Friel, a former inventory dealer, is increase a following as a uncommon Irish fanatic for elevating fairness through the general public markets for comparatively early stage companies, particularly following a monster €1.38bn sale final 12 months of Amryt Pharma.
Oil govt Michael Nolan, who made a fortune when Cove Power, a inventory market listed exploration firm he co-founded was offered to Shell again in 2012 can also be behind the plans.
The EGT itemizing is anticipated to happen om April 3 and is concentrating on a modest increase of round £10m at a valuation across the similar. The intention is to construct up the enterprise and finally use what’s hoped might be a rising inventory worth to make acquisitions with inventory.
The thought is to amass time beyond regulation a portfolio of inexperienced economic system property in Europe.
The enterprise has some present property, together with a uncommon earth minerals exploration licence in Sweden often called the Olserum Uncommon Earth Aspect (REE) challenge.
REEs are metallic parts utilized in expertise together with electrical automobiles and wind generators. EGT says Olserum has the potential to be Europe’s first business stage uncommon earth mine.
EGT additionally has mineral rights within the German state of Saxony and says it has recognized a pipeline of additional potential property.
Preliminary plans to give attention to metals and minerals wanted to satisfy Europe’s goal to transition to greener power provides and utilization has been expanded to probably soak up a broader ‘inexperienced power’ property.
Cathal Friel pointed to the potential for distressed power property amongst different to be shaken out by buyers who took on debt through the interval of zero rates of interest as a supply of deal move.
“We need to be nimble sufficient to make the most of that,” he stated.
In addition to Friel himself and Michael Nolan who has a 11.6pc stake within the enterprise, the management group contains CEO Aiden Lavelle, a Chartered Geologist with 16 years’ trade expertise; and CFO Jack Kelly, a Chartered Accountant with intensive expertise in M&A together with at Friel’s Raglan Capital.
Commenting on the plans Cathal Friel stated EGT will comply with a mannequin set by a few of his earlier listings.
“This strategy has already generated success, delivering worth throughout a spread of public corporations, specifically Cove Power plc, Amryt Pharma plc and hVIVO plc. We goal to repeat this system with EGT.”
A lot of executives from hVIVO are additionally concerned in EGT.
“We’ve chosen to record in London as we’re very assured in its depth of capital and expertise, and its distinctive understanding of inexperienced economic system tasks. London is a world main capital marketplace for small cap corporations, and specifically for European-focused companies with robust credentials to assist the power transition, resembling European Inexperienced Transition,” Friel stated.
Blue chip Metropolis of London agency Panmure Gordon is appearing as nominated adviser, sole bookrunner and dealer to the corporate on the London itemizing.
EGT additionally intends to launch a UK retail providing via the Bookbuild platform, put up flotation.
Cathal Friel has a 43.8pc stake within the new enterprise. He has already delivered 4 inventory market listings – Fastnet Oil and Fuel in 2012, Amryt Pharma in 2016, Open Orphan (now hVivo) in 2019 and Poolbeg Pharma two years in the past. The Dublin primarily based businessman has developed a mannequin of equity-funded enlargement together with natural progress and shopping for low-cost or distressed property with paper reasonably than money.
Amryt Pharma floated with a market cap of €29m and was offered final 12 months for $1.48bn (€1.38bn).
Cove Power, led by CEO John Craven, the previous head of Petroceltic, and Michael Nolan as CFO, was additionally AIM listed. Its shares surged round 10 fold in its simply two years earlier than the sale to Shell. Its principal asset was an 8.5pc stake in an off-shore area in Mozambique, the place operator Anadarko had recognized greater than 30 trillion cubic toes of pure gasoline.
