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Puzzled by the California reference though….
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Yep, Brendan had been at 10 downing st to explain their business models, future plans and so on last Wednesday. Met with a number of special advisors to do with alternative energy sources that report in to the cabinet.
Sounds like behind the scenes they have some very smart people working there, even if you don’t think much of the ministers themselves lol
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Agree with your logic Lazy, there needs to be some clarification regarding the 40 million valuation.
How is the company getting to that number? I've not seen any of their accounts, and given they are Aus incorporated, there isn't to my knowlddge a 'company house' equivalent, which would give this detail.
This could be the downfall, of the overall deal...
I think the main risk to the success of the RTO will be confirming the financing for it.
If you examine the news link on the line hydrogen website for their production facility in Tasmania, at the bottom of that article is mention of the RTO, but it also talks about a 43 million pre money valuation. Which is a sizeable figure to raise, but not unheard of.
I just hope that this weekend’s flare up between Israel and Hamas doesn’t have a wider effect on global markets and spook the investors they’ve already lined up to pull out at the last minute.
Out of interest, and this is just a guess, but given that there is 60.7 million shares already in issue in NZI, if they were to propose an additional 939.3 million shares as part of the RTO at say somewhere between 4 and 5p, that would provide for the pre money valuation, with an offer price not too far above the original 3p price of NZI shares when they first came to market …
Food for thought…..
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That's a blunt synopsis Sagetrade, I too have had my doubts at times I must admit, so we'll just have to see how it all plans out.
Thanks for the update Lazy. That's very reassuring news.
I had dinner with Mike Ellwood, & Brendan and Gina from Line Hydrogen on Wednesday.
It’s safe to say I think that it’s still on. Prospectus is with the FCA in its 2nd draft format .
Without specifics, I think we’ll be hearing fairly soon.
What is interesting is just how ambitious Brendan and Gina appear to be.
My impression is that we could be in for quite an exciting journey with the Line/NZI RTO.
came away quite upbeat. I think this is probably going to be a much better deal than the previous one that fell through last year.
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Looking forward to seeing a prospectus, if indeed this transaction is still going to go ahead.
Found it. On his LinkedIn account.
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Where was this posted originally?
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INVESTOR MEETINGS - LONDON - Key members of our executive team, Chairman and Founder, Brendan James, and Managing Director, Gina Bozinovski, will be in London next week (2-6 October) for a range of meetings and events with institutional, high-net-worth and sophisticated/professional investors. Please don’t hesitate to reach out if you're in the UK and would like to participate. In addition, opportunities exist for similar investor groups in Australia, from mid October. This investment round forms part of our IPO activities as we prepare to list on the London Stock Exchange (LSE).
Posted 6 hours ago... hopefully get an RNS on progress!
What is certain is that the marketing behind the RTO has been very poor. Line has gone pretty silent on social media front also. Not sure if that's for regulatory reasons, or there's a disagreement on valuation... I did notice in the results, the Directors appeared 'confident' this one would go ahead, but I'm having my own doubts... shame really, as I saw a pretty bullish article on Green Hydrogen recently and the opportunities it attracts.
Have to wait and see for an update regarding the prospectus and terms to NZI holders, but my confidence dwindles by the day...
AGM week on Friday.. wonder if any news will come out around then..
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True, but then look at Cornish lithium, take the govt grant into account plus the recent fundraising, they’ve raised far in excess of that figure.
Who knows, you might even get one or two of the big oil companies taking an interest…. (Wishful thinking heh)…
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Would be interested to know if the shareholders mentioned sign lock in agreements. It’s a tough market at the moment and I would think the brokers will need a fair wind behind them to get it done.
Not sure the current broker can raise north of 1 or 2m.
Total guess, but I’d say at least £3-£5 million, could be a lot higher I suppose.
Ideally I imagine you’d want a 3-5 year cost run way: salaries, administrative overheads, office leasing etc etc, and then when you look at the projects they’re involved with in Tasmania, maybe what another £5-£10 million perhaps?
Expansion plans into uk, Europe and so on I’d guess are likely to be funded on a case by case basis post RTO completion.
So maybe anything up to £20 mill perhaps?
Total speculation of course…. (Could still be a lot less). What will be more important is the share price that they set in the prospectus . All the original money got in ar around the 3-3.75ish pence area.
Rupert l of primorus has sunk close to £500k in on market purchases for his stake, as has the other sig shareholder -R Thomas.
You’ve got to think they’d be looking for at least say 100% gain, maybe more?
Looking at all the trades during its drop to 1.35 p have been relatively small overall so pretty much everyone who is in this stock with any sizeable holding will be looking for I’d have thought anywhere between 5-10p in the prospectus…. It’ll be extremely disappointing if the share price is set lower than that….
But the bigger they can make the initial float now the better.
Following fund raises could then be easier to leverage and make larger, and can be done with less subsequent dilutive effects on the shareholder base…
The Tasmanian local govt institutions though seem t be very positive towards the initiatives that line hydrogen are pushing though. Barring them pulling out at the last minute I think this has huge potential over here as there are very few players in the hydrogen market in uk/Europe.
Anyway - hopefully no more than 2-3 weeks away now, fingers crossed….
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Guess we’ll find out when the prospectus is released…
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How much cash needs to be raised?
Subject to clearing usual approval/due diligence processes …
A prospectus is with the FCA at the moment so timeframe will depend on how fast FCA can complete their scrutiny, and whether any changes are identified by FCA, and how quickly any such items are remediated…
Overall it’s all still seems to be moving forwards…
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Australian-based LINE Hydrogen has announced it is set to be listed on the London Stock Exchange (LSE) by September 2023.
The company has signed a Letter of Intent (LoI) with Net Zero Infrastructure (NZI) a Special Purpose Acquisition Company (SPAC) listed on the LSE for a reverse takeover between the two companies for an undisclosed amount.
Process is still with FCA. From what I’ve gleaned. I suspect more likely to be in October than with September unless FCA move quickly which they don’t tend to do. … sadly…
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i read the expectation to list is by september. in terms of value to current shareholders, i've seen they value the company at circa £40m, so let's be prudent and take £30m. what proportion of equity of enlargened business will be made to nzi shareholders in place of the listing? this is all speculation, but let's say 10%.
that would mean a £3m value, which based on number of shares in issues is circa 5p per share. i'm basing this on the opportunity cost of seeking an alternative ipo/legalities for an overseas company obtaining a listing on the lse.
i could of course be going way overboard, but that's just my number for this purpose.
my *** packet maths is suggesting, no less than 5p, pre capital re-org. i see that our largest shareholder was buying in the 3p region, so 67% return for a 2 year wait, could be a nice roi for them.
all the above is figurative and certainly not factual, and then of course assumes they go ahead with the rto... anyone got another view?
gla dyor aimho...
This is really helpful thanks all
What is it in the books at now v what it might be worth in this deal. If anyone has worked out potential nav effect even better - thank you v much
That’s a very upbeat news article….
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