Bit of a shock, page-7

Some of us might have seen this from the AFR today. It backs up my earlier post somewhat and a sentiment to hold.

Kevin Moriarty, chairman of 1414 Degrees, said the energy storage firm's 34 per cent slide on its ASX debut was disappointing and patience would be needed for shareholders to realise the full potential of the molten silicon technology.Shares in the Adelaide-based company slid 12¢ to 23¢ just over an hour after its ASX debut on turnover of 2.35 million shares, wiping about $21 million off the market value. The company raised $16.3 million at an issue price of 35¢.

"The company has a very strong future based on its products and patience is required as the company installs and proves its products," Mr Moriarty said.

The raising did not meet the company's expectations when it embarked on the process. In April Mr Moriarty said he expected up to $40million or $50 million based on the response of 1414 degrees' "supporters" - tech enthusiasts who followed its early progress and had high hopes that the technology would speed the integration of variable renewable energy into the grid by providing a more efficient and affordable storage medium than lithium ion batteries. The TESS technology stores energy as molten silicon - a stable liquid at 1414 degrees Celsius - and can discharge it as electricity or heat in the proportions demanded by each customer.

Mr Moriarty didn't attribute the shortfall in the capital raising and the initial sell-off to the fact that 1414 Degrees hasn't yet installed and commissioned a pilot storage device in a customer's premises. Rather, he said the supporters may have been put off by the $2100 minimum subscription, with 90 per cent of shareholders subscribing $10,000 or less, and he expected the selling would be shortlived.

Profit taking
"There's no reason that there would be a continued negative on the stock because our deliveries are yet to come over the next six to 12 months and we have sufficient funds to deliver on that." He said he thought the sellers were private investors who got in at prices as low as 10¢ rather than those who subscribed at 35¢ ahead of the ASX listing. "I just think you are looking at some people taking a profit - and probably a small group," he said.

The company expects to deliver its first pilot unit to SA Water next month - a 10 megawatt hour gas Thermal Energy Storage Device or TESS which the utility will use to process sewage - for commissioning on site by the end of the year.
It is in talks with poultry processor Pepe's Ducks and corrugated packaging group AustCor in NSW about further pilots involving the 10 MWh unit.

Ultimately the company wants to provide larger 200 MWh TESS units to utilities and large industrial energy users