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Morning all. Another distribution agreement penned I see. Seems like there’s lots going on in the background but now we need to read about actual orders and values please team
Another snippet of info here:
https://www.suttoninsight.com/all-articles/government-cut-funding-for-south-west-london-health-plan
With the original budget cut from £511m to £400m, significant changes have needed to be considered. One of these could be to be explore ways of enhancing the insulative properties of the current buildings as well as the new construction?
OHS
Morning all. Another piece of good news for ZED last week with the news of them becoming a trusted partner of the NHS. The RNS also provided opportunity for more research avenues to be explored.....
Epson and St. Hellier University Hospitals have are looking to build a brand new hospital https://esthplanning.co.uk/ and ZED have just signed a 'partners in health' contract with them!
OHS
Page 23 of admission doc - already seen 2 London borough's RNS'd and now a NHS contract - lots more to come!
"In addition, the Group has received significant expressions of interest from a sub-distributor representing a UK social housing trust to supply fire paint and fire paint primer for doors in apartment blocks. In the first twelve months from Admission, the Directors expect this to cover an initial four London Boroughs, before expanding across London and the UK. From the Distributor’s discussions with numerous social housing trusts and procurement agencies, the Directors believe
that there are thousands of doors in social housing that do not meet current fire regulations. The Directors anticipate that each painted door could have a value of hundreds of pounds in revenue to the Group. The same sub-distributor also represents the NHS and has expressed interest for the supply of fire paint and primer to be applied to 13 hospital roof voids across the UK. At the date of this Admission Document, the Group is finalising a formal order commitment with the sub-distributor."
https://36y9lv4401u736ma42s4tbfi-wpengine.netdna-ssl.com/wp-content/uploads/2021/07/Admission-Document.pdf
OHS
Morning blue - I agree! And it’s hopefully just the beginning. The most important part here is the ‘NHS Trusted Partner’ status - that is huge imo, especially with the NHSs ‘Greener NHS’ strategy:. https://www.england.nhs.uk/greenernhs/
OHS
Agreed bluerill - it’s been good to cross reference IPO mentioned contracts with actual RNSd ones that have since come to fruition. Hoping to see more in the near term and some actual quantities would be good to see also, to get a better understanding of these revenue streams. Very little out there to find at the moment to further research - hopefully it’s a matter of keeping cards close to their chest as opposed to actually not holding any cards! Business set up in Australia as Prima Fire Shield so one to keep an eye on there for mentions
Good bit of digging and research to kick start a Friday! With ref to the RNS regarding the £2m a year contract in Australia:
https://abr.business.gov.au/AbnHistory/View?id=44650004265
The above is a link to some details of Spark Global Australia Pty Ltd being the holding company of a Business name that was registered on 03/11/21 called Prima Fire Shield (catchy name!)
https://connectonline.asic.gov.au/RegistrySearch/faces/landing/bySearchId.jspx?searchId=655032376&searchIdType=BUSN&_adf.ctrl-state=10tnoxbfoz_15
I’ve been trying to identify the ‘Major Construction Company’ that Spark Global Australia is the subsidiary of but as yet I’ve had no joy. So, this business was registered on the 3rd Nov and then ZED RNS’d on the 10th Nov. Spark Global Australia’s address is in Templestowe, VIC 3106. I’d appreciate any further research here in attempting to identify who this Major construction is that Spark Australia is a sub of?
OHS
Sub-distributions:
Sub-distribution Agreement between ZDL and Gerian Reshat Kula & Chenri Petrak Kotori:
(a) Zenova Distribution Ltd (Zenova Ltd’s exclusive distributor) has entered into a sub-distribution agreement with Gerian Reshat Kula & Chenri Petrak Kotori (“GRK & CPK”) dated 13 May 2021. Pursuant to the sub-distribution agreement, ZDL grants GRK & CPK non-exclusive distribution rights to sell Zenova products in Australia and New Zealand provided they hit the sales target of £2,000,000 per year.
(b) The initial term is for six months from the commencement date (13 May 2021) subject go the first order being placed during such period and will then become a three year rolling contract (subject to minimum values) until terminated in accordance with the termination provisions
Can it be assumed that this is the contract RNS'd here?: https://www.lse.co.uk/rns/ZED/zenova-secures-1632m-a-year-contract-in-australia-xx691qpgehyv7xb.html
Zenova's Distribution and Sub-Distribution agreements:
Distribution Agreement:
(a) Zenova Ltd entered into an exclusive distribution agreement with ZDL dated 21 April 2021 and two deeds of variation respectively dated 27 May 2021 and 4 June 2021 (together the “Distribution Agreement”). Pursuant to the Distribution Agreement, ZDL has been appointed as Zenova Ltd’s exclusive global distributor for Zenova products with the right to appoint other sub-distributors as appropriate.
(b) The minimum term of the agreement is 15 years after which the agreement continues, unless terminated in accordance with the termination provisions. Under the Distribution Agreement, ZDL must attain the following targets each year:
(i) Year 1: £9,780,000
(ii) Year 2: £33,150,000
(iii) Year 3: £69,050,000
(iv) Year 4: £120,700,000
(v) Year 5: £192,900,000
Just look at those potential revenue streams!!!!
Little bit more background info for reference:
Zenova Ltd was incorporated on 20 Nov 2020 with Tony Crawley as the only named person at that time
Dr Etrur Albani, Thomas Melchior and Donald Oag Nicolson were named on 13 Nov 2020 (Nicolson since resigned 22 Jul 21)
Zenova Group PLC was incorporated 17 May 2021 with 7 Officers (including all 4 personnel already listed above)
Zenova Distribution Ltd (ZDL) was incorporated 16 Sep 2020 by Christopher Gilbert. Mr Gilbert resigned from this company on the day Albani and Nicolson became officers - the same day ZED admission commenced on the LSE - obviously part of the agreements put in place which I will get on to later....
This is where it gets interesting: Gilbert incorporated Motus Distribution on 23 Mar 2021 as the sole Officer - Motus was the sole share holder of ZDL until incorporation, when ZDL became a subsidiary of Zenova Group and Motus' shares were exchanged for ZED shares, hence why Gilbert has 12,350,000 shares (13.22% - largest share holder) in ZED!!
Cheers Spin! - definitely an under the radar share here imo! As mentioned earlier, the significant revenue is yet to come and as the SP is still pretty much at the listing price I am very happy to be already here and waiting for what's to come! With 75.8m shares held by Directors and other significant holders and only a max of circa 17m shares for retail investors, you can imagine how this will quickly motor on news imo. If 75.8m is the 3% holders and above, I wonder what the actual volume of tradeable stock is if we then subtract the holdings of the below 3% ers, like this holding 1 - 2.99% that haven't declared! Not a lot judging by why this moved on relatively small volumes last week - like when we bought and then when it dropped back on those sells!
Now, regarding another point I am particularly in favour of - the 'lock-in' period (page 27):
LOCK-INS AND ORDERLY MARKET ARRANGEMENTS
The Company, following Admission, is subject to the requirements of Rule 7 of the AIM Rules (“AIM Rule 7”). All of the Directors and applicable employees who hold Ordinary Shares and related parties, including substantial shareholders have agreed:
* for a period of 12 months from Admission, that they will not dispose of any of the Ordinary Shares held by them (or enter into a transaction with the same economic effect)
* during the period commencing on the 12 month anniversary of Admission and ending on the 18 month anniversary of Admission, that they will not dispose of more than one third of the Ordinary Shares held by them (or enter into a transaction with the same economic effect)
* during the period commencing on the 18 month anniversary of Admission and ending on the 24 month anniversary of Admission, that they will not dispose of more than two thirds of the Ordinary Shares held by them (or enter into a transaction with the same economic effect) (inclusive of any Ordinary Shares disposed of during the period of commencing on the 12 month anniversary of Admission and ending on the 18 month anniversary of Admission)
4. "Substantial interest has also been received by the Group to supply fire paint, insulating render and the associated primer to a sub-distributor that will supply end-users in the aviation and marine engineering industries. The sub-distributor has indicated potential interest in Zenova’s fire extinguishers once the relevant certification has been granted" - this is another one we will hopefully see a contract for in the near term
5. "The Group is finalising terms of engagement with the Australian Government to apply insulating paint, render and primer to the internal walls of a number of government buildings. Since initial conversations, the potential contract has doubled in size and represents a significant revenue opportunity for Zenova" - and another one not yet reported but with the other Australia contract (RNS 10/11/21) in place, hopefully this be yet another very good revenue stream for ZED
6. "The Directors consider the forest fire fighting market to be a significant opportunity for Zenova and will continue to target sales with fire services across North America, Europe and Asia" - product already launched 12/10/21 (see RNS) so now awaiting some contracts
7. "The Group has agreed a trial with a large UK construction firm to install mini fire extinguishers in a sample of its vehicles. If the trial is successful, the Directors believe that the customer will consider ordering a significant number of extinguishers for use in its vehicles nationwide" - yet another RNS to look forward to!
OHS
Hi SpinShady - yes, I have seen the Tony Crawley interview. We just need a lot more advertising and interviews to get their products being discussed imo. Have you seen their LinkedIn account? Only got 62 followers so this would be a good starting point for them to target. Like I said, not much in the way of new info and research our there so I have stuck to the IPO Admission pdf and taken points from that to further explore (link here - https://36y9lv4401u736ma42s4tbfi-wpengine.netdna-ssl.com/wp-content/uploads/2021/07/Admission-Document.pdf)
For example, page 23 references the current trading and prospects of the company at the time of admission and what is very good to see is that some of those contracts have already been placed and RNS'd and as stated in this section, "The significant majority of the revenues derived in the first full year following Admission will occur in the financial year ended 30 November 2022".
1. "The Group has a framework agreement in place to supply various customers in the construction industry with fire protection paint and insulating render and paint in Australia" - RNS'd 10/11/21 https://www.lse.co.uk/rns/ZED/zenova-secures-1632m-a-year-contract-in-australia-xx691qpgehyv7xb.html
2. The Group has received significant expressions of interest from a sub-distributor representing a UK social housing trust to supply fire paint and fire paint primer for doors in apartment blocks. In the first twelve months from Admission, the Directors expect this to cover an initial four London Boroughs, before expanding across London and the UK" - RNS'd 08/11/21 and 16/11/21 for the London Boroughs of Enfield and Redbridge. This is a huge potential revenue for ZED as from the Distributor’s discussions with numerous social housing trusts and procurement agencies, the Directors believe that there are thousands of doors in social housing that do not meet current fire regulations. The Directors anticipate that each painted door could have a value of hundreds of pounds in revenue to the Group.
3. "The same sub-distributor also represents the NHS and has expressed interest for the supply of fire paint and primer to be applied to 13 hospital roof voids across the UK. At the date of this Admission Document, the Group is finalising a formal order commitment with the sub-distributor" - this is yet to reported so hopefully an expected RNS ion due course
TBC....
Good morning all....... well, it's a fairly quiet board so I'm not sure who I'm actually writing to at the moment! ha! I've spent a good bit of time reading the IPO (85 pages!) and also their website and videos. I very much like what I see and have taken a position here last week. Seems there is very little in the public domain on Zenova's products, other than what they have either RNS'd or put on their own website. Any notes or findings from other investors here greatly appreciated but in the meantime, I may put a few highlights from the IPO on here with thoughts and questions of my own.
Cheers,
OHS
Not much out there in terms or researchable articles but have you seen this?:
https://www.sharesmagazine.co.uk/news/shares/brave-bison-is-the-uks-challenger-digital-advertising-company
You invested here Big Red? Quiet BB and little trade volume. I've run some quick fag packet figures and significant holders account for approx. 70% of the shares in issue. Add to that the holders of anything below 3% and that probably doesn't leave much for retail investors to get their hands on. Start of a new year though so quite possibly plenty to come from a company specialising in social media content. Linkedin has a few good videos with some of their predictions of what is going to be 'big' in 2022
OHS
Thanks for your quick replies Vauch and Sirir. Makes absolute sense regarding not buying the current POSP. So, in that case, TOM (via Greenfield) have the Petroteq licence to use at TSHII which is a 12% Saturation of oil. Valkor have the sub surface drilling rights of PQEs Asphalt Ridge NW leases and PQE are about to be taken over by Viston. Is that correct? If so, and the offer was prior to the lease swap, why was the lease swap conducted? Why did Valkor give up 3 x 12% leases for the 6% Temple Mountain lease? Is it because their main area of interest is drilling not tar sands? I like your idea of Valkor potentially buying out TOM - would this be due to TOMs exclusive access to TSHII? Why did PQE want Asphalt Ridge if the BOD intended on accepting Viston offer? Am I right in thinking that the main asset value of TOM is their 100% ownership of Greenfield and therefore TSHII? Was part of the Viston deal to give exclusivity to Valkor for any operations at Asphalt Ridge NW leases?
Hi Vauch, I've been reading up on Tomco to re-familiarise myself with recent events. Can you have a quick look below and let me know whether I'm in the ball park? Cheers
1. TOM and Valkor 50/50 JV'd a company called Greenfield Energy who licenced Petroteq's tech from them
2. TOM went on to buy* Valkor's 50% stake for circa 580m shares in TOM - *to be paid once financing arranged for new POSP plant
3. Greenfield modified PQE's POSP plant to add QFI tech and went on to process ore from TSHII
4. Greenfield opted to buy 10% stake of TSHII lease area and option to buy remaining 90% at a later date
5. Valkor funded this purchase with $1.5m - to be repaid to Valkor from proceeds of sales of hydrocarbons from site
6. Viston then tried to take over PQE
7. PQE then do a swap deal with Valkor for Valkor's 3 x Asphalt Ridge NW leases, which are right next door to TSHII leases, in exchange for PQE's Temple Mountain lease (where current POSP is) + 3 other leases
8. So, PQE now have 3 x leases of approx. 12% oil saturation and Valkor have Temple Mountain lease site of 6% saturation
Questions I now have are: What does this mean for TOM in the grand scheme of things? - they still have TSHII so nothing changed there. The POSP is still PQE's but now on land lease owned by Valkor. What are your thoughts for POSP now? Especially considering todays PQE news of the BOD agreeing to the takeover? Sell the POSP to Greenfield perhaps? Can they? It's an asset so factored in to what Viston are paying for? Will Viston sell it? I've no doubt missed some elements out but I think that's the main jist of it?
Agree, it’s all eggs in one Welsh basket! With regard to your profit comment below - thats the whole concept behind the NPA Fuels JV with N+P - the JV company will take the gate fee of the waste and produce the pellets for Uskmouth. It was an absolute no brainer of an idea - build your own pellet production plants and take the gate fee to produce your own fuel! The bigger picture is (once environmental permit is achieved either in Wales or elsewhere) to convert other redundant coal fired power stations and supply subcoal to them so the business model for NPA is huge. Global if you like. We have to assume that SAE aren’t just waiting on Wales to make a decision on the EP - the fact that Peel L&Ps permit variation has now gone to public consultation in England surely isn’t just a coincidence?…..
OHS