Aura Renewable Acquisiti... Share Discussion Threads

[chinahere] 04/1/2023 16:07

Thanks.

I think it prudent to assume the cash is spent then, or at least it will be later this year.

Then we are really hoping that they can make a purchase and also that is liked by the market. There are no guarantees there, especially in the current market where it is very difficult to raise cash. I sadly can see this drifting along until the money is gone - but I may be completely wrong.

[hedgehog 100] 04/1/2023 11:38

Thanks for your input, Chinahere.

The important thing is that ARA should have enough cash to arrange an RTO this year, subject of course to identifying a suitable target, and agreeing terms, etc.
If it does, then from the current level (5.5p mid) you would expect a decent share price uplift.
If it fails this year, thereby prolonging its life as a shell, then in 2024+ it may seek to top up its coffers, but I wouldn't regard that as an immediate concern.

From the Aura Renewable Acquisitions plc prospectus, dated 5 April 2022, page 37:-

"The Directors believe that the Company’s cash at bank at Admission will enable the Company to undertake preliminary due diligence on a number of potential targets and to execute its first Acquisition. It is likely that some due diligence fees will be payable on completion of the relevant Acquisition, and the Board would expect the target in each case to carry part of this risk, but there may be certain due diligence fees which have to be incurred upfront, and whilst the Company will seek to agree abort arrangements with providers of legal, financial and technical due diligence services, these may be significant. The Board considers that the Net Proceeds should be sufficient to undertake preliminary due diligence on a number of potential transactions and to carry out substantive due diligence on at least two preferred targets. If significant costs have been incurred without an Acquisition being completed in the longer term, the Board may need to seek additional finance to carry out further due diligence or complete a transaction, but this is considered unlikely. Follow on acquisitions would be financed either from cash flow generated at the time, the issue of new Ordinary Shares or debt financing, or a combination of two or more of those.

The Directors may, at the time an Acquisition is completed, seek to raise further funds by way of equity and/or debt in order to support the then enlarged group’s increased working capital requirements."

[chinahere] 03/1/2023 17:07

This looks interesting but Page 45 on the Admission Document makes me worry that there won't be much left soon:

"The Net Proceeds of the Subscription and Placing of £828,000 are expected to be utilised as follows:

General and administrative costs: approximately £350,000

Cash held for use in making an Acquisition: approximately £478,000"

[hedgehog 100] 11/12/2022 13:09

AR,

ARA is a cash shell, so as is to be expected doesn't currently have any non-cash assets.

That's been a positive this year, considering the way that the value of many renewable energy businesses has been rerated downwards, whereas 'cash is king'.

And of course this means that ARA will get more for its money when it invests.

If you read this thread in full, then that should give you a good idea of ARA's strategy, and the opportunity here.

As far as I'm aware, ARA is the cheapest and best value shell relative to its cash that's currently trading on the London Stock Exchange.

[acceptablereply] 11/12/2022 12:30

Is there any documentation that we can refer to for insight on ARA's current acquisitions/investments? I'm keen to know more about the current technologies supported by the company, e.g. Unique recycling technology from Ocean Polymers etc

[hedgehog 100] 11/12/2022 12:03

From TradingView.com:-

"AURA RENEWABLE ACQUISITIONS PLC ORD GBP0.01"

"ARA technical analysis"

"Oscillators Summary Moving Averages"

"Buy Buy Buy"

[hedgehog 100] 09/12/2022 18:22

Date Time Trade Prc Volume Buy/Sell Bid Ask Value
09-Dec-22 16:15:33 5.90 60,700 Buy* 5.50 6.00 3,581 O
09-Dec-22 12:58:59 5.50 20,000 Unknown* 5.00 6.00 1,100 O
09-Dec-22 10:08:35 5.50 50,000 Buy* 5.00 5.50 2,750 O

Nice to see ARA rising 9.52% today, closing up 0.5p to 5.75p.
It was overdue, and the share price looks well placed for further recovery.

Thought there were just three ARA trades today (all buys - the second trade caused the share price rise), this was enough to trigger two price monitoring extensions, which shows how little stock must be available:-

09/12/2022 16:35 UK Regulatory (RNS & others) Aura Renewable Acquisitions PLC Price Monitoring Extension LSE:ARA Aura Renewable


09/12/2022 16:40 UK Regulatory (RNS & others) Aura Renewable Acquisitions PLC Second Price Monitoring Extn LSE:ARA Aura Renewable Acquisitions Plc

[hedgehog 100] 16/11/2022 20:36

The cash shell ROC (a similar shell to ARA) yesterday announced a proposed RTO at 7.86p: a 67.23% premium to its 4.7p suspension price:-

15/11/2022 15:56 UKREG Rockpool Acquisitions PLC Potential Reverse Takeover & Suspension of Listing
"Rockpool Acquisitions Plc, the Special Purpose Acquisition Company ("SPAC") formed to undertake the acquisition of a company or business headquartered or materially based in Northern Ireland or alternative transactions with suitable targets, including those that may not have a direct connection with Northern Ireland , has entered into heads of terms ("Heads") relating to the proposed acquisition (the "Acquisition") of the entire issued and to be issued share capital of Amcomri Group Limited ("Amcomri"), the holding company of a fast-growing, acquisitive group of quality UK Engineering and Manufacturing businesses. ..."

[hedgehog 100] 13/11/2022 14:56

13.4.22:-
"Withana describes Aura as a blank slate, one that makes one or several targets to become a substantial company. He says we’re talking “about 300, half a billion or higher in terms of size and market cap” and “our ambitions are to have a well traded, well covered and liquid stock.”"


At a market cap. of just £577.5K. at 5.5p, ARA's targeted market cap. could actually be a thousand times higher than its current level.

Even allowing for dilution, the scope for mega-multibagging here looks strong, whereas the current downside looks slight, trading at well below cash and with low cash-burn.

[hedgehog 100] 12/11/2022 21:04

"COP27: Joe Biden issues climate rallying cry to world leaders

1 day ago

By Georgina Rannard
Climate and science reporter, BBC News

It is the duty and responsibility of every nation to act on climate, US President Joe Biden has said at the UN summit COP27.

Mr Biden spoke in Egypt after US mid-term elections delivered better-than-expected results for the president.

He claimed the US is a global leader on climate after it passed sweeping laws to tackle global warming.

About 35,000 people are in Sharm el-Sheikh for the two-week meeting.

"The climate crisis is about human security, economic security, environmental security, national security and the very life of the planet," said Mr Biden.

He echoed UK Prime Minister Rishi Sunak's comments on Monday that Russia's war in Ukraine is a reason to act faster on climate.

Noting that the past eight years have been the warmest on record, he described the impacts of climate change on Africa nations, including a four-year drought in the Horn of Africa.

Mr Biden promised to tighten US rules on methane emissions from oil and gas companies. Methane is the most potent greenhouse gas and significantly contributes to the warming of Earth's atmosphere.

"Today, thanks to the actions we have taken, I can stand here as president of the United States of America and say with confidence the US will meet our emissions targets by 2030," he said.

He also pledged more money for poorer nations suffering from climate disasters, including drought and flooding. But the sums remain far short of what the US, along with other developed nations, have promised.

"Joe Biden comes to COP27 and makes new promises but his old promises have not even been fulfilled. I'd rather have one apple in my hand than the promise of five that never come," said Mohamed Adow, Power Shift Africa director.

"The inconvenient truth is that the United States is grossly underperforming on its international climate finance commitments," said president of World Resources Institute Ani Dasgupta.

in August the US passed legislation to tackle climate change that experts have called "radical" and "historic". The Inflation Reduction Act could reduce US greenhouse gas emissions by 40% by 2030.

Mr Biden's Democrat party feared that it would lose crucial seats in the mid-term elections on Tuesday, which could have weakened their climate agenda. But it performed better than expected.

"While control of Congress is still being determined, one thing is certain: the massive climate-friendly investments in the Inflation Reduction Act are here to stay," says Dan Lashof, director of World Resources Institute United States.

Mr Biden also held talks with Egyptian President Abdul Fattah al-Sisi amid heightened concern over the fate of jailed British-Egyptian pro-democracy activist Alaa Abdel Fattah.

There's been no independent confirmation about Mr Abdel Fattah's condition since he is said to have received "medical intervention" on Thursday, days after he began refusing water as part of a long hunger strike.

It is the sixth day of the COP summit, which is focussed on implementing ambitious promises made at COP26 in Glasgow last year.

Vulnerable nations have called on richer countries to pay for the irreversible damage climate change wrecks on their homes.

"We will not give up... the alternative consigns us to a watery grave," Bahamas Prime Minister Philip Davis said on Tuesday, urging nations to "get real".

They say developed nations owe this money because they became rich off decades of using fossil fuels.

By contrast many less developed countries, particularly the small island nations most at risk, have contributed virtually nothing to total emissions.

Richer nations have historically avoided the question of compensation or reparations, but the issue - referred to as "loss and damage" - was put on the COP agenda this year for the first time since the summits began 30 years ago.

In a reminder of the danger the world faces, UN Secretary General Antonio Guterres told the summit "we are on a highway to climate hell with our foot on the accelerator".

On Friday a report warned that emissions of carbon dioxide (CO2) are rising so quickly that there is a 50% chance the world will soon cross the crucial temperature threshold of 1.5C."

[hedgehog 100] 09/11/2022 21:02

Looks like a 'distressed seller' has dumped their stock at/near an all-time low.

There's been quite a lot of this 'stupid selling' this year, and the likelihood is that the seller will be even more 'distressed' soon, when ARA rebounds.

At a market cap. of just £577.5K. at 5.5p, which unlike virtually all traded shells is a discount to cash, this looks to be quite extraordinary value.

[hedgehog 100] 09/11/2022 20:08

"Oral statement to Parliament
PM statement to the House of Commons on COP27: 9 November 2022
Prime Minister Rishi Sunak made a statement to the House of Commons on his attendance to COP27 in Sharm El Sheikh.

From:
Prime Minister's Office, 10 Downing Street and The Rt Hon Rishi Sunak MP
Published
9 November 2022

With permission, Mr Speaker, I will make a statement on COP27 which I attended in Sharm El Sheikh on Monday.

When the UK took on the UK Presidency of COP just one third of the global economy was committed to net zero.

Today that figure is 90 percent.

And the reduction in global emissions pledged during our Presidency is now equivalent to the entire annual emissions of America.

There is still a long way to go to limit global temperature rises to 1.5 degrees.

But the historic Glasgow Climate Pact kept that goal within reach.

And the whole House, I know, will want to join me in paying tribute to My Rt Hon Friend the Member for Reading West for his inspirational leadership as COP President.

The question at this Summit, Mr Speaker, was whether countries would deliver on their promises.

I’m pleased to say that our nation will.

We have already cut our carbon emissions faster than anyone else in the G7.

And we will fulfil our ambitious commitment to reduce emissions by at least 68 per cent by the end of the decade.

Now, I know that some have feared Putin’s abhorrent war in Ukraine could distract from global efforts from tackling climate change.

But I believe it should catalyse them.

Climate security and energy security go hand in hand.

Putin’s contemptible manipulation of energy prices has only reinforced the importance of ending our dependence on fossil fuels.

So we will make this country a clean energy superpower.

We will accelerate our transition to renewables which have already grown four-fold as a proportion of our electricity supply over the last decade.

We will invest in building new nuclear power stations for the first time since the 1990s.

And by committing £30 billion to support our green industrial revolution we will leverage up to £100 billion of private investment to support almost half a million high wage, high skilled green jobs.

Mr Speaker, there is also no solution to climate change without protecting and restoring nature.

So at COP27, the UK committed £90 million to the Congo Basin as part of £1.5 billion we are investing in protecting the world’s forests.

And I co-hosted the first meeting of our Forests and Climate Leaders’ partnership which will deliver on the historic commitment to halt and reverse forest loss and land degradation by 2030.

Now, central to all our efforts, is keeping our promises on climate finance.

So the UK is delivering on our commitment of £11.6 billion.

And to support the most vulnerable who are experiencing the worst impacts of climate change we will triple our funding on adaptation to reach £1.5 billion a year in 2025.

In Glasgow, the UK pioneered a new global approach using aid funding to unlock billions of pounds of private finance for new green infrastructure.

So I was delighted to join President Ramaphosa to mark the publication of his investment plan which delivers on this new model.

South Africa will benefit from cheaper, cleaner power cutting emissions while simultaneously creating new green jobs for his people.

And we will look to support other international partners in taking a similar approach.

We also made further commitments to support clean power in developing countries.

This included investing a further £65 million in commercialising innovative clean technologies and working with the private sector to deliver a raft of green investment projects in Kenya. ..."

[hedgehog 100] 09/10/2022 15:07

In their recent interim results statement just over a week ago, and similarly to ARA, CINH also noted that the current energy crisis was boosting renewable energy growth:-

30/09/2022 10:10 UK Regulatory (RNS & others) Cindrigo Holdings Limited Interim Results and Loan Note Issue LSE:CINH Cindrigo Holdings Limited

"... The ongoing energy crisis is creating rising demand for secure, stable sources of power, particularly from environmentally sustainable sources as the world races to deliver on net zero targets ..."

[hedgehog 100] 09/10/2022 13:50

From the Aura Renewable Acquisitions plc prospectus, dated 5 April 2022:-

"(iii) The Company has conditionally raised gross proceeds of £1,000,000 ... Under the terms of the Placing, Placees are entitled to receive one Freely Transferable Warrant for each New Ordinary Share subscribed for at no additional cost.
..."

"*Number of Ordinary Shares subject to Warrants 12,780,000"





The large majority of these warrants are exercisable at a share price of 15p/share.
And the others require the market price to have exceeded 15p for some time, and for the first acquisition to have been completed.


In relation to its IPO placing price of 10p, the ARA 'warrants premium' is similar to the situation at TMOR: where the IPO placing price was 1p, and the vast majority of the warrants are 'investor warrants', exercisable at a price of 1.5p/warrant.


So TMOR's proposed RTO at a share price of 2.25p clearly brings its warrants into play.
And this will doubtless be the aim of ARA: i.e. a RTO at a good premium to 15p, to bring its own warrants into play.

[hedgehog 100] 27/9/2022 17:09

The cash shell TMOR (a similar shell to ARA) announced great RTO news on Friday, and if it hadn't been suspended pre-opening, it would probably have been top riser for the weekend: a proposed RTO at a share price of 2.25p, well over double the current share price of 0.95p:-


23/09/2022 07:45 UK Regulatory (RNS & others) More Acquisitions PLC Acquisition - Megasteel and Suspension of Trading LSE:TMOR More Acquisitions Plc

"Proposed Acquisition of Megasteel Limited and Suspension of Trading ...

-- Proposed Acquisition values the current issued share capital of More at GBP2.81 million (vs GBP1.19 million at closing on 22 September 2022) or over 2.3 times the Company's current net cash

Background

Megasteel (www.megasteel.co.uk ), has traded for more than 30 years in the United Kingdom, and is one of the largest stockholders and distributors of high-quality steel for the prestressing and post-tensioning of concretes in the UK. Prestressed concrete is a critical building product used in the UK construction market, from house floors to bridge beams and from railway sleepers to high rise buildings in the City of London. In its financial year ended 31 October 2021, Megasteel made audited pre-tax profits of GBP3m on turnover of GBP19.7m. ...

Nigel Roberts, CEO of Megasteel Ltd added:

"We have built Megasteel over the last 30 years to be one of the biggest suppliers in the UK of prestressing wire and strand, a product used in almost every construction project in the country, and we have been considering a listing of the business for many years. We are pleased to be working with More Acquisitions as the vehicle that will enable us to do this.

Over many years we have been able to grow our sales, generate revenues, make profits and turn those profits into cash which we have reinvested into the business to keep the cycle going. Applied over a long period of time these business methods have produced a profitable business that I am proud to have started. ...

We were attracted to More Acquisitions as our vehicle to list because we liked the simplicity and cost-effective way in which it had been set up with its 'one price for all', no advisory or broking fees, capped listing and on-going costs and no director salaries, the Company and its key stakeholders fitted very well with our views on how a business should be run!"




TMOR floated on 4th. March 2022, just a month before ARA.

[hedgehog 100] 22/9/2022 18:18

"Bosses of Bam, CBRE, Arup and British Land among signatories of letter urging prime minister to deliver on climate promises

Sarah George
Published 21st September 2022

Amazon, Coca-Cola Europacific Partners and Sky are among the 116 businesses and financial institutions urging new Prime Minister Liz Truss to couple plans for dealing with the cost-of-living crisis with plans for climate action. ...

Now, a total of 116 major businesses and financial institutions have written an open letter to Truss, urging her not to sideline the UK’s net-zero transition in favour of short-term economic growth. The letter argues the case for delivering an economic recovery for the UK grounded in low-carbon technologies and nature conservation and restoration.

The letter has been coordinated by the Corporate Leaders Group UK (CLG UK) at the University of Cambridge. Signatories collectively represent £1.8trn of market capitalisation and more than 425,000 members of staff. ...

Summarising the rationale for sending the letter, CLG UK’s director Eliot Whittington said: “The UK is facing severe economic headwinds. The best and only sensible way of facing up to them has to include investing in British renewable energy and helping homes and businesses be more energy efficient. Maintaining and strengthening our focus on net zero and nature protection can help us move beyond the rising costs of fossil fuels and deliver a better economy with more energy and food security, more jobs and greater social equality.”

A report from the CLG this summer concluded that addressing the UK’s rising energy prices in a “climate-friendly” way would not only cut bills for households and businesses now, but reduce the likelihood of future price spikes and be beneficial to the economy in the short and long term. Approaches locking in carbon would deliver lower benefits in the medium and long-term, that report found.

Whittington added: “What’s more, the Conservative Party has rightly enshrined net zero into law and in so doing reaffirmed UK leadership on climate action, further demonstrated at last year’s COP26 summit. UK business and finance leaders urgently want to see more leadership from the government on this agenda, with clear, well-resourced and defined plans to get us on track for a more stable climate and a stronger economy.”"

[hedgehog 100] 22/9/2022 16:34

"'Demand has never been higher': How the energy crisis is proving an 'accelerant' for renewable energy

James Murray
02 August 2022 • 7 min read

Latest data from BloombergNEF reveals 11 per cent increase in global renewable energy financing, as investment reaches record levels - is a tipping point being reached?

The global economic outlook may be worryingly bleak, but there is still little evidence that inflation and dwindling investor confidence are impacting the booming renewables market as investment continued..."

[hedgehog 100] 22/9/2022 14:27

In their recent interim results statement, a couple of weeks ago, ARA noted that the current energy crisis was boosting renewable energy growth:-

07/09/2022 07:00 UK Regulatory (RNS & others) Aura Renewable Acquisitions PLC Half-year Results LSE:ARA Aura Renewable Acquisitions Plc

"Interim Results for the period ended 30 June 2022

7 September 2022 - Aura Renewable Acquisitions plc, a UK-based company, whose objective is to invest in the global renewable energy sector supply chain and thereby build shareholder value, announces its maiden interim results for the period from the date of incorporation on 4 November 2021 to 30 June 2022. ...

John Croft, the Chairman of Aura commented:

"During this initial financial period the Company joined the Standard Segment of the Main Market of the London Stock Exchange on 8th April 2022 and raised gross proceeds of GBP1,000,000 from a placing and subscription.

"Since listing, Aura has begun to explore a range of potential targets in the UK and overseas which could offer the opportunity for significant growth in this exciting and fast-moving market sector. We have also been in discussions with the Board's extensive professional and business networks to raise the Company's profile and highlight its intentions and objective to this large potential introducer base.

"The current worldwide economic and political uncertainty caused by supply chain issues, inflation, interest rate rises, hostilities in Europe and further afield, the lingering impact of Covid and climate change, have had a dampening impact on capital market activity and fund raisings during 2022.

"Despite these uncertainties, the growth in renewable capacity continues, with solar capacity leading the way. Installed renewable energy capacity around the world increased by 6% in 2021, despite post-Covid delays and rising raw material costs of 15%-25%. The International Energy Agency (IEA) expects 2022 to create further growth of 8% in installed capacity, not least as countries that have relied upon oil and gas from Russia are now accelerating the expansion in renewable energy capacity in response to the war in Ukraine.

"As a result of these market forces, we are more confident than ever that the renewable energy sector will offer excellent opportunities for acquisitive and organic growth for the foreseeable future, and we are committed to ensuring that the Company and its stakeholders have the chance to share in these opportunities." ..."




This further highlights ARA's attractions.

[hedgehog 100] 26/7/2022 17:24

The cash shell TMTA released its final results today, and here are a couple of key points from the Chairman's statement:-

26/07/2022 07:00 UK Regulatory (RNS & others) TMT Acquisition PLC Final Results LSE:TMTA Tmt Acquisition Plc

"Results for the period 25 March 2021 to 31 March 2022

... The recent resets of pricing in technology stocks in our view works to the company's advantage. ...

... we look forward to updating the market on our progress. ..."




That first point supports the view that I set out at the start of post 1 above:-

Hedgehog 100 7 Jun '22 - 17:26 - 1 of 14 Edit 0 0 0
"Poor stock market conditions tend to make it harder to IPO, increasing the attractions of the RTO route, and increasing the bargaining power of shells like ARA.
And meanwhile, the valuations of RTO targets for shells tend to be depressed.
So ironically, the s.p.s of shells like ARA can become depressed at the same time as they are in effect becoming more valuable: more capable of cutting a cracking RTO deal on great terms - i.e. a better shell valuation and lower target valuation, and great quality targets. ..."


As regards deal progress, TMTA is keeping its cards close to its chest, as is to be expected re such negotiations.

But 'reading between the lines', positive progress seems to have been made, and the company may well issue some good news in the near future.

This bodes well for ARA also having made positive deal progress.

[hedgehog 100] 19/7/2022 15:50

Thanks for flagging up that useful article Burton, which contains a specific section on ARA:-

"DATE 14.07.22

SPAC’s : Down but not out"

"Aura Renewables

Aura Renewables (LON:ARA) takes its name from the Greek goddess of the wind, but the company is also open to prospects in the ‘solar, biomass, hydropower, carbon capture, waste management, smart grids and green hydrogen supply chain, and their sub-sectors, ranging from raw materials resourcing to power generation, energy storage and recycling’.

Speaking to TMS founder shareholder Suresh Withana said the company was engaged in a global search and may take on multiple assets, with interests in ‘several different types of companies or … minority interests in several companies so that we are actually acting as a platform of ownership interests in a variety of technologies or businesses in the renewable energy space.’ ARA is probably looking ‘for companies that are relatively mature in the sense that they are already pre-existing businesses that are typically in private hands that are now looking for a way in which to access capital markets.’ Withana describes ARA as a blank slate, with longer term ambitions to develop a company to a market cap of ‘about £300m, half a billion or higher’, an established ‘well traded, well covered and liquid stock.’"

[burtond1] 14/7/2022 07:12

SPAC's : Down but not out say @TMSreach"...But investors prepared to exercise due diligence, and looking to get in early before the market tide turns once again towards more speculative ventures, might want to have a look at the some of the UK's smaller SPACs. It is important to note that such companies can apply for exemptions from the FCA rules requiring that SPACs list with a minimum market capitalisation of £30m..."https://total-market-solutions.com/2022/07/spacs-down-but-not-out/