Dear All
A video summary of the below can be accessed by clicking this link:
As an advance disclosure, 350 PPM owns shares in all of the businesses detailed below:
Shine Australia One Ltd from Canigou Capital:
Shine Australia One Ltd offered investors we introduced to them a 100% return based on pre-construction development of solar and battery sites over 2 years from 2020. Canigou Capital/Canigou Asset Management have, of late, been trying to swap investors out of their shares into Loan notes which offer a slight premium over their original investment and then pay circa 8-10% per year for an additional three years, with recoupment of their original stake in year 3 (or year 6 now based on full term from investment to exit).
Basically, they are trying to swap a decent equity investment with a rather questionable loan note / debt investment. Questionable because, the company offering the loan note has no current cash flow to support the loan note terms and for full recoupment they are expecting a significant cash generation event to occur. For the level of risk involved, we believed a 100% equity return was reasonable. But a slight uplift and a 10% per annum coupon over an additional three years is not. In summary, this substitution/ swap offers very significantly lower returns over a longer duration and accordingly, 350 PPM Ltd, on behalf of the investors, is seeking legal advice with a view to taking legal action against Shine Australia One ensuring that our introducees/investors get the promised return. Shine Aus One is a huge success that is being denied resources due to Canigou’s other aspirations, which have so far been unsuccessful, and which 350 PPM declined to be involved in (French Solar; German Biogas; US Solar).
We are seeking legal advice on behalf of ourselves, as a major investor in Shine, and the investors we introduced and hope to find a satisfactory solution with Shine Australia One Ltd shortly.
Storelectric Ltd:
Storelectric Ltd has developed a (theoretically) highly efficient form of Compressed Air Energy Storage and has what we see, potentially, as a gamechanging Green Hydrogen Production Patent. 350 invested and introduced investors to Storelectric at £0.24 in 2017 and then in 2019, when they won the NAM challenge in 2019.
They have however, decided again, to change their Articles of Association. These new Articles contain clauses that create A (Voting) and B (Non Voting) Shares, where A’s swap to B’s on sale (which I estimate to reduce ours and our investors returns by at least 20%) and also contain the provision for up to 25,000,000 share options to be created, when there are only circa 14,000,000 shares in circulation at the moment. I see all these measures as protectonist for the current Directors and management and not in the best interest of the investors. We have garnered support from investors and will shortly be writing to Storelectric to put these issues right. Certainly, from 350 PPM’s point of view, with circa 200,000 shares in Storelectric, now worth, on paper £688,000, for Storelectric to impose a l0ss of circa £137,600 (200,000 * 20% – an estimation of the loss from voting to non voting) and not withstanding listing problems caused by dual class, we are not overly pleased on these developments and seek a reversal of these factors.
Now onto better news:
Pyrolysise Ltd:
Pyrolysise Ltd is a very early stage, low valuation opportunity we have been developing. 350 PPM have had teams working on Waste Solutions since 2018, but as yet we have not had any specific breakthroughs. Pyrolysise Ltd, now is threatening to provide these breakthroughs through their new patented solution. Here are the main headlines:
- Can process unsorted waste, so no need for multibins or for an AMR (an advanced mechanical recycler which sorts waste into different fractions like the post office sorts mail)
- Municipal Solid Waste to Offtakes which include: Biocoal Briquette (for energy), Biochar (energy or fertiliser) Bio-Oils and Mineral Recyclables
- Zero emissions
- 12M for 5 ton per hour as opposed to 35M for 5 tons per hour for incineration (which only takes the RDF anyway, with the rest going to landfill).
- Can work on existing operational landfills that benefit gatefee or that can mine and clear landfills for redevelopment as property / industrial uses.
We now anticipate rolling all previous sector experience and related companies into Pyrolysise’s operations, for a global roll out in partnership with our manufacturing partners. 2 WCP’s (waste plants) are in operational now and will serve as our commercial demonstrators. So in short, its all looking rather good. For further information please register here:
Organic Heat Exchangers Ltd:
Organic Heat Exchangers’ innovation and invention, EnergiVault, is a revolutionary Cooling and Energy Storage Technology that can reduce cooling costs and carbon emissions by up to 80% (potentially up to 100% – if renewable energy is generated on site), and is now in production. The first commercial demonstrator, which will broadcast all electricity and emissions savings, is due to be installed in November. Accordingly, we are preparing for global roll out.
Please click below for the full update, but the rate determining step seems to be how fast we can expand:
Please click here for further information:
Megawatt Mosaic Ltd:
Ever increasingly, electricity grids are made up of a mosaic of different environmental technologies working independently to provide energy on demand to offtakers. The system is unreliable and at points national grids have failed or part failed. MW Mosaic seeks to assist in balancing grids and load shifting, load shaping through Battery Energy Storage Systems (BESS) and Solar and other relevant technologies.
MW Mosaic’s key competitive advantage is tacit understanding of the workings and analysis of electricity grid and the studies and processes necessary to take a project from an idea to Ready to Build, Constructed and Operational, even in many existing cases, going on to manage the project for the owner.
Headline figures are as follows:
- 17 battery and solar projects previously completed by the team for investors, including a major family office
- 35% Compound Annual Growth Rate for battery energy storage in EMEA forecast to 2030
- 65 combined year’s experience within the environmental sector
- 100% success rate for previously completed environmental project development since 2019
- 239 successful environmental projects worked on by the team since 2000
- 700 MW of potential battery installations already identified, and ready for research studies
- 2825 MW target of battery and solar installations forecast within three years on behalf of clients
The multilingual team, drawn from four different European Countries, have been persuaded to develop MW Mosaic and surf the valuations growth metrics rather than continue in their existing business, which although succcesful was always restricted as an investor had to be found for each project to start.
Batteries have been the hottest sector in the UK for the last 3 years, but Europe is in some peril from grid inefficiencies and as such MW Mosaic can provide the solution and share in the subsidies.
Website is here:
For further information please click here:
Yours Sincerely,
Nicholas Dimmock (BA MBA CASS)
Managing Director
350 PPM Ltd