|a tidying up job. Molectra tried and failed to raise new funding in its own right last winter and seemingly again more recently. GHF were left with little option but to take full control or face writing off their investment. Going to be a long slog from here, with all eggs in one basket.|
|Strange L2 developing NUMIS bidding 7.5 All others 6.0. Quite a gap. Looks interesting bearing in mind HYR, VTI and NUMIS connections.|
|topvest - I tend to agree. Even if the Bauxol stuff comes to zilch (which I feel won't be the case) the Molectra investment is worth more than the current share price, which even with it's recent uptick is still below NAV.|
|Looks like some distressed selling or CGT selling here. Worth a punt if this carries on for another day or two.|
|No that's not the reason, the products from the recycling have been flagged very clearly and will never be anything other than mundane stuff - but the market is crying out for the main products (steel, crumb rubber). And as pointed out in my post GHF I think will be on a p/e of just 7 later this year, and is now trading on less than nav?|
|anti-cast products are low tech strips of rubber,commodity items, already made around the world from recycled tyres using basic recycling technology. As such whilst such a contract for Molectra is good news for break-even, it is a disappointingly mundane application for its sophisticated recycling technology and may not generate very exciting margins. To really fly, Molectra probably needs to land some up-market deals which offer higher margins and justify its fancy technology.|
|Fan-bloody-tastic. The one big investment made by the fund is shown to be not just good, not just an enviromental godsend, but also breaking even faster than anyone could really hope for. Reaction from Mr Market - lets mark down the shares. Why???|
|10% is a small fall ? LOL|
|I would have thought this might have risen on the latest news but instead very few deals and a small fall.|
|Steve, thanks for the summary. I have held for about a year. As you say very little on this company in the public domain. I enquired a few weeks ago re the appointment of a chairman and was told an announcement would be made in due course. I was also told Nigel Wray still had his holding. Molectra looks as though it could be a winner but less sure about the bauxol bits. The only one to have been successful so far is Hydrodec.|
|Here are my jottings on the GHF. As usual DYO research, this isn't a recommendation to invest etc.
Disclosure - I hold shares in GHF and in Virotec.
There is little news flow (even the 2007 interims aren't on the website)
The shares are v tightly held 10 holders account for 75%, 28 holders account for 98% so maybe that's why there is no news word of mouth will suffice!
Virotec holds 19.3% - no sell off of this holding, they hit Hydrodec instead for some more cash.
Notable investors include David Gaskell the funds investment advisor (10%), Nigel Wray (resigned as a director but didn't sell off his shareholding of 7.5m shares).
I'm puzzled by the comment that 66.3m shares (42%) not in public hands being held by insiders?
Fund is trading at close to its NAV, probably due to lack of news flow.
IMHO a downside is that Brian Sheeran is Chairman now Wray has gone the only thing Brian has done as far as I can tell (IMHO) in Virotec is draw down a huge salary while destroying shareholder value. Please let me know if I'm wrong here and I will apologise effusively for my comment. The good thing is the Board of the fund is capped in how much they can charge, so no massive cheques for no ascertainable value a la Virotec.
Elsiva invested in 10m shares in 9/07
What's the company done?
1. Invested in Molectra it now hold 58% of company.
Also advanced a loan of AU$4.5m to secure land for building full plant. (No news on progress can be found).
There is a massive worldwide problem with used tyres, Molectra technology recovers 100% of tyre, and even uses some of the by products to power the plant!
Proven technology in pilot plant.
Currently consumers pay levy to dispose of tyres so raw materials will be free if not an additional flow of cash.
Molectra reckons on getting AU$5.40 (£2.50) value per tyre, not clear if this is gross or net - it comes from a comment from the inventor of the process.
Greenhouse says the Wiley report (can't find this published anywhere) suggests for the new large scale process plant:
Capex = £6m
Process costs: 2.6m tyres (26,000 tons @£70/ton) = £1,8m
Income (from Molectra comment) = (2.6m*£2.50) = £6.5m
Gross profit = 4.7m
Less capex writedown expenses etc say £1m
Net = 3.7m
Greenhouse entitled to 58%, so with 155m shares that = 1.38pps. So at 10p a share for GHF = P/E of 7 just from initial stage of Molectra
Rights to Molectra technology have been sold to 19 countries - not sure on what terms.
2. Invested £570k plus GHF shares (hence 19% shareholding by Virotec) in non-core Bauxol technology from Virotech, carrying this investment at £6m in balance sheet. Very quiet on development progress. Maybe something will be announced in annual accounts?
Assets = £13m
Shares = 155m
NAV = 8.4pps
Share price this morning 8.6p
|Virotec held 30m shares in Greenhouse, the next biggest shareholder holding 18m. Looks like Virotec could have dumped their entire holding today to raise cash.|
|i think this could go bacvk up to 13p, Anyone else agree? I dont have shares in this company as they make me a bit edgy!|
|Nigel Wray resigns as chairman, looks odd.
NAV 8.9p, of whihc 5.3p is just plain cash.
Trading today at 13p, that's 45% over an NAV which is 60% cash.|
|Assuming spinning out the Milectra business makes a whole lot for GHF, is this the crucially advantageous time to buy? Or is having some Virotec, with its c19% holding and other activities enough?|
|Looking at the preliminary report there are only 74 shareholders in GHF. I would have thought an unusually small number. Are we the wise few or the foolish few ? With such a small number of investors presumably this means the shares are tightly held and any positive change in sentiment could lead to a rapid increase in share price.I guess only time will tell although Molectra does look to have great potential.|
|Good spot, thanks|
|Evos like it http://www.market-insider.net/?p=2302|
Molectra gets a mention|
|I keep looking for an update on the performance of the scaled up Molectra plant trials which I believe should be available sometime in the first quarter. This looks very interesting technology and successful plant trials leading to take up of plants round the world would be a major boost for GHF although I guess could short term call up more capital.|
|Is today's jump in share price just associated with the chancellors green statements today or are we due some positive news ? A big change for a relatively small turnover of shares. Interesting to see what happens in the next couple of days.|
|This looks like good news...
Greenhouse Fund Limited (The)
29 June 2006
For immediate release 29 June 2006
The Greenhouse Fund Limited
("Greenhouse" or "the Company")
THE GREENHOUSE FUND ACQUISITION OF BAUXSOL SUB-LICENSES AND OTHER TECHNOLOGIES
FROM VIROTEC INTERNATIONAL
Greenhouse today announces the acquisition of five Bauxsol technology
sub-licences and the purchase of the assets of Sterling Environmental Solutions
(together the "Transaction") from Virotec International Ltd ("Virotec"). It is
intended that Brian Sheeran, Virotec Executive Chairman, be appointed to the
board of Greenhouse to oversee commercialisation of these technologies.
The aggregate consideration for the above transactions is GBP5 million, to be
satisfied by the issue of 30,000,000 new shares in Greenhouse ("Shares") and a
further GBP500,000 in cash. At the opening price on 29 June 2006 of 15p, the Share
element is valued at GBP4,500,000. As a result of the issue of the Shares, Virotec
will have a 19 per cent. holding in the voting share capital of Greenhouse. An
application has today been made for the Shares to be admitted to trading on AIM
and it is expected that the Shares will be admitted to trading on 5 July 2006.
Background to the Transaction
The five technologies being sub-licenced to Greenhouse are Bauxsol platform
technologies developed by Virotec. These are:
(a) ViroConcrete Technology, speciality cement products with applications in
shotcreteing, grouting, high density concrete, acid exposed concrete or
concretes that are exposed to water or wet environments, particularly salt water
(b) ViroAirFilter Technology, designed to remove mercury, CO2 and other
polluting metals from industrial flue gasses by 'gas scrubbing' such
environmentally hazardous compounds from waste gases prior to their release into
(c) ViroFertiliser Technology, aims to control the level of phosphate pollution
and increase crop yields via the slow release of phosphate from superphosphate
(d) Gastric animal applications; aims to relieve chronic and potentially life
threatening gastric problems within animals; and
(e) Any further new commercial applications developed from the Bauxsol
technology; giving Greenhouse access to the time and efforts of the two main
scientists, their facilities and staff involved in the development of Bauxsol
and its applications in the Southern Cross University in New South Wales,
The intellectual property rights of the above technologies are either held
directly by the Virotec Group or licensed to it by Nauveau Technology
Investments Limited, a company outside the Virotec Group and is ultimately owned
by either Nauveau Technology Investments Ltd or another entity, Mount Aspiring
Geochemistry Limited, a company outside the Virotec Group.
Greenhouse has established a wholly-owned subsidiary company, Greenhouse IP
Development Limited, to hold the sub-licences and to develop the related
The strategy is to further develop the technologies, using both academic and
commercial partners from within industry. Once an application has been fully
commercialised, Greenhouse will consider the strategic options available to
maximise shareholder value. Such alternatives include introducing a new
structure for each license, depending on the particular market and opportunity
that it faces.
In addition, as part of the Transaction, Greenhouse has, through another wholly
owned subsidiary (Greenhouse Organic Solutions Limited), purchased the assets of
Sterling Environmental Solutions Ltd ("Sterling"), a UK non-trading company with
a view to establishing a regional treatment centre ("RTC") for the treatment of
high strength organic waste streams. The assets acquired include all
intellectual property rights owned or used by Sterling, including all rights
relating to the concept for the treatment of industrial waste at a central
treatment centre or RTC. Sterling has no trading revenue and has not filed any
In addition, it is intended that Greenhouse will enter into a 12 month option to
acquire the business and assets of ImperativePlus Pty Ltd, a wholly owned
subsidiary of Virotec. It has been agreed in principle that Greenhouse will pay
a nominal consideration on grant and on exercise of this option.
Greenhouse Chairman Nigel Wray commented, "This is a very exciting transaction
for Greenhouse, coming less than six months since its launch on AIM. We believe
that Bauxsol is a tremendous technology and provides a platform for a range of
applications; each of the applications we have licenced has the potential to
become a significant business in its own right. Greenhouse will also work with
Virotec and our research team to create further new Bauxsol applications. I look
forward to announcing developments as Greenhouse works on the applications and
partners with academic and industry research bodies to further the commercial
development of these technologies."
For further information please contact:
Greenhouse Advisor Ltd.
Tel: 020 7355 7600
Email: [email protected].uk
Charles Ryland/Ben Willey
Tel: 020 7466 5000|