Member Info for troutisout

Company: Enfield Biomass Limited Registered Office: Gibbs Road, Montagu Industrial Estate, London N18 3PU, England Shareholders: React Biomass Limited 100% Issued share capital: React Biomass Limited 20,000 ordinary shares Date formed: 4 February 2009 Domicile: London, England COMI: Cork, Ireland Purpose of SPV: Formed to build, own and operate a Biomass Combined Heat and Power (CHP) plant using advanced conversion technologies such as gasification of wood and wood waste converting them into electricity and heat. Requirements to achieve purpose: • Site • Planning & permitting • Building and infrastructure • Conversion technology • Grid connection • Feedstock or fuel such as wood • Off-take or Power Purchase Agreement • Human resources • Funding to achieve all of the above Estimated % of project achieved: • Site (paid significant rent to previous landlord - new landlord in place but in dispute due to non payment of rent – agreed that lease now revoked to allow parties enter into new discussions) • Planning & permitting - achieved • Building and infrastructure – 90% • Conversion technology – choice to be made • Grid connection – 15% • Feedstock or fuel such as wood – HOTs in place • Off-take or Power Purchase Agreement – HOTs in place Landmarks expected to completion: • Enter into non confrontational discussion with landlord which is a Waste to Energy Fund manager with the objective of concluding a more realistic lease agreement based on the deployment of a waste to energy technology solution • Agree technology solution in conjunction with landlord/fund • Funding package put in place for project (discussions already at an advanced stage with a number of parties including the technology providers) to achieve financial closure • Objective is to end up with a reduced equity position in the project based on development costs to date and existing intellectual property in site Detailed expenditure to date: The SPV has spent £2.8 million to date on the project. This was expended on • development costs including planning and permitting, • site lease costs, • personnel costs, • grid connection costs, and • legal and other professional costs Provided against expenditure to date: An impairment charge of £2.8 million has been made against the carrying value of the asset. Carried NBV in 2014 audited accounts: The written down carrying value stands at NIL Cashflow forecast to landmarks: The only resources required to enable discussions to take place with the landlord and possible funders will be human resources and these will be made available by REACT Energy the SPV’s holding company. Any cash required for third party advisors etc. if required will be provided by EcoFinance and Altair Expected

A little jam tomorrow titbit, "The company is currently in advanced discussions with Healthcare companies and pension funds in relation to the assembly of a portfolio of Biomass Heat only plants specifically for Healthcare facilities such as Nursing Homes."

Ryan, maybe more jam, but this time it maybe a little different. Up to now the management don't seem to have delivered but also they have been hamstrung by finances and also the Enfield and Newry problems, Enfield getting to financial close while having to guarantee ludicrous rents and Newry the gasifier system. These two have now been resolved or at least a line drawn under them. Enfield has planning permission and grid offtake agreements in the name of Enfield Biomass. REACT spent over £2.5m getting it to where it is now and it is hoped that these agreements as IP are worth something to Foresight and that these can be used to give us a free carry on the project. If this happens this will be a positive out of a big mess. Foresight or their vehicle now are holders of REAC due to the rent arrears being turned into equity here. Newry needed a new system and I believe they will go to the EQtec system from EBIOSS, EBIOSS may also want to be involved with funding the project. I see this progressing soon as Farmers are now 51% owners of Newry and they have put in €5.7m as well as loans to the company now converted into shares. Remember all our creditors now have a vested interest in the SP rising as they are now equity holders. Also remember they agreed to accept equity at 11p a share and not 4p, so they will want to see appreciation in the SP. Finally we have now got some financial backers and they will want to drive the Company on far more than previous Directors.

React have one turbine up and running Pluckanes and 8 more with planning permission (2 of which have had wind masts up for over 12 months and have all the results and permissions to be 'build ready'). These 8 are all for 0.5MW (Pluckanes is 0.8MW) Pluckanes gives us €130k of Net Operating Profit pa. and each of the other 8 turbines are forecast to give similar. so £900k NOP pa. once all built. That would also give us a portfolio of 4.8 MW of wind turbines. Even at planning permission stage the 8 would be valued at between €0.4 and €0.7m per MW. Under construction €1m per MW and up and running €1.7m per MW. So at base case now, 4MW x €0.4m + 0.8MW x €1.7m = €3.96m or just over £3m All up and running would be over £8m

Grass Door (SPV created by React) bought GGES for £2.3m with a further £1.7m in deferred consideration, What do we have now? 3 working projects, all with a 30% equity share (70% owned by Equitix). These total of 1.6MW of power generation that is currently up and running. There are 5 other projects in the pipeline that are to be developed in the short term. These will need £80k of staff time from Grass Door and will on completion return £100k of development fees and £50k annually of Management fees. Say an average of 500KW per project, we are talking about just over 4MW of generation. The good thing here is the projects are already funded by the Equitix funding line (Green Investment Bank), which has £3m left. This would give us a 30% stake in something with a build and development cost of around £5.5m invested in them.

Smudgedan, If there was ever a case to show getting planning permission for renewables doesn't guarantee anything, look no further than this one, Enfield Biomass all consented but still nearly took the Company under due to delays in financing while guaranteeing to pay a very large monthly rent on the site. It is hugely complicated but hopefully they can concentrate on bringing on all sections of the business now, with the above rent and delays in getting to financial close I felt the Company ended up neglecting the other parts of the business and these are closer to getting up and running. Trout.

Riddler, yes your comments back in December and earlier, you didn't seem to understand back then and still had to come back to rub noses in it. Well they are an Irish company and they applied to go into examinership, in Ireland this is available to Companies that have financial problems but can demonstrate a viable business if new investment/debt forgiveness can be applied. React PLC went through the process and an agreement was made to convert 5.7m in debts/convertible loans to equity at 11p. The Company also raised £1.5m in loans, some £500k was needed to pay the examinership process. Recent results saw the value of the Company's assets written down. Since coming out of suspension there has been little in the way of share trading, so SP slowly been dragged down and today was the first burst of trades and the MMs reacted accordingly. REACT has several projects ongoing, some with finance in place, some going through planning, others with permissions and waiting to be built and others operating. There are some new financial backers on board and they and some NEDs will be taking the place of the current BoD (CEO staying in place). There are warrants issued with an exercise price of 10p to these financial backers and convertible loans for a total issue of 55m shares, if issued that would net the Company £5.675m. Plenty more on other sites...DYOR! Trout.

Not sure why you would think they would be doing a domestic option, their target market has always been bigger units than that and that is probably down to cost. The REDT units are more industrial sized and their qualities suit that deep cycles, quick charges, etc. The technology that exists today means that other batteries will be the first choice for domestic use, cheaper smaller systems, Tesla's offering has been announced but didn't the small print say it was 2 years away from delivering on any orders? You have to be patient and if you can't be then why invest in a product that is coming from prototype to manufacturing line and commercial use. Can you imagine how long it would have taken without Jabil? The fact they came to REDT says a lot, they have completely overhauled the prototype and they will get it into the most efficient in terms of size and cost, so that the rollout can be as large as possible when they release the product en masse. Up to that point they will be placing units as reference points and using them to market the product. If they don't do it this way then the next few years will be of small (maybe singular) orders from clients to have their own reference unit before going for larger orders. This way at least next year clients can come to REDT in the knowledge that systems are up and running and they can see them working, their orders are likely to be more substantial then. It also derisks any problems, if a single unit has a problem or a small batch then it can be dealt with reasonably easily, if they have shipped 100's of units that have a glitch, a recall could be extremely expensive in monetary terms and more importantly reputational terms. They have to get this right, there is no room for haste and mistakes, the ducks are lined up, let them do what they have to and then pass judgement.

Graham, I think they have told us that the design changes have been ongoing and therefore you can't certificate, etc a product until it is fully designed and built. It is quite simple the product works, but Jabil and REDT have been working on reducing the size and manufacturing costs. It will not sell if it can't be set at the right price point, this has been ongoing throughout the year and I am glad, as we need it to be as lean as possible before production starts in earnest. There is no point going with design 1, when 1.1 and 1.2 are cheaper and easier to produce, when 1.3 is more efficient, when 1.4 saves even more space and can have it's output increased if necessary. These are all things happening as we go along, they may as well tweak the design as they go to get the optimum product at the end. It may take a little longer but will increase margin, attractiveness to client and will mean the changes don't have to be made to production down the line, when they have produced dozens of mark 1 units that are already outmoded. I would be rather worried if so soon after the Jabil tie up they have come up with their final design, this at least shows they are still trying to innovate the design to make it the best it can be. That ultimately will be the decider of whether this will be a success or not.

It would seem that too many here haven't done their research, or if they have, haven't taken things onboard. REDT's very clear stated aim is to get the equipment for the 10 pilot products, built, certificated and through electrical testing. So quite why people think that having been told that under a month ago they should be sending out equipment here there and everwhere and taking lots of orders. Certification and testing take time and need to be thorough as when they start to deliver units any problems will be a huge dent to confidence in the product. Having garnered lots of interest, it is important to make sure that everything is 100% correct before shipping units out, also all equipment has to go through certification and that takes time. Also the bemoaning of news, or lack of it, is amusing as the CFO bought some shares after the results, there was really no chance of any material news for a period of a few weeks after that purchase. As for a placing, well the recent offset credit sale should help with finance at the moment and statements of a strategic review of US carbon business, suggest a sale of that could be on the cards to concentrate solely on REDT and African consultancy work, which will be a conduit into the continent for REDT products. The reality is that the some traders have now sold out and are looking to re-enter lower, they did so at close to the recent highs, following them now it has dropped to the bottom of the rising price channel isn't very sensible, yes it might go lower but not much and looking upwards there is far more to be made that way to the top of the price channel. One poster on another BB has sold over 1m shares partly because of Greece fears but also has always traded the range here at CCE. Looking at the chart and the rise (zig zagging from February this year), it would seem a bounce is very possible from these levels. What is known is there are 8 pilot projects that we don't know the detail of yet, there have been other orders from early adopters, REDT and Green Acorn are doing a lot of marketing/PR. Potential for other consultancy work in Africa and also for news from US review. So stop being despondent because the traders have sold out, remember a lot of the rises are because they buy in. Have a look at CCE, the current SP the potential going forward both negative and positive and then make your decisions. Don't do it just because of what a handful of people on a BB state, they will only be talking their book anyway. This is the Summer time and traditionally people relax a little during the upcoming holiday period, so make sure you are able to do so, make your decisions and sit back and relax a little. If you want a quick fix try horse racing.

Also Graham, I am not sure if the final product has got all the certification as yet, so selling something before it is ready is not an option. These type of developments take time, Jabil really did change the design and this takes time to make sure it all works. The idea to set up sites around the world as demonstration sites is great, they do not want to be selling units straight out the door yet, they will want to see these delivered to partners where any gremlins can be ironed out and proof of viability of both product and production can be shown. Then the Sales Directors starts to get sales, up until then he will be co-ordinating the marketing strategy and making sure potential customers are interested for the rollout.

There was plenty of time on them, my thoughts are that he wants more control going forward they had very little voting rights as Directors, can't see why he would exercise now and not leave it until later on? Barclays are offering 750k at 4.2p at the moment.....

They were based on non market performance and SP averages, however what you should think about is why he had to exercise them then? They still cost him £70k so still not a small amount, why take on the risk of owning shares when he could have kept them as options, kept his £70k and waited.....I take it as a positive! "Market-based performance condition The options currently issued under the Plan will vest at different levels depending on the Company’s share price performance, subject to the non-market performance conditions being met. These options will vest in 3 equal tranches upon the Company’s 45 day volume weighted average share price reaching or exceeding the levels of 3p, 5p and 7p during the life of the options. Non market performance conditions The Plan will only vest if all the non-market performance conditions are met. These non-market performance conditions are based on specific and measurable operational targets set by the Board. The employee or Director must remain employed by the Group throughout the entire vesting year in order to remain entitled to Plan shares".

Can you guys keep it up please as it is self fulfilling, persuade enough people it is going to go lower and buyers wait and sellers appear, so it does. The placing was to raise funds for investment into REDT development so of course some of it will have been spent, not sure everyone would be happy with a discounted fundraising and then they sat on it as cash. It was for investing in the REDT business and that is what they have done. I think the last trading statement shows exactly how well things are progressing, if this isn't for you then no-one is holding you here. REDT will need to get certification before making sales and they will not want to launch on a mass scale but to a small array of different classes of client to prove the equipment before hitting the heavy marketing. That is sensible business, it takes time so be patient. In the meantime the US projects are growing and new early action filings are taking place and in Africa CCE will be working hard on consultations for projects for the GAP funds. Don't confuse the business, with the trading of a small minority of shareholders which will move the price in the very short term but has no effect on the business prospects. Lees of the morbid drivel and a little more constructive research please.

If you look back at the trades we have lots of little sells and then much larger buys. People seem to be nibbling away, as can be seen this afternoon. I was going to add another 50k at 20.25p this morning (they were offering up to 75k at 20.25p), but ended up buying another holding, so just added 10k here a few minutes ago. Good Luck all, just waiting for Enfield news now. Trout.

and another 10k today, there seems to be quite a lot of stock being offered at the moment at 25p, 24.25p for smaller amounts. Interims due by the end of this month and Enfield financial close overdue now, Trout.

Another issue of ARB credits last night. Can buy at 3.87p this morning....Rocka, keep an eye out. Trout.

I have just added another 25k at 23.2p, the MMs seemed to be very generous this morning with their tight spread. Trout.

Wexboy, This was my thoughts a few weeks ago, ryan83, I said that I have been looking into the valuations of renewables projects and have struggled to find much on biomass projects, but have read this and thought I would dig it out again to discuss, it is from 2010 (and in euros)and deals in solar and wind generation, I would think biomass rates as high if not higher than solar, due to the lesser reliance on the weather and a more stable fuel source. httP://www.deloitte.com/assets/Dcom-Belgium/Local%20Assets/Documents/EN/M&A%20Services/be_maservices_renewable-energy_valuing%20wind%20and%20solar%20developers%20analyse_2nd.pdf Now I don't pretend to understand all the equations, but from what I can see they give a basic valuation for assets as follows, Wind - late stage - under construction - installed. €/MW.....0.4m...........0.8m...............1.2m Solar - late stage/under construction - installed. €/MW..............0.2m.....................4m There is no valuation given for early stage and pre-planning projects. From this and looking at recent info we have, Newry 2MW = €8m + €0.4m Newry 4MW = €16m Depending on whether the 2nd phase is now generating, we have two possibilities as above, however remember we only hold a 50% equity in Newry assets. Puckanes 0.8MW = €0.96m Altilow 0.5MW = €0.3m Moneygorm 0.5MW = €0.3m I have split the difference between late stage and under construction as they should soon be under construction. Enfield 12MW = €2.4m Again expect a 50% equity holding. Looking at the above and depending on Newry's status we have between €7m and €10.7m in assets as they stand. As can be seen the upside can be increased dramatically when these projects come online and can be valued as such (Enfield would be huge €48m/2 when installed). Also we have to take into effect the income being generated from these assets, Newry return to the company is over 90% of revenues. We also need to take into account outstanding loans and debts, the fact that additional capital is likely to be needed and raised. There is a growing portfolio and these also must have some residual value even though they are early stage. This year will be very busy and if they can keep to targets then the shift in value will be noticeable. DYOR, Trout.

I think when you look at the volumes 5p isn't that far away. At the moment you can only buy 1,000 shares online, so why don't they raise the price and let people trade. They haven't got the stock to let it go, so will try and hold it back, best way to deal with that is buy what you can when you can, even if sometimes you think it may go lower. Phasing of the buys allows you to pick up as much stock as possible at the lowest price, without having the risk of not being there at the low point and or not being able to get all the stock you wanted. Personally I see this starting to move up from here, yes we may get retraces, but look at the fundamentals, look at what we now have compared with last time we were at these levels, look at the written off carbon credits, as prices steady and move up these start to rise in value again. look at the income from Jerome and Twin Falls, the income from Californian offsets, just over 10k issued last night at over $11 each. The Company has changed so why think it will go back to a place where it was when things were all going against it? Trout.