Member Info for troutisout

Bearfacts, Firstly you need to check up on the market cap. Second the equity is likely to be in the Newry Biomass Ltd SPV set up and currently owned 50.1% by REAC and 49.9% by Farmers Business Developments. If you read the RNS the debt looks to be direct to REAC and the equity indirect, in other words they will take equity in the project (the SPV) rather than REAC the listed company. Each project is formed with a subsidiary company, REAC hold differing equity stakes in each and when gaining financing do this against equity in that project (Why would anyone risk investing millions into a Company and take the risks from other projects, when they can invest in the one project with a 15%IRR, generating €4m annually and a net operating profit of €2m annually on a 4 MW plant. If as someone here has suggested they also add in CHP (could be the reason they have upped the finance from €8m to £11.2m) then it will generate even more revenue and profit.

Hi Mumbles, They initially felt 8m would be enough to repower the plant, however they have always been looking at raising the output at Newry, which would need upgraded connections and so I wonder whether they are paving the way for expansion with the extra money. Planning application for a new business park around the site is going through at the moment, provides ideal offtake base for any increased capacity.

Hi ADJ, With the huge amount of RNSs REAC release it is not surprising if you felt you had missed something when only reading them. REAC business model was and is to get a project through planning and signing offtakes and turnkey construction contracts, then arrange finance. At financial close REAC would be paid back their costs thus far on the project and they would also keep an equity stake in the project (previously they felt they wanted a bigger equity stake and no pay back at Financial close, but they soon realised they would have no cashflow short term). They have one working wind turbine and another 8 sites with planning permission, several have been wind tested and are build ready. These all have a value and it could be said cover the current market cap. They also have three heat generating plants at schools, these are 30% owned by REAC and produce a little annual income, they have an equity line to build out another 5 plants but changes to the subsidy system have seen this grind to a halt. Newry was built and up and running, just the gasifier wasn't doing it's job. A search of other tech saw them look at another technology and finally end with the EQTec system from Ebioss. Reac also claim IP over certain contracts signed on the Enfield plant which also has planning permission but hasn't moved forward. Ebioss were to invest in this site. Clay Cross now has planning permission and REAC are partnered with the Lark Group on this one. All of the above large plants need finance, Newry €8m, Enfield and Clay Cross nearer €45-50m each. Ebioss have released many RNSs and their statements suggest they want to build out these projects and have signed a finance deal with China Energy. The Ebioss loan, the subsequent flexibility and the fact we don't seem to have had to pay them for the plant by end of last June suggest to me that Ebioss will end up taking over REAC or the plants at favourable rates. REAC Management have been catastrophic and therefore the mkt cap has sunk to where it is, but the assets, even as they are now, have a value and getting permission on sites as REAC have done is getting harder and harder. Creditors swapped €5.7m of debt into equity at 11p last year. So if Ebioss do want to take out REAC it will cost them more than the current valuation. Keep Digging.....

sweepie, Nice to see you posting info back on ADVFN, How about telling a few of them to stop being afraid of their own shadow, stop mentioning previous placing shares (as that is a poor excuse for not accepting that while some buy others sell) and start to look forward a bit more positively.

Looks like we could be seeing a rise from here, online limits were tight before the tick up and although those quick can still get some at 11.04p, the offer for 150k is now at 11.48p. Also found this after looking at link below, posted yesterday. https://www.youtube.com/watch?v=q1FaQ9JmRto

He sold his TERN shares well before it went anywhere near 20p or even double figures. He sold out and went into CLP. Last he said on TERN was to sell that and buy CBUY at 21p (now 5.625p). I could think of many positives about DA/TERN but Tara (Ten Bag Man) getting back in, is not one of them

Well as stated before Ebioss look to be working a funding round, first the research note 10 days ago and then a slew of positive RNSs (3 in 3 successive working days), wait and see what they raise and then wait to see their next step. September 16, 2016 In accordance with the provisions of Circular 15/2016 of the Alternative Investment Market through this is available to the market the following information on EBIOSS Energy, AD: Subsidiary EBIOSS Energy, Biomass Distribution, has obtained the certificate in order to work and license commissioning (Act 16) of its pelletizing plant in Stroevo, Bulgaria, after making the commissioner and have successfully completed the formalities required by the government of Bulgaria. The plant has a capacity of 6 tonnes per hour and represents an investment of approximately 3.6 million euros. We remain at your disposal for any clarifications deemed appropriate. Sincerely, September 19, 2016 In accordance with the provisions of Circular 15/2016 Alternative Market Bursátil through this is available to the market the following EBIOSS information on Energy, AD: EBIOSS Energy has signed the final contract for electrical connection with the company EVN its plant in Karlovo in Bulgaria. After various changes in the Energy Law in 2015 that forced EBIOSS to proceed in the different changes in the infrastructure of the plant, the Company I had to start again a long legal-legal process with Bulgarian Administration and renegotiate terms with the EVN power company, acquiring the energy produced. With the adaptation of the plant and the contract signed, the Company will start the commissioner for obtaining Act license to work and commissioning operation estimated for the last quarter of 2016. We remain at your disposal for any clarifications deemed appropriate. Sincerely, September 20, 2016 In accordance with the provisions of Circular 15/2016 Alternative Market Bursátil through this is available to the market the following EBIOSS information on Energy, AD: EBIOSS Energy subsidiary, TNL has signed a contract for supply and installation of underground tank for Urban Solid Waste equipment worth 1,623,818 euros with the Portuguese company Valorsul. This contract adds to the portfolio of orders signed so far by the Company TNL, amounting to 8.1 million euros and impact, mainly in billing the coming years 2016 and 2017. Valorsul is the company responsible for the treatment and recovery of about 950,000 tons of municipal solid waste produced per year in 19 municipalities Metro West Region of Portugal. We remain at your disposal for any clarifications deemed appropriate. Sincerely,

I know having problems with LSE today. I think the trades won't become clear until later but I reckon the sell volume could be 1m today just because it is being filled when they have enough buys and buys are nearly at 1m.

Another site has tidied today's trades up now and have 2 x 250k and 1 x 500k block sells (which fits with the corresponding buying today). That added to the 250k and 2 x 300k block trades from earlier this week, makes 1.85m shares sold and it would seem there is more to come judging by the online offer. There aren't that many people that hold over 2m shares so the net gets narrower

Another site has tidied today's trades up now and have 2 x 250k and 1 x 500k block sells (which fits with the corresponding buying today). That added to the 250k and 2 x 300k block trades from earlier this week, makes 1.85m shares sold and it would seem there is more to come judging by the online offer. There aren't that many people that hold over 2m shares so the net gets narrower

Another site has tidied today's trades up now and have 2 x 250k and 1 x 500k block sells (which fits with the corresponding buying today). That added to the 250k and 2 x 300k block trades from earlier this week, makes 1.85m shares sold and it would seem there is more to come judging by the online offer. There aren't that many people that hold over 2m shares so the net gets narrower

I was thinking there is at least a 1m sell order being worked and that could only be one of a few holders, the Directors, HH, Michael Clark and Jon Penney hold over 30m of the 78m shares issued. We know there are a few PIs that hold well over 1m shares so it has to be one of those. From the list HH and Michael Clark are favourite, but Jon Penney is also a possibility as he may need ready cash for his 'new venture'. I am not sure it is a PI but could be. Whoever it is wants to sell them now and is happy to hold back the price to do so, suggesting they need out ASAP, otherwise a release on the SP 'brake' could see better prices to sell in the near future. It could be a placee, but having had to endure months of blaming placing shares for the overhang by some posters, (they must have sold the placing several times over!), I am not sure. As I said above they are working the order and seem to have a set price and don't look to be moving it until it is clear. Other supposed placing sells are probably PIs, they are still a lot of T trades going through and also we have risen quite a bit from the lows and people do take profits.

Well the two deleted 250k prints have now been replaced by a 500k print at the mid price of the trades, my bet is they are working at least a similar amount (probably more) at the moment, hence the constant offer of 150k at 11p. The larger buys are quite positive and need too continue to clear the overhang.

Well the two deleted 250k prints have now been replaced by a 500k print at the mid price of the trades, my bet is they are working at least a similar amount (probably more) at the moment, hence the constant offer of 150k at 11p. The larger buys are quite positive and need too continue to clear the overhang.

Not sure what is happening with earlier trades as this site shows the 100k at 9.21am being deleted later and the 250k deleted and replaced at 10.85p and then that deleted, my guess is they will hold back the printing of the sell order until they have a complete fill. In the mean time fill your boots at 11p because this won't move up until it's shifted.

Well there looks to be a worked sell in the pipeline, still offering 150k at 11p. Looks like another 250k just been filled. I get fed up with the excuse of placing shares every day, when clearly they are just people selling, this however is a bigger order and could be one of the ex directors taking a few off the table or HH having a September clearout. Either way the shares are being offered at 11p and it has provided an opportunity for some to buy some of them and for many others to talk incessantly and come up with as many conspiracy theories as they can.

I do hope people are reading the Ebioss note above, for snippets like this, "and a partnership with REACT Energy plc has been signed in the UK to use Eqtec Gasifier Technology (EGT) exclusively on its projects for which the first order was accepted in December 2015. Driven by its supply security shortage, positive regulatory framework and numerous opportunities, the UK is becoming a strategic priority for the company" "The €7m debt issuance achieved by the company in 2015 has allowed the group to maintain its international development and project pipeline, although it only represents 43% of the €16m the group had in mind for this purpose." "Following approval from the extraordinary shareholders’ meeting held on 16 February 2015, the Board of Directors authorised the issuance of debt up to €30.6m in the next three years, with the short-term objective to issue €16m of bonds focused on financing growth, the level required to continue with the group’s business plan. Any delay in the issuance of new debt to finance the group’s business plan would have a negative effect as it would hinder the group’s positioning in multiple investments as some projects require a deposit before being accepted and some others require capital to enter as a minority shareholder (between 5% and 10%)." "The current low interest rate environment, added to the ECB initiative to give away money almost for free, translates into the best opportunity for Ebioss to raise the required capital to finance all of its different growth projects." "Following the Gowex scandal, Ebioss and three other companies have requested to be withdrawn from the MAB exchange to be traded on Madrid (Bolsa de Madrid). In order not to be identified with such an unrelated issue, Ebioss is considering the possibility of either a double listing or full transfer to either the Paris or London exchanges. Foreign trading will not only attract additional investors but will also help the group regain the investor confidence lost in the MAB scandal. At the general meeting of Ebioss Energy held on 13 February 2015 a resolution was adopted for the shares of the company to be admitted for trading on the alternative stock market in Paris, France (Alternext) or on the alternative stock market in London, United Kingdom (AIM) via either a private placement, and/or a dual listing." Remember this is all about Ebioss but it can be seen that the UK market and a possible AIM listing are at the top of their requirements.......

http://corporate.alphavalue.com/Secure/Handlers/LongPdfHandler/2b60074d-1227-e511-80de-c81f66d04abb/Ebioss_Energy.pdf If you read the above, dated less than a week ago, it will show clearly the path Ebioss wish to take and raising another €9m is clearly stated to make up a short term war chest of €16m (they have authority to raise nearly that again and state about cheap ECB money being available). My thoughts are this note was issued as a precursor to this fundraise through a bond issue, that will be what I am looking for next, once Ebioss have the funds and the Chinese should have had enough time to evaluate the UK projects, I think we will then see a move for the Company, but the minimum would be funding for the projects to get built out which would also be a great positive but my fear is the stale holders will always mean the Company won't see the valuation it deserves, so would prefer the quick exit.

On the point of liquidity, the Company last Summer restructured it's debt and converted €5.7m of debt into equity at 11p. Those that took the equity were ex-employees, larger shareholders, Directors, people that had provided services and not been paid and lenders. They agreed the solution under the Examinership as the other option was liquidation and no pay out. The equity had a lock-in period of one year and that past a couple of months back, so there will always be an over hang here as some of those will want to monetise their equity and will be prepared to take a discount to the conversion price. The larger holders will probably wait but ex-employees and companies providing services that weren't paid will probably want out ASAP. This is why a buyout of REAC is in everyone's interest as these holders want an exit and their shares would be available at the right price giving Ebioss the chance to take the Company, it's assets and the listing.....

quindell, If you look back you will see that I have been putting forward the argument that Ebioss want to develop the UK assets of REAC, that they have now got a strategic partner in China Energy and importantly a large funder to develop the assets. They have also been organising and getting approval for a circa €30m bond raise, the recent investment note states they have raised €7m and their short term target is €16m. They have also had shareholder approval to list on either Paris alternative market on in London on AIM. I can post pieces that back this all up. The most obvious way to do this is buy out REAC, the price would be the thing, the current SP undervalues the assets hugely, the money spent on getting sites to planning permissions and offtake agreements means these assets are worth far more than the current valuation. A takeover would also have the side effect of saving on any AIM IPO and also mean tax losses could be carried forward. This of course is my thoughts and as such is just conjecture, but I was the one that started to mention Ebioss as a new technology partner a year before we saw the Company mention them, I was the one that pointed out Ebioss had agreed to invest €6m in the Enfield project and I was the one that pointed out that Planning for Clay Cross had been agreed by the Planners prior to full approval at planning meeting. One thing that strikes me about REAC is the Management are poor, that Ebioss are interested and now have the financial backing, that they have already loaned us 750k and it seems have allowed us to get away without paying for the Newry equipment by June as RNSed. So has there been a grace period so Ebioss and REAC can get things in order. From reading Ebioss' newsflow they seem to be able and want to build out these plants and do they want to partner with REAC or run the show with Chinese money to build out. REAC's track record has been poor why risk a partnership when a takeover could come at a reasonable price. That price in my mind would have to be at least 11p, the level the debt to equity holders agreed to convert debt to equity and warrants were issued. So reasoned conjecture but not utter BS......