Hydrogenone Capital Growth Share Discussion Threads

[pj84] 18/1/2025 17:26

This is what is included on the Elcogen website: -

“Elcogen is the first scale-up company in the SmartCap Green Fund portfolio, receiving capital that complements the prior strategic investments from Baker Hughes and HD Hyundai to further support the development and construction of Elcogen’s new factory in Tallinn. The new plant will significantly increase the manufacturing capacity of solid oxide fuel cells and solid oxide electrolyser cells — technologies we see as key drivers of the green transition in industrial processes and enablers of energy security. The expansion reflects the growing need for highly efficient hydrogen technologies, such as Elcogen’s technology,” said Sille Pettai, CEO of SmartCap and Fund Manager of SmartCap Green Fund, funded by the European Union’s NextGenerationEU."

[amt] 17/1/2025 21:07

Good research PJ

[pj84] 17/1/2025 17:12

Agree that on the face of it, it appears positive for one of our larger holdings but it would be useful to have an idea of what stake SmartCap got. It is, however, an Estonian state investor.

"Our two investment funds are SmartCap Venture Capital Fund and SmartCap Green Fund.

SmartCap Venture Capital Fund backs VC funds and ensures a resource-rich environment for innovative and ambitious Estonian startups. SmartCap Green Fund invests as a fund-of-funds in Greentech-focused VC funds as well as directly in Greentech companies.

We’ve been operating since 2011 under an activity licence issued by the Estonian Financial Supervision Authority. We’re a subsidiary of the Estonian Business and Innovation Agency. The Republic of Estonia is the sole unitholder of both SmartCap funds."



I was surprised there is no news yet on the SmartCap website about the investment but the investment is part of the Smartcap Green Fund which states there investment criteria is : -

"The size of individual investments will remain between EUR 500,000 and EUR 5 million, and as before, SmartCap Green Fund invests in companies together with private investors. Private capital must account for at least 50% of the total funding round, with at least 30% of that capital coming from new private investors for the company."

The investment is at the top end of there investment criteria which is good and it appears they have not followed the new investor criteria and hopefully it is based on the previous investors so that any dilution in holding is nominal countered by new funds.

[kooba] 17/1/2025 08:54

If the pre new money value is in line with our valuation indeed no worries in fact reenforces the valuation currently worth 17p per share...if it is done at a significant discount (or premium) then it would be material and price sensitive. When a listed company holds private companies and some very concentrated interests they should confirm whether there is any valuation consequences in funding rounds ..most do.

[amt] 17/1/2025 08:10

Market takes your side Kaboo.
Sentiment remains dire.

[amt] 17/1/2025 07:54

Perhaps contact the company if you are worried.
Anyway even if at a discount the dilution would be insignificant on an asset likely worth over 150m.
I see it as good news but let's see what the market thinks.

[kooba] 17/1/2025 07:49

It is a concern to me , the value placed on a private business for new equity issue should be the basis of valuing existing holdings...so quite important to the funds asset value as it goes, especially when it represents 18% of assets.

[amt] 17/1/2025 07:32

I don't think that's a concern, it's private information but it must be good news.

[kooba] 17/1/2025 07:26

Indeed any funding in this field is positive just now.One presumes that the euro5m investment supports the valuation that HGEN has the holding in the books at...or is it higher or lower? that rather important detail when worries remain around portfolio valuation levels does not seem to be divulged.

[amt] 17/1/2025 07:12

More good news to push up the price.
They need SABA to get involved to close the massive discount.

[kooba] 13/1/2025 13:08

Thanks..i do subscribe for the Oak Blokes articles ...and very good i think they are. Have known Ceres for many years though not currently holding...hydrogen sector not really attracting the support it once had!

[pj84] 11/1/2025 20:41

Off topic but Kooba following your previous reference to the Oak Bloak's research on HGEN, he has done a similar review on Ceres CWR which if you are interested in the future of Hydrogen as part of the future energy mix is worth a look at my recent post on the CWR thread.

[pj84] 09/1/2025 09:50

I was starting to doubt myself and thought it might have been previously announced!

Let's hope the share price has finally bounced of the bottom of this downturn.

[amt] 09/1/2025 08:17

Pity I hadn't noticed that post before. Good research.

[kooba] 09/1/2025 07:43

Nice to see the managers caught up with the new flow posted by you 2 days ago PJ84 !

[pj84] 07/1/2025 16:29

Some more good news

[amt] 07/1/2025 13:06

A hint of a turnaround ?

[skinny] 07/1/2025 06:28

Thanks for that - I'll keep an watch.

For interest, I hold HTWG - which is (finally) moving in the right direction.

[pj84] 06/1/2025 14:24

Well the latest drop was precipitated by Foresight (FGEN) who took a majority holding in HH2E in May and who then decided to withdraw funding in November leading to HH2E going into administration. This is the latest update So it currently looks like HH2E may emerge from administration as soon as the end of the month. It remains to be seen if HGEN will retain any stake following the administration.

[skinny] 06/1/2025 12:21

I've lost track here - any views while the rest of the sector is rumbling?

[pj84] 30/12/2024 11:33

"Private equity payouts fell 50% short in 2024

Value of investments cashed out lingers well below historic average for third consecutive year"

Unusually the article doesn't appear to be behind a paywall today.

It helps to explain why most private equity funds are currently trading at discounts but the current discount for HGEN does seem excessive. Let's hope the Cordiant Capital team can help to turn things around.

[golden prospect] 30/12/2024 10:11

Average discount in 2024 55% vs current discount 75%

Those that understand deep value may see an opportunity

Potential strong recovery stock for Q1 2025

[slicethepie] 26/12/2024 17:34

Unfortunately this is run by a couple of fools who are good at spending money but not investing. There is a big difference between an expert in a subject and a good investor. I had hoped they would get the boot but typical of their sort have done a deal to protect themselves.

[amt] 20/12/2024 19:25

Hydrogen has a very significant future and HGEN is a good way in at 25% of nav