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Seems to be ticking up well last couple of weeks
Yep. it does seem that way - as most others are down. Let's see if it holds
Don’t wish to tempt fate but this seems to be ticking back up. I wonder if the recent news, grant and setcar, has quelled the funding expectations.
Trek
Cenkos....
“Directa Plus, the leading producer and supplier of graphene nanoplatelets based products for use in consumer and industrial markets, has announced that its environmental services subsidiary, Setcar, has been awarded a grant for a project under the EU's Regional Operational Programme. The total financed programme is for €1.15m, of which €0.6m is non-refundable financing. The project has a duration of two years and commences on 21 August 2021. The Regional Operational Programme aims to improve the competitiveness of small and medium-sized enterprises by investing in the creation and expansion of advanced production capability and the development of services, leading to new job creation and increased competitiveness. The project will fund the acquisition of additional equipment for Setcar to be used in the provision of decontamination services for oil and other substance tanks and the provision of services for the decontamination of soils contaminated with petroleum products/pollutants.
? Comment: Today’s grant win is positive and helps provide the company greater capital headroom to fund it through to profitability which, we believe will be reached in late 2022 based on our current expectations. We retain our Buy recommendation and 250p valuation”
You would think following the UN climate change ‘code red’ warning companies like this would have a heck of a lot of support to scale up their tech. Instead we walk slowly into oblivion!
Trek
Non refundable does sound like a grant but no expert on eu grant procedures. Happy to see all the same and as you say good to be scaling up ops at Setcar.
Great news for Setcar this morning. I assume the terms mean that over half the grant is free. That bit is not clear. The broker note later may clarify.
Good to see it’s being used for scaling up ops.
Trek
Good to have a target for profitability and with a €4m cashburn last year leaving €7m in the bank maybe no need for a placing before its reached either. Not with today's news and the extra € .5m they're negotiating on top.
Cenkos 250p
“Directa Plus, the leading producer and supplier of graphene nanoplatelets based products for use in consumer and industrial markets, has announced that its Italian subsidiary, Directa Plus SpA, has qualified for a total of €0.7m in loans under the Italian Government's Covid-19 Recovery Plan. The Company took advantage of the low-cost liquidity offered by the Italian Government in order to accelerate its strategic programme. The funds are being provided in two tranches by Intesa Sanpaolo SpA: a €0.5m loan and a €0.2m leasing loan to fund the acquisition of new machinery for the Company's production facility. The loans have a term of 5-6 years, a variable interest rate of 1.5-1.8% +EURIBOR 3M and are 80-90 per cent. guaranteed by the Italian Government. Exploiting the same government measure the company is negotiating with another major Italian bank an additional €0.5m loan.
? Comment Today’s news is positive and helps provide the company greater working capital headroom to fund it through to profitability which, we believe will be reached in late 2022 based on our current expectations. We retain our Buy recommendation and 250p valuation”
Trek
Good news with the low interest rate loans. €0.7m from govt + seeking an additional €0.5m with another major Italian bank under the same terms.
Hopefully that’s enough to see them through else surely they’d ask for more?
Interestingly the bulk is for capex (machinery), these loans usually have terms. Capex/opex split may be one. The government having underwritten the loan wouldn’t want it to be a ‘lights on loan’. They would obviously want to see it repaid and for growth, even an Italian bank! Lol!
If anything it should at least stop the SP drift now the finance uncertainty has been somewhat addressed. A lift would be nice for new investors here that are likely underwater atm.
Usual caveats
Trek
Expected news on a placing this morning not several low interest covid loans for expansion.
Happy of course, guess Fridays fall was just a savage test of the 200dma?
Odd price action reeks of broker getting VwAP down ahead of placing.
Thought we may have got away with it!
Hope it’s at a premium to £1!
Trek
Yes, I’m surprised too. If it gets to 90p, would seem a great buying opportunity.
MM's loving playing with this one. Never expected to see under a quid again!