React Energy Share Discussion Threads

[timbo] 04/6/2016 16:36

Thanks again Trout. It might be that a "new broom" at REAC might have more success in the Enfield negotiations if it has become "personal"...

[cliveas] 04/6/2016 12:04

May just have to get some more before the market gets wind of this.

Thanks for info.

Target price?

[troutisout] 04/6/2016 11:29

Lots to ponder for holders and investors, this certainly 'ups the ante'...

Anyway back to the weekend for me....

[troutisout] 04/6/2016 11:04

Bulgaria-based Ebioss Energy, Energy China Group to jointly develop gasification projects Author: Ebioss Licence: All rights reserved. SOFIA (Bulgaria), May 31 (SeeNews) - Ebioss Energy, a Spanish engineering and waste treatment company based in Bulgaria, said it has signed an alliance with state giant China Energy Engineering Corporation (Energy China Group) on the joint implementation of gasification projects in UK, China and and other key markets. "This agreement is based on the execution of international projects of power plants that transform waste into synthesis gas in order to obtain minimum 15% return of the total invested equity," EBIOSS Energy said in a statement on Monday, adding that its exclusive technology EGT EQTEC Gasifier Technology will be employed in the gasification projects. Ebioss has made available to Energy China Group for joint analysis part of its project pipeline worth a total 258 million euros ($287.5 million), it added. For its part, Energy China is responsible for developing the projects on the basis of an Engineering, Procurement and Construction (EPC) contract and for helping raise at least 75% of the project financing through Chinese and international banks. "Additionally, the Chinese holding is committed to provide at least 50% of the total equity needed for each project; therefore EBIOSS and/or other investors will pay in the rest of the total equity amount," the statement added. The two companies have formed joint work groups that will analyze the projects which will be carried out after a mutual agreement from both parties by formalizing for each project a contract regarding construction and investment. EBIOSS Energy's core business is the engineering, design and construction of thermoelectric power plants based on waste gasification. EBIOSS Energy has worked for customers such as Electricite de France, GDF Suez (ENGIE), Repsol, Endesa, Tecnicas Reunidas, Gas Natural, Siemens and General Electric. China's state energy holding company Energy China Group was established in September of 2011. It is one of the biggest solution providers for the energy industry in China, where it generates over 85% of its earnings. In 2015 its earnings amounted to 205.6 billion yuans. It employs 140,000. - See more at: hxxps://seenews.com/news/bulgaria-based-ebioss-energy-energy-china-group-to-jointly-develop-gasification-projects-527009#.dpuf

[troutisout] 04/6/2016 11:03

Another translation from google



UK, China, Financing, offerings, Banking Services.

The Spanish Ebioss Energy has signed an alliance with the state holding Energy China to implement its technology in gasification projects that both companies jointly build both the UK and in Asia, especially in China, as reported by the company Monday.


The agreement is implementation of international projects waste gasification plants that have a return on 'equity' of 15% annually.

Ebioss explained that he has made available a part of China Energy 'pipeline' of projects for joint analysis by an approximate value of 258 million euros, of which a significant portion are in the UK.

China Energy will be responsible for building turnkey projects and assist for the minimum funding of 75% of total investment by Chinese banks and / or international banks. It will deliver at least 50% of 'equity' required for each project, while Ebioss and other investors will contribute the rest to complete the 'equity' Total.

The Chinese energy giant sub-contracted exclusively to the subsidiary Ebioss, EQTEC Iberia, to implement its gasification technology for all projects submitted by the Spanish.

Thus, Ebioss, through this subsidiary, will be responsible for providing technology gasification and especially all the detailed engineering and construction of such plants technical design.

The parties have structured joint teams to conduct an analysis of each project and run each of them only in case both business groups are in mutual agreement, formalizing for each project a construction contract work and individual investment.

All these projects are subject to analysis and 'due diligence' for joint work teams.

Ebioss stressed that, with this operation, reinforcing its gasification technology in the market for energy recovery and more immediately in the UK market.

Also, the signing of this contract will allow the Spanish company to reduce its future capital needs to run its 'pipeline' international, thanks to the financial strength and easy access to financing its Chinese partner.

[troutisout] 04/6/2016 11:01

So what does that mean?

- Well Company documents during the examinership showed that Ebioss were in line to invest 6m into the Enfield project, they are currently lending REAC £750k in short term loans.

- Ebioss have also stated they would like to seek an AIM listing in the future (currently on MAB in Spain).

- Last year Creditors accepted shares at 11p to cover their £5.7m debts

- Those shares are out of lock-in later this Summer

- Total shares in issue are 75m (including the above shares issued to creditors)

- At 11p that would value the Company at £8.25m

- Add all the above together and what you can read about the link up with China Energy and one long suffering shareholder could be forgiven for seeing a perfect business opportunity for Ebioss now.

- Whatever happens the UK projects are the REAC ones of Newry, Clay Cross and to some extent the possibility of Enfield, these are described in the RNS twice (point 2 and point 7) and the second reference states 'more immediately in the UK market'.

- So possible takeover or a large part of the project finance sorted,

- I can't help feeling that Ebioss would be better off cleaning up the mess and acquiring REAC, gives creditors a chance to get their money back, gives REAC directors an exit, FBD still carry 50% of Newry and Ebioss get a project portfolio and an AIM listing and there are still the smaller heat generation projects and wind turbine projects that could probably get £5m between them....

DYOR!!!

[troutisout] 04/6/2016 10:48

One thing I rarely do is post at weekends but last night rushed by and I didn't get time to post all I had found.

Hopefully people will be looking at the EBIOSS RNS, (blame google for the translation)

FRAMEWORK CONTRACT SIGNING OF COLLABORATION WITH ENERGY CHINA STRATEGIC
On May 26, 2016, EBIOSS Energy has signed a strategic partnership agreement with China Energy Engineering Corporation Limited International Company (China Energy Group).
This agreement is based on:
1. Coordination between the two business groups for international projects waste gasification plants that have a return on equity of at least 15% annually.
2. EBIOSS has made available a part of China Energy pipeline of projects for joint analysis by an approximate value of 258 million euros, of which a significant portion are in the UK.
3. In this contract, the parties have assigned the following responsibilities:
to. China Energy is responsible for building projects turnkey EPC contract.
b. China Energy is responsible for assisting the minimum funding of 75% of total investment by Chinese banks and / or international banks.
c. China Energy commits to contribute at least 50% of the equity required for each project; EBIOSS and / or other investors, the rest to complete the total equity..............

d. China Energy sub-contracted exclusively to the subsidiary Ebioss, EQTEC Iberia, its engineering to implement its gasification technology, EQTEC Gasifier Technology, for all projects submitted by Ebioss.
and. EBIOSS, through its subsidiary EQTEC Iberia, is responsible for providing its proven gasification technology and, especially, all detailed engineering and construction of such plants technical design.
F. To increase the competitiveness of gasification technology both parties agree to, if technically possible to manufacture between 60-70% of teams in China. Therefore it could increase the profitability of each project.
4. The parties agree that this contract does not give any ownership or exclusive right EBIOSS gasification technology, EGT EQTEC Gasifier Technology, or on their intellectual property.
5. The parties have structured joint teams to conduct an analysis of each project and run each of them only in case both business groups are in mutual agreement, formalizing for each project a construction contract work and individual investment.
6. EBIOSS brings projects to build gasification plants mainly in the European area and brings China Energy projects in the Asia and especially in China. All these projects are subject to analysis and due diligence by designated teams work together.
7. The contract has a duration of two years, renewable for equal periods prior mutual agreement of the parties.
With this operation, strengthen its technology gets EBIOSS Gasifier Technology EQTEC market energy recovery and more immediately in the UK market.
The signing of this contract is the result of many months of negotiations with several leading construction groups in the energy sector, interested in implementing our waste gasification technology in international projects.
EBIOSS management team, has signed this contract considering the socio Energy China as the ideal place to undertake our future strategic growth plan candidate for the following reasons:
- Technical capacity of implementing international energy plants
- Knowledge and interest in technology and gasification waste sector
- Strong international presence, especially in the Asian market and China, strategic for EBIOSS..

- Financial capacity, both project financing and own resources that reduce and / or avoid investments in equity projects by EBIOSS and minimize future dilution of its shareholders in a macro capital already announced on 11 of November
- Mutual respect and a high degree of interest between the two groups
Also, the signing of this contract allows EBIOSS reduce future capital needs to run its international pipeline, with financial and easy access to finance your new partner Energy China strength. Consequently, EBIOSS is revising downward the new needs of capital to reduce future dilution of its shareholders in an upcoming capital increase, affecting the latter to its relevant fact published last November 11:
"... In this day has been published in the Register of Bulgaria the minutes of the Board of Directors of the Company held on November 5, 2015, and the report of the Council on the reasons for the exclusion of the right emption in the next capital increase plans to make the Company. The Extraordinary General Meeting of Shareholders of EBIOSS held on 10 April 2014 unanimously agreed (i) to delegate to the Board of Directors of the Company the power to approve an increase in share capital within two years from the celebration of the Board, for a maximum amount of 40 million BGN (20,451,675 euros), as well as the power to define the conditions of enlargement, and (ii) the exclusion of preferential subscription rights. Under the above, the Board of Directors held on November 5, 2015 has adopted the agreement for an increase in capital through the creation and circulation of up to 34,336,047 common shares with a nominal value of 1 BGN, determining a minimum issue price of BGN 3.52 (1.80 euros) and excluding preferential subscription rights. The agreement is adopted to allow entry to certain strategic investors in the shareholding of the Company in a deal which will run the portfolio of international projects that the company currently holds ... "
The Board of Directors will review in the coming weeks the impact of this agreement on its business prospects, new capital requirements and financial instruments used for obtaining such resources and will inform the market as make the decision to respect.


Contract signing ceremony at the headquarters of Energy China, Beijing.
About Energy China:
China Energy Engineering Corporation Limited (China Energy, hxxp://en.ceec.net.cn) is the state holding power of China, located in Chaoyang District (Beijing), with a prominent position in the Chinese market and internationally. The holding company was formed in September 2011, with the approval of the State Council of China and is under the direct supervision of the State-owned Assets Supervision and Administration Commission (SASAC). It is one of the largest providers of integrated solutions for the energy industry in China - from which more than 85% of their income - and the world. Its vertical integration allows it to offer customers full service life cycle management of projects, whatever their complexity.
The company, which has already completed projects in more than 80 countries, had revenues in 2015 of 205,692 million RMB (about 28,177 million). The company has 140,000 employees worldwide and is the leading engineering and construction of the energy sector in China.
Currently he holds the number 15 position of international ranking Top 250 Global Contractors.
As an example, citing recently in 2016 has been awarded the largest contract engineering project Waste To the world's largest, in the region of Shenzhen with treatment capacity of 5,100 tons of municipal waste per day and a value of Energy investment of approximately 616 million euros. He also made known construction project of the Three Gorges (which has the largest hydroelectric plant in the world in terms of installed capacity, 22.500MWe

[troutisout] 03/6/2016 21:44

This is an extract from my post 269 back in April,

"The planning being granted would be a huge bonus in it's own right, but it would also give their partner Ebioss another gaisification plant order and increase the critical mass for investment. Ebioss are lending REAC some money at the moment to push forward their Biomass portfolio, but previously were going to invest €6m in the Enfield Biomass project and they have made no secret that they would like to enter the UK market and also have a listing on the UK's AIM market (they are currently listed in Madrid). I could see a takeover from Ebioss who would be able to use all of the tax losses and gain an AIM listing to boot."

Having ignored this for a while, I decided to look up something after seeing the recent buys, so for anything REAC, people will know I go to Ebioss, they tell us far more than REAC ever do.

So on their site I see an RNS from 30th May 2016 and the google translation of that RNS is very exciting. As with anything translated by Google there is some weird comments, but the gist of it is quite encouraging. You have to remember that the projects Ebioss is involved within the UK are REAC's ones. Read the RNS (maybe translate it unless you are fluent in Spanish) and see what you think......

[troutisout] 02/6/2016 23:53

cyberbub,
I see someone has ticked your posts down, not me I am not 'blue', however I also disagree with it as you have a right to post and ask questions.

There aren't many posts on these REAC threads and so it wouldn't take a lot to see that the company has set out the way they would like to raise finance for each project. The projects are their own entities through SPVs and so any equity given is project equity and not REAC equity. They also set out in detail what the returns are for Newry and that they already have a substantial equity partner in FBD who paid off the bank debt after Newry floundered with the first gasifier technology.

What they aim to do is get paid for developments up to financial close and hold a free carry on each project after financial close.

There are a few finance co's involved with REAC, they were baled out last year by some, but the thing that has been really interesting has come from another avenue.

[troutisout] 02/6/2016 21:25

cyberbub,

Try reading it properly, "electrical energy" and "thermal energy" are both products of the proposed Clay Cross plant, up to 12MW of electricity and up to 14MW of heat for simplicity...

As for funding keep researching, some may have already been doing so, looking at the recent buys...

You are correct that the Newry Gasifier needs to be paid for by the end of this Month...

[cyberbub] 02/6/2016 09:17

Just DMOR... the Newry re-powering equipment needs paying for by the end of this month, but they haven't yet announced how it is to be paid for? Any insights? Hopefully not through equity at the current market cap...Thanks - on with the research...

[cyberbub] 02/6/2016 09:12

How are they going to fund the power station and will it involve equity? Thanks for any info.

[cyberbub] 02/6/2016 09:09

Surely a power generation company which issues RNSes which include this statement:"Once commissioned, the Facility is expected to convert approximately 80,000 tonnes per annum of construction and demolition (C&D) waste wood which is currently sent to landfill to generate up to 12MW of electrical energy, sufficient to provide electricity for over 18,000 homes, and up to 14MW of thermal energy per annum."...must be seen as dubious?12MW of *energy*?14MW of *energy per annum*?Sloppy IMO.

[cliveas] 19/5/2016 22:19

I see a 50k buy ticked up the ask.


Let's hope for more and some news as well .

[cliveas] 19/5/2016 22:19

I see a 50k buy ticked up the ask.


Let's hope for more and some news as well .

[rodrod1] 16/5/2016 10:33

well done cliveas - looks like a really good price to me. Not worth watching this one by the hour as little turnover but that means it will spike as and when. happy holding

[cliveas] 16/5/2016 08:42

Bought in this am with moderate first tranche at 4.12.

[cliveas] 09/5/2016 16:51

Buys are at 4.1 and share price looking stable.

May be time to dip my toe in.

[troutisout] 27/4/2016 12:47

rodrod1,

It can go lower still, the MMs are a law unto themselves when it comes to illiquid stocks like this. We could do with a few more MMs covering this, but it needs volumes to get them to cover it. Before the last rise there was a huge spread at really low prices.
Only two weeks on from Clay Cross news, that has added value to the Company but this won't be reflected in the share price at the moment. Patience needed.

Trout.

[rodrod1] 27/4/2016 11:04

I knew it had to fall after the news but below 5p is bizarre

[troutisout] 27/4/2016 10:59

cliveas,

It would be very, very cheap at Mcap £1.2m....!

There are 75m shares in issue.

Trout.

[cliveas] 26/4/2016 09:02

Starting to look cheap with Mcap 1.2m.

MM move this on ridiculous volume so the same can work vice versa!

Watching for entry.

[rodrod1] 21/4/2016 11:58

I agree - its great potential as a proper investment as opposed to trading and gambling it

[cliveas] 21/4/2016 09:47

Trout

I am beginning to like the look of this company in light of the planning permission and the support they receive re other projects.

Price is still slipping but on very little volume.

Watching for an entry point but obviously before any news.

GL.

[bozzy_s] 12/4/2016 12:44

Spotted this again today. You're absolutely right troutisout, both regarding the publicly available information before last week's rise, and the theory about ultra short-termist idiots (who probably call themselves traders - though I've never seen a market stall holder buy stock at £1.30 and sell it for £1 the same day)!!