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SunEnergy tries its luck on AltX

Mar 24 2010 14:43 Marc Hasenfuss

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Cape Town - Solar power punter SunEnergy, a company Fin24.com expressed some reservations about in December 2009, is now mooting a listing on the JSE's junior board, the AltX, for later this year.

A new investor profile document (forwarded to Fin24.com from a sceptical executive at a well-known financial services company) details two private placement offers for 2010 - the second offer coupled to a listing on AltX.

But JSE business development manager Lauren Czepek said AltX had to date received no application for a listing from SunEnergy.

It seems the closest SunEnergy got to the JSE was, perhaps inadvertently, sending its offer documents to JSE executive Noah Greenhill - ironically the prime mover in launching the AltX market.

Czepek said: "We tried to contact the company and CEO with no luck. It seems they are based in Australia."

Czepek said it was not acceptable form for companies to bandy about claims of listings without first initiating the formal application process.

The latest SunEnergy offer - which closed at the end of June - pitches five million SunEnergy shares at 1 000 cents per share in a bid to raise R50m.

According to the document, there will be 25 million SunEnergy shares in issue after the placement, giving the venture an inferred enterprise value of R250m.

But the investor document - as with the previous one - offers no historical audited financial information for SunEnergy. There are also no profit forecasts, or any indication of whether a previous fund raising effort was successful.

Between October 2009 and end-February 2010, SunEnergy sought to place 10 million shares at 1 000c/share in a bid to raise R100m. At that point it was reckoned - with a total of 30 million shares in issue after the share placement - that SunEnergy would carry an inferred value of R300m.

Judging by the latest inferred valuation of R250m (as suggested by the latest share placement information), Fin24.com would presume the previous share placement was not successful.

Backers to invest in blind faith

This can be deduced from the fact that the number of pre-placement shares in issue has remained at 20 million, the figure which was also presented in the previous fund-raising effort between October 2009 and end-February 2010.

As Fin24.com pointed out previously, it is impossible - without access to audited financial information or a prospectus signed off by reputable auditors and corporate advisers - to test the veracity of the valuations presented in SunEnergy's investor profile.

In other words, potential investors are being asked to invest in blind faith.

The latest investor profile document also shows a second fund-raising exercise - set for an unspecified date in 2010 - that aims to raise R200m by offering 10 million shares at 2 000c/share in an exercise that is tagged to an AltX listing.

That means SunEnergy is making a rather brazen assumption that shareholders participating in the current offer will effectively be doubling their money by the time the company applies for an AltX listing.

Not too much is known about SunEnergy, despite earlier claims on the company's website that it had successfully sold renewable energy systems to blue-chip customers in more than 25 countries.

According to the latest investor profile SunEnergy lays particular emphasis on the remote management of solar electrons, which facilitates the development of solar utilities that charge for solar energy on a kW/h basis.

SunEnergy's business plan suggests the majority of its revenues should come from solar farms (solar power stations) from 2011 or 2012 and beyond.

Fin24.com tried to reach the relevant spokesperson for SunEnergy on Wednesday to determine the whereabouts of the audited financial statements or a prospectus. At the time of going to press, no answer had been received yet.

- Fin24.com

NEXT ON FIN24X

 
 
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