Further to the announcement of 14 November 2017, Regency Mines Plc, the natural resource exploration and development company with interests in nickel/cobalt and hydrocarbons, announces that its wholly owned subsidiary, (“EsTeq”) has agreed terms for an investment in the battery storage and technology space. In a separate development, Regency announces that Joseph Jayaraj has been invited to join the EsTeq board.
o EsTeq to invest £200,000 initially in White Car Ltd. (“White Car”)(www.white.car) a company currently operating white Tesla rental car services out of Heathrow and several UK locations (“Initial Investment”)
o Following the Initial Investment, and conditional on White Car successfully closing a Crowdcube funding of at least £650,000, EsTeq will subscribe a further £200,000 in February 2018
o Initial Investment will give EsTeq 3.3% of Whitecar, and should the full £400,000 be subscribed, EsTeq will hold up to 5.8% of White Car
o Regency director Scott Kaintz to join White Car board
EsTeq Board Appointment Highlights:
o Joseph Jayaraj appointed to EsTeq board to focus on strategy and business development, as well as negotiation and implementation
o Former Head of Environmental Assets at Macquarie Group and 2IC of RAB Special Situations Fund
Andrew Bell, Chairman, comments:
“Regency has a presence in nickel and cobalt through its large Mineral Resource at Mambare. These metals are two of the key electric car battery and battery storage metals, and we need to increase our understanding of this driver of the now recovering nickel market. If we are to understand trends, understand the technology, understand where the value is being created, and adapt, we have to dive deep into the technologies and uses of this changing marketplace. EsTeq was established to enable Regency through a small independently managed business to engage with the battery development ecosystem in ways that will directly support our nickel/cobalt operations and development. In White Car, exceptionally, we have taken a stake in an already developing business as we saw this as a one-off investment opportunity into a company with an unusually good window onto key trends in the EV market and battery material usage, and a clear value development strategy.
We also now welcome Joseph Jayraj to the EsTeq board. His experience in negotiation, deal execution, exit realisation, and company flotation, combined with his knowledge of global investment opportunities within the enviro-resources sector, extending to green infrastructure and renewable energy projects, has given him a set of skills that directly complement and extend Regency’s own as we enter a new age of the battery and storage revolution.”
Mark Strachan, Whitecar founder and CEO, comments:
“The new shareholders we expect to gain through Crowdcube will be excellent Whitecar ambassadors whilst Regency Mines and EsTeq offer us experience of the UK public markets and significant management expertise. We welcome EsTeq as an investor and Scott Kaintz to our board as our business enters a high growth stage.”
Further Information on the Transaction
EsTeq will invest in White Car at a subscription price of £34.62 a share. EsTeq will have the option for 10 months provided it invests the full £400,000 to subscribe £250,000 for additional White Car shares at £51.93 a share. EsTeq shall also have the right of first refusal to participate on equal terms in any new White Car fundings for 14 months.
Down-round protection is provided to EsTeq for a period of one year, meaning that EsTeq would receive an adjustment to its shareholding in the event of a White Car funding at a price lower than £34.62 a share.
EsTeq or its nominee will directly hold 20% of any venture established through White Car’s Chinese connections.
The management accounts of White Car as of 31 October 2017, showed total assets of £274,708.85 and net assets of £233,889.96 with £90,815.05 of cash. October revenues were £48,303.62 and losses £60,672.59.
Whitecar has a simple model designed to disrupt the traditional care hire business which it sees as inefficient and late in adapting to technology. It provides only 100% electric and zero emission white Tesla cars, driven to the customer who can drive at one all-inclusive price, and then drop off at any location at the end of the hire. With no paperwork or keys, operations will be powered by wholly owned Whitecar smartphone technology which will streamline the customer experience.
Whitecar began trading in July 2017 at Heathrow airport and now has additional outlets at Gatwick, Manchester and Edinburgh airports. The company also rents out some Teslas belonging to existing owners, typically wishing to generate revenue whilst they are out of the UK, to its growing customer base.
Whitecar is currently raising equity capital to scale-up across major European airports and projects at least 30 directly managed outlets by 2022. More information can be found at www.white.car.
Background on New EsTeq Director
Joseph Jayaraj is the former Head of Environmental Assets (Sydney) and Managing Director of European Special Situations (London) at Macquarie Group. Joseph studied Law and Commerce at the University of New South Wales, and after an MBA at INSEAD worked with Merrill Lynch in London and New York on Mergers and Acquisitions. As Investment Manager and Manager of Legal and Corporate he was 2IC of the RAB Special Situations Fund from 2003-2006, before returning to Sydney to found the Asia-Pacific financial adviser Orb Capital Pty Ltd.
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