The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I'm sure the BOD have this in hand and we will know by Christmas. Which year though I can't tell you.
Wolves
Dr A
Thanks for posting.
Page 11 of the brokers notes:
Column's 2 & 3 look as though there may be a little formula error compared with column 1.
Wolves
This should be good news for PHE.
'Under the PGH Exclusivity Agreement, HUI will pay Powerhouse a further €325,000 by the end of 2021, when the formal intellectual property licence for the DMG® technology is anticipated to have been granted to HUI.'
Money in the bank, just in time for the new year!
And then:
'a further €300,000 to be paid 12 months later.'
Wolves
Thanks Dr A.
Wolves
Hi Dr A
Thank-you for coming back to me on the questions I raised.
Are you able to clarify if the Intangible assets of £384,862 is made up predominantly of the two licence costs paid or payable to PHE for the exclusivity in Poland, Hungary and Greece?:
1. The licence payments already made in cash terms (£125,000).
2. The £325,000 due to be paid by the end of this year but remains unpaid in cash terms to PHE?
If it doesn't include either or both of the above, what other activities/costs does it represent to be capitalised in this way?
Many thanks
Wolves
Hi Dr A
Thanks for putting this presentation out there for us all.
A couple of questions that I hope you can help with.
1. The intangible assets £384,862 - Are these the licence payments made to PHE for exclusivity in Poland, Hungary and Greece? I understood that £125,000 was paid initially with an additional payment of £325,000 due by the end of this year. What else could have been included to make up this value? Has the £325,000 actually been paid yet?
2. Am I correct in assuming that the reported 344,320,000 existing ordinary shares (0.1p nominal value is the number of shares issued after the Pre IPO fundraise took place?
Wolves
Hi Sharesport
I have absolutely no doubt that there has been a lot of interest in HUI IPO by PHE shareholders. Me included. Expressing an interest however is significantly different to actually buying the share to be issued in the IPO. I have set money aside to buy but the shares will have to be at the right price and for an acceptable proportion of the company. Each of us will have different parameters for what is acceptable. I would rather my money go directly into funding HUI but not at just any cost. The valuation has to be realistic.
Regardless as to whether I buy shares in the IPO, as a PI I would like to thank Aleksandra and Howard for the opportunity to participate. It would probably have been so much easier for them to have gone to a small number of large investors only.
Wolves
Hi Sharesport
Just to add one relevant point. In theory PHE is targeting c 7.531 billion people with its DMG. If you combine Bulgaria, Greece, Hungary and Poland populations they come to c 65m. That is less than 1% of the worlds population. On Friday PHE's Market Capitalisation ended at c. £186m. I don't believe you can compare the market value of the two companies by looking at target market size there are far too many other variables to consider. A most simplistic example of this is tonnes of waste plastic produced by size of population, often associated with wealth and a throw away culture. It is very uneven across the world. Therefore all target markets are not equal.
IMO the potential of PHE and HUI is massive, but it remains currently unrealised potential. HUI look as though it may have an opportunity to change all of that, I very much hope it is successful.
I look forward to others responses.
Wolves
Sharesport, thank-you for your reply Fri 22:29.
Without access to the accounts of HUI the baseline valuation I have estimated at £2.5 - 3.0m. This is the cash from the pre IPO fundraise. All other costs for company set up etc I regard as sunk costs and irrelevant to any valuation.
The next stage is to value the other assets of the company. There are probably few physical assets so I have taken this to be nil.
There is potentially value in the signed contracts with PHE being a sol partner in designated countries, Poland, Hungary & Greece. Correct me if I am wrong but I'm not sure if Bulgaria has been licenced yet. The value I have applied at this stage is £1m per country. Say £3.0-4.0m in total.
Linde contract for exclusivity has a zero value for me. However entering into contractual arrangements with HUI de-risks the company as you would have expected them to have undertaken due-diligence. This is worth to me £2m.
The energy of the BOD of HUI but allowing for the risks allows me to apply goodwill of between £1-3m. (I accept that some may think this is rather light, but I don't. With the model that appears to be followed there may be a dependence on EU grant moneys plus local contributions or matching. What happens if these grants are pulled due to EU cash flow issues or political /military risks?)
I therefore have a pre valuation of between £8.5 - 12.0m.
I have not included an allowance for the expected returns for the projects as at this stage they are a WIP and I believe there is a lot to do before they become a reality. Current risks are not just HUI's they start with PHE and the DMG working as stated.
Moving on to the IPO, the offer price, the number of shares to be issued and the percentage of the company they represent are highly important to me.
IPO for £7m -8m for c. 50% of HUI. My valuation after IPO c.£15.5-19m. Provides funding for 2-3 years.
IPO for £20m for c.70% of HUI. c.£30-35m. Would provide general funding but also enough to buy a DMG if other sources of funding are lost ie. EU Grants.
IPO for £30m for 80% of HUI. I would expect this to achieve a valuation of c.£45m as the cash is sufficient to see the project through to completion and probably leave some spare in the bank.
All the above are my own projections and in no way should they be taken as offering any financial advice to others. They are specific to my thought process only and I will be very happy to have them analysed by others and discussed/rubbished.
Please however include for others whether you already have shares in HUI so comments are transparent. I currently have no shares in HUI.
DYOR
Wolves
Sharesport re post 20:08
Based on your view of reasonableness relating to a market value stated by Moggy1 post 19:22 today:
Do you already have money invested in HUI either from its original/post set up and/or from the pre IPO funding round?
Wolves
Gunst
It really depends on the number of shares to be issued and the percentage of the company they represent. Until we know that it is meaningless.
Wolves
mjallen
My MP was interested until he realised PHE was based outside his constituency. He couldn't see further than that, ignored the fact that it had real potential in the County and Country for beneficial plastic waste disposal. When wishing to write to an MP that is not your own, just hope they are a member of a government department and you can contact them by writing via the department. I normally get a response that way.
Good luck
Wolves
With the news that
'In Greece, the subsidiary of Hydrogen Utopia, Plastic Gold, has signed a letter of intent with the Mayor of Florina, Vasileios Giannakis, a city in West Macedonia to deploy a DMG system initially designed to generate electricity'
as per
https://ceenergynews.com/hydrogen/powerhouse-signs-binding-agreement-to-deploy-its-clean-technology-in-poland-greece-and-hungary/
Has anyone found more information on the subsidiary Plastic Gold? If there are any Greek speakers/readers reading this, please can you search to see if this was reported in the Greek press and if so what was said?
Wolves
A paper for Boris to read from the Principality.
https://gov.wales/sites/default/files/consultations/2021-01/hydrogen-in-wales-consultation.pdf
Be ambitious
Wolves
Baz
It may give Alba some quick cash but it is unlikely to maximise the real value of this gold. As we know already, Welsh gold is special, it also has probably one of the worlds most famous brands associated with it, the UK Roy....al Fam......ily who we are told have used it for wedding rings.
I would suggest that the first kg of the gold is marketed at the very high end jewellers throughout the world. To be distributed/supplied on the basis of client (Jewellers orders from customers ) call-off orders. This end of the jewellery trade has very high margins that could be tapped into, the rings are often made to order and are crafted for the specific customer.
Another product that can be marketed in a similar way is commemorative coins, the Royal Mint and some of the other Mints produce collector coins all the time. It is big business. Jersey, Gibraltar and others use the Queens head on one side of their coinage. Good processing producing a quality product will sell at a premium. It is all about identifying your markets and with gold targeting the high margin activities/products/businesses.
Obviously there is an additional cost accessing these business areas but once the links and contacts have been created they are then there for the future kg's of gold that hopefully Alba will be producing.
They've got to mine/extract that 1st Kg of gold, by doing so they open up a whole host of opportunities. I really hope that the company takes a long term view and that it looks for niche markets with high margins, uses it advertising advantages to the maximum and targets those who want a prestigious product.
Wolves
Alfreddie
I disagree with you regarding BOD giving their view at the current time. They have done the sensible thing and given an update as to what NRW has indicated to them. I would rather know facts than an of the cuff view. Experts in their fields are being employed to advise Alba and I expect them to take the appropriate actions based on the advice given.
Whilst the dewatering is currently a negative, this is only one part of a much larger project, plenty of targets, plenty of opportunities, actions can be shuffled around and reprioritised. I'm looking forward to a factual announcement from the BOD as to how they are going to resolve the current issues.
This is mining and this should be just another obstacle to overcome. I would expect NRW to work with Alba to look at potential remedial actions. NRW will be working within their remit, fulfil their criteria and tick, away you go.
And then you have Greenland.............
Wolves
Hi LedZep
I had high expectations that were soon dashed, crushed and eventually shredded. It is just as well I still have faith in the technology as on todays performance I thought I was witnessing a screening of Mr Bumble(s). Thankfully the glue was the lady who did the plastic in the oceans presentation and the Chester Uni chap. Aleksandra came across as capable, Howard takes it all in but has a poker face. A real shame he has his mobile with him, gave the impression of being disinterested that he certainly isn't.
Worst of all was that TY sat on the sidelines.
Powerhouse Energy plc, IMO you need a slick and professional CEO with drive, determination and contacts.. Also someone that can look professional in front of the camera / audience. Maybe a new media coach might help turn things around but I believe it needs more than that.
This is the second time I have been disappointed by PHE this month. The first was when I read that the Peel terms had been extended but on the same terms. This rollover appeared to be the Jackpot for Peel, I assume still may pay £10m for a 10% stake in PHE, what a charitable discount. Did the BOD try to renegotiate the terms for the benefit of their shareholders? Were time clauses, dates and number of operational DMG's inserted into any new contract?
Wolves
a
Dr A
Thank-you for your reply, I agree re CEO. PHE has been treading water for far too long, lots of technical achievements but little to show in the way of operating commercial plant(s). Hui may turn out to be the golden egg in the short term. Lets just hope so.
Wolves
Dr A
If Peel can't / will not deliver FOAK until the other planning approvals, and HUI takes on the risk of FOAK, surely the BOD should be energised for their shareholders, reviewing every option to renegotiate the original agreement with Peel and improve the terms to PHE!
I have never heard that PHE has a definite pipeline of new / complimentary products to put to market, but if they did, would the existing agreement with Peel preclude them from offering them to the UK market using a different method of approach or organisation ?
Do you have any insight into this?
Wolves
1LEO post 12:28
A very bold statement to make regarding multiples, I just hope you are right!
This board is for discussion and information. I certainly am not a fan of knocking a share/company in a destructive way in the hope of personal gain. It is however appropriate to ask questions and evaluate any responses. My horizon with PHE is long term, not day to day. If you don't know something or you wish to seek an opinion, it doesn't matter if either good or bad news has been released by a company that day, it is still appropriate to bring concerns, information gleaned (if legally obtained) or questions to the table.
Wolves