New article - doubtful about new venture18 Mar 2021 12:21
I've just come across this article which gives pause for thought. It did crystallise my own thoughts somewhat - quite apart from the events timeline outlined below, can someone explain to me how practically speaking GTC's seismic data and software will contribute to this venture in terms of locating and establishing refuelling hubs?
I may be missing something fundamental, so grateful to be educated in simplistic terms!
Https://smallcapslife.substack.com/p/small-caps-live-weekly-summary-5b1
"Getech (GTC.L) - Placing & Acquistion
We have been sceptical of this company’s pivot to green energy, noting that:
Getech’s core business is managing a database of seismic data and providing software that accesses or analyses this data.
As far as we are aware, no company has used GTC's seismic analysis software to choose where to locate petrol stations in the past.
H2 Green Ltd is focused on establishing a network of large-scale hydrogen generation, storage and refuelling hubs.
Therefore, the idea that “Getech will leverage its expertise through the application of complex geospatial analytics to help H2 Green locate and build a network of hydrogen hubs” could seem somewhat far-fetched to some people.
We are not aware of any significant number of commercial Hydrogen vehicles are available that need refuelling at the moment.
It is not clear that H2 Green Limited has the required capital to build any of these. A Companies House search reveals that this was formed 9 months ago with little capital.
We also found the timeline of events to be noteworthy:
27 April 2011: Getech Chairman, Dr Stuart Paton, is awarded 900k share options that expire on 27 April 2021 at 17.5p.
9 June 2020: H2 Green Ltd is incorporated with 1p of share capital.
20 November 2020: Dr Stuart Paton is appointed as a director of H2 Green Ltd. The GTC share price is 11.25p. At this point and options exercisable at 17.p have negligible value.
26 January 2021: Getech’s exclusive strategic partnership with H2 Green is announced. The GTC share price rises 85% to 25.2p.
28 January 2021: Getech announces that after a handover period Dr Stuart Paton will leave the Getech Board. The GTC share price is 33p making Dr Paton’s options worth around £140k on this date.
Today we get the announcement that:
“The Company has, on 11 March 2021, exercised its option to acquire the entire issued share capital of H2 Green, with such acquisition conditional only on the approval of the Resolution by Shareholders at the General Meeting and the Placing Agreement not being terminated prior to that date.”
At least they don’t appear to be massively overpaying for this business, although there are deferred consideration payments. But this does highlight the madness that, at its peak, the Getech market cap had risen by £11.4m on news of an agreement with a newly formed company valued initially at £125k.
etc"
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