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Nova Innovation

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Nova is a world leading tidal energy company transforming the power of our seas into clean energy.

Closed 18 Dec 2021
£2,000,018 for sale
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Business overview

Location Edinburgh, United Kingdom
Social media
Website www.novainnovation.com
Sectors Energy Mixed Digital/Non-Digital Mixed B2B/B2C
Company number SC358996
Incorporation date 1 May 2009
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Investment summary

Type Secondary
Last valuation £47.3M
This sale offer 0.00% premium
Tax relief N/A
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Business highlights

  • Installed world’s first offshore tidal array in 2016
  • Won project for 15 tidal turbines in Canada in 2019
  • World’s first baseload tidal power station with EV charging
  • Secured £6.4m from Scottish National Investment Bank in 2021
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Key features

  • No Secondary Market
  • Nominee investment min. £29.59 +

Learn more about secondary campaigns.

Idea

Introduction

Nova Innovation is a world leading tidal energy company transforming the power of our seas into clean, predictable electricity.

The tide is one of the most powerful forces on Earth and an abundant source of renewable energy. Nova Innovation designs, builds, and operates subsea turbines that generate electricity from the flow of the tide. Our turbines have been powering homes, businesses and the grid since 2016.

The challenge for renewables is their intermittent nature – the sun doesn’t always shine, and the wind doesn’t always blow. By contrast, tidal energy is predictable – minutes, days, and years in advance.

Our tidal turbines sit on the seabed with no visual impact on the landscape. They do not affect shipping and are unaffected by storms. Nova’s turbines work in harmony with nature and marine life is free to move around them.

The climate emergency threatens our planet. By investing in tidal energy, you are helping to build a better, more sustainable world for future generations.

Substantial accomplishments to date

Nova was founded in 2010 and in 2016 installed the world’s first offshore tidal array in Shetland, Scotland. In 2018, Nova worked with Tesla to add energy storage to its tidal technology and created the world’s first baseload tidal power station. Nova continues to grow and is now expanding internationally. The timeline below illustrates Nova’s key achievements over the past two years.

Nova Innovation has won international recognition, including.

· 2017: Shell Springboard award for low-carbon innovation

· 2018: European Commission’s European SME of the year

· 2018: Outstanding Project Award at The Scottish Green Energy Awards

· 2020: Finalist for Innovation in the 2020 EU Citizen’s Award

· 2021: Finalist for Best Innovation in The Scottish Green Energy Awards

Monetisation strategy

Nova Innovation generates revenue from manufacturing and installing tidal turbines. We generate recurring long-term income from their operation and maintenance. Additional revenue is generated from our knowledge and capabilities with smart energy systems.

We have been very successful in winning strategic funding which has accelerated cost reduction and growth. We have a proven track record for success and delivery, and are now winning commercial contracts internationally.

Tidal energy is already competitive with diesel generation and off-grid locations. By 2030 we believe we are on track to be cheaper than other fossil fuels and nuclear power.

Our international reach is expanding with projects across Europe, north America and south-east Asia. We continue to expand our manufacturing capacity to meet orders, helping to drive down costs and make tidal energy mainstream.

Secondary Sale

Nova secured £6.4 million of new investment from the Scottish National Investment Bank in September 2021. As well as attracting its first major institutional investor, Nova has received interest across the investment community.

To provide an opportunity for new investors to join us, Nova has created a share trade window through a secondary campaign. Initially £1 million of shares will be made available by a number of shareholders offering existing equity (3% on average). The share price of £29.59 for the offer is the same as the Scottish National Investment Bank’s investment.

Shares purchased through a secondary campaign are not EIS eligible. Nova has no plans to apply for EIS accreditation in the future.

Key Information

Loans

The company has the following loans:

- £1,027,813 loan from the Scottish Investment Bank to be repaid by June 2025 in 8 equal instalments.

- £330,000 loan from IDETA to be repaid by Dec 2022 in 2 equal instalments.

Company structure

Nova Innovation Ltd is a tidal energy company headquartered in Edinburgh, Scotland. As part of our ongoing growth and internationalisation we have set up a number of 100%-owned subsidiaries as outlined below.

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If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited (trading as Republic Europe) ("Republic Europe"), which is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Republic Europe platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Republic Europe platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £47,289,347

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

Investing in a secondary campaign allows you to purchase shares in a company that is not currently fundraising. Unlike other Seedrs campaigns, you will be buying shares from existing shareholders rather than investing into the business.

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Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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Nominee investment

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

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