MC circa 16m excl options. Also shares to be issued for purchase of Ilum-a -lite.
Two sides to the business.
1) Industrial lighting. Three recent announcements
a) purchase of Ilun-a Lite. * Acquisition expected to make positive EBIT contribution to combined group's FY16 results.
* Consideration (anticipated to be in the order of $3m) will be based on FY16 EBIT, and comprise a combination of cash and new Greenearth shares at 8 cents per share.
* Ilum-A-Lite currently well into delivering on its $5 million project order book.
* Co-founder and CEO to continue in current role, with 24 month escrow on his equity component of consideration.
* Transaction increases Vivid Industrial's client base and diversifies revenue base.
* Provides immediate Sydney operating footprint.
b) 1/4 announced two lighting contracts worth 650k but with existing companies and with potential to roll out over their entire operations which would total 113 m.
c) 28/4 announcement of new sales model where they carry the upfront costs and get paid a percentage of savings on power over the life of the contract. Not 100% behind this model but it is with an existing client and has the potential to roll out across all the properties total 24m over the course of the term( not yet specified) .
2) 30% holding in New CO2 fuels. This from recent updates has been progressing with the design of the scale up factory. Today they announced a Cooperation Agreement with Sinopec Ningbo Engineering Co which gives them the opportunity to invest in the company in return for exclusivity in China. Sinopec Group ranked second in the Fortune Global 500 in 2015, with reported revenues of US$447 billion.
Queried whether I should tip them after todays sharp rise but in light of the deal with Illum-in-ate being based at 8c and the heavy weight backing coming onside could be the next HZR.
