Aura Renewable Acquisiti... Share Discussion Threads

[hedgehog 100] 12/7/2023 18:49

LSE % Gainers
Top Lists
EPIC Name %
IIG Intuitive Investm... +68%
SPMU Spiritus Mundi +43%


Today's top two risers are an investment company (IIG) & a shell (SPMU).

And compare SPMU to ARA:-

"Spiritus Mundi: Clinical Diagnostics Shell"


SPMU: 5p, market cap. £2.47M.; cash 31.3.23 £739,812.

ARA: 5.75p, market cap. £603,750.; cash 31.12.22 £809K.


Spiritus Mundi (SPMU):-

[hedgehog 100] 09/7/2023 13:47

Battery stock IES has performed well since being tipped at 35p a fortnight ago, closing at 50.5p this weekend, up from 32.5p at the start of April.

"MIDAS SHARE TIPS: Batteries that store wind power can boost your funds - Invinity Energy Systems help the UK on its path to a fossil fuel-free future
By JOANNE HART, FINANCIAL MAIL ON SUNDAY
PUBLISHED: 21:52, 24 June 2023 | UPDATED: 17:48, 26 June 2023
... Invinity shares are 35p and should increase materially as the group rolls out its batteries not just here but across the world. ..."

[hedgehog 100] 07/7/2023 16:05

Date Time Trade Prc Volume Buy/Sell Bid Ask Value
07-Jul-23 10:29:32 5.84 39,100 Buy* 5.50 6.00 2,283 O


Another bargain ARA buy today.

That's 214,100 ARA shares bought in just the last 7 trading days: which is over 2% of the company.

[hedgehog 100] 06/7/2023 16:50

Date Time Trade Prc Volume Buy/Sell Bid Ask Value
06-Jul-23 10:35:07 5.88 50,000 Buy* 5.50 6.00 2,940 O
06-Jul-23 09:24:05 5.666 50,000 Sell* 5.50 6.50 2,833 O


Once again, ARA shares sold today very quickly attracted a buyer.

And in general, buying tends to be more indicative than selling.

Because sellers sell for many reasons, whereas buyers only tend to buy because they think it's a good investment.

And sellers may well have a limited choice of shares to sell, whereas buyers have a choice of thousands.

[hedgehog 100] 30/6/2023 17:00

Recent Share Trades for Aura Renew Acq (ARA)
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
30-Jun-23 15:07:43 5.90 50,000 Buy* 5.50 6.00 2,950 O
30-Jun-23 13:40:14 5.6501 50,000 Sell* 5.50 6.50 2,825 O
30-Jun-23 13:39:53 5.71 50,000 Sell* 5.50 6.50 2,855 O


And today's brief intraday ARA share price dip was again very well-bought: lasting for under an hour and a half before a buyer again pounced on the bargain, triggering a full rebound.

It's a typical pattern with shells that some people get tired of waiting for a deal, and throw in the towel close to the bottom, shortly before a RTO is unveiled.

Experienced investors can work this pattern to their advantage though, to pick up bargains shortly before news.

[hedgehog 100] 29/6/2023 16:28

Recent Share Trades for Aura Renew Acq (ARA)
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
29-Jun-23 13:51:39 6.17 50,000 Buy* 5.50 6.50 3,085 O
29-Jun-23 13:40:56 5.90 25,000 Buy* 5.50 6.00 1,475 O
29-Jun-23 13:09:42 5.6125 50,000 Sell* 5.50 6.50 2,806 O
29-Jun-23 13:08:12 5.61 59,570 Sell* 5.50 6.50 3,342 O


Today's brief intraday ARA share price dip was very well-bought: lasting for just half an hour before a buyer pounced on the bargain, triggering a full rebound.

And time must surely now be running out to buy in ahead of RTO news here.

[hedgehog 100] 25/6/2023 12:05

Interesting to see that the battery stock IES has just received this high profile press tip, which I think endorses ARA's focus on this area:-

"MIDAS SHARE TIPS: Batteries that store wind power can boost your funds - Invinity Energy Systems help the UK on its path to a fossil fuel-free future

By JOANNE HART, FINANCIAL MAIL ON SUNDAY

PUBLISHED: 21:52, 24 June 2023 | UPDATED: 12:19, 25 June 2023

Wind power now accounts for almost a third of all the UK's electricity, overtaking every other source, including gas. Turbines have been built, capacity has increased and costs have come down. But wind is unpredictable.

On calm days, there is not enough of it. On gusty days, too much. This creates problems. When wind turbines generate more electricity than the grid can absorb or distribute, they are simply asked to stop producing.

Over the past two years alone, the process has cost around £1.5billion and huge amounts of energy has been lost, enough to power over a million households, according to think tank Carbon Tracker.

This problem is growing worse each year, making renewable energy more expensive than it should be and slowing the UK's path towards a fossil fuel free future.

Invinity Energy Systems can help to fix the issue. The company makes vanadium flow batteries, which are safe, last for years and are capable of storing electricity for hours at a time.

Invinity shares are 35p and should increase materially as the group rolls out its batteries not just here but across the world. ..."

[hedgehog 100] 11/6/2023 13:20

"Electric vehicle battery health concerns stifling used EV market

07/06/2023 in Electric fleet news

Concerns over the long-term health of electric vehicle (EV) batteries, affordability and the capacity of charging infrastructure, are the biggest barriers to adoption in the used market.

That’s according to a new report - Used EV Market: The Key to Unlocking Net Zero – which has been published by the Green Finance Institute (GFI) today (Wednesday, June 7). ...

Of drivers who said they wouldn’t buy a used EV, 62% cited concerns around battery lifespan – making the fear of poor battery health the single largest barrier preventing the second-hand market from taking off, a concern echoed by industry experts.

Nearly three-quarters of the 21 dealerships involved in the report recognised battery lifespan as one of the top consumer concerns in the context of used EVs. ...




It sounds like there's a quite compelling gap in the market for improved battery life technology.

So the impressive privately-held British battery tech company Nexeon could be the prefect RTO into ARA:-


"Power to make a difference.

Delivering a step change in energy density by creating class-leading battery materials to realise a more sustainable world.

Batteries are critical for meeting future energy demand, but what if we could use fewer of them?

More energy.
Less space.

Nexeon’s silicon anode material replaces graphite in traditional battery cells, dramatically increasing energy density."




"Applications

Today's challenges require new solutions.

Electric Vehicles

Lithium-ion is the dominant battery technology for the electric vehicle market. Nexeon can help to produce lighter, cheaper and more powerful battery packs.

Wearable Devices ...

Medical Devices ...

Consumer Electronics ..."




"Our Technology

The next generation of battery materials, ready for use today.

Our technology has unlocked the potential of silicon-based anodes, delivering a step change in energy-dense materials. Backed by over 170 patents and an extensive portfolio of industry-leading cell manufacturing and automotive partners, we are paving the way to a sustainable, electrified future.

Harnessing the power of silicon

Silicon has ten times higher specific capacity than graphite and is capable of holding more lithium in a given mass.

This means it has enormous scope to make cells with a higher energy density. Silicon is currently being adopted as a partial replacement for carbon in battery anodes, but problems arise from expansion and contraction when the cells are charged and discharged.

Nexeon's NSP1â„¢ and NSP2â„¢ flagship materials have overcome this hurdle, making silicon anodes a viable transformative technological solution at scale.

Introducing the era of Generation 2 battery materials."

[hedgehog 100] 10/6/2023 21:28

Thanks Solarno.

So it's the end of an era.

The last of the main market micro cap. shell listings.

Or perhaps we should say 'the beginning of the end', as the currently listed shells will be around for a while yet ... though gradually decreasing in quantity, and increasing in scarcity ... and you would think increasing in scarcity value.

[solarno lopez] 10/6/2023 15:34

Well done hedgehog

[hedgehog 100] 10/6/2023 15:31

Thanks for that info. Solarno.

ASHI actually floated 4 days ago, Tuesday, 6th. June, which was just two trading days after the 2nd. June deadline.

It could be that the FCA allowed a very small amount of leeway past the deadline.
Or that the deadline relates to the date of the final prospectus - which was 1st. June in ASHI's case.

Note that ASHI's market cap. at its current share price of 3.5p is £2.15M., i.e. well over three times the market cap. of ARA at 6p, though ASHI's cash is actually less that ARA's!

From ASHI's prospectus dated 1st. June 2023:-

" ... The Net Cash, in the amount of approximately £707,130, being the Net
Proceeds, together with the Founder’s Initial Funding and the Pre-IPO
Financing, net of the costs of the Founder’s Initial Subscription, the Pre-IPO
Financing and the establishment of the Company, will be used to: ..."







06/06/2023 08:01 UK Regulatory (RNS & others) Ashington Innovation PLC Ashington - Admission to trading on the LSE LSE:ASHI Ashington Innovation Plc

"Ashington Innovation plc, a special purpose acquisition company ("SPAC") aiming to benefit from favourable price conditions for companies in the financial services technology (fintech) and deep technology (deep tech) sectors, is pleased to announce that its entire issued ordinary share capital, consisting of 61,397,900 ordinary shares, was admitted to the Standard Listing Segment of the Official List of the Financial Conduct Authority, and to trading on the London Stock Exchange's Main Market for listed securities at 8.00 a.m. today, under the ticker "ASHI". ..."

[solarno lopez] 10/6/2023 15:05

Jason Drummond launched Ashington Innovations
as a standard list yesterday !

[hedgehog 100] 10/6/2023 14:20

12/04/2023 12:09 UK Regulatory (RNS & others) Seed Capital Solutions PLC Admission of Shares to Standard List LSE:SCSP Seed Capital Solutions Plc
" ... Chairman Damion Greef commented: "As one of the last businesses to list on the standard market under the old LSE rules, our team are excited to finally bring Seed Capital to market to invest into businesses operating in market sectors that can display strong ESG credentials." ..."



'New' main-listed shells could still float with a sub £30M. market cap. (previous minimum only £0.7M.), up until 2.6.23*, if they completed their FCA submission by 2.12.21. - Albeit these shells will be subject to the £30M. RTO minimum.
*Presumably actual listing, rather than just another submission.

As that deadline has now passed, it could potentially free up more FCA work time to deal with other prospectus approvals, e.g. for RTOs.

In that respect, it's interesting to note that LINE Hydrogen's intended RTO into NZI is intending to complete by September 2023, which is comparatively fast compared to most more recent RTOs:-

"LINE Hydrogen Announces UK Listing

June 1, 2023 | Line Hydrogen | Brisbane, Australia

The Australian green hydrogen company is merging with UK organisation, Net Zero Infrastructure PLC, and is set to be listed on the LSE by September.

LINE Hydrogen, a leading Australian-based hydrogen production company is pleased to announce that it has executed a Heads of Terms with Net Zero Infrastructure PLC (NZI) a Special Purpose Acquisition Company (SPAC) listed on the Main Market of the London Stock Exchange (LSE) for a reverse takeover between the two companies. The proposed transaction is expected to be completed by September 2023, subject to pre-conditions and regulatory approvals. ..."




It can be done though, e.g. HEIQ's RTO into AUCT: announced & suspended on 25.9.20, & completed on 4.12.20, with relisting three days later.

[hedgehog 100] 09/6/2023 14:18

Yet more good news for the UK battery sector:-

"Rishi Sunak and Joe Biden announce green funding agreement

11 hours ago

By Sam Francis
Political reporter, BBC News

UK firms could gain access to US green funding as part of plans to boost UK and US ties announced by Rishi Sunak and Joe Biden.

The pair unveiled the Atlantic Declaration, to strengthen economic ties between the two countries, at a White House press conference.

The PM said the agreement, which falls short of a full trade deal would bring benefits "as quickly as possible".

UK electric car firms may get access to US green tax credits and subsidies.

As the pair unveiled their partnership to bolster economic security, Mr Sunak said the UK-US relationship was an "indispensable alliance".

The Atlantic Declaration, includes commitments on easing trade barriers, closer defence industry ties and a data protection deal and steps up co-operation on AI. ...

New green funding

The Atlantic Declaration includes plans to mitigate some of the impact of the US flagship Inflation Reduction Act (IRA) on the UK economy, with proposals to remove barriers which affected trade in electric vehicle batteries. ... "




And with battery technology companies being ARA's particular area of RTO interest, the timing looks ideal to boost investor commitment to such an imminent ARA RTO deal.

[the modeller] 08/6/2023 02:01

Hedgehog 100,

IMV you are on the right side of the argument here.

By way of background: I am a shareholder of PNPL; and someone who regrets not buying NZI. Notwithstanding that, the delta between 1 and 6 can only ever be ‘hope value’.

Best,
-TM

[hedgehog 100] 07/6/2023 18:37

It is standard practice in a RTO to give a value of a minimum of £200K.+ for the stock market listing.

That being the case, then ARA's minimum fair value with its cash looks to be about 10p/share, i.e. the price it listed at.

So at just 6p/share this is looking well undervalued: indeed the most undervalued traded UK shell that I am aware of, but paradoxically with some of the most impressive management.

And there looks to be little chart resistance between the 6p and c. 7.5p levels.

So with ARA nicely poised at 6p, and exciting news expected soon, then a swift and strong move upwards from this level would make perfect sense.

[hedgehog 100] 07/6/2023 16:10

Change % Chg Cur Bid Offer High Low Open Volume Chg Time RN NRN
0.25 4.3% 6.00 5.50 6.50 6.00 5.45 5.75 359,799 09:00:15


Another big volume share trades day today for ARA - it's second highest ever - has seen it close back up at 6p.

This makes c. a couple of million ARA shares traded in c. the last month - nearly a fifth of the shares in issue.

Such big volume ahead of an anticipated RTO deal seems very significant and exciting.

And share buying tends to be more significant than selling.

Because buyers have thousands of shares to choose from, whereas sellers may only have a few ... and in some cases may have no choice but to sell.

My gut feeling is that big, exciting RTO news here is now probably imminent, and that we are now in the 'end game' of share trading ahead of this.

[hedgehog 100] 01/6/2023 16:08

Following on from PNPL's proposed hydrogen RTO just over a month ago, NZI has today also announced a proposed hydrogen RTO:-


01/06/2023 07:51 PR Newswire (US) Net Zero Infrastructure Plc - Possible Acquisition and Suspension of Listing LSE:NZI Net Zero Infrastructure Plc

"The Directors of the Company are pleased to inform shareholders that it has signed a non-binding letter of intent ("LOI") to acquire the entire issued share capital of LINE Hydrogen (Australia) Pty Ltd, a limited liability company in the renewables energy sector incorporated in Australia (the
"Potential Target") in consideration for an issue of new shares in the Company (the "Acquisition"). The Acquisition, if completed, and an associated proposed private fundraise by the Company, details of which will be announced in due course, would result in the shareholders of the Potential Target having a majority interest in the enlarged group. ...

NZI's Chairman, Mike Elwood said: "Joining forces with LINE Hydrogen means we can leverage our joint resources with a view to expanding operations and driving the development of the green energy sector. Together, we believe that we are well-positioned to capitalize on the growth potential in this market and contribute to a more sustainable future."

Brendan James, Founder and Executive Chairman of LINE Hydrogen, added: "We are thrilled to announce our proposed transaction with NZI," said Brendan James, Founder and Executive Chairman of LINE Hydrogen. "The planned merger reflects our shared vision of advancing the hydrogen economy and accelerating the adoption of clean energy solutions. We believe that, by combining our strengths and expertise, we can create significant value for our shareholders and make a positive impact on the global energy landscape." ...

About LINE Hydrogen (Australia) Pty Ltd

LINE Hydrogen (Australia) Pty Ltd is an Australian-based hydrogen production company. The company specializes in the production, distribution and storage of hydrogen for various applications, offering innovative solutions that contribute towards a sustainable and decarbonized future. ..."




"Green
Hydrogen Production
Now"

"LINE Hydrogen will deliver early market, commercial scale green hydrogen for diesel replacement in Australia."




NZI has been suspended today at a price of 1.35p, market cap. £819,450 (60.7M. shares in issue).

That's significantly higher than ARA's current market cap. of £603,750 at 5.75p, although ARA has significantly more cash than NZI.

[hedgehog 100] 25/5/2023 12:24

Some more good news for the UK battery sector:-

"Jaguar Land Rover-owner to pick UK over Spain for giant car battery plant

21 hours ago

By Simon Jack
Business editor

The UK is set to win a battle with Spain to host a multi-billion-pound electric car battery plant in Somerset, the BBC understands

The boss of Jaguar Land Rover-owner Tata is expected to fly to London next week to finalise the deal.

Some in the car industry have described the plant as the most significant investment in UK automotive since Nissan came to Britain in the 1980s.

Tata's chairman is scheduled to meet the prime minister mid-next week.

Sources familiar with the matter say that although the deal has yet to be signed, engagement has moved from negotiations to drafting and choreography of how the landmark agreement will be presented.

Up to 9,000 jobs would be created at the Bridgwater site, close to the M5.

The UK government has acknowledged the urgent need for electric vehicle battery manufacturing in the UK to secure the future of the car industry.

The country's automotive sector employs up to 800,000 people directly and in the supply chain.

When pressed on the subject last week, Chancellor Jeremy Hunt told the BBC to "watch this space".

Tata was considering another site in Spain and the expected decision to choose Somerset will be presented as a major achievement for the UK government.

The government has been criticised for lacking a clear industrial strategy and falling behind the US and EU in attracting investment.

Last week, one of the world's biggest carmakers, Stellantis, warned it may have to close UK factories if the government does not renegotiate the Brexit deal. The firm, which owns Vauxhall, Peugeot, Citroen and Fiat, had committed to making electric cars in the UK but told the BBC this was under threat.

In the case of Tata's new plant, the UK's expected success has not been easily or cheaply won.

The government has said that while it does not recognise a figure of £500m in reported subsidies, they concede that it is in the hundreds of millions of pounds.

This would take the form of cash grants, energy subsidies and other training and research funding.

India's Tata has extensive steel interests in the UK including the Port Talbot plant in South Wales and the government will also offer around £300m to subsidise, upgrade, and decarbonise those operations.

Along with additional energy discounts, it will bring the total incentive package to Tata close to £800m.

Government sources conceded that while the two investments will not be announced at the same time, the two projects are linked.

The Somerset site's access to power, a skilled UK automotive workforce and the British heritage of Jaguar Land Rover's brands are also cited as helping the UK bid.

Although the price tag will be seen as high, the UK is reluctantly involved in an international subsidy war which has been dramatically escalated by the US Inflation Reduction Act - a piece of legislation offering $370bn (£299bn) in sweeteners to companies prepared to locate production and supply chains in the US.

The EU is preparing its own package in response.

Some industry insiders hope that the Tata battery investment will open the door to further battery investments in the UK, which currently only has one plant in operation next to Nissan's Sunderland factory, and one barely on the drawing board in Northumberland.

By contrast the EU has 35 plants open, under construction or planned.

Number 10 said it did not comment on commercially sensitive matters."

[hedgehog 100] 18/5/2023 17:09

Yes SL; I posted it in post 6 above, on 8th. June last year:-

From ARA's prospectus dated 5 April 2022, re all four directors:-

" ... not entitled to a fee until the first Acquisition has been completed, at which time his subsequent entitlement to a fee will be considered by the Nomination and Remuneration Committee. ..."




I.e. payment by results, which is just as it should be.

As per Warren Buffett.

[solarno lopez] 18/5/2023 14:02

Thanks Hedgehog

There is a statement in the prospectus that explains how the directors will be remunerated once a deal completes.

[hedgehog 100] 18/5/2023 11:28

You're welcome SL - glad you've found them of help.

'Cash is king' at the moment, and ARA has it, and is trading at a significant discount to it.

And at its current very low rate of cash burn, it would take years for that discount to be eroded away.

In theory it could arrange a RTO of a profitable company without having to raise any further funds, though it will probably want to raise at least some to accompany a battery tech RTO.
But it wouldn't necessarily need to be a particularly large amount, and the enlarged entity could look to raise more later - which could be in better market conditions, after company progress, and at a higher s.p.

There is still some small cap equity investment money available, especially for good value and quality companies, and the situation seems to have improved this year. This is shown by some recent new issues this year, like Ocean Harvest Technology Group (OHT), and World Chess (CHSS).

But the IPO route can be quite risky and uncertain - if the IPO has to be aborted, due to market conditions, then the company trying to float can be saddled with huge costs but with nothing to show for it.

The RTO route, into an already listed shell like ARA, is safer and more certain.

And the fact that the company reversing in may have to give away far less equity than in a IPO can be a major attraction, especially if the price being offered is seen as low.

With regard to the choice of shell for a floating company, such companies won't have to look far to see what good value ARA is compared to other shells, as well as having very attractive management.

So it's no surprise that ARA is seeing a very healthy level of interest in reversing into it, enabling it to express deal confidence in the way that it has.

I would add that there seems to be an inverse correlation between the salaries of shell directors, and RTO success.

Unpaid directors have no incentive to spin things out to retain their salaries, but rather have a real incentive to get something done ASAP, as well as being of the highest level of integrity and professionalism.

[solarno lopez] 18/5/2023 07:19

Hedgehog thank you for the informative posts which provide clarity on ARA.

The problem ARA faces as its advisors know only too well, there is very little money in the current markets for small cap projects.

By the way I hold shares in ARA

[hedgehog 100] 16/5/2023 16:35

A further 289,528 ARA shares traded today, the second highest daily volume in the company's history.

Which means that the company's two highest volume days, in well over a year since listing, have occurred on Monday and Tuesday of this week.

Which should be setting the stage for some really tasty share price action here shortly (unless the share is suspended for a RTO first, at a massive premium).


"Volume Always Precedes Price

Tom Aspray Contributor
Jan 11, 2014,03:30pm EST

This statement is one of the cardinal beliefs held by most technicians. ..."

[hedgehog 100] 16/5/2023 13:54

From the recent video interview with ARA's Chairman John Croft:-

"... we're very hopeful, put it like that, that we can do a transaction in this year. The sectors that we're particularly interested in are in energy storage generally, but particularly in battery technologies.
... there's a huge opportunity there ... I'm very hopeful we'll do something this year.

... with the minimum capitalisation having been moved up to thirty million pounds, it means actually that that valuation of the SPAC in the context of an overall transaction is relatively small. So we're starting to see valuations for SPACS in transactions heading up, and recently there have been some in London where the SPAC has been valued at multiple times of its cash balance, and multiple times the value of its original market cap. at the time it came to the market. So we see that as being very encouraging, and a positive sign for our shareholders going forward. ..."




Remember that to complete a RTO transaction this year, you would really need to sign heads of terms in H1, to allow time for more detailed preparations, including prospectus preparation and FCA approval of.

So a deal could potentially be imminent.


And for ARA, these are the interview multiples concerned:-

2 - 3 times current cash = c. 15p - 22.5p / share
2 - 3 times IPO price = 20 - 30p / share

Compared to the current ARA share price of just 6p per share.