Member Info for observer842

I can't help having a chuckle every time I read that phrase: "may consider potentially". Talk about heavily caveated! ;-)

To answer your cash and product questions. Taken from my 29 Dec '18 post summarising the end of year results that caught my eye:

===[
The Group is currently in discussion with a European company that may carry out the certification process with the new cheaper but robust material employed in the latest model.
...
The Board may consider potentially making investments in complementary areas and technologies that will utilise the Company's existing technical expertise and that may provide a funding stream for the mCHP.
...
[$2,600,000 of "YA Global" $3,000,000 debt facility agreed on 30 April 2015 still available]
]===

If you are truly interested see the full post for more information.

Ob.

Read the loan agreement and you might understand why some people are willing to take the gamble at these prices.

Page 46 and 47 is the Inspirit Charger, charging ahead:

"The Future of the European Gas Industry, Regulations & Emerging Technologies" (6 June 2017)
http://www.asge-national.org/wp-content/uploads/2017/09/NeedleyFutureofEuropean.pdf
===[
Advanced Technology

Patented heater head thermal energy transfer.

Kinematic Beta Stirling Engine with combined displacer and compressor piston.

Rhombic drive assembly for low noise and vibration characteristics.

Dry gearbox to eliminate oil penetration.

Sealed for Life to minimise maintenance frequency and costs

3kW [since increased to 3.2kW] of electricity revenue worth up to £2,600 p.a depending on heat demand & run hours
]===

If we have managed to significantly reduce the estimated upfront costs in the early years before mass production the pay back time of the Inspirit Charger could be just a few years for the commercial sector, and at mass production perhaps half as much again. A very attractive purchase indeed!

Can you feel my excitement!? It's no wonder we've had no problem with funding to date if others with greater access to the bigger picture have seen the potential here too. Come on JG, give us another video interview, tell the world you still believe and have a plan, not just a select few willing to steal from PI's losing faith.

I personally think the odds are very good that these prices will look like an absolute steal in time. So many "if only's" posting on here then too no doubt. Been there. Done that. Not this time...

Now giddy-up INSP ;-)

Ob.

The paper which was presented by Nick Stevenson (our Marketing Director) at the CIBSE technical symposium last April can be found in the session 4 folder here:

http://www.cibse.org/papers2018

I wonder why it isn't linked to from:

https://www.cibse.org/technical-symposium-2019/past-papers-case-studies-archive/2018

Perhaps it contains market sensitive information?

Worth a read:

"A BRIEF REVIEW ON THE ADVANTAGES, HINDRANCES AND ECONOMIC FEASIBILITY OF STIRLING ENGINES AS A DISTRIBUTED GENERATION SOURCE AND COGENERATION TECHNOLOGY" (June 2018)
https://revistas.ufpr.br/reterm/article/download/62258/36557
===[
Ultimately, it is concluded that the Stirling technology, despite its advantages and suitability regarding the proposed applications, is not yet commercially feasible, having currently only a minor presence in the market. This scenario can be attributed to the need for further research and technical development as well as cost reduction.
]===

And this is exactly what we have been working on - reducing costs and improving efficiencies. Are we there yet? ;-)

For a reminder of the economics before recent improvements take a look towards the end of the Align Research report:

"Inspirit Energy - On the cusp of cogeneration commercialisation & trading at a fraction of replacement IP cost" (13th June 2016)
http://www.alignresearch.co.uk/wp-content/uploads/2016/06/Inspirit-Energy-Align-Research-13th-June-2016-Final.pdf

On decent news that Weak Buy turns to a Strong Buy in an instant at these prices!

Ob.

A fund raise isn't necessarily on the table - we have other options. Personally I'd concentrate on getting the market cap into triple digit millions before considering a share consolidation as part of a move to the main market.

Number of shares in issue is irrelevant, could be 10 trillion for all I care - but if a share consolidation would make you feel better then perhaps suggest one?

@Ivybush. I believe the BoD have authorisation to issue 3,000,000,000 shares. @0.12 this would raise £3.6m

From the latest webinar I believe @Kiran indicated that one of the reasons for raising debt rather than issuing equity was because shareholders had expressed that preference having previously experienced significant dilution (under DL).

How times have changed, as now I suspect many on here wouldn't mind the equity issue to pay off the debt - so long as it could be raised at a decent share price!

I trust @Kiran knows what he is doing...

Thanks for sharing @Mullins! For those who don't like clicking on links here's something to search on:

"Rick Rule with some positive news for mining investment and stock picks in 2019" (14 Dec 2018)
https://www.youtube.com/watch?v=aQmlKAZ9gBM

"Rick Rule: Deploying Capital To M&A Targets, Royalty Companies & Promising Exploration Projects" (22 Dec 2018)
https://www.youtube.com/watch?v=GqTbQqkOLeM

Exciting times!

The number of shares in issue is currently 1,420,806,859 and in the conservative scenario of all £845k of the CLNs being converted @0.07p this increases to around 2,627,949,716 - meaning perhaps a more relevant measure of our market cap @0.035p is around £920k. If the number of shares further increased by the number of new shares authorised in the GM (650,000,000) to 3,277,949,716 the market cap @0.035p would be £1.15m - which is still a few bags off the £3-7m market cap in 14/15 which was on the expectation of the commercialisation of an inferior product, albeit by a good salesman at the helm!

On true good news, not the expectation of it, but actual good news, we could hit a market cap of double digit millions in a matter of days! Hours even. ;-)

Thanks @maidit. Seems like we are well and truly under the radar. Rather ironically the most publicity we are getting is from those who have a reputation short on us and, understandably are, shall we say, a little biased in their reporting...

Unfortunately it doesn't help the likes of me and you that our directors stay silent, ignoring the name calling. It's certainly one plan that if I weren't invested here I'd approve of: get on with it and demonstrate veracity with actions, not words! ;-)

But as existing shareholders, what we need for the share price to be pushed back up is simply more buys than sells. And on the back of apparent slow progress this will very likely mean we need new blood here buying into the multi-bag growth story as those tired of waiting sell out on any rise.

I'm happy to take the two for the price of one share price deal on at the moment, so it's slightly not in my interests to raise awareness. But what I will say to anyone new looking in wanting to do their own research is to compare where we are now with where we were in 2014-16 when the previous iteration of the Inspirit Charger (presumably) didn't make it to, or failed accreditation (we were never told). Here are some pointers:

30 June 2014:
Net asset value £2,098,000
Market capitalisation £7,342,000
Excess management expenses £3,037,000

30 June 2015:
Net asset value £1,946,000
Market capitalisation £3,366,000
Excess management expenses £3,780,000

30 June 2018:
Net asset value £1,698,000
Market capitalisation £710,403
Excess management expenses £4,800,000

@0.35p today:
Market capitalisation £500,000

Here are some key dates:

13 Jun 2016: Align report: http://www.alignresearch.co.uk/wp-content/uploads/2016/06/Inspirit-Energy-Align-Research-13th-June-2016-Final.pdf
16 Aug 2016: Collaboration agreement with CIBSE
3 May 2017: Discussions with Argentarius to raise up to £2m through asset backed bonds
18 Jul 2017: Electrical efficiency improved from 3.0kW to 3.2kWe
21 Aug 2017: Argentarius arranged funding apparently falls through
14 Nov 2017: Accelerated redemption of all securities related to Argentarius by year end
28 Dec 2017: CIBSE ongoing collaboration confirmed
29 Mar 2018: Increased efficiency in the regenerator allows commodity grade stainless steel derivative to be used
12 Apr 2018: CIBSE ongoing collaboration confirmed
04 May 2018: Issue of £845k of Convertible Loan Notes raising £530k in cash, the balance converting existing debt
28 Dec 2018: In discussions with a European company that may carry out the certification process; CIBSE collaboration not confirmed; $2,600,000 of debt facility available

So it looks to me like we are where we were 2-3 years ago, with improved efficiency and lower material costs, and a market cap looking ripe for a multi-bag ;-)

Ob.

Snippets that caught my eye:

===[
The Group is currently in discussion with a European company that may carry out the certification process with the new cheaper but robust material employed in the latest model.
...
The Board may consider potentially making investments in complementary areas and technologies that will utilise the Company's existing technical expertise and that may provide a funding stream for the mCHP.
...
with simultaneous generation of up to 15 kilowatts of thermal output and up to 6 kilowatts of electrical output. [typo!]
...
Net asset value £1,698,000
Market capitalisation £710,403
...
The Group has already made significant investments in addressing opportunities in the renewable energy sector.
...
Notwithstanding the loss and cash outflows incurred in the year and the requirement for further funds to become available, the Directors have a reasonable expectation that the Group will be able to raise funds to continue in operational existence and use its drawdown facility if required to move its projects towards regulatory sign off and commercialisation.
...
Based on the audit work performed it was identified that, due to the overhaul of the electrical components during the year, previously capitalised development costs which have not attributed to the latest version of the mCHP boiler were required to be impaired. As a result an impairment of £424k was recognised within profit and loss.
...
The Group’s maximum exposure to credit risk is £460,000 (2017: £204,000) comprising cash and cash equivalents and loans and receivables.
...
The Directors are confident that adequate resources exist to finance current operations.
...
Total current tax / (credit) (20)
...
The Group has excess management expenses of approximately £4,800,000 (2017: £4,500,000), capital losses of £150,000 (2017: £150,000) and non-trade financial losses of approximately £119,000 (2017: £119,000) to carry forward against future suitable taxable profits.
...
Inspirit Energy Consultancy Limited : Dormant
...
Included in other receivables was £270,000 (2017: £nil) relating to convertible loan notes which had not been received prior to the year-end.
...
Lapsed options/warrants : (79,000,000)
...
[$2,600,000 of "YA Global" $3,000,000 debt facility agreed on 30 April 2015 still available]
...
The Company during the year raised £530,000 in cash from private investors through the issue of Convertible Loan Notes and converted existing debt ... valued at £315,000 into the CLNs... The principal amount of the CLNs are convertible at the higher of either 0.07p ... or a discount of 25% to the previous trading day's closing market share price... The conversion is at the full discretion of the Company
]===

Roll on 2019/20/21! How long will the half price sale continue I wonder? ;-)

Ob.

@bandit1. The voting rights move with the shares. Take a read of:

"What Voting Rights Do Shorted Shares Have?" (Updated Feb 2, 2018)
https://www.investopedia.com/ask/answers/05/shortsalevotingrights.asp
===[
To understand who is the holder of record, and thus who retains the voting rights, you just need to follow the shares.
]===

If you have evidence to the contrary please provide a link. ;-)

Good point @Bannor. I wonder where BCN got the 5,943,940 from on that page?

It's quite possible Blackrock has been trading BCN in the 5-10% range, but I see no evidence of them or any of their subsidiaries directly shorting BCN, and in particular not from the TR-1 under discussion today. They appear to have facilitated shorting though by lending their shares which presumably have been sold short by others, for which Blackrock will have made a good return for the service. We do know they crossed the 5% mark around the 10th of December and the 4.4% mark on the 20th of December according to:

http://www.bacanoralithium.com/investor-relations/restricted-aim-rule-26/

so they still appear to be selling, and if they have been significantly facilitating shorting by loaning a large proportion of their shares they will need to recall those back to exit BCN completely if that is their plan. I'm not sure how that will play out on the market though! Shorters will want a low share price, but Blackrock a high price.

But perhaps it's how @tomcat appears to be seeing it - Blackrock is in cahoots with the shorter's and in practice doesn't need the shares to be returned and sold at these lows: they effectively have already split the profit or hedged their position in some way. And this might make even more sense if the shorter's are they themselves. Way too far fetched for me and I can't see any advantage, but people get paid big bucks to come up with all sorts of schemes to make even bigger bucks so just because I can't see an advantage doesn't mean there isn't one. That I am certain of! ;-)

Ob.

That's an interesting theory @nomadic re Blackrock being forced to sell due to corporate policies!

@tomcat, my understanding is that since the TR-1 is issued by the top parent company "BlackRock, Inc" they don't have any direct voting rights as the shares are held by two subsidiaries as outlined in the appendix "BlackRock Investment Management (UK) Limited" and "BlackRock Advisors, LLC" - and are therefore classed as "indirect" voting rights.

I'm not quite sure what you are getting at @tomcat. My take is that Blackrock is the securities lender - are you suggesting that the declaration in 8B1 in the TR-1 implies that they are the securities borrower? How do you tally that with "Number of voting rights that may be acquired if the instrument is exercised/converted". For "Securities Lending" I take that phrase to mean how many shares will be returned to you on recall of the shares you have lent out.

Some actual news shocker! ;-)

===[
The Group is currently in discussion with a European company that may carry out the certification process with the new cheaper but robust material employed in the latest model.
]===