the junior AIM stock market in London through a reverse takeover of Alexander Mining, a cash shell.
Founded in 2009 by entrepreneur Ian McKenna, eLight charges schools and businesses a monthly service fee over a fixed term, rather than asking them to pay upfront costs. It has completed more than 800 upgrade projects to date, and claims to have saved customers more than €15m in energy bills each year.
https://www.thetimes.co.uk/article/energy-efficiency-firm-elight-to-hit-power-button-on-aim-float-cp6wdkzq7
Potential added value from confirmation of successful negotiations with a leading green and clean technology funding partner to obtain a dedicated fund for its energy service agreements.
"eLight has secured contracts directly with certain of the world's leading technology manufacturers, bypassing distributors and wholesale channels to ensure a competitive advantage for its projects, and is in negotiations with a leading green and clean technology funding partner to obtain a dedicated fund for its energy service agreements. "
https://www.londonstockexchange.com/exchange/prices-and-markets/stocks/new-and-recent-issues/new-recent-issue-details.html?issueId=9413
EAAS's upside potential and prospects certainly look interesting and so let's hope the RTO will be well received on listing day...any good news on negotiations with the leading Green and Clean technology funding partner could significantly increase demand and interest. Gla :-)
Number of New Ordinary Shares of 0.3 pence each to be admitted
following consolidation:
New Ordinary Shares: 130,926,167
Issue price per new ordinary share: 7.5 p
All of the Company's AIM securities will be freely transferable.
No ordinary shares will be held as treasury shares on Admission
to AIM.
CAPITAL TO BE RAISED ON ADMISSION (AND/OR SECONDARY OFFERING)
AND ANTICIPATED MARKET CAPITALISATION ON ADMISSION:
Capital to be raised on admission: GBP2 million
Anticipated market capitalisation on admission: GBP9.8 million
PERCENTAGE OF AIM SECURITIES NOT IN PUBLIC HANDS AT ADMISSION:
41.9%
EXPECTED ADMISSION DATE:
9 January 2020
itisagame, just a couple of points on your recent post.
“This is more like a car finance company that supplies you the car, just for lighting.”
ELight is more like the car showroom, than the finance company. ELight buys the fittings and lights direct from the manufacturer and contracts out the survey and installation. Their finance company arranges the leasing agreement and pays a lump sum to ELight, from which ELight pays its installer.
“This is a basic and simple business model, tax incentive service and "green" for the customer, which in reality comes at close to no extra monthly cost to the customer.”
Customers typically save 40% of their monthly lighting bill.
“Im sure they will also upsell all necessary components and services to meet all the newer regulations for building and fire regs aswell, I.E. emergency lighting and testing, fire ******ant enclosures, servicing, the lot.”
My understanding is that they do the led lighting and nothing more.
“Most of the money raised at ipo will go out to finance the new work done by the company, which will in turn generate a return over time, this is why the company is floating.”
Harvey has a buy and build track record with recruitment businesses. The wants to do that again here.
“Aslong as director and management pay doesn't eat in to the profits to much and they can keep finding new customers this will work, Unlike a car finance company it has a finite lifespan, you can only upgrade so many commercial buildings, there is a finite number of buildings requiring this service. So i would hope that the company decides to pays dividends to shareholders in the boom years before relying on servicing alone, shareholders are after all the alternative to conventional private funding that elight has chosen to use.”
The current target market is £25bn. Get a small percentage of that and everyone will be very happy.