PROSPECTUS WHAT IS AN INITIAL INVESTMENT EQUITY RELEASE OFFERING TO THE PUBLIC ?

WHAT IS A PROSPECTUS?

REDUCED RISK INVESTING IN COMPETING INNOVATION & TECHNOLOGY

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Coal and oil fossil fuels are on their way out, with the smart money heading for renewables, but what technology should you be investing in, with so many choices as to chemistry for energy storage. You could invest in lithium or other batteries, or you could invest in hydrogen compounds. But why not invest in both, to be sure you have a stake in both camps?

Investing in new technology can be a risky business. That is why we have Hedge Funds, Mutual Funds and a whole raft variations, such as Exchange Traded Funds (EFTs). Before an Initial Public Offering, a company has to issue a prospectus; a legal document describing securities that have been put on sale.

SO WHAT IS A PROSPECTUS ?

Generally, there are two stages to the issue of a prospectus, Preliminary and Final. We will attempt an explanation in plain speak, not forgetting that the financial world speaks an entirely different language from the rest of us.

PRELIMINARY

The preliminary prospectus is the first offering document provided by a security issuer and includes most of the details of the business and transaction. However, the preliminary prospectus doesn't contain the number of shares to be issued or price information. Typically, the preliminary prospectus is used to gauge interest in the market for the security being proposed.

FINAL

The final prospectus contains the complete details of the investment offering to the public. The final prospectus includes any finalized background information, as well as the number of shares or certificates to be issued and the offering price.

A prospectus includes some of the following information:

- A brief summary of the company’s background and financial information
- The name of the company issuing the stock
- The number of shares
- Type of securities being offered
- Whether an offering is public or private
- Names of the company’s principals
- Names of the banks or financial companies performing the underwriting

Another reason a prospectus is issued is to inform investors of the risks involved with investing in the security or fund.

Risks are typically disclosed early in the prospectus and described in more detail later.

Intellectual Property (IP) company SME Start ups, need to have something tangible to sell, such as a patent, trademark, designs and copyright. These are the securities, that an investor buys into, by way of example.

It is possible to offer securities such as financial services and expertise in for example, the management of hedge or mutual funds.

Where applicable, prospectuses must be approved by the Financial Conduct Authority before publication.

For the purposes of the Listing Rules and Prospectus Regulation Rules, this is a document required under the UK version of the Prospectus Regulation ((EU) 2017/1129).

EXEMPTIONS

There are exemptions from the requirement to publish a prospectus, in relation to dealings of lesser value, by, for example, not for profit concerns.

PRIVATE AND PUBLIC SHARES

The key difference between public and private shares, is that public shares are listed on a stock market where investors can buy and sell shares, as in trade them, quite freely. Private shares on the other hand don’t offer investors the same luxury. Since they aren’t traded on a stock market, finding a potential buyer or seller can be difficult.

There is though no reason why a company should not issue sufficient shares to remain privately funded.

The advantage to becoming a PLC, is that the number of investors is likely to be many times more, than with shares for sale privately, since the market then extends to more people, who are willing to bet on, and help to support the development of emerging technology.

TRANSPORT FUTURE PROOFING - HEDGING YOUR BETS

To our way of thinking, and something that conventional battery stakeholders might want to consider, is that batteries can also be hybrids using ammonia, hydrogen and methanol - as examples.

The difference is that our Universal Batteries (UBs) are quickly detachable, rather than bolted in to the vehicle frame. Meaning, that you can swap from one technology to another in minutes, as new technology hits the market. UB's are thus future proofing for transport stakeholders, be they vehicle manufacturers or energy supply companies.

By way of example, ordinary exchange recharging by swapping battery packs is making headway in China and India, with examples in Europe and the US.

At the moment, this is a less popular as a way of (instantly) recharging EV's, despite obvious load levelling advantages, where generation is from solar and wind electricity. But, nobody has thought to include alternative chemistries, as a means of future proofing investments in technology that stands lesser chance of breaking into a mature market, without standardization.

The concept is well understood with Stock Market traders, but not anticipated by current stakeholders.

Universal Batteries is not in the business of research and development of the different chemistries, it is in the business of providing an infrastructure that companies developing the technology can join and advantage themselves of, just by scaling their systems to fit within standard format cartridges, such as to mesh with SmartNet service stations for handling and stock control purposes.

The Smart infrastructure and Universal energy cartridge designs and features, together with computer controls and geodata forms part of a portfolio of Intellectual Property, that investors can buy into and share, by way of easing the transition from fossil fuels to net zero, while hedging as to technological advances in the future.

NOTE: This is not a prospectus.

LINKS & REFERENCE

https://www.handbook.fca.org.uk/handbook/PRR/1/2.html

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