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£25m from UKIB! Thats a massive boost. + Koreans + Insto's. Balance sheet bullet proof. Stock re-rates now.
Https://www.ukib.org.uk/about-us
We are the new, government-owned policy bank - launched in June 2021 - providing £22bn of infrastructure finance and partnering with the private sector and local government to finance a green industrial revolution and drive growth across the country.
We are wholly owned and backed by HM Treasury, but we will be operationally independent.
So around 28M shares for us and 217M for the instis, UKIB and Koreans. That’s quite some dilution for us.
Guess no other way to massively upscale.
Just hope eventually these dilutive big deals are really profitable so our investments will eventually pay off
Given the discount offered was small, it indicates there is a lot of confidence in IES's future.
It is good to see that UKIB has learned its lesson from Cornish Lithium and bought its shares at the same price as everyone else involved. UKIB was fast becoming a watch word for disaster for other investors. As TurkeyGuzzler observes a re-rating is now entirely possible and I would think quite likely now that finance for expansion/ working capital has been gained.
I guess IES needed the investor & cash as stage 1 - is the below statement stage 2!
‘In addition to the strategic investors announced above, the Company confirms it is also reviewing a number of potential partnerships concerning vanadium supply, Australian market development and U.S. supply chain.’
Still no debt which is sort of good, but lets see how the market reacts tomorrow and during the coming weeks.
I don’t think I will be putting in any new funds as part of the open offer, but subject to how the share price reacts I may sell some shares higher than 23p to recycle funds to take my allocation. If the market likes this it could offer the chance to reduce your average price without adding new cash!
I do think the market will like this as funding was the real issue for the low share price, not great on the dilution but I guess this depends on your average buy price and the price not too bad % discount for the value raised v the current MC! (but fully understand it’s not so good for the longer termers who bought at much higher pricing!)
At least this answers the question as to where funding is coming from. Money from UKIB is indeed welcome and may encourage other investors to come onboard who are encouraged by first movers etc.
This is from the LAST fundraiser, not today’s:
The proceeds from the proposed Placing are expected to provide the Company with sufficient working capital to the end of June 2024 at which point the Company expects to have launched its next generation Vanadium Flow Battery ("VFB").
Let us hope that this is indeed the last fundraise and it will carry them through to financial independence…. The fact that the price is close to the current sp suggests confidence. The market could do anything tomorrow, I wouldn’t be surprised either way! But if that remark about June 2024 proves accurate then hopefully we will not have long to wait before news of mistral.
I still like this company and what it has to offer. It's a relief that we now have an answer to the funding gap. Dilution is always a slightly bitter medicine but it certainly beats going into administration. I like the investment interest from Korea. It shows the company has worldwide appeal. And if you're going for a fund raise, you'd better make it a big one. The initial market reaction tends to always be a bit severe so better to get it over with in one hit. It'll be interesting to see how this swings in the morning. My gut says an immediate fall on open but good strength as the day develops as both the news and the scale of the opportunity sink in.
Does anyone know the total current amount of shares in circulation for IES and what the percentage dilution to existing shareholders will be given the new shares being offered?
According to the RNS dated 2nd January there are currently 191,067,307 shares issued. If the fund raising completes in full, including the open offer, I calculate there will then be 437,118,707 shares in issue. So if you don't take up your entitlement in the open offer your dilution will be about 56%, whereas if you do take it up your dilution will be around 50%.
You’ll need to do your numbers again after that rns
Re-calculated. Not much change. No take up then dilution 58.75%, take up your open offer entitlement and the dilution will be 52.5%.