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Case Studies
The following are examples of CoreTec's strategic advisory activities:
1) Trade Sale (Press Release) of BioDynamics Research to Quotient BioResearch. CoreTec was retained by BioDynamics to identify potential acquirors and to project manage the deal process to completion.
2) Management Buy Out (Press Release) of IdaTech LLC by Investec Bank.The deal was originated by CoreTec who continued to provide due-diligence and board membership introductions.
3) Flotation (First Day of Dealings Announcement) of IdaTech Plc by Dresdner Kleinwort. CoreTec originated the acquisition of IdaTech from IdaCorp (USA), was instrumental in the appointment of certain of the company’s advisors, assisted Dresdner Kleinwort’s with introductions to expert investors and introduced a non-executive director who became a valuable member of the IPO Team, as a key non-executive board member.
4) Venture Capital Fund Raising CoreTec acted as company adviser to fuel cell developer ACAL during this transaction. This included introducing ACAL to its corporate and financial networks as well as providing expert industry testimonies to potential investors. Feb 2007
5) AIM float introductions and process management for a developer of novel indoor flat screens, Screen Technology Ltd.
6) Pre-AIM float research for fuel cell membrane developer Polyfuel Inc on behalf of its London-based investment bank.
Polyfuel (AIM Quote: PYF), Screen (AIM Quote: SCT) and IdaTech (AIM Quote: IDA) have all floated on AIM raising an aggregate of £28.6m.
(1) Trade Sale (www.biodynamics.co.uk)
Background:
CoreTec was initially asked to perform an assessment of the fundraising options available to BioDynamics. Following this project, CoreTec effected several introductions which led to the identification of several options and interested parties. CoreTec was impressed by the enthusiasm, commitment and professionalism of QBR, the purchaser. The completion of this disposal illustrates the depth and breadth of CoreTec’s networks and deal management expertise.
Requirement:
BDR retained CoreTec for the duration of this action, which completed in January 2008. CoreTec provided the following specialist support:
- It completed an assessment of the fundraising options available to BDR
- It advised BDR on the production of a suitable presentation & executive summary based on an appropriate business plan
- It introduced BDR to its financial networks
- It reviewed documents that were sent to potential acquirors throughout the process.
- It arranged and attended numerous presentations
- It gave BDR strategic advice with regards to potential investors
- It advised on the completion process, reviewed documentation and helped progress the deal to rapid completion.
Success:
The company was acquired by a trade buyer, in Jan 2008, with suitable financial backing and an attractive business plan.
(2) Management Buy-Out (www.idatech.com)
Requirement:
Via its networks, CoreTec learned of the potential to acquire the business of IdaTech LLC. IdaTech is a fuel cell solutions developer with proprietary multi-fuel fuel processing technology, fuel cell stack, power module and fuel cell system integration capabilities. Understanding the potential of this developer, CoreTec introduced the acquisition opportunity to Investec, a specialty banking group that provides a diverse range of financial products and services to a niche client base internationally. CoreTec was aware of Investec's strategy of investing in world-class energy technology assets.
During the acquisition process, CoreTec gave on-going assistance and advice in particular in selecting the appropriate technical and commercial experts to perform appropriate due-diligence. The speed with which CoreTec identified and put forward experts from its networks helped to keep the timetable to completion on track. CoreTec remains in discussions with IdaTech in the identification of suitable members of its non-executive board.
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(3) Flotation (www.idatech.com)
Background:
Following CoreTec’s role as introducer (marriage broker) between IdaTech LLC and Investec Bank as per Case Study (1), Investec began the process of preparing IdaTech for flotation on the London stock market. The process began with a beauty parade of 7/8 key investment banks to assess their capability for the role of sponsor and advisor to IdaTech for its flotation. Core Tec was asked for its opinion and also recommended some suitable candidate banks. Core Tec was also asked for its opinion of the most appropriate technical and commercial due-diligence experts to carry out this role for the company’s flotation prospectus.
Another important role is the provider of financial public relations and again CoreTec was able to recommend a house with a reputation for securing sufficient column inches for its clients in the run up to and aftermath of a flotation but also that has a sector expert capable of presenting, with considerable credibility, its clients technical and commercial story.
IdaTech Plc floated on London's Alternative Investment Market on 6th August 2007. Its price can be viewed on www.londonstockexchange.com by clicking on this link and entering the company's name or its stock market code (IDA) in the "Price Search" box.
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(4) Venture Capital Fund Raising. Following an exercise conducted for The Carbon Trust during which CoreTec assessed ACAL’s positioning in the emergent fuel cell supply chain, ACAL approached CoreTec to act as its company advisor over the course of a subsequent £1.6m fundraising.
Requirement:
ACAL Energy Ltd retained CoreTec for the duration of its £1.6m fundraising, which completed in Feb 2007. CoreTec provided the following sector specialist support:
- It advised ACAL on the production of a suitable investor presentation & executive summary based on an appropriate business plan.
- It introduced ACAL to its corporate & financial networks which included large corporates investment arms within its networks.
- It reviewed documents that were sent to potential investors throughout the process.
- It made introductions to both SME and large corporate fuel cell technology developers that have an interest in forming developmental collaborations.
- In the role of sector specialist it arranged and attended all investor presentations, a number of which were to CoreTec's contacts outside the UK
- It gave ACAL strategic advice with regards to potential investors
- It provided strategic advice on and introductions to potential non-execs
- It gave sector expert testimony to all of the above and to the technical & commercial due-diligence firm that was hired to produce a report for investors.
Success:
The company received £1.6million from a consortium including The Carbon Trust, Rising Stars Growth Fund, NorthStar Equity Investors and Synergis Technologies.
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(5) Screen Technology Ltd. (www.screentechnology.com)
Background:
Screen Technology Ltd, (Screen) approached CoreTec via its founder & major shareholder Thomas Swan & Co. Ltd, a performance chemicals manufacturer, and its lead investor MTI Venture Partners, a top decile Cambridge-based venture capital firm, to assist in Screen's efforts to raise development capital. CoreTec conducted a company evaluation and subsequently spoke to relevant contacts within its financing networks. Based on this work and our assessment of prevailing stock market conditions we proposed that AIM would be the most appropriate route to a successful capital fundraising. Consequently, and under a new contract, we collaborated with Screen and its shareholders to plan and execute a flotation strategy.
Throughout the flotation process we utilised our contacts and experience to:
- assist with the drafting of the company's materials for presentation to potential stock market (AIM) sponsors,
i.e. investment banks
- arrange and accompany Screen to its investment banking presentations
- assist in the selection of an appropriate investment bank and advise on acceptable terms of engagement
- effect introductions to, and advise on the selection of AIM specialist accountants, lawyers and financial PR
- act as a sounding board for Screen and its shareholders
- identify and employ a Chairman for Screen with the requisite industry and flotation experience
Screen floated on London's Alternative Investment Market on 1st August 2005. Its price can be viewed on www.londonstockexchange.com by clicking on this link and entering the company's name or its stock market code (SCT) in the "Price Search" box.
(Screen Technology Group's Prospectus)
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(6) Polyfuel Inc. (www.polyfuel.com)
Requirement:
Investment bank Collins Stewart retained CoreTec to assist in the production of a pre-flotation research note on California based Polyfuel Inc., a fuel cell membrane developer (research note PDF). These research notes are often used by investment banks to market potential flotations to fund managers. In turn, fund managers use these research notes to decide on the merits of an investment in relation to their portfolios.
The Pre-IPO research note on Polyfuel outlined the company's history and management, the markets it aims to address, the advantages of Polyfuel's technology relative to incumbent technologies, the status of its research, how it protects its technology as well as its sales, marketing and manufacturing strategies. All aspects of the note were addressed within the context of a financial analysis of the company's prospects.
Polyfuel subsequently floated on London's Alternative Investment Market on 5th July 2005. Its' price can be viewed on www.londonstockexchange.com by clicking on this link and entering the company's name or its stock market code (PYF) in the "Price Search" box.
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