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I’m going to have to see if anyone has a Sunday times left now so I can read it!
So far as the competition is concerned, until the specs for mistral are published we don’t have much to compare. And I would imagine that sodium-ion would have to jump through the same regulatory, funding and acceptance hoops that IES has spent the last few years negotiating so hopefully vanadium has a head start?
Invinity Energy Website Click on the Link
https://invinity.com/wp-content/uploads/2024/05/IES_Investor_Presentation_0424_WEB.pdf
The information is detailed but seems to cover what we require.
Do#es anyone have any views on the competition, in particular Sodium-ion which is getting some attention. How do IES come out against the field?
Thank you.
“the infrastructure bank has done six months of due diligence on us. that has been significant in getting other people comfortable that now is the time to back us,” said jonathan marren, the chief financial officer of invinity energy systems.
invinity’s capital raise is thought to be one of the largest in london this year and was oversubscribed. “we’ve had some big institutions backing us for the first time,” said marren. “that shows to me there is capital available. but i think you’ve got to have the story right. the hope is that we’ll get the market going again.”
invinity’s timing looks good. last week the g7 set a goal of increasing battery storage on grids sixfold by 2030. the move comes as governments look to wean themselves off minerals supplied by china, including lithium.
the company’s vanadium flow battery can emit 220kwh, enough to power 30 homes for a day. invinity claims that the 25-year lifespan of its product easily outweighs that of lithium batteries. flow batteries come in units the size of shipping containers and can be stacked closely together to generate more power. because they are water-based, there is no risk of fire.
“lithium batteries, while they have their uses, won’t meet all the requirements for energy storage, especially as the market demands longer duration to bridge the gaps in renewables,” said larry zulch, the chief executive of invinity.
vanadium is mined in brazil, china, russia and south africa but can also be recycled from iron ore ****. the ftse 100 giant glencore mines it in south africa. typically used to reinforce steel, it can also be used to store electricity. vanadium salts are dissolved into a water-based electrolyte solution that “flows” (hence the name “flow battery”) through a “cell stack” comprised of plastic frames and electrodes stacked together. this enables electrons to pass back and forth between the vanadium atoms, allowing electricity to be stored or released.
vanadium flow batteries are a relatively well-understood concept, zulch said, but they have taken time to gain traction as research has focused on lithium batteries. invinity’s customers already include scottish water and edf. three years ago it signed up the wind farm giant siemens gamesa as a partner to work on the next generation of its batteries. schroders is its biggest investor.
in the medium term, invinity plans to manufacture batteries in bathgate in scotland and vancouver, canada. it then hopes to license its tech in other markets, where batteries would be built by third-party manufacturers.
I'm not currently a holder but I'd say the gist was positive. On of the largest capital raises on the UK market this year despite the current lack of appetite for smaller company fundraisers.
The technology looks interesting. The article seems to suggest that one container size battery can store enough electricity to power 30 homes for a day and that it can hold its charge 3x longer than a lithium battery, with no fire risk.
Hi, I do not subscribe. What is the gist of the view please? Regards, Simon.
The information has been taken from Invinity Energy Systems RNS from 1 May 2024
UKIB is a British policy bank that will have 25% shareholding and can sell its position after a 3-year lock-in period. A Director is to be appointed from UKIB on the board. Also, a member to be appointed from UKIB on a committee on future purchases for Invinity Energy Systems.
Scotland expansion 3 May 2024 Invinity Energy Systems. The proposed opening of a new manufacturing site in addition to Invinity Energy Systems' existing facility in Bathgate will create up to 41 jobs.
Invinity Energy Systems partner Baojia's which has a facility in Suzhou China which helps with parts for Canada and the UK base of operations to increase in orders. This partnership has been around since 27 June 2022.
The commercial side of 6 GWh of Invinity batteries is to be completed for Australia, Canada, USA, UK, Korea, and Taiwan to which Invinity Energy Systems partners within these areas.
Invinity Energy Systems with ongoing discussions with other partners around the world hopefully to be completed in the coming year.
Siemens Gamesa Renewable Energy to help and produce some of Invinity Energy Systems Mistral when orders are needed to meet capacity is exceeded in the coming year/years. This partnership together produced Mistral Product and input is ongoing for future upgrades.
Looking forward Invinity Energy Systems is moving into the next phase of operations with expansion within the UK market (LDES) with announcements in the coming year. On the broader world stage, Invinity Energy Systems will be operating with partners on the model of royalty-based income.
On the whole Invinity Energy Systems needed the Placing to move on to the next phase of operations. The Placing seems to be a success and Invinity Energy Systems has a good base on cash flow, orders, and partnerships to expand in the coming year.
Any future research will be posted as and when required.
My small buy through H-L was marked unknown.
I’ve got a really good feeling on this for the coming year or two. There’s no way a state owned infrastructure bank would throw £25m into a listed co without a LOT of due diligence.
Also, the Mistral product was pretty much the main leading project with the US Department of Energy LDES funding round of $286m. How many validators do you want to see from state owned entities??
“ Noteworthy among the first group are new projects which will utilise the vanadium redox flow battery (VRFB) technology of Invinity Energy Systems and the carbon dioxide-based technology of Italy-based Energy Dome.
The DOE plans to fund six projects totalling 84MWh of energy storage capacity using Invinity’s latest VRFB product, Mistral, with deliveries expected in 2025. “
https://www.energy-storage.news/energy-dome-invinity-form-redflow-projects-among-does-us325-million-ldes-winners/
"There were other people looking at coming in to this deal.............." All boxes ticked.......................
At 8.45 on the VSA broadcast. That is very good news indeed. i.e. Large potential buyers of the shares who may also be strategic partners.
Also SP Angel broadcast
Https://www.youtube.com/watch?v=i-5J9R9E3_8
IES follows after CUSN comments
Worth a listen this, obviously he’s bullish as IES’s broker, but:
- Points out that this is the first investment made by the British Infrastructure fund in a publicly listed company, for which they did a lot of due diligence.
- Reminds us that IES is moving towards a licence and royalty model. This has to be good for earnings, gross margin etc.
- Hints that more orders will be forthcoming now that the company’s future is on firmer footing than it was pre-fundraise.
We just need to see Mistral launched now. But after waiting three years hopefully not much longer to go!
The following information has been taken from different resources which is not a recommendation but only used for information on YouTube, UK sites, and USA on holdings within Invinity Energy System.
The Placing will increase the number of shares within the company but many people count this as Dilution. Share dilution is the decrease in existing shareholders' ownership percentage after a fundraising round. The outlook of this can be summarised by the Link below which looks on the Positive-
https://www.youtube.com/watch?v=M80Qy1XBmTg
To add the number of shares issued by the Fund Raise seems to be oversubscribed which the previous investors may have missed out, but the uptake probably includes these Firms, Schroders was mentioned as having 32 million extra shares.
Any thresholds which have been broken would be announced by RNS which will not be until after 24 May 2024.
The figures below are taken across different sites and averaged out to show the shareholdings on 30 April 2024 of Invinity Energy Systems-
Public Companies 4.09%
Private Companies 4.57%
VC/PE Firm 5.1%
Individual Insiders 5.3%
General Public 31.7%
Institutions 49.2%
The only people who may be affected would be Private Investors after 24 May 2024 after the new shares are added. Some Private Investors would buy the shares around the present floor of 23.50 pence averaging down the shareholding, with the Open offer for every 20 shares owned before 1 May 2024 they would get 3 shares at the price of 23p if they decided to take the offer.
The dilution would seem to be a positive for IES going forward with institutions increasing the percentage from 49% before to above 60% plus once RNS are released after 24 May 2024 then we would know who will be the new Investors or old Investors maintaining their % before 1 May 2024
On the Invinty energy systems under the proposal the company said it will move Change of Domicile to the UK. It is expected that the re-domiciliation process will be completed by the end of September 2024. This impacts trading with the shares of the company as it would have stamp duty added to trading.
The Funds raised by Invinity Energy Systems will be used for:
·£29.6m to support the Company's working capital requirements;
· £18.0m invested into LDES projects in the UK using Invinity's batteries;
· £2.0m to invest in plant and equipment at the Company's manufacturing facilities in Scotland, UK; and
· £0.4m against the transaction expenses, expected to be approximately £2.8m, the balance of which will be paid from existing cash reserves or the proceeds of the Open Offer.
Presently Invinity Energy Systems has mentioned how these Funds will be spent in Part 3.
The following article is based on information in the RNS 1 May 2024. Vsa Capital Podcast, Dentons, and Canaccord Genuity whose work has led to Invinity Systems becoming fully Funded till profitability.
On 18 December 2023, Invinity Energy Systems in its update stated:" The company remains extremely encouraged by the level of interest shown and resources being deployed by potential strategic partners into the due-diligence process and can confirm that it is currently in detailed discussions with a number of parties which it would anticipate concluding during Q1 2024".
Also mentioned was "The Company's pipeline continues to grow with opportunities to deploy nearly 6 GWh of Invinity batteries currently in various stages of commercial discussions".
The process done by Dentons through Due Diligence on the company accounts needed to meet the criteria for any funding. This took time and many Investors were concerned about how long it was taking. Invinity Energy Systems released an update on 18 February 2024 on the process.
A further update was announced on 15 April 2024 which stated " Invinity is extremely pleased that this includes a proposed investment by a Tier 1 investor which, if concluded, will materially enhance the Company's business and reputation in both the UK and internationally".
With the ongoing Due Diligence process, the commercial announcements seemed to be on hold till the process was concluded. On 1 May 2024, Invinity Energy Systems announced the completion of the process with a Strategic Investment & Placing of £50 million plus through Fundraising.
The Investment Entials UKIB is a British policy bank, wholly owned and backed by HM Treasury which will have a majority shareholding of 25%. Also, KIP is investing up to 3% shareholding, is a venture capital and equity house an Investment Arm of KIC which has approximately USD$189.1 billion in assets under management as of the end of 2023.
The Investment of UKIB and KIP gives Invinity Energy Systems a presence within the UK market and International Links to enhance the company going forward.
Evening all. Can anyone explain why there have been a significant number of large trades marked ‘unknown’ the last 2 days which don’t indicate as a buy or sell yet the share price has hardly moved? Some of the trades (well most of them) are for 100-200k shares at a time
Very nice I’m adding too I think VRFB is a good bet on the energy transition
May 2, 2024
London—Dentons has advised the UK Infrastructure Bank ('UKIB') on its £25 million direct equity investment in Invinity Energy Systems plc ('Invinity'). Dentons is the world's largest global law firm by number of lawyers.
The UK Infrastructure Bank will hold 25% plus which makes it a majority shareholder. This position does give some protection to Invinity Energy Systems as UK Infrastructure Bank can block any future bids. On 22 May 2024 the AGM will be held and if Funding is passed Invinity Energy Systems can proceed with upgrading operations for future demand.
The lack of news in the past few months has caused some concern about the outlook of projects announced last year. The Funding which seems to be a success has given confidence for these Projects to move on to completion in 2024/25.
Invinity Energy Systems moving forward will be attending Energy Storage Evensta around the world. The first in the coming months starts on 21–22 May 2024 in Sydney. This event will be attended by Invinity Energy Systems partners. The Federal government's announcement to expand the Capacity Investment Scheme of which 9GW is purely energy storage - is considered by many to be the biggest investment into renewables in Australian history.
In June International Flow Battery Forum will be held between 25 and 27 June. Invinity Energy Systems will be attending. This will follow on into August and September on other Energy events. Mistral Invinity's next generation for Energy Storage will probably be showcased at one of these events.
Very interesting to see this investment - Vanadium a mineral for the future!
The company's broker has produced an update with a new target price on a 12 month view of 110p.
Doyezee
No, the issue probably will add value to the shares, as the discount for the risk of not getting funding comes out. That discount was probably quite significant. Also do not forget:-
"The Open Offer will include an Excess Application Facility to enable Qualifying Shareholders to apply for additional new Ordinary Shares in excess of their entitlements under the Open Offer."
I'm open to doing a bit of trading here too grsshaw.. and great if this rallies on up on coming weeks/months..
While I get the markets are a mare generally, this being oversubscribed by a queue of blue chips wanting to throw money at this leads me to offer that this could of course have played out better for PI's..
Generally, while I still like this plenty, it's one of many AIM shares I hold, and versus others in the round, it has overall actually gone down a bit in excitement terms for me today .. I still have pretty high hopes for this from here .. but lets not forget this was decently over 200p at it's peak and many long/medium term PI's continue to be beaten up again and again as we go here..
Https://soundcloud.com/user-596578261/vsa-capital-technology-and-transitional-energy-020524
I have flipped a few at the start of trading this morning for over 24p and also bought a few at 22.85 to trade during the open offer period.
If the SP increases it might be worth flipping the 3/20 open offer that's available on the rest of my holding, but new funds maybe available subject to where the SP is for a quick trade (good timing re ISA Tax Year to add more funds if required also), but I am happy to flip all, as this will raise new cash for IES rather than sit on the side lines - as long as I sell above 23p to raise the cash needed to fund the open offer allocation. The open offer is now locked in, so this can be managed to take advantage if the share price does increase.
As the % discount is low (compared to some I've recently seen) plus none of the funds are paying back a large debt mountain, I can see this trading up-to 30p a share over the next few weeks. I am also expecting a couple of positive RNS's plus some media noise to help pin the SP at or around my short term target price of 30p.
Seen a few of these in my time and you can trade these when you have an open offer, for new investors or recent investors this is good opportunity to take new shares or increase their position in IES. I have enough shares for my medium term plans so do not intend to add to my holding, but happy to short term trade a few when the opportunity arises.
Once trading and the news has settled into next week (after the UK bank holiday), this is when we will see where this is heading in the very short term.
This could have been much better for existing shareholders, but also could have been far far worse in this market!!
Reset and start again but now with some much needed resource!