Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
TheAnalyst,
Thank you again for your comments.
May I ask where the O&M amounts have come from since I have not been able to find those figures, just the project commissioning/instillation amounts laid out in the May presentation?
Good to see you have a meaty shareholding. I have too many of these proportionally in my portfolio, but doesn’t stop me sleeping at night the same as with other AIM companies with David at the helm.
I suspect a few individuals must own 1-2% - I certainly know of one other. Will reduce the free float/trading proportions in any event, so I suspect price swings will be pretty violent!
Bw
Gsp
Have a look at this, a little old but sets out the case pretty well IMO:
https://www.valuethemarkets.com/2020/03/08/eqtec-the-sustainable-waste-to-energy-firm-profiting-from-the-climate-change-revolution-eqt/
Simms,
I share your concerns regarding the debt, and see this as the only blot on the landscape as it were . I do however think this post I have had permission from TheAnayst to repost. I he puts the dots together very well ....
‘Let's join the dots....15 May 2020 15:46
For those who cannot see it
1. David Palumbo is the Managing Partner of Origen Capital.
2. David Palumbo, first moved onto the board when Origen were financing Ian Prices EQT & wanted their man on the board.
3. Origin introduced Altair to this company. Altair know David Palumbo very weI'll.
4. Altair are fully behind this, having staked just shy of the magic 30% in Equity.
5. David has spoke about the Riverfort financing due soon, specifically around an SPV rolling up to the EQT head company (any guesses who will be throwing cash in here without increasing their 30%)
6. Once the financing is sorted, all investors will be strategic. There will be no one there who doesn't want to be, therefore no major sellers
7. EQT are at financial close stage of another project (Greece). They are also working closely & approaching final stages of others (rhymed off by David on the call)
8. In bed with massive multi nationals
9. On the call, reading between the lines, David most definitely said of course they would be interested in a takeover, but not at these ridiculously low levels.
10. David has a background in project financing
11. David just issues warrants to him & all the staff at 0.25 redemption.
Let's join the dots then....
David (via Origen) has skin in the game. David via the warrants has skin in the game. Davids buddies (Altair) have skin in the game.
David has a tremendous relationship with partner COBRA. EQT is small fry to them, but their tech would be a very welcome addition.
David has a value where him, his mates & existing shareholders can sell this on to someone else where everyone makes bucket loads.
Old none strategic investors are finishing their exit, all aboard new guys.
Project pipeline will be executed
This will hit the magic price where everyone will be happy to sell (possibly to COBRA)
Only question is the price. David laughed at these levels.
Given his comments on the MCAP I see him valuing it at 100-150m......
Thoughts people?’
Does this mean financing is required and dilution light occur?
Pretty sure not, this is just the usual (albeit larger than usual) arrangement. Just means they need a consortia to provide the £170mil required rather than the single investor for smaller projects.
Palumbo’s Connections in VC probably means these investors have already been identified and in the page.
I liked the bit about insurance .... Very reassuring that an independent risk assessing organisation feels there is no untoward/unusual risk that needs mitigating.
FWIW I can see a mcap of £50mil within 6 months with clearer revenue streams, (now) good management, cost controls and clearly rapid growth on the background of several established projects in partnership with big infrastructure players....
But I have plenty of skin in the game as I hâve mentioned previously. Yr end results should be soon which hopefully will be accompanied with confirmation that costs are under control despite expansion, more info on progress of current projects.
I did email to ask when figures released but no reply.
Hello,
Well it’s all available to read up on... But essentially an investing company puts up the capital (likely leveraged), Eqtec provide both specially manufactured kit (made by another company) and engineering/construction know how. Margin for this part is 20% which comes in stages during project completion. After sales maintenance in guaranteed (from memory) also though the margins in this are currently unknown.
The customer then has their gasification/waste solution which pays for itself and becomes profitable over a relatively short period of time. The contracts are written so that part of the finished project can be owned by Eqtec in lieu of payment for services/kit if that makes financial sense.
Palumbo with a VC background seems to put together contracts which allow the customer and eqtec to thrive.
So as far as I can see so long as the projects work (which they appear to do) the whole thing becomes a bit of a cash cow.
The trick (and advantage here) is that they get the projects to work.
Corking post Analyst, makes perfect sense to me and it helps me understand the relationships between the players here, many thanks.
Would you mind if I copied to advfn?
I still don’t really understand why I have been able to buy the hell out of this over a number of weeks without all the shares being snapped up by other greedy PIs like myself - would have thought despite the supply people would have been all over it!