Member Info for mrc_mrc_mrc_mrd

Seems the market does not trust the BOD to put shareholders funds to good use.

Now struggling to stay above 1p here

Has Chris sold out and bought in to HE1 directly instead? Wouldn’t blame him and it would explain the spamming of this BB with HE1 “news” (I.e pump and dump speculation)

Also on page 49 of the RI prospectus

“ In addition to the foregoing, the High Yield Notes contain a restriction on the Company declaring or paying a dividend or distribution or making any other payment on any of its shares or redeeming, purchasing or otherwise acquiring any of its shares, unless or until the Company has redeemed in cash at par an aggregate principal amount of the High Yield Notes that is equal to any capitalised interest, together with any accrued and unpaid interest thereon.”

https://www.spglobal.com/platts/en/market-insights/latest-news/natural-gas/062321-most-us-upstream-execs-expect-global-oil-supply-gap-by-2025-dallas-fed-survey

That’s great SHS that you are not interested in how the company is run. But the whole point of this BB is to air these discussions.

Your statement is at odds with the number of posts you are making defending the company.

Do you prefer incredulous?

SHS - “ Why would Scir give EAG half the money so they can buy half of Greenan”

Shareholders are flying blind here.

I’m actually surprised that SCIR do not have to disclose the details via RNS?

Good luck to you deciding how to vote!

Shs - it’s hugely important that shareholders understand the deal - I believe you will get a vote on it?

SCIR have done exactly what you are shocked about. They have supplied all the money, EAG have provided the introduction to Greenan. Great deal for them!

The big question is how much of SCIRs money is a loan and how much is for equity.

One thing is for sure and that is that with all of the debt it will be a long time before shareholders see any free cash flow!

As I’ve said, this deal only makes sense of EAG is an effective way to quickly buy lots of small biogas assets and have a team that can optimise them. Maybe the EAG guys have the contacts and knowledge to make that happen.

SHS - you are wrong.

EAG existing directors have not put any money in. The transaction is being funded by SCIR - some of the funds are a loan to EAG, some as equity purchase (and for that they are getting half of EAGs shares).

EAG are also taking on £1.9 million debt owed to a third party.

SHs - I don’t think the debt is owed to EAG. They (50% SCIR, 50% the 2 existing owners of EAG) are taking on the debt so it must be owed to someone else. We can’t make a loan to our own company!!

It would be interested to know who the 3rd party is, and when / why the debt was taken on? Has it been loaded up with debt as a way for the directors to funnel cash out of SCIR? Is it a related party to the existing EAG directors?

You do have to ask questions when a company takes on a lot of debt prior to being bought. Or has there been a major issue that could cause us operational problems? Seems strange to load up on debt after operating without any for a number of years?

AIMVHO of course!!

https://find-and-update.company-information.service.gov.uk/company/NI665002/filing-history

https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/lCOPCgYqex8vQiYy9WEMhqtnUM5Z5YTdZ-M6QzryMP8/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=ASIAWRGBDBV3BV4DBORZ%2F20210623%2Feu-west-2%2Fs3%2Faws4_request&X-Amz-Date=20210623T192438Z&X-Amz-Expires=60&X-Amz-Security-Token=IQoJb3JpZ2luX2VjECcaCWV1LXdlc3QtMiJHMEUCIA%2BQvqPmoRgfUazncT68fPdjzWtPC90d9ZR%2BSvAV4LpRAiEAm6wMyvDChn4rXhwOEtom04mIMZh5abTzCUryuxr4un8qgwQI8P%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FARADGgw0NDkyMjkwMzI4MjIiDOp%2FvB6MNMyLZrMxzyrXA3g%2B0ziBIiDpOh87vlwkyj9mVLra8jyip9feXN2HCP47D8qfv5jOkFYj%2FlRkoXDDHok5ttMtMOnusGvgOKU2Ww8OLDlLWHyW0R%2BqXNdSbI0oQQaAo%2BfuZc4Uh6Ppo73ORcN%2FtQFhP0ksXtgx7wUIS7zgWqL4vXsX2ePtEOqlwds8TMuUw%2FdF71cF0AbshTsRsyHkwiC2Y5ViLYIBpM%2Be0nH6fuWznX2t%2FKFBoqFgiNKFeATjRDWH70eo6vS5D9MW7v5Hw0N2z0c69sxTdWdM3flD6qHw1GiAR0mYQRG%2BHaN%2FsZ5VOOAZlvKy3JGn6jrM%2Fr3l7OWCMk94ghIuzSmO7X1Qoh4Xj8Fz5SdnifavMbXR3zM5XZRzsZeXVavmj7Oa2GgpxiGkqZ5T9oNFw4nnYg0pgkpT0JdjctYg5pRfG8yIMuynaVkP7x9jXv0z96vpr7xyOF0DI%2FvFgMp%2BpZDrUnjp65MpRpZcfOx79jG0fi1z%2BkmB4et6epTsSnMTsm77YotLolVTFd8Zt5%2FGw4IchoSpmL5DFpDGni3LFuiHW6bslN1UYpXR0LF3axqF6fWvSIcGkunfHeO%2B%2FRNYHMF6LA3S2nNU0mpPCazF%2BRCedpez3w9iKzxKwDDTnM2GBjqlAcJzj7jvcVa88A5%2FI9GFt9ZwSDcxZ27SP%2FF%2B5fTDptItWBBhVRpK0OMGlIyl%2BVuSnSaDzP1f%2FsatQ4wKUDLmP2NBCZLzOaa6dX9dWmqJFxWfyfdTspybiETEGWVFOT%2Bh2hkWDBNQSxTYZAswdXwFe8COfb51ModJm8U62oOv9t%2BThQCx7iQ3PecXhlOrq1%2BKA6LTMgXG0mmyDSK7r7nyB4SA7u4IAQ%3D%3D&X-Amz-SignedHeaders=host&response-content-disposition=inline%3Bfilename%3D%22companies_house_document.pdf%22&X-Amz-Signature=f3d5e2f36d2794614a842c951f20f875da5352d26cbb7b377ff493c07892183d

No accounts for this year yet at greenan - they must have loaded up the company with debt in the last year prior to sale. I wonder who the lender is???

EAG do not seem to have any assets

Neither company has filed full P&L

Would you agree that its really not clear?

The slides say we are subscribing to shares and also providing a loan. The waterfall just shows 1.2 million going to EAG.

We also don’t know the terms of the call option.

Were these questions asked in the audio cast?

Are we going to get a proper RNS announcement detailing the terms of the deal? We need fewer busy slides and more just black and white data from the BOD IMHO.

Highland - the £700k is NOT a loan

It is paying for 50% of EAG which has zero assets. Effectively we are buying greenan then giving away 50% to these 3 guys who actually know anything about biogas (or claim they do). You have to admit it is a little murky!

The 300k being used to clear part of the debt may or may not be a loan.

Greenan have liabilities of £2.8 million which we are taking on

I wonder if the greenans are related in any way to the fighting Fitzpatrick seems they have got a pretty sweet deal

There may well still be restrictions on dividends and buy backs.

Might need to wait for bond refinance from a position of strength to remove those conditions.

44rj

I am criticising the clarity at the moment.

It’s clear from the comments on here that average retail investor Do not understand the structure of the deal. There appears to be a bit of smoke and mirrors on the companies part IMHO.

Do we really need a 30 page presentation for such a small deal?

RNS is not detailed so you have to dig through very dense presentation.

As I have said, the deal itself is OK, they just need to rapidly scale to cover the overheads and start generating free cash flow.

Highland. The 700k to EAG is a cash payment I believe for the 50% stake in the JV.

The 300k to reduce the loan down from 2.2 million to 1.9 million may well be repaid to SCIR. The presentation lacks clarity.

The 200k transaction costs have gone to gneiss and other assorted leeches.

SCIR have taken on half the green an debt (so 950k) through their 50% stake in EAG. Only gneiss can have dreamed up this house of cards!

I’m posting my first ever strong buy opinion.

GLA

They just buy on the open market

Greenan has £2.8 million of liabilities so it is even worse than I thought.

Also forgot about our 200k in costs.

So all in this asset is costing us £3.7 million?

Wow.

No worries SHS.

I could be wrong but I think the £1.9 million is bank debt that we are taking on with the business. So total cost is £2.9 million. Not that great a payback period on this investment.

I’ll be honest the slides are basically unreadable, and the RNS fails to mention it so I could be wrong.