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The interims will consist of the interim report with the interim financial statements, and I would think that it is the 'report' part of this that could be delaying things.
NZI will want, if possible, to give an up-to-date indication of whether the TCP RTO is still 'live' or not.
Allied to this is the issue of whether it's actually appropriate for the company to de-suspend or not.
And even if the TCP RTO itself is 'dead', if there are other potential RTO negotiations occurring then I think it would be better to stay suspended, in the circumstances. Because of the overall recent and ongoing uncertainty.
yep an still not published.
it'll be interesting to see if theyre released tomorrow .....
l
as of wednesday they were on track for interims by monday
l
from what ive gleaned from mike ellwood, i dont think they are still in talks with TPC
of course that might still change in the future... who knows. there are a lot of other opportunities out there though. i think NZI will simply move on to something else..
l.
So why come out of suspension if the company is still in talks with TCP?
Good to receive an update, and for the annual report and financial statement link to be RNSed:-
https://www.londonstockexchange.com/stock/NZI/net-zero-infrastructure-plc/company-page
As you would expect, this is the same report and financial statement submitted to Companies House on 12th. December, which we have already seen.
So NZI's 1.12.22 Chairman's statement in this is talking as if the TCP RTO is still live, despite the 18.11.22 'termination of acquisition' RNS.
And the second RNS today is to a degree qualified in this regard:-
"The Directors of NZI continue to see a number of prospective transactions in the renewable or clean energy technology sector, in line with its existing acquisition strategy. In the event that a prospective transaction becomes viable the Directors will notify shareholders."
This could suggest that NZI & TCP haven't been able to agree terms that NZI currently considers viable for it, but that this could change.
Re the suspension: as I posted here on 22nd. November, I'm not even sure that it's necessary or appropriate for the company to return from suspension at the moment.
Not if there is a lack of clarity about the TCP RTO.
Thanks for heads up Lazygun.
https://www.londonstockexchange.com/news-article/NZI/release-of-final-results/15786050
So, finally an update. Full results published.
updaate on return to trading - publish of interim results - unaidited, followed by resumption of trading - target - 16th jan - so a week on monday.
l.
When I spoke to the FCA although soecific details must remain confidential between the FCA and the comoany, they do actually scrutinise accounts submitted by companies….
So there are occasions where trading resumption could be delayed if they had questions
L.
I sent my details off to prim. Via his website but he hasn’t come back to me yet.
I gather that the FCA have requested further information.
The wait continues…..
L
Thanks Lazygun.
Did you speak to 'PrimForAll' ... or can't you say?
I don't see why the company would need the FCA's approval to RNS its final results.
De-suspending after the final results are released is a different matter.
Then there's the issue of NZI's 1.12.22 Chairman's statement talking as if the TCP RTO is still live, despite the 18.11.22 'termination of acquisition' RNS.
It's time I feel for an RNS update, please.
Very disappointing indeed.
Stuck in here for months with no end product.
Get it sorted NZI.
So,
no further update from the company yet.
I've also spoken with corporate actions at LSE who indicate its entirely between FCA and the company.
spoke to FCA and nothing they can say as it has to remain confidential between FCA and the company representatives, which means its basically down to waiting on info from the company....
disappointing...
not good...
l
Thanks Lazygun.
All the best.
Lord knows.
My understanding is that accounts have also been sent to the FCA, though it is interesting to see that no RNS to that effect has yet been released to the market, so maybe it's just a case of getting through a backlog on the FCA's part?
I have been in touch with Michael Ellwood, and so far there seems to be no sense of anything other than the FCA has the information it needs to make the call. I do get the sense that Michael shares the frustrations of the shareholders,
I have also emailed the FCA on the matter, though whether they would tell me anything is debateable.
I
Asking again.
Why are we still suspended?
Im happy to chat on the phone but you will have to send me an email ( check PRIM website) and let me know your contact details if you think that would be of some help
Ever the optimist. There are a lot of attractive deals to be made out there. If you find the right deal then it could be very good. Obviously since they started conversations with the original target then the market has changed dramatically and so it is important that any deal struck is on the right terms whether it is with this company or a new target.
Mike is also a decent chap and so he is fully aware of what is in the best interests of shareholders.
Cheers
Rupert
Hi Prim.
Appreciate your response. You have no concerns yourself then?
Rgds
L
Hi LG,
If you have any concerns then I would suggest you contact Mike Ellwood. He is far better placed to answer your questions and is very approachable.
Best
Rupert
I have heard that it is with the FCA.
However I am increasingly concerned over the silence….
If it is the case. Then either the FCA are dragging their heels, or there is some sort of problem which NZI are unwilling or unable to elaborate on.
Someone mentioned on here that “primforall” is Rupert Labrum’s handle on LSE. It would be interesting to see if he could comment on here given the size of his personal stake. From what I can work out a significant portion of which was acquired in the open market, so must be close to the best part of £500k spent which is pretty substantial…
L.
Acquisition pulled.
Accounts filed.
Why are we still suspended?
Terry,
Quite a bit of cash has clearly been spent on trying to arrange the TCP acquisition. If that RTO is aborted, and NZI can't recoup the monies expended on that (& there's been no indication that they can), then the money has been wasted.
If TCP had pulled out of a RTO agreement without good reason, then it would be standard practice to have a provision for NZI to recoup its aborted costs. But NZI's annual report doesn't say whether the heads of terms signed had agreed an equity split between NZI & TCP, or whether it was subject to placing funds being raised.
Either way though, I think it's in the interest of both parties to proceed with the RTO regardless of whether they can raise significant additional funds at the desired price at the moment. The enlarged entity can look to raise such funds next year, when market conditions should have improved. It's generally easier for an already listed company to raise funds anyway, with no floatation risk, and an established share price pattern. So you don't have to do it all at the same time.
And in the meantime, TCP will be operating as a listed company, getting its story out to the stock market, and progressing its growth: albeit with less funds than it would like, but if it shows what it can do with more limited funds, then investors should be impressed enough to more willingly provide more.
I don't really buy the 'hard to value correctly' argument in this case, as TCP is profitable, not a blue sky loss-maker.
If TCP pull out unnecessarily, then they may well find that other shells are wary of dealing with them in case the same happens again. That would leave the IPO route.
But the RTO route may have attractions to the IPO route that may give it additional 'value' to a company wishing to float:-
• A requirement to give away less equity than in an IPO.
• Potentially more speed and certainty - an aborted IPO due to market conditions could be very expensive, and time is money.
• The 'shellmeisters' may also have attractive business acumen, contacts, and 'clout', that may be attractive to the floating company.
Thanks for that, Lazygun.
NZI's annual report & financial statements for the year ended 31 March 2022 were filed on 12th. December 2022, but are dated 1st. December 2022, including a statement from Chairman Michael Ellwood dated 1st. December 2022.
Here are a couple of extracts, the first one being from the Chairman's statement:-
"The challenge for the Directors is to find a suitable acquisition upon which to base the Company's future at a time when assets in the renewable or clean energy sector are becoming increasingly hard to value correctly."
"The company has evaluated potential acquisition opportunities and in May 2022, the company signed a non-binding letter of intent ("LOI") to acquire the entire issued share capital of Taylor Construction Plant Limited and Solar Highways Limited ("TCP"). TCP is a UK based infrastructure services business. This acquisition, if completed, along with an associated proposed placing of shares by the company, would result in the shareholders of the Target having a significant minority interest in the enlarged group.
The principal activity of TCP is the supply and hire of specialist equipment to UK infrastructure and construction contractors. TCP is transitioning its existing business from diesel-powered to zero emission equipment powered by hydrogen and other renewable sources. This is carbon neutral at the point of use and offers customers an alternative to the use of diesel across a wide range of market applications, including in construction, events, film, and temporary power. TCP is profitable and includes as its customers a number of leading participants in the infrastructure services market.
The proposed acquisition is subject to the completion of due diligence, documentation and compliance with all regulatory requirements, including the Listing and Prospectus Rules and, as required, the Takeover Code."
https://find-and-update.company-information.service.gov.uk/company/13236308/filing-history
Interesting, there's no mention of the TCP RTO being aborted, as RNSed by the company on 18th. November, so perhaps there's still hope.
Re the suspension: it's clearly not possible for the company to return from suspension if the TCP RTO is still live, unless a prospectus for the RTO is published first.
This would still be the case even if NZI's annual report and financial statements is RNSed.
Accounts submitted to companies house yesterday
https://find-and-update.company-information.service.gov.uk/company/13236308/filing-history
So we should be getting a return from suspension request pretty soon I’d expect
L.