European Green Transition PLC (AIM:EGT) started trading on AIM today after raising £6.5 million to acquire distressed green economy assets and contribute to existing projects, led by the Olserum rare earth project in Sweden.
The company had a market capitalisation of roughly £14.5 million at the placing price of 10p.
Building on a principal initial asset of Olserum, where it aims obtain a 25-year exploitation permit, EGT’s stated strategy is to acquire a portfolio of green economy assets in Europe, with a particular focus on what the directors believe are distressed and/or undervalued assets.
These include critical materials projects, solar projects, wind projects, rehabilitation projects and processing projects.
Once acquired, the directors say the business model is to de-risk an asset and then sell or farm it out.
EGT’s other initial investments include copper and graphite assets in northern Sweden and critical mineral projects in Saxony, Germany, all of which “have defined potential and tangible upside”.
Co-founder Cathal Friel, who sits on the board as a non-executive director, said the initial public offer had enjoyed “strong support” from institutional investors and family offices.
“The EGT team and board have a strong track record of scaling M&A focused companies on AIM, notably Cove Energy plc, Amryt Pharma plc and hVIVO plc, and we are confident we can replicate this tried and tested approach,” he said.
Friel said he is particularly excited by the opportunity to capitalise on Europe's move towards a renewables-focused economy. He personally invested a further £300,000 in the IPO on top of his previous investment in EGT, giving him a 19.1% stake on admission, made up of 13.8% from his Raglan Capital business and 5.3% personal investment.
Chief executive Aiden Lavelle, a geologist, said the listing and fundraise is a “crucial milestone” for EGT.
“The funds raised will contribute to our existing green economy projects which are intended to support the energy transition across Europe, notably the Olserum rare earth project in Sweden. Additionally, the fundraise will strengthen the company's position to acquire what we believe are distressed and undervalued green economy assets in Europe.”