A message from Cathal Friel28 Nov 2024 07:32
Dear Shareholder
As we approach the end of 2024, I wanted to update you on European Green Transition plc (EGT) and our plans for 2025 and beyond. It is just over 6 months since we completed the IPO of EGT on the AIM market of the London Stock Exchange. After initial momentum for much of the summer, EGT’s share price has come back in the past few months. This is due to a number of factors including the wider uncertainty around the AIM market caused by the UK budget and further uncertainty brought about from the recent US elections. Despite this, I am hugely optimistic for the potential of EGT in the coming months to replicate the successes we have had in our previous IPOs, particularly Amyrt Pharma plc and hVIVO plc, which were built by acquiring somewhat distressed businesses and using our experience of the public markets to turn them around and generate significant returns.
As EGT’s largest shareholder, having invested £300k at IPO and a significant amount before that, I want to re-iterate to all fellow shareholders that I share the pain with you all on the recent share price performance however I am hugely excited for the potential of EGT. Finding the right assets to acquire tends to take a bit of time so please bear with us as I am certain we are on the right track to find a transformative, revenue generating project to develop into a sustainable, profitable business as part of the green energy transition.
At the time of our IPO, we communicated to investors EGT’s two primary goals for the coming 12 months. The first was that we would only spend c.10% of funds raised on our existing mining assets and with this expenditure key to supporting the monetisation of these assets. We have stuck to this plan, completing an under-budget programme at the Olserum project in Sweden. The initial results received have been very positive showing the potential for a district scale rare earth system. We are optimistic that we can monetise this project in the near future, by selling the project on to a third party.
The second goal was that we would direct our focus to acquiring revenue generating assets in the green economy through M&A. This remains the strategy and we are seeing huge amounts of opportunity in the space, and as mentioned please bear with us as we look to deliver a transformative acquisition as we go forward with real revenues and a clear pathway to profitability.
We greatly appreciate the support you have provided to EGT to date, and we look forward to delivering on our strategy and hopefully generating significant returns for all shareholders over the coming months.
Please feel free to reach out to me at any time should you have any questions
Kind regards,
Cathal Friel | Director
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