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Of course there could be more shares in issue by the time the MCAP reaches £281M!

As I said earlier, it all depends what the fundraise is for, and how much.

That's certainly a possibility stokey, but in that case I doubt if the amount required would warrant having discussions as stated in the RNS, which suggests a substantial amount. I suggest that a smaller amount would be obtained through a normal placing using a broker.

Thinking a little bit more about the fund raising. I think it depends what they want it for, and how much they want.

I don't know how much their "cash burn" per annum will be following the W2T takeover, and I don't expect that they accounts will give us much indication because the post W2T period won't be included. Perhaps that's a question for the AGM. Anyway, if they are looking for funding just for working capital purposes, i.e. to cover admin costs etc. for the next year or so until they start to receive enough revenue from fees, then I suspect they wouldn't need a huge sum (£3M was suggested in a recent report) and for that amount they would probably just come out for a placing.

But the fact that the RNS states that they are in discussions regarding raising further finance suggest to me that they are looking for a substantial amount, either as debt equity or loan, or both, in other words a "cornerstone" investment. And the only reason I can think that they might seek a substantial amount of financing might be so that PHE can take an equity share in future DMG SPV companies (not the first DMG at Protos) in order to earn a share of the profits from these plants as well as the annual £500k fees.

Just a thought!

Doesn't sound like a placing to me. More like a negotiated equity raise from an institution or a loan:

"The Company is in discussions regarding raising further finance..."

DR has made it clear that progress is not at a standstill in the meantime.

If this goes down much further I might be tempted to top up again!

Thanks telephoneman. They must be confident about the scaling up because they have increased the design capacity of the "generic" unit a few times, as I recall it started off at 25 tpd a while back.

As far as I am aware, so far there has been no scaling up, as the current 1-3 tonne per day prototype is the only unit that has been built. So the Protos 35 tpd unit will be the first scaled up plant.

I believe that this will then become the standard unit, i.e. if a customer wants to process higher quantities per day, then they will simply add more 35 tpd units running in parallel.

If I've got any of this wrong, then I'm happy to be corrected.

DW, right now I don't think it's more deals that we need, I think it's to get the first DMG unit up and running at Protos. Surely that's what everyone needs to focus on at the moment.

Hi stokey, thanks for keeping me right. Regarding Peel's "option" I was kinda expecting to hear about their payment of £500k to PHE, as I thought that might come through fairly shortly after completion of the W2T takeover.

With most companies, especially those in AIM, whenever there is little or no news for a period, then the SP will usually stand still or fall back a bit. Nothing untoward there, just the way it works.

Most of us are probably aware of the next steps or events that are expected to take place with PHE, although the timeline hasn't been confirmed yet. However, my understanding of the events that we're waiting for news of are:

- Peel to confirm exercise of their option to become exclusive UK developer of PHE's DMG system, and pay fee of £500K to PHE.
- Peel to start work on site preparation, which I believe they cannot commence until 1st September i.e. end of bird nesting season. Happy to be corrected if this is not the case.
- Peel to provide timeline for construction and commissioning of DMG system.
- PHE to announce date of AGM.
- PHE to issue accounts for YE December 2019.
- Anything I have missed?

Apart from site clearance and construction of the buildings, there are a lot of things that will no doubt be going on in the background, such as selecting contractors, getting quotes from engineering companies for building the plant, and perhaps even completing contracts with various contractors. So just because they are not digging out the foundations, that doesn't mean that the whole project is in limbo.

That would certainly be very welcome!

In his piece, Myles Kitcher stated "The first plant at Protos, our strategic energy and resource hub in Cheshire, is due to start construction later this year. " But he didn't give any clear indication of date.
I hope that we'll get a more detailed timeline soon.

https://www.h2-view.com/story/turning-waste-plastic-into-hydrogen-is-this-the-future/

I think the short answer is that we are still waiting for the date to be announced!
(Unless I have missed it!)

I agree with both of you, stokey and Rooky, and I think DR would probably agree also judging by comments he has made in the recent past. Of course I don't know for sure, but I would expect the PHE would want to take part in SPVs in the future so that they get the benefit of profits from the operation of the DMG units as well as the licence fees. That would very possibly mean a mixture of a "cornerstone" investment from an institution, equity from private investors, and project-specific loans from banks or financial institutions. I think this would make for a very interesting discussion at the AGM.

We are waiting for an updated timeline from the company. Now that Peel are taking on the role of "developer" in the UK, that timeline will have to come from them initially. I hope we'll hear something very shortly.

Unless I've missed something, I assume we can expect the following updates shortly:
1. Date for the AGM (probably virtual.
2. Confirmation that Peel have exercised their option to become the UK Developer, and payment of the first £500k
3. Timeline for the construction and commissioning of the DMG unit at Protos.