We’re happy. The investment in batteries He3da has appreciated for other investors in the purchase by 18%, which corresponds to a share price of CZK 130 thousand, from the original price of CZK 110,200. The new price for the sale to investors via CFDF was approved by the General Meeting of MES and the next round of financing for the project was launched.
The valuation of MES was carried out by TPA Advisory, a company with European operations. As part of the valuation process, TPA examined all aspects of our project. They carried out a site investigation in Horní Sucha to check the state of the production roll-out, including an assessment of the adequacy of the investment in these production facilities. In addition, key contracts and relationships within the project were reviewed and evaluated, as well as the impact of the bylaws on the value of each type of stock and the impact of the business plan on the value of the overall project. Other documents studied included, of course, financial statements and other supporting documents. From this entire process, which ultimately took almost half a year, came a conclusion that confirms the value of the investor’s actions as we had anticipated. The value of the investor shares as of 31 March 2021 was set at EUR 5,106 per investor share, which at the current exchange rate amounts to approximately CZK 130,000. Considering the nominal value at which we acquired these shares under asset management, i.e. CZK 110,200, this represents an increase in their value of approximately 18%. If we consider that we are at the very beginning of its main development, the room for further increase in the value of the shares is enormous. Members can find more information at the project, where the full Battery Unite newsletter is published).
The factory is ramping up mass production, from which we are not much further away. The first orders are being taken and more reference installations are being created. As the valuation process is running repeatedly, we expect a further price rise later this year. After all, a built factory has a different price than a producing factory, and the latter has a different price than a factory with a completed year of production and EBITDA. So next year, investors can expect another increase in value, again by tens of percent. We will see how quickly production can be scaled up, but the prospect of a dividend of tens of percent per year and a share value at several times purchase value, all within 2-3 years, is a very hopeful and pleasant notion from which we are not much further away.
So the investment recommendation is to hold it, or buy another asset. CFDF is open to qualified investors, the club members fund is about to sell out. The upward journey has begun.