£25,000, unless you are an existing VN investor.
The company pays distribution charges of up to 6% of the funds raised to introducers and intermediaries. There are no annual ‘fund management’ fees, neither are there any success fees.
The management team do not draw salary until the company is pre-commercial and in a position to make sales. The management team is incentivised by their respective equity stake in the company, and therefore their goal is completely aligned to that of any investor, i.e. a profitable exit.
Dependent upon company P/E, market penetration and carbon credits price at the time of commercialisation, between 18 and 222 times your original investment. (See page 27 of the IM for more detail)
By designing and licencing the technology to UK coal-fired power station operators, owners and coal-fired power station manufacturers that maintain plants in the UK. (See pages 26 and 41 of the IM for more detail)
2019/20. (See pages 24 and 41 of the IM for more detail)
An IPO of the company in 2022 or sooner if market conditions and company financials allow, or a trade sale if available earlier and it provides a suitable return for investors and management.
In 2019/20 the estimated addressable ‘Refurbishment’ target market opportunity will be £1.5bn. (See pages 20 and 41 of the IM for more detail)
There are a number of factors involved, including but not limited to; current EU legislation enforcing CO2 reduction in the Fossil Fuel Power Generation with fines to punish polluters and ultimately shut down plants. (See page 15 to 18 of the IM for more detail)
Carbon Capture and Sequestration, or CCS.
CCS is the process of capturing, compressing and pumping CO2 down into holes deep underground. It is hugely expensive, takes a long time to install and the only plant working at industrial scale today is in Mongstad, Norway. This plant however, is to close. (See page 4 of the IM for more detail)
- The use of a recyclable catalyst, and a reaction that has the potential to generate a valuable by-product firstly demonstrates a sustainable and commercially viable solution.
- The integration, or ‘piggy-backing’ of the solution into a tried-and-tested filtration technology, namely Flue Gas Desulphurisation, reduces the development, funding and time requirements to get the solution to commercialisation. (See page 19 of the IM for more detail)
Whilst the technology has been demonstrated in the laboratory, it has yet to be fully tested and so this leaves uncertainty as to the full market potential and scalability of the solution.
Mitigation – By working sequentially, VN CC(G) provides continuous and further proofs, validation and recyclability rates of the solution and its application before progressing to the next stage.
Mitigation – By working sequentially, VN CC(G) provides continuous and further proofs, validation and recyclability rates of the solution and its application before progressing to the next stage.
Market adoption – whilst the company is already in discussions with major manufacturers regarding integration into existing technologies, this is no guarantee of successful licence sales.
Mitigation – by working with manufacturers at the development stage VN CC(G) opens the possibility for manufacturer-funded R&D. This is a low/no cost funding option that further proves the solution without dilution of shareholders. One additional benefit is that it opens the possibility to a trade sale as an option to an IPO.
Market protection – Some Governments may wish to protect their domestic markets by favouring particular solutions.
Mitigation – VN CC(C) has support from UKTI for this solution and will leverage this position with UK based Operators and Manufacturers to get their buy-in. Furthermore, the VN CC(C) licence model lends itself to encouraging Governments to buy-into it, as the main economic benefits of jobs, taxes and environmental are still there. (See page 48 of the IM for more detail)
After 2 years any investment in SEIS or EIS is IHT exempt. (See page 38 of the IM for more detail)
In the history of the management team and existing companies, most of the fundraising activities have been oversubscribed. Furthermore, as the company takes on new investors the fundraising activity becomes more straightforward as current experience is proving that a high level of previous investors, i.e. Previous investors in other VN companies, are subsequently investing in following investment rounds and spreading further investments across the VN company portfolio.
Yes. (See page 28 of the IM for more detail)
The forecast dilution of shareholders is not guaranteed. However, in the experience of previous projects and fundraises this has not happened. One of the benefits of having the management team as equity participants is that their incentive is to ensure, as far as is possible, that dilution does not happen above the percentages forecast. In the unlikely event that this was required, the management team would communicate with investors the options at that time, and hold a shareholder vote to resolve the issue.
This is based on the management teams experience of similar projects, timelines and developments using the same or similar 3rd party suppliers, and this underpins the teams complete confidence in these time and budgetary forecasts. The team has not missed forecast development or delivery budgets in past projects and companies, so have a demonstrable track-record in this respect.
As the company does not have any salaried management, or employees, and the fact that all subcontracted projects and developments have fixed-price and time dependent deliverables on service-level based contracts, means that there will be no additional capital requirements.
The company proposes to licence the solution to manufacturers of similar equipment to reduce their CO2 emissions bill e.g. Gas Desulfurisation Plant, with the model working as follows:
- VN CC(Coal) will charge the manufacturer for design and consultancy service
- The manufacturer will integrate, build and commission the plant for the operator under a 20-25 year contract of supply
- The manufacturer will charge the power station operator an annual fee for the provision, maintenance and support of the CO2 removal solution based on a percentage of emissions savings, e.g. 50%
- VN CC(Coal) will charge the manufacturer 20% of this annual charge to the operator, as a licence fee
- VN CC(Coal) is targeted to design one plant, (which is equivalent to 1 500MW boiler) per year
- The manufacturer is targeted to build and commission 1 plant, (which is equivalent to 1 500MW boiler) year (See page 24 and pages 41-42 of the IM for more details)
The EBITDA figure is a function of the invoiced sales of the company less fixed and variable costs and of the company. In the case of 2019 there is forecast to be an ongoing OPEX of £1m and variable cost of £375,000. This variable cost is due to the use of 3rd party suppliers for the design services. It is intended that the use of these types of supplier will be reduced as the ‘predictability’ of future design requirements becomes clear, and these services can be brought in-house to reduce cost.
There is a full breakdown of the forecast EBITDA on pages 41-42 of the IM.
The OPEX is forecast to be as follows:
2019 – £1m 2020 – £1.5m
There is a full breakdown of the forecast EBITDA on pages 41-42 of the IM.
The OPEX is forecast to be as follows:
2019 – £1m 2020 – £1.5m
2021 – £2m
2022 – £2m
2023 – £2m. (See pages 41-42 of the IM for more detail)
See above question and pages 41-42 of the IM.
The process of negotiating contracts of this nature is forecast to take place throughout 2018, with conclusion by 2019. This is based on the management teams experience in negotiating, closing and finalising the contracts of similar values and complexity.
They have been tested with power generation plant owners and operators in the same and similar markets, where a very high level of interest registered. In particular with Natural Gas and Coal operator/owners.
The main risk associated with this is an exit of the company before the 3-year share holding period is over. Though not forecast and believed to be unlikely, this will potentially give rise to a ‘claw-back’ of investor tax reliefs, and a capital gain issue for investors. However, the overall effect on Investors would mean a very significant return to investors, even when taking into account the loss of reliefs and resultant CGT, which of course can be potentially mitigated in other HMRC pre-approved SEIS or EIS VN companies.
VN CC(Coal) holds a exclusive development licence for use within the UK Coal Fired Power Generation industry, allowing it to utilise existing and future intellectual property and patents to develop and monetise the technology within the aforementioned market. (See page 49 of the IM for more details)
Yes, please go to the Home page and click onto ‘VIDEOS’ then select VN Carbon Capture movie
Either put your questions in an email, or request a call from one of the management team to discuss your requirements in more detail.
Download the High Net Worth self-certification form and the VN CC(G) investor application form, fill them in with your investment amount and personal details, sign at the bottom, scan and email them to investors@vn-cp.co.uk, to reserve your shares. Then post the originals together with your cheque (made out as per the subscription form) to: VN Capital Partners, 4th Floor, 7/10 Chandos Street, London W1G 9DQ.