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And certainly we'll above 6p.......interesting ....

A perfect little add-on for Ensilica??

Could simply have been a conflict of interest between Siemens and Synopsis and the holding in Sondrel was a minor point.

Sondrel has already delivered designs at 5 nanometres and is now working on 3 nanometre process nodes. This level of engineering capability is limited to Sondrel and a small number of Asian competitors and positions Sondrel to benefit from the megatrends driving the increasing use of ASICs globally and the production of system solutions utilising increasingly complex design geometries.

Latest RNS sounds upbeat and gives possible background reason for sale. Sondrel signed a 3 yr extension contract with Siemens in April this year so the sale of their investment and commercial involvement are entirely separate entities.

More a Synopsis vs Siemens IP than anything to do with Sondrel

1 December 2023

Sondrel (Holdings) plc

("Sondrel", the "Company" and together with its subsidiaries the "Group")

Holding(s) in Company

Sondrel (Holdings) plc (AIM: SND), the fabless semiconductor business providing turnkey services in the design and delivery of 'application specific integrated circuits' ("ASICs") and 'system on chips' ("SoCs") for leading global technology brands, notes the announcement this morning by Peel Hunt LLP that Siemens Industry Software Limited ("Siemens") has today, subject to completion, disposed of its entire shareholding of 9,813,450 ordinary shares in the Company, representing 11.22% of the Company's issued ordinary share capital, at a price of 6.0 pence per ordinary share.

The disposal by Siemens has no impact on Sondrel's operations or commercial relationships. Sondrel maintains strong relationships with its various industry partners including foundries (such as TSMC, GlobalFoundries and Samsung), OSAT organisations (such as Synergie-CAD, Amkor and ASE), IP vendors (such as Synopsys, Siemens, Arm and Arteris) and EDA vendors (such as Synopsys and Siemens).

The Group has increasingly been implementing newer technology from partners like Synopsys and this technology is at the forefront of many of the Group's existing and potential ASIC project delivery. In particular, Sondrel's strong commercial relationship with Synopsys is creating new opportunities for the Group.

Https://youtu.be/YO6ivgheSwg

First target £3.50 before retracing to £4.10. Once that goes its blue all the way into 2024. The global packager, as an early exclusive adopter of ReZorce, is key to the enormous commercial scale of this product. An eco-friendly recyclable alternative to the huge number of drinks packages that go directly to landfill is highly desirable and a must for green tracking funds. Roll on 2024.

The fact that a globally significant packager is working alongside Zotefoams and is effectively guiding a dichotomy of the business is a massive acceptance that it will successfully roll out early 2024. The non disclosure agreement by this global early adopter is a good indicator of how transformative ReZorce is. The fact that it can be seamlessly used on existing machinery is pivotal as it requires no Capex by the end user. Massive.

The case for US based Curtiss to acquire Hardide is absolutely compelling at this time of transition from hard chrome coatings to patented alternatives. It fits like a jigsaw piece into Curtiss' footprint and brings the funds to scale-up rapidly as the opportunity is now. Patience.....this could land tomorrow imo and that would certainly raise the game here.

The wording on the announcement of that award is highly significant. The judges have obviously seen development of ReZorce against milestones being achieved and have drawn their conclusions. To define the product as a potential gamechanger in the packaging industry is a strong indicator that adoption is only a matter of time by its global partner. Solid and exciting for commercial scale up in the coming months.

Agree, seem to be consistent packages being taken off the market by buyer(s). Looking at the possibility/probability of the ReZource contract rolling out in Q1 2024 it looks a nice entry point for those who haven't bought in yet. Be interesting to eventually see who the 'significant' contract is with once the nda is superceded by volume production.

Hardide just has to be lining up for a takeover here imo.

Ramp up of orders from Airbus from June

Pending order for turbine blades imminent

Matt Hamblin appointed to BoD (this was an add-on which went largely unnoticed as it was preceded by CEO Phil Kirkhams intention to retire next year. Matt Hamblin was CEO of Keronite - do the research - taken over by US firm Curtiss-Wright (NYSE:CW) last November. Curtiss shares are currently racing ahead. Given the MCap of Hardide is sub £7m at present and Matt Hamblin oversaw the buyout of Keronite this just has to be an exit route on the table. The overlap and jigsaw fit of Hardide into CW is absolutely compelling in terms of added IP, technology and geographical locations. This screams a £15-£20m successfully buyout becoming to me on all logical grounds in that both companies win. Hardide gets money to exploit expansion as it's contracts roll out and Curtiss brings that IP and tech in house to join its range of coatings tech.

Again, another huge thumbs up for Hardide. Quote....

Testing was carried out on a drilling test rig in Texas, USA. Hardide-T exceeded our customer’s performance requirements from the outset of testing and has been specified on the tool since its launch to market.

The Hardide-T coating extends the life of the bores and pins so that the drilling tool can steer as directed and last for the duration of the drilling job from surface to the target depth which is 1000s of feet vertically and/or horizontally.

The enormous barrier to entry provided by the multi-year appraisal schedules plus the embedded patents and outlay for furnaces makes me pretty certain that a takeover is the best solution here. It's a stand alone green and growing business that a big player could put under its wings and pay in advance for more furnaces as the horizon is sweet for 2024 onwards. The phasing out of hard chrome across the EEC and other regions of the world plays perfectly into Hardides court. Demand is there and growing (this will only escalate) meaning Capex now will be more than rewarded in the near term. My bet is on the likes of Gardner, BAe or Ricardo. This is the inflection point as the CEO is retiring in April or before.

The barriers to entry are huge, validation takes up to 10 years and Hardide is now in the sweet spot of acceptance by Leornardo, Airbus, General Electric and a variety of other majors with many pilots under way or nearing completion. This is a peach of an 'green' add-on for a number of top350 players. Talk about vulnerable as it transitions its CEO! Start the bidding wars as this looks a fat better use of funds than the numerous share buy backs in the market at present. Too cheap and a sitting duck for a bid imo.

1: expected large turbine order mayerialises

2: big increase seen in Airbus orders after June RNS

3: one of numerous pilot schemes brings contract order

4: takeover by big company - one of many t1s with whom Hardide works

Interesting when the disparity between MCap and intrinsic value is so big. £7m MCap for all the new factory,plant and IP is laughable..

From 18 July 2023 - Zotefoams, a world leader in cellular materials technology, is pleased to announce a joint development agreement ("JDA") with a world-leading packer of beverages.

And in the trading update:

The MEL business unit is now predominantly focused on the development of the ReZorce recyclable barrier packaging solution for beverage cartons. Investment in the high-risk, high-reward ReZorce technology is tracking in line with management expectations ahead of commercial trials scheduled for early 2024 and represents a significant proportion of Group costs, which are evaluated continuously in the context of the wider Group performance and the very significant opportunity represented by its target markets.

Zotefoams is clearly diverging into two substantial businesses. The rapid development of ReZorce for a world leading beverage packer is a potentially transformational addition. Yes it is absorbing R&D costs from the polyolefin side, but the upside is huge and the full commercial trials begin in the new year. The fact that implementation of ReZorce into existing end user production lines requires no upgrading is pivotal to its success. Roll on 2024.

Time for a solid trading update reaffirming that business is strong. It would be good to see a continued strengthening in aerospace orders and evidence of improved supply chain into end markets with conformation that the Polish factory is fully onstream. Any news on progress of the totally recyclable packaging venture would be good. The imminent t/u should provide a stable base for a rerate from here as £2.80 a share hardly reflects the potential here - short medium and long term. Solid company with strong, competent and prudent management.