Member Info for Piltick

I am holding shares in both PHE and EQT as well, because I believe that they both have great potential. I don't understand why some feel that they have to bash one of these companies in order to promote the other, because there is plenty for both in this world overflowing in plastic, tyres and other rubbish.

...and still holds... (not "and sell holds").

DW, to get it in perspective, Ben White has sold about 4 million PHE shares, and sell holds 61 million. Not really a major sell-off, and not what I would regard as an indication of his lack of confidence in the company. More likely he wants to get below the 3% for disclosure reasons, possibly.

Thanks for that stokey. So presumably that means that he will get a barrow-load of PHE shares to add to his collection in the course of the take-over.

Does anyone happen to know if Ben White is a shareholder in W2T and if so roughly how much?

I wonder if this is the info that the Takeover Panel has been waiting for?
I believe that when the shareholding falls below 3% there is no longer any requirement to give details of the amount of shares, so Paul Warwick doesn't have to produce that info, and presumably Ben White didn't need to give the actual figures either, but he did.

Yes stokey, and no prizes for guessing where the rocket should be pointing!

Dodger, I assume that the regulators referred to in your post is the Takeover Panel. Presumably their approval is required before the transaction can go ahead, so W2T really need to get their fingers out and produce the info that is required by the Takeover Panel.

The RNS stated that the company anticipated that the circular would be issued to shareholders in June, but the way it's going right now I'm not so sure if that will be achieved. I will be delighted if someone can convince me that my doubts are unfounded.

Stokey: I cannot believe that W2T would not want this takeover to go through. Surely it has been well and truly demonstrated over the past couple of years or so that W2T are not going to be able to raise funding to build the first (or any) DMG units by themselves. They may have done a grand job in marketing the system in the UK and world-wide and in bringing it to the attention of Peel, but surely they must now realise that they are not going anywhere as "developer" so this takeover is surely essential for their own survival.

I had a strong feeling that the delay was because they were still waiting for info from W2T or W2T's shareholders. Perhaps they should tell them that the "price" will be reduced by 1% for every day that they cause further delay. That might sharpen their minds!

That looks to me more like a sell because at 11:52 the mid price was 4.05.
And yet the SP didn't go down until about 14:40pm.
Odd.

Yes, he's really got the bit between his teeth on this one!

It's gone nuts!

Glad you won in the end FP, but shame you lost out on the opportunity through Fidelity's incompetence.

bazz, that was the arrangement with W2T where W2T was to be the developer and PHE would get 20% of the net revenue, but that has been superseded with the take-over of W2T (when it is completed) and the new deal with Peel, who are now going to be the developer.

https://www.investegate.co.uk/strategic-minerals--sml-/rns/-21-9m-arbitration-decision-granted/202006010700074505O/

Hi operastar, according to the RNS dated 9th March the arrangement between PHE and Peel is that Peel will pay an annual fee of £500k for each DMG unit that they (Peel) develops, with the first payment when each DMG unit becomes operational. So when Peel has got 11 units up and running, they will be paying £5.5M to PHE annually.

Under this arrangement PHE do not have to pay any of the capital costs or running costs, but of course they don't share in any of the revenue from the operation of the DMG unit. PHE simply earn the fees for the licensing of the technology.

That should be "the imminent issue of a further 1,375M shares " and not 1.375M.
What a difference a comma makes!

operastar: After the take-over, clearly there will be more shares in issue. But the reason for the take-over is so that the new merged company is in a stronger position than the previous two individual companies, and with greater potential. If it were not so, then frankly there would be no point in doing the take-over!

The current Market Cap of PHE is £71M with a share price of 3.425. If the share price was to remain at this level following the take-over, then the MCAP of the new enlarged company would be £118M. So the question is, what would the market regard as a fair MCAP following take-over - would it be more or less than £118M? Looking at the MCAP of some of our peers at the moment, my view is the £118 would not be excessive. To be sustainable that would require a Profit After Tax of £4.7M in the next 2 or 3 years, using a PE ratio of 25 which I think is a fair measure for a young rapidly developing company.

Another way to look at it is this: As the imminent issue of a further 1.375M shares is well known in advance, if any shareholders were concerned about a dilution of 66% surely they would have got out before now, and surely the SP would have dropped already. Why would they sit around and wait for their investment to drop by 66%? Instead, the SP has risen from 0.46p at the date of the announcement (23rd December 2019) to 3.4p today.

We also have to bear in mind that the shares that will be issued to the W2T shareholders cannot be sold for a period of time, and even then on a controlled basis, so they are not going to flood the market.

Now for the caveat! Obviously I cannot guarantee that the SP will not drop to some extent when the large chunk of PHE shares are issued, and that may be even more likely if the price keeps rising between now and then. But what I am saying is this, that given the prospects in the next several years, I don't believe that the company would be over-valued after the merger if the SP remained around where it is now.

Well good luck to them. There will be plenty for all in this industry! I must say, though, that 7,000 F (3,871 C) is a horrific temperature! If there is any concern about the effect of 1,200 C on PHE's gasification chamber, think what 3,871 C might to theirs!

closetrader: The current number of PHE shares in issue is 2,069 million. PHE will issue a further 2/3rds of these shares for the take-over of W2T, i.e. a further 1,379 million share. This means that the current shareholders of W2T will own 40% of the new merged PHE+W2T company, while current shareholders of PHE will own 60% of the new merged PHE+W2T company.

This was announced in the RNS dated 23rd December 2019. Unless the arrangement has changed since then, of course.

Hope all of that makes sense.