Ora Technology is developing a carbon credits trading platform. There are five rivals reported in the prospectus, although they do not all offer the same service.
The initial plan was to raise up to £1.5m, so the fundraising was well short of this. There could be further shares issued following flotation through an overallotment option, though. The quotation will provide a higher profile for the business.
The share price has doubled to 4p. There were four trades in the first two days. They were at between 3p and 4p/share. Pro forma cash is less than one-sixth of the market capitalisation. It is still early days and Ora Technology is likely to require further cash.
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Ora Technology (LON: ORA)
Carbon trading platform developer
Market: Aquis / Access
Flotation date: 20 July 2023
Issue price: 2p
Amount raised: £835,000
Expenses: £260,000
Market capitalisation: £4.13m
Corporate adviser: First Sentinel
Broker: Clear Capital
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What does it do?
The company plans to operate an online platform called Ora Carbon. This will trade carbon credits on the voluntary carbon markets. The carbon credits will be bought, sold and retired. This will be offered to retail and institutional investors.
Executive chairman was a founder of Argo Blockchain (LON: ARB), as well as other Aquis-quoted companies such as NFT Investments (LON: NFT). He originally owned the initial IP and transferred it to the company.
Crowdform is developing the software for version one of the trading platform. This should be completed in the third quarter of 2023 and the beta launch should be in the fourth quarter. The full launch will be next year.
Revenues will come from transaction fees and project introduction fees. There are plans to offer a white label B2B version for fintech companies, which would not compete with Ora Technology. Additional products and services will be developed.
Financials
Prior to flotation, there was £654,000 raised is placings at 0.1p/share and 1p/share. There were also shares issued at 1p/each to pay invoices totalling £110,000. Pro forma cash appears to be around £1.23m.
First Sentinel is paid £42,000/year as corporate adviser and Clear Capital receives £30,000/year as broker.
Directors
Michael Edwards (Executive chairman)
Annual salary: £60,000
Nicholas Lyth (Finance)
Annual salary: £60,000
Jonathan Hives (Independent non-exec)
Annual fee: £2,000
Shareholders
Michael Edwards owns 24.2% and Nicholas Lyth owns 0.8%, while Jonathan Hives has no shares.
Fidelio Partners, California Two Pizza Ventures and Toro Consulting each owns 5%, while Brian Stockbridge of First Sentinel holds 4.17%. Crowdford has 4.6%, Barnard Nominees 2.92%, Alpha Capital 2.5% and AJA Ventures 2.08%.
There are 35 million warrants exercisable at 1p each. Michael Edwards holds 20 million warrants, Nicholas Lyth seven million warrants and Jonathan Hives three million warrants. The other warrants are owned by First Sentinel, Ewan Collinge and Leo Mercer.