By Tom Winnifrith | Thursday 12 May 2016
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
I am meant to be on a summer truce with David Lenigas so I shall interpret today's RNS from Lenigas Cuba (CUBA) as poor David being hoodwinked by the company he is meant to have done a JV with. That company is Commercial Funded Solar Ltd.
As you can see HERE this company was founded on 12 February 2015. So it cannot have traded before then. And it has raised equity of just £100. It has yet to file any accounts. Now armed with that information I bring you the Lenigas release with certain points underlined by me. I would like you to consider how those statements can be true based on the data from Companies House. For instance. how can CFS have owned a power station in 2013 when it was only set up in 2015?
I note, from its own website, that the offices of this global organisation are at 20-22 Wenlock Road, London N1 7GU, Contact Details – Telephone:0207 060 3125. Cripes, Islington how posh. Oh...er you mean that is the address of Virtual Office? Who just forward mail, email, and calls onwards? HERE. So where is global enterprise CFS actually based?
Poor David Lenigas, he seems to have been hoodwinked by CFS and I fear that this jv is thus not going to make a dime for his company. His release states:
London, Havana: 12 May 2016: London listed Cuban specialist investment company, Leni Gas Cuba Limited announces that it has entered into an agreement with UK Solar power and storage specialists, Commercial Funded Solar Ltd ("CFS"), designed to assess the potential for installing and operating renewable energy and hybrid power solutions (solar power, energy storage and integrated power management systems) in Cuba.
In 2014, Cuba set a target of producing 24 percent of its electricity from renewable sources by 2030. Solar is a big part of this initiative due to the abundance of sunshine in the country.
CFS (http://www.cfsolarworld.com) is a UK based muti-national company with operations in the UK, Africa and South America specialising in the installation of medium sized, commercially funded renewable power and storage systems of between 30kw and 1MW each.
CFS is currently focused on delivering a large number of investor funded commercial systems to Academy and School Groups in the UK public and private education sector as well as providing a commercially funded model for investors wanting a higher return, short term (1-3 year) investment in countries with supportive governments with immediate requirements to replace diesel generation, such as in Cuba.
CFS hosted the the Cuban renewable energy delegation to the UK in 2013 to visit their £8 million (8 Megawatt) solar farm in Suffock.
CFS and LGC intend to lead the development and construction of each project with the funding coming from external investors. Under the terms of the agreement, CFS and LGC will share on a 50/50 basis the development, funding and construction revenues for each renewable power plant built, and share on a 75/25 basis the 10-20 year operational contracts for all the systems.
David Lenigas, the Company's Chairman, said;
"There is a real need for more energy supply in Cuba over the next decade as the country continues to grow its economy, and we see the renewable energy sector as an area the Company would like to participate in. We are pleased to be working with the experienced team at Commercial Funded Solar on this initiative, one of the largest UK rural solar installers."
On of the UK's largest rural installers. Cripes with just £100 of capital CFS has sure worked quickly to attain that status in just 14 months. But I guess having that time machine to take it back to 2013 must help. I tried to call CFS this morning but there was no answer or even answering machine. Maybe the staff were using that time machine to find out who really killed JFK and will be back in 2016 later?
This little vignette is not something that makes me change my bearish stance on Lenigas Cuba.
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