Member Info for exp1orer

Just imagine you just invested £10m and you put SL. 😂 Whoever is that person in-charge of investing the company money and putting SL should be fired. SL is for gamblers who have no idea what they are doing.

Ceres explicitly outlined their intended use of proceeds in the first RNS ("Proposed capital raise of approx. £100million").

While standard corporate boilerplate is used, the RNS breaks down the deployment of the £100m into three specific strategic areas:

1. Supporting Partner Scale-Up and Supply Chains

Ceres stated the funds will enable "selective investment to support partner scale-up." Because Ceres operates on a licensing model, they do not build the massive factories themselves (like Weichai's 1GW plant). However, they stated the capital will be used to support the "scale up and maturity of supply chains" for Solid Oxide Fuel Cells (SOFC), which ensures their manufacturing partners have the necessary ecosystem to produce Ceres' technology at massive volumes.

The RNS also noted that maturing this supply chain will directly benefit their future Solid Oxide Electrolyser (SOEC) manufacturing, as the technology stack is reversible.

2. Protecting Intellectual Property (IP)

A licensing model is only as strong as its patents. Ceres explicitly stated they will focus on "investment in key intellectual property to maintain the Company's protection alongside anticipated expansion." As they hand over blueprints to massive industrial partners to build 100MW+ data centre solutions, defending and expanding their patent moat is critical to ensure those high-margin royalty checks are legally protected long-term.

3. Balance Sheet Strength for Growth

The RNS stated the funds will "establish the right balance sheet to drive growth." While vague, in the context of hyperscaler data centre deals, this is a financial credibility play. When bidding for critical power infrastructure contracts with companies like NVIDIA or major utilities, clients require their partners to have a bulletproof balance sheet to ensure they won't go bankrupt mid-contract. The £100m cash buffer provides that institutional credibility.

https://www.londonstockexchange.com/news-article/CWR/proposed-capital-raise-of-approx-100million/17631488

Maybe an RNS later today after trading session... if the new buyer or existing holder bought more and exceeded 5% they are required to be published.

LVM000, I think the problem is most of us already run out of funds buying CWR when it was @ 750p~830p. If I still have funds left I would surely use all of them to buy CWR more at this current price. Full disclosure, my SIPP is 100% invested in CWR.

Jefferies of 920p was actually released last night, about two hours the offer was officially closed, the coincidence is unreal 😂 it really made me very suspicious what happened is the last two weeks bring the price down to 609p.

LSBM, that's the reason why I put semi parenthesis on the word 'locked' because they are not officially locked. I fully understand that, this is not IPO where original early investors are locked.

LSBM,

the 17m+ new additional shares were oversubscribed which means they were 'locked' by the buyers until the price has gained significantly. I don't think the big institutional buyers would spend £103m if they are just for short-term gain

Gemini AI Pro was spot on when I asked about the offer price (570p) yesterday.

I was actually surprised to see an email about this just 30 minutes ago, the timing seems very suspicious after the sold out 😎

If the 17m+ new additional shares were sold out and bought by the big institution(s), does that mean that the volume of the floating shares remains the same? Surely, those new additional 17m+ shares are 'locked' by the new investor(s) and won't sell them in a very near future without significant gain. Does that mean we end up again with the MM dragging the price down to liquidate those with the stop loss and shake those with weak minds to collect more shares to fulfil the big orders?

Question to AI: What does it mean if the new additional shares were sold out in a couple of hours and retail offer was closed an hour early?

Ai Answers:

This is the textbook definition of a massively oversubscribed offering, and it is the single most bullish signal you can receive during a dilutive capital raise.

Here is exactly what that level of aggressive demand signals to the market:

1. Massive Institutional Appetite (The Smart Money)

When a £100 million placing is snapped up in just a few hours, it means the joint bookrunners (Berenberg and UBS) did not have to beg funds to participate. Institutional investors, hedge funds, and pension managers were actively fighting for an allocation.

They looked at the same late-2026 milestones you are watching — the Delta/NVIDIA data centre push and the Weichai 1GW factory — and decided the long-term royalty revenue heavily outweighs the short-term 9% dilution. They aggressively bought the bottom.

2. Extreme Retail Demand

The RetailBook platform closing an hour early means the retail tranche was flooded with buy orders that vastly exceeded the number of shares set aside for everyday investors. The platform had to shut the gates early because there was simply no more stock to allocate.

If you applied for shares via the retail offer to average down your £7.30 entry, an oversubscribed book means you will likely be subject to a "scale back." You may not receive the full number of shares you requested, as the company has to proportionally ration the available shares among all the retail applicants.

The Impact on the Chart

While the mechanical gap down to the new issue price (around £5.70) is still unavoidable, an oversubscribed raise drastically alters the technical aftermath:

Violent Reversal Potential: Instead of a slow, bleeding chart where the price languishes at the new floor, massive oversubscription usually triggers aggressive buying on the open market from funds that missed out on the initial allocation.

Indicator Reset: That wave of immediate buying pressure will yank the VWAP up rapidly from the morning bell. While the RSI will technically trigger an oversold reading on the initial gap down, you can expect it to snap back sharply rather than staying compressed.

Support Formation: The £5.70 level transforms from a dilutive anchor into an absolute concrete floor. The institutions that just poured £100m into that level will fiercely defend it.

Alpha, I clearly mentioned that it's just my wild imagination about possible NVIDIA investing in Ceres :b

Surely, there will an RNS with an explanation from Ceres where exactly the £100m will be spent or allocated.

Tennents,

It looks like it... sold out in a couple of hours.

"We are bypassing the open market and selling newly minted shares directly to institutional heavyweights at a discount to raise cash in a matter of hours, rather than months."

Parts of the news article here at LSE: https://www.lse.co.uk/news/CWR/ceres-power-plans-about-gbp100-million-fund-raise-to-underpin-finances-7hlfkvedxke10wi.html

"The company's directors have concluded that the placing is in the best interests of shareholders and wider stakeholders and will promote the long-term success of the company and has therefore chosen to proceed with the placing."

Gemini AI Pro explanation:

In this context, a "placing" (or share placing) is the financial mechanism the company is using to raise that £100 million.

Specifically, it means the company is creating millions of brand new shares and "placing" them directly into the hands of a select group of large institutional investors (like pension funds, investment banks, and hedge funds) in exchange for cash.

When the board of directors releases that specific statement, they are essentially providing the legal and strategic justification for diluting your ownership. Here is a translation of what that corporate boilerplate actually means:

"The placing..." = We are bypassing the open market and selling newly minted shares directly to institutional heavyweights at a discount to raise cash in a matter of hours, rather than months.

"...is in the best interests of shareholders..." = We acknowledge that this instantly dilutes the value of your existing 100,000 shares. However, we believe that not having this £100m would be worse for you.

"...and will promote the long-term success of the company..." = We need this massive cash buffer right now to fund our expansion (like the Delta/NVIDIA and Weichai 1GW milestones). We are betting that the revenue generated by these future factories will ultimately drive the share price much higher than the short-term damage caused by today's dilution.

It is standard corporate language required by financial regulators. Because a non-pre-emptive placing denies existing shareholders their legal right of first refusal to buy those new shares, the directors are legally obligated to state that they believe breaking this rule is the only way to secure the company's future.

InvestorsWeare.

They disclosed to Delta how to make those highly protected trade secret ingredients but not to Weichei because Weichai is Chinese company and controlled by CCP. You have now idea how many trade secrets Ceres is holding and not even patented for fear of losing its competitive advantage.

If I remember in right in the Weichai deal, Ceres will supply the magic ingredients to Weichai rather than disclosing the information how to make those ingredients as they are highly protected IP (intellectual property, trade secret). That means Ceres has to expand its production capacity of those secret ingredients to meet the demand of 1GW factory of Weichai.

If they did not give enough time to retail investors to decide, is that an indication that there is already a big buyer waiting to buy all the additional shares?

If that additional 17.54m shares float was already bought by just one single institution to raise £100m, that represents 8.25% of the total shares which put that institution 2nd to Weichai which hold 19.47% of Ceres.

Question to AI: What would be the most likely volume of additional shares to raise £100M?

Gemini AI Pro answer:

To calculate the exact volume of new shares, we need the final Offer Price. However, live market news from the accelerated bookbuild has leaked a very strong indicator of where that price will land.

A Reuters dispatch from the Joint Bookrunners stated: "Primary ABB Orders Below GBP 5.70 Per Share Risk Missing."

This is bookrunner-speak for setting a price floor. They have enough institutional demand at 570p (£5.70) to fill the £100m target, so anyone bidding lower will likely be boxed out.

Share Volume & Dilution Math

If we assume the final Offer Price settles exactly at that £5.70 floor, here is the resulting share volume and dilution:

Metric Estimated Value

Target Raise £100,000,000

Likely Offer Price £5.70 (570p)

New Shares to Issue ~17.54 million

Current Shares in Issue ~195.04 million

Estimated Dilution ~9%

Ceres will need to issue approximately 17.54 million new shares to raise the £100 million at this price.

Injecting 17.54 million new shares expands the total share count by approximately 9%. This means your 100,000 shares will effectively represent 9% less of the company's total equity than they did prior to the raise. If the Offer Price ends up slightly higher than £5.70, the number of new shares issued will be slightly lower, meaning marginally less dilution for you.