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Totally agree and well put. Big sale coming round the corner? Not convinced....we shall see. Good luck with your own investment.
I would suggest, Accuracy, that EEnergy need the cash pronto..
They've got a nice little sweetheart deal with Luceco, before the big sale goes through (in the next couple of months).
Share price rises and everyone wins.
Could be wrong, but that's my positive take on it.
Agree Techtonic, but please note the 25% premium has only arisen because share price has "fallen off a cliff" in the past 3 months; 7.2p per share only a short time ago, so 5p represents a discount of 31% against that. And why does a company sell nearly 10% of stock to a leading supplier at just 5p if there is an expectation of prices rising in the short-term? Nevertheless , I do hope you are right about the sale. We shall see.
The fact that the deal was done at a 25% premium to price (5p) indicates to me that there is some confidence that the bigger circa £30Mill deal will go through.
Then you're looking at a share price of 8.5p - 9p ish
Please forgive me if I have misunderstood the RNS, but it seems to me giving away nearly 10% of a company in order to pay a supplier, even if only in part, is surely a bit like "selling the family silver". If this is the pattern for the future, presumably each share we own will be diluted on a regular basis. Where has the working capital gone? Or am I wrong?
"EAAS closed today at 5.75p reflecting a Market Cap of £20m.
If the Energy Management division represents 30% of the value of eEnergy and they sell it for £30m then the value of eEnergy is ~£90m (£30m being cash on the balance sheet).
£90m Market Cap is a Share Price of 4.5x 5.75p = ~26p
DYOR"
Link here: https://www.equitydevelopment.co.uk/research/strategic-developments-highlight-valuation-anomaly
eEnergy has announced a strategic investment from Luceco plc, whereby Luceco will invest £1.75m via a subscription for new ordinary shares at 5p per share, a 25% premium to yesterday’s closing price. Luceco is a significant supply partner to eEnergy’s eLight business (part of its Energy Services division). The investment looks strategically sensible, strengthening this longstanding relationship, as well as eEnergy’s balance sheet. Additionally, the Board is exploring the potential disposal of the Energy Management division.
After receiving a number of indicative cash offers, which valued the division at >£30m, the Board has entered into a period of exclusivity with one of the interested parties. Irrespective of the outcome of this process, we feel that these developments shine a light on the underlying value of the Group, which, in our view, is not reflected in a current market cap of just £15m.
Techtonic
not in here m8,i just zoom around looking for downtrend lows
like on sav around 11am this morning....not in there either
obviously,i could be wrong,but best to buy on the lows,than getting spiked.
Thanks.
Wonder what they’ll do with the remaining £27-£30m
With 100% growth in remaining business year on year they obviously feel confident in growing this business
The CEO said in an interview a few years ago, his aim was to turn £100m. £30m down, £70m to go
The £2.5m loan needs to be re-paid mid 2024 - May or June i think. Interest is c15% so i think c£3.2m will need to be re-paid.
I take it you're still in here?
Great RNS today.. I was waiting on the sidelines for a fundraise, but I guess this takes care of that!
Anyway, good luck
Sorry re read text
More haste less speed
Share price not £, meant to say 8.7p lol IF we sell division for £30M
The Luceco investment alone values e-energy at £20m (£1.9m for 9%) without the £30+ million from sale of energy management division. They wouldn’t be in exclusive talks with someone without a serious bid on the table. The last exclusive talks scenario I recall is Currys disposal of Kotsolovis which was shared a week before disposal confirmed.
This time next week, I calculate at £30m share price should be £
8.7pence.
If we sell for £35m could be 10-11p
Investment is a no brainer
Remember the reasons why share price fell a year ago…debt paid at silly interest rate, due to be repaid in Jan 2024 I recall.
This is no longer an issue
20m mcap and in advanced talks to sell part of the company for in excess of 30m. Still looks undervalued.
There cant be many shares in free float once the traders have had their few quid then the rise will begin.imo
No need to pump this , nice little investment.
Pity the traders are in/out , look at mr 48664 bought at 6.847 then sold at 5.81.
Where is the ramper Ria20?! She usually tries to pump the leading stocks of the day even more before disappearing again!
Luceco takes a significant holding and has a substantially larger market cap. Interesting!
Eenergy mcap only £15 million !!!! Going to be very interesting!
Could be a good day ahead .. investment at 5p a share and sell off at £30 m …
Told ya.lol.
Fair enough guys and yeah,volumes arnt that good,
Unfortunately I must agree with Techtonic; previous low of 2.65p could be seen again with this stock, which continues to disappoint. The only trades are minute. Particularly distressing for those acquisitions where vendors still have equity originally valued at prices far in excess of today. A bitter blow for them. Time for the Board to get a grip on finances, but any fundraising now is likely to massively dilute value.
It's possible but I don't believe so.
It's lining up to be a very weak double bottom...
But I'm staying on the sidelines because I'm pretty sure they'll need a fundraiser and it will be lower than 3.6p
3.60 should be the downtrend low,imo.
https://www.lse.co.uk/SharePrice.html?shareprice=EAAS&share=Eenergy-Group
lets see