REG - Primorus Investments - General Update & Clean Power Hydrogen Investment

Primorus InvestmentsAnnouncement

16/02/2022 07:00

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RNS Number : 7883B  Primorus Investments PLC  16 February 2022

Primorus Investments plc

 

("Primorus" or the "Company")

 

General Update & Clean Power Hydrogen
Investment

 

Primorus Investments plc (AIM: PRIM) is pleased to announce that it has
invested £1,000,000 in the initial public offering (IPO) of Clean Power
Hydrogen ("CPH2") on AIM. CPH2 is a manufacturer of the membrane-free
electrolyser which is used to create hydrogen and medical grade oxygen.

 

Primorus has agreed to subscribe for 2,222,222 shares at a price of £0.45 per
share.

 

CPH2 has raised £30 million of new equity finance before expenses and fees
which is intended to be used for working capital, supply chain development,
global marketing, product development and factory development.  Its market
capitalisation on admission to trading on AIM will be approximately £120
million.

 

Further information about CPH2 and its business can be found on its website:
https://www.cph2.com/ (https://www.cph2.com/)

 

The demand for electrolysers is cited by Global Market Insights
(https://www.gminsights.com/industry-analysis/electrolyzer-market?gclid=EAIaIQobChMIwovvu8Ht9QIV0oxoCR0WlAgGEAAYASAAEgK-qvD_BwE
(https://www.gminsights.com/industry-analysis/electrolyzer-market?gclid=EAIaIQobChMIwovvu8Ht9QIV0oxoCR0WlAgGEAAYASAAEgK-qvD_BwE)
) to be growing rapidly with a projected market value of $53bn by 2030.

 

The board of Primorus believes this is an excellent time to make an investment
into this sector and looks forward to CPH2 developing its products and global
brand.

 

In the year ended 31 December 2020 CPH2 had turnover of £107,000 and made a
loss of £1,679,000.

 

 

General Update

 

Rambler Metals and Mining PLC ("RMM")

 

Further to the investment announced on 3 February 2022, Primorus has purchased
an additional 262,358 shares in RMM for an average price per share of £0.275
bringing its total shareholding in RMM to 1,306,168 ordinary shares.

 

Fresho

 

Fresho has completed a capital raise of $12m at $0.90 per share which is
approximately a 55% increase on the previous price of $0.575 per share.  This
values Primorus' holding in Fresho at approximately £1.6m based on an
exchange rate of $0.53 AUD.

 

Fresho has provided the following summary of its business

- the value through the Fresho platform has risen 50% year on year to over
$1bn annualized

- there are now over 21,000 businesses using the Fresho platform

- Fresho are significantly expanding their UK arm of the business

- Fresho has received more than 3m orders per annum

 

ENGAGE

 

ENGAGE provided an update for the period ending November 2021.

 

ENGAGE has gained significant traction in its new Managed Service Provider
("MSP") target market,

securing new contracts and being invited to tender for more.  The secured
work was for a reasonable size account with roughly 500 workers on site.

 

The work being tendered for has the potential to be much larger than the
existing accounts they have secured.

If ENGAGE can maximise its MSP opportunity it will potentially double the size
of its available market and de-risk the overall business model.

 

In March 2021 ENGAGE raised circa £400,000 of new investment from a target of
£1.5m.  This investment was specifically required to fund development for
the MSP market. Due to the full investment amount not being achieved, and to
ensure cash burn was maintained at the same rate, ENGAGE is forecasting a
delay in the growth of its original core market to facilitate the MSP market
opportunity.

 

The management team at ENGAGE are confident that taking on MSP in the
immediate term will ensure they meet or exceed the medium-term forecasts that
were originally dependant on the original core market alone.

 

Further progress has been made with the original core market, with new
end-hirers taking on the Vendor Management System solution. This has led to
the new end-hirers supply chain of recruitment agencies and umbrella payroll
businesses exclusively utilising the ENGAGE platform.

 

Interest in ENGAGE from strategic investors remains high and two new
complimentary

software developers have joined the list.

 

We understand that ENGAGE is maintaining and increasing the number of
conversations and relationships with strategic investors or acquirers to
ensure it has multiple options available to it. ENGAGE remains well funded
with £2.5m cash on its balance sheet and strong forecast revenue growth from
its existing business model.

 

With its large and well-defined pipeline of pent-up demand, now in two
markets, the main objective for ENGAGE during 2022 is to increase engineering
capacity by taking on strategic investment.

 

Payapps (formerly Zuuse)

 

Zuuse Limited has been renamed and rebranded to Payapps Limited ("Payapps").

 

The name change and re-brand is at a parent entity level, with the existing
core product branding being retained given the strong market awareness and
brand recognition, especially for GCPay & Payapps. As part of the
re-brand, a new website for Payapps has been published and can be located at
www.payappscompany.com.

 

Primorus has been informed that the UK and US businesses have grown over 50%
on a revenue run rate basis in the second half of 2021.

 

Payapps, as of 31 December 2021, is expected to have a revenue in the mid-20
million (Australian Dollar) range, subject to December's performance and
exchange rates. The performance has largely been delivered as a result of the
growth in the Construction Payment Management product during 2021.

 

Payapps has increased its headcount by more than 85% over the last twelve
months.  The board of Payapps are therefore forecasting an EBITDA loss for
the year; however, we understand that Payapps is expecting the additional
investment to yield a stronger growth in 2022 (subject to no further
construction restrictions being imposed on its key markets).

 

 

Mustang Energy

 

Further to the Company's announcement on 19 January 2022 the court case is
ongoing, and we will provide notification of the outcome as soon as we are
made aware of it.  The outcome of the court case will, however, enable the
Company to determine which of the conversion options detailed in the
announcement of 19 January 2022 will provide the best returns for
shareholders.  A decision on the conversion options is expected to be made on
or around 28 February 2022.

 

Executive Chairman's Comment

 

Rupert Labrum, Executive Chairman of Primorus, stated "I am very pleased that
we are continuing to make investments which align with the Company's revised
strategy, approved at the 2021 AGM, and believe this gives our shareholders
the ability to clearly and visibly measure the performance of the Company. We
believe that making investments in companies which offer a clear path to
liquidity, with market determined valuations will enable Primorus far greater
flexibility when managing the entry and exit points of each investment".

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors are responsible for the release of
this announcement.

 

Forward Looking Statements

 

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
Company's ability to execute and implement future plans, and the occurrence of
unexpected events. Actual results achieved may vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors.

 

 

For further information please contact:

 

 Primorus Investments plc

 Matthew Beardmore, Chief Executive Officer   +44 (0)20 8154 7907

 Nominated Adviser

 Cairn Financial Advisers LLP                 +44 (0) 20 7213 0880

 Sandy Jamieson/James Caithie

 

 

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