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OXTO Energy

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OXTO Energy is an energy storage technology provider with a purpose to transform the way energy is stored

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Funded 25 Oct 2021
£450,002 target
£501,669 from 0 investors
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Business overview

Location Guildford, United Kingdom
Social media
Website oxtoenergy.com
Sectors Energy Mixed Digital/Non-Digital B2B
Company number 10161898
Incorporation date 4 May 2016
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Investment summary

Type Equity
Valuation (pre-money) £12.5M
Equity offered 3.47%
Share price £3.83
UK tax relief

EIS

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Business highlights

  • Developed the next generation energy storage flywheel technology
  • Large contract pipeline with international and domestic projects
  • Global business reach with current presence in three continents
  • Patent Protected innovations and technology
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Key features

  • Secondary Market
  • Nominee investment min. £11.49 +
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 0
  • Discussion
  • Documents

Idea

Introduction

OXTO is a global energy storage technology provider. Our aim - to offer the lowest cost, most environmentally friendly solutions available on the market today.

All our technologies have been developed in-house, with both UK and International patents. We achieved CE market certification in 2019, and we are recently implementing pilot schemes on three continents - since entering the global Market in 2020 - and opened our first manufacturing site in early 2021.

The most critical elements of the energy storage industry are efficiency, the total cost over lifetime and the availability of the product. OXTO provides storage and power management solutions where other technology options cannot operate at extremely competitive prices.

1) A Clean technology using 100% recyclable steel

2) Low cost of operation (high efficiency)

3) Manufacturing friendly (simple & robust design)

Substantial accomplishments to date

OXTO has secured approximately £1.7m. of revenues through contracts, for 2021, on four different commercial applications.

1) 130kW Energy Capturing, UK: OXTO flywheels installed in a railway station to help recover energy otherwise lost during braking. The energy is then monetised through EV charging and station lighting.

2) 10 x Flywheel UPS installation in Kenya: Solving power outages and voltage variations that cause loss of productivity and damage of equipment.

3) 80kW Smart Cities & EV Support, France: 1 OXTO flywheel installed in a Smart Cities research centre.

4) 130kW Solar & Grid services, France: Cover stability applications of inertia, frequency and voltage control and real-time balancing mechanism between supply and demand of electricity.

5) Solar Impulse Foundation Accreditation.

6) CE Marking & Certification.

Monetisation strategy

OXTO plan to generate revenues from multiple streams:

1) The main revenue to be generated by direct sales to customers.

2) OXTO is able to offer a very attractive energy storage leasing, thanks to its long lifetime with no degradation of performance.

3) OXTO plans to generate revenue from Joint Venture agreements with organisations. OXTO is planning on becoming a minority partner of large infrastructure projects by offering the units at a discounted rate, guaranteeing a consistent revenue stream while increasing profitability over the duration of the project. OXTO units become a tool inside a bigger system used by large project installations.

OXTO has successfully secured government funding both in UK and USA which along with private funding would catapult our international commercialisation plans.

OXTO's pipeline & inbound enquiries have also been growing at a steady pace in the last couple of years validating a strong market currenlty estimated at over £70 Billion & amongst the fastest growing globally.

Use of proceeds

The funds raised through this round are to be deployed for three core purposes:

1) Growing OXTO's Team (25%) – strengthen engineering and operational team, securing additional IP patent protection and develop a larger international sales force.

OXTO has a strong commitment to continuous innovation as part of its product development road map focusing on materials and manufacturing processes.

2) Project Delivery (60%) – OXTO has signed contracts of a series of prestigiously located commercial projects around the world and funds will go in part to getting these projects deployed and ready for revenue generation.

3) Growth and Commercialisation (15%) - developing existing project pipeline, working with existing partners in Australia, UK, and EU, and potential partners in the US, to secure further deals.

OXTO has a clear plan to deliver on its contracted project portfolio and pipeline of new projects positioning the company for substantial growth across both domestic and international markets.

Key Information

Debt

The company has the following outstanding loans:
1. £300,000 loan from FSE Group at an interest rate of 1% per annum. The loan is to be repaid in four monthly instalments between September and December 2021.
2. £50,000 Bounceback loan from Santander at an interest rate of 2.5% per annum. The loan is to be repaid May 2025.

The funds raised from this investment round will not be used to repay these loans.

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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 campaign for OXTO Energy has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 19 July 2021 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

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 £12,525,693

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 Republic Europe.

Pitch type

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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 Republic Europe 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, Republic Europe 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 Republic Europe will not benefit from any rights under a shareholder agreement. As a result, Republic Europe 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.

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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

If available, 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.

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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 or using funds in your investment account. 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 Republic Europe. 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.

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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

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