AGM 2021

Jun 17, 2021

Slides

Good morning, ladies and gentlemen, and welcome to the Saris Power Holdings PLC Annual General Meeting. Throughout this meeting, attendees will be in listen only mode. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it's appropriate to do so. These will be available via your Investor Meeting Company dashboard, and we'll notify you by e mail when they're ready for your review. I'd also like to remind you that this meeting is being recorded. I'd now like to hand over to Warren Feingold, Chairman of Cerus Power Holdings Plc. Good morning, sir. Ladies and gentlemen, it's now 9 a. M, And I'm pleased to welcome you all to the 2021 Annual General Meeting of Surrey's Power Holdings Plc Held at Raffi Park Institute in Horsham. As a result of the continuing COVID-nineteen restrictions And in line with latest government advice, the board has adopted a number of changes to the traditional running of the company's AGM, As we did at the last AGM in December 2020. The company has made arrangements for a quorum to be present To transact the formal business of the meeting, as set out in the notice of AGM, with other shareholders attending by webinar. At this time, I call the meeting to order. Let me introduce myself and also my fellow directors. I am Warren Feingold, Chairman of the Board. This is my 2nd AGM at Saris, and I am delighted to be leading the Board at Such an exciting time in the company's development and after an extraordinary year of achievement. You will hear more about this in a few minutes And the Chief Executive presents his review of the business. Also with us today are Steve Callahan, our Senior Independent Director and Chair of the Remuneration Committee Caroline Hargrove, Non Executive Director and Chair of the Nominations and Governance Committee Aidan Hughes, Non Executive Director and Chair of the Audit Committee Uwe Glocke, Non Executive Director Powell Howe, Non Executive Director William Tudor Brown, Non Executive Director Philip Caldwell, Chief Executive Officer and Richard Preston, Chief Financial Officer. I am delighted to say we also have with us Dame Julia King, Baroness Brown of Cambridge, We have recently announced will join the Board as a nonexecutive director immediately following this AGM and who will stand for election at the next AGM. We also have members of our executive team present, Together with representatives of our legal and financial advisers. And with us too is Tim Anderson, company secretary. A few words about the agenda for this meeting. First, we will have a company presentation Well, we will also read out and answer questions related to the general business of the company submitted in advance or posted live on the webinar. I anticipate this will take about 30 minutes. We will then address the formal business of the AGM. I will talk through the format and procedures for this shortly. If you would like to ask questions relating to the company presentation or the AGM resolutions, you may submit them now via the Q and A tab Now we move on to a business review of the company, including a presentation from our CEO, Phil Caldwell. Okay. Thank you, Warren, and thank you, everybody, for joining us today. Let's move on with the slides. So looking back, this has been quite an extraordinary year for everybody concerned. And I'm very pleased to say that At Sybiz, we've had a very successful year with our strategic partners going from strength to strength. I think underpinning that, despite the global pandemic, is action to address climate change remains a number one global priority. And our purpose at Seres is to establish ourselves in a leading position as a clean energy technology business that addresses climate change. I'm pleased to say that in that reporting period, we've also made progress on all our major contracts, Increasing revenue, so around $3,000,000 over the 18 month period, just over $20,000,000 for the 12 month period I'm maintaining an asset light high margin business, which sets us apart from our peers in the industry, with margins around 67%. I'll talk further about our strategic partnerships, and I'm very pleased. We have 2 board members here, representatives from Bosch and Weichai today as well. But I think overall, this was really made possible through the commitment and dedication of all of the people at Cerus throughout this pandemic. And I think what we achieved is a huge credit to all our people. So a big thank you for everybody concerned. Earlier this year, we also successfully completed a fundraising of £181,000,000 to grow the business. And I'll explain why we feel the timing is right to grow the business. And again, that was backed by our strategic partners in Bosch and Weichai. So why are we growing the business now? Well, I think I'm sure all of you are aware that the urgency for to address climate change Has never been greater. And we're seeing that in a number of areas on the macro scale. Policy decisions globally, there's now 20 major countries with policies towards decarbonization and hydrogen strategies. And from Sarah's point of view, having been in this industry for almost 20 years, we already are, we believe, one of the leading technology players in this industry. We want to maintain that leadership position and grow. Climate action remains the biggest challenge, I think in industry, and we're seeing a lot of companies now actually committing towards net zero targets and facing considerable disruption As they move to decarbonize their businesses. And finally, not just the policy side and the industry side, but we're now seeing Very strong backing for investment for growth in green investments, the ESG agenda growing significantly. So I think we have this perfect environment now to really bring forward technologies that can address climate change across society Into mainstream commercialization. Next slide, please. If you think about the company's purpose and where we've come from as a business. SaaS Power started off in small scale stationery at the kilowatt level. And over the past years, as we've changed the business model towards a partnering and licensing model, we really focused on the core technology, And we've gone up in power quite considerably from single kilowatts to tens of kilowatts to most recently announcements with our partners, which Doosan and South Korea into the 100 of kilowatts going on to megawatt scale, and that trend continues. And that's fantastic for the for the business because that's just showing the demand for the technology. Equally, if we think about our purpose About decarbonization of society, we're starting to look at some of the harder to abate sectors of society as well. And that has taken us into Applications such as transportation and we have our partnership with Weichai, particularly looking at commercial vehicle side of our technology as a range extender for heavier vehicles. And then more recently, we're seeing renewed interest or new interest rather in maritime applications, particularly on some of the future fuels that are being considered for decarbonization, like hydrogen and ammonia. And our partnership with Doosan is a great example of that, where last year they announced moving into a partnership with Hyundai Heavy Industries, one of the world's largest shipbuilders. So we've gone from stationary power into transportation. And then we're looking at industrial decarbonization as well. And this really is a hard area for society to address, but it's also a huge opportunity. And we believe there's a significant business opportunity in green hydrogen and a pathway to decarbonization of industry and defuels. And one of the things that we've done is raise additional capital to grow this side of the business. So really, we are staying true to our purpose in addressing all these sectors of society. Next slide, please. And if you just look at the progress we've made over the past 18 months or so, we first started working with Doosan in July 2019 with, first of all, the system level license, which is around £8,000,000 and I'm pleased to say that last year, we moved that forwards into a larger scale utility type application and also a manufacturing license To move towards 50 megawatts of production by 2024. Very pleased that we continue our relationship with Weichai, And they've continued to invest in the business and sorry, the slide thank you Continue to invest in the business through all the financing rounds, and we're in the midst of discussions with Weichai around the formation of the intended JV In Shandong province this year and also getting closer to completing the trials, which have been undergoing for about a year on our application for a range extender in the mobility applications with Weichai. With Bosch, we've been working with Bosch for a number of years now, And they recently completed a significant milestone just at the end of 2020 to commit towards a target of Scaling manufacture to 200 megawatts by 2024, and that's on the back of successful technology transfer. We should also mention our partnership with Miura in Japan, where we have been all the way through system development Through to actually having commercial products on sale in Japan now, and that's been going very well for over a year. So we're very pleased with Progress with Miura. And a new partner was announced at the time of the year, which was ABL, which is a partnership really on engineering and business development, which is the intended strategy there is enabling us to access more applications and more strategic partnerships with somebody that can also provide some of the Front end engineering and also the business development, and we're very pleased with how that relationship has started. Already, we have a number of opportunities that we're working on together. Next slide. So the key partner progress we've probably Covered already, but you can see here the highlights with Bosch, 200 megawatts by 2024, and you can see the picture there of the 10 kilowatt unit that We've developed with them. We have one working in Horsham. There's several of these now on trial in Germany. With Weichai, you can see the 30 Kilowatt range extender, which is undergoing the trials now in China. With Doosan, we made that significant step With the Doosan, the leaders in stationary power, and South Korea has a very ambitious target of power generation from fuel cells, Something like 16 gigawatts by 2,040. So we're with the market leader in South Korea, and that was a very significant partnership for us. And as I mentioned, ABL takes us into more and more applications and business opportunities. So we felt the timing was right to grow the business. We raised $180,000,000 of which about 25% was actually to grow The existing fuel cell business, higher power applications, future fuel readiness, so things like readiness with ammonia, hydrogen, And blends, etcetera, they're all going to be needed for decarbonization. And the SOEC side, so around €100,000,000 over the next 5 years, is really To grow this very interesting area for us of electrolysis using solid oxide. Solid oxide is a truly reversible technology, And it's very natural step for the company to look at reversing the application of the fuel cell into electrolysis to actually produce green hydrogen, particularly in industrial applications. And underpinning all that is a core investment in infrastructure to accelerate Our development to make sure that we're continuing to innovate at the same time as delivering on our key partnerships. So we're very pleased that we Completed this fundraise, and we're very pleased to have the support of our 2 major shareholders in Bosch and Weichai backing this strategy as well. Just a word on the fuel cell on the green hydrogen side. One of the reasons we felt this was a logical step for the company is essentially it's highly synergistic. We're building on the same core Cell and stack IP and architecture, we can use the same IP portfolio, has dual purpose across Both of these applications in many instances. Importantly, we're at the stage of scaling up with partners now On the fuel cell side, a lot of that work on maturation of supply chains on scale of etcetera is equally applicable In the other applications of SOEC, so we believe a lot of the ecosystem that we're putting in place now on the fuel cell side Could be addressed towards electrolysis as well. And hence, we believe it's the same partnering model, Which we've been successful with so far on the fuel cell side can also be applied to electrolysis. And if we think about this in terms of the business opportunity, I'm very pleased with the progress we've made on the power side In recent years, and I actually think that we've only just touched the surface of where the fuel cell side of the business can go. If you think about the partnerships we've talked about on the left hand side with Bosch, Doosan, Weichar, Miura and some of the different applications that we're already targeting, commercial CHP, Data sensors, distributed power generation, utility power generation, maritime, that's just getting going. So we are going to continue To invest and grow that side of the business. But then if you think about the other side of decarbonization on the fuel side, Green hydrogen as a potential pathway to decarbonization of some of these harder to abate sectors, such as Industrial applications like green ammonia, green steel, decarbonization of cement, petrochemicals and defuels, There's a whole new set of partners and ecosystem that we can go into there. So it's a very logical expansion of the business. Next slide. And we do believe the technology has Some clear advantages in certain applications. I've always been a big advocate saying that As we face this challenge for decarbonization, we're going to need all the different technologies available to us. I think the sweet spot for solid oxide is really In the integration with thermal processes where we can address industrial decarbonization, I think that's one of the hardest things to address. I think in that particular application, we could have as much as a 20 percentage advantage on efficiency. And efficiency is going to be very important when we think about hydrogen production because about twothree of the cost of green hydrogen today is the energy input. So we see a very significant market opportunity for SOEC in that particular application. Next slide, please. And then how the business scales, it's exactly the same model that we've been practicing for the past 8 years or so since I've been with Cerus, which is we're driving on the left hand side more and more applications and demand for the technology, which in turn drives the demand on the right hand side of this slide for manufacturing partners and licensees. So we want to Basically, establish our solid oxide technology as the industry standard. And that comes about because we'll have intentionally many partners running different licenses for system applications serviced by a trusted number of partners who can really scale the manufacturing and supply chain, And that's how we grow the business. And how we see that evolution of revenues growing, I'm pleased to say that we've continuously grown top line revenue over the past few years. Really, we expect the big inflection point in revenues When we get recurring royalties, which comes on stream when our partners come on stream with scale, so we're talking 2024 onwards. But what we're doing here is, if you look at the purple on this chart, that's the progress that we're already the journey we're already on with the fuel cell side of the business. I believe that the Autolus side, it will lag by a few years because we still have to do the developments and the partnerships. But again, for all the synergies I talked about, I believe it's going to be very additive to the future value of this company. The financial highlights for the 12 months, we did change our year end. So this is adjusted for a 12 month view. But what you can see here is Revenue in the 12 month period was just under $22,000,000 As I mentioned earlier, gross margins of 67% because we operate this partnering and licensing business, And it's, we believe, the best way forward for this company to commercialize and scale. Adjusted EBITDA, just under 10. Cash used in operations, you can see here, was relatively modest. Significantly, the order book and pipeline It was just under €100,000,000 at the turn of the year. And cash and investments actually was €110,000,000 at the turn of the year, but obviously, we've now Added significantly to that would be the recent May. So just to leave you with a summary and outlook really. Like I said, the Agency for Climate Action has never been stronger. We have to move at pace and scale with our partnerships, and that's what service The strategy of licensing and partnering, we believe, is working very well with us, and we value very much the partnerships that we have today and look also at expanding our partnerships. I think we have delivered Another solid year, despite some of the headwinds we've had with the pandemic. And again, I can't thank our team enough for that, for their commitments. And to Sarah, it's fantastic. I think we are establishing our reputation In the industry as the go to company for solid oxide, and I think you'll see that as more and more partners come on board and we continue to Enjoy the support of the partners that we have. The fundraise, I think, consolidates our position for growth, We want to maintain that leadership position. So we don't want to stand still. We want to be the leader in this sector. And we are still planning A move up to the main market in the next year, because that's the logical transition for the company to make. And we are a high margin clean energy technology business, and I believe that we're very well positioned for growth. So I'll happily take questions. Phil, thanks very much for the update. We have had a couple of questions come through if you're happy to take a moment here. The first comes from the investor who asks, the company is to be congratulated on its progress with existing licensees. But last year, you stated that you expected to achieve 1 to 2 additional licensing agreements each year. I can imagine that lockdown restrictions have probably influenced progress since then Because there have been none forthcoming, but are you disappointed? And has the pipeline of such discussions increased? No, I'm not disappointed at all. I actually think that if you look at I went through what we did last year, we did actually Signed some very significant license deals last year. The Doosan deal was a £43,000,000 deal. The ABL deal, Although it's not a licensed deal, it's a pathway towards more partnerships. The key milestone that we passed with Bosch Also triggered another stage around €23,000,000 of follow on contracts. So When we say new license deals, actually, they also count with existing partners. Growing partners is just as important as adding to that pipeline. So I'm very pleased actually and very proud of what we've achieved commercially in the past year. And I think our results say that. In terms of new partnerships, we're always working towards new partnerships, and we will update you when we have significant progress on that. I mean, I think, I guess, we're at the early stages with some of our relationships with ABL. We're continuing Our relationship with Honda, which we don't talk much about, but again, when we have progress, we significant progress, we'll update you on that. And the new area, like I said, of electrolysis, we have a lot of already a lot of interested parties in that new area. So I think commercially, the pipeline is very healthy. A further question has come through on the Q and A function. The SOEC teaching is viewed as very difficult Because you need a lot of heat to run it. What's your estimate of the whole SOEC market? And you're still developing SOECs, but do have an interest to deploy or sell it? How will that work? Okay. So I wasn't quite clear on the first part of the question, but I think there's a bit of a misconception, which is SOEC only runs if you have Heat, that's not true. Actually, SOEC is already a higher efficiency technology than our client of PEM even without heat integration. But the clear advantage is when you have thermal integration. And the level of thermal integration gives you the uplift on efficiency. So SOEC, as a family of technologies, there's more and more interest in that area. It's not just Seres, we're seeing that in other regions as well, in Scandinavia, in South Korea, etcetera. So You will see more and more applications, I think, for solid oxide in electrolysis because it's natural that we should move up in efficiency for electrolysis. Electrolysis is not a very high efficiency process today, and roundtrip efficiencies aren't brilliant. So it's logical. If we are going to go down this path to green hydrogen, we should develop high efficiency electrolysis, and that's what we intend to do. In terms of the business model, as I've explained in the presentation, it's the same business model. We're not intending to build and deploy electrolyzers on our own. Our job is the technology providers. There's plenty of people already very invested in This pathway to green hydrogen, who are all looking for high efficiency electrolysis technology, and we're engaged in early stage discussions with a number of those. Like I said, we're very confident that the market is there and it's very significant. If you ask me how big that market is, I think it could be as big, if not bigger than the fuel cell market in the fullness of time. But like I said, I think there's a lag here, as in People need to understand that when you talk about decarbonization, you're talking about a transition to 2,040, 2050. If you look at the projections for hydrogen, it really It gets going late 20s, 2030, 2,040. So we believe the timing is right to do the development now because we think that this technology will have a very significant role to play as a high efficiency technology in the Decarbonization of industry in the coming decades. Great. And one further one, if I may. There's clearly slippage with Weichai, says Charles, is there a political implication with this? No, not at all. Not that we Are concerned with no, we said 2 things in our partnership with Weichai. 1 is we need to complete Testing field trials in China, that unfortunately has been somewhat impacted by COVID. But the teams, Both the Weichai part of the team and the Serra's part of the team have worked well, and that's something that we're looking to conclude middle of this year. And then the business planning side, which we are fully engaged with right now, and like I said, Weichai fully backed the last capital raise and remain a very supportive partner. So I personally don't have any concerns around any change in the Geopolitical side, I think it's all about the relationship and the strong partnership we have with our partners. And a question, if I could address it to you, Richard. Kurt asks, are the estimates for future royalties for SOEC Per year or total for the upcoming years, and how much megawatts of or how many megawatts of SOEC Are those royalties applicable to you? Thank you, Elizabeth. These are royalties per year, but they're based on the total addressable market. So clearly, we'd expect to get a decent portion of those, But that's what it's based on. Thanks, Richard. And Tony asks, Phil, when do you think the electrolysis development will turn into licenses? I think the well, there's 2 parts 2 answers to that. One is we need to demonstrate this to a credible level to potential partners. And there's also a value question here, which is If we try to license this too early, we risk giving away valuable IP into partnerships or not really getting the full value for this. So we will license it when it's the right time to do so. That doesn't mean that we won't go down the path of joint developments and starting to have partnership discussions with people. So I said before, I think that to manage expectations, it will lag several years behind the SoFC side of things. That said, we do have very significant interest in this whole area of green hydrogen. So I think if things go well, I think partnerships could form sooner. And We can't speculate. We'll keep you updated with partner progress. We like to deliver through partnerships, and that's how you'll be able to monitor our progress. Great. And another investor asked, Can you talk about your competitors and who you worry about most? Well, at this stage, I don't really worry about competitors because the market is pretty nascent And the whole industry needs to mature and really commercialize. So if you want to get into specifics, I hold the view that there isn't one technology wins all, and I think it's a misconception from investors that they're trying to pick a winner because that's Just not the case. If you want to go into more details on the solid oxide side of things, They're not direct competitors, but we respect Bloom Energy in the U. S. They've made good progress on data centers, then moving into South Korea, etcetera, and they're also moving into electrolysis, so very parallel paths to ourselves. Some of the Japanese ceramics companies, we've always competed against and done very well. I think we're the only non Japanese technology on the market in And as I mentioned with Miura, but the likes of Kia Sera, our leader leading player in Japan. So, solid oxide, there's not that many players, but in some ways, we need the whole sector to come forward. So it's not just Cerus Being the only solid oxide advocate, if you like. In terms of different applications, you'll see very good technology Pam, in some of the mobility applications, you'll see early stage of alkaline in electrolysis because it's most mature. And you'll see different technologies at different stages. But if you look at the challenge For fuel cells and green hydrogen, the market potential is so huge that we have to rapidly scale Supply chains, manufacturing and the industry, there'll be there's plenty of room, I think, for a couple of world class companies to really emerge in the coming years. Great. And there's a couple of questions that have come through on partnerships. Once the partnership is established, how do the 2 companies proceed in practice? And perhaps if you could provide an example and another one, Talking about partnerships also as being key for us and whether we see any opportunities in partnering with UK's ITM, which is looking to create world leading hydrogen development, would there be any synergies for the companies? Thanks. Okay. So if I answer the first part, the partnerships follow a fairly regular path, and people that have known the company for a while We'll have seen this in our progress. We tend to start with joint developments where we put engineering teams together. We work Typically on systems and at that point, we sometimes also grant the system level license. And that tends to take An application through to a prototype, and then we move on to licensing, where the partner may want to take manufacturing in house, and then We form a licensing partnership. And then at the same time as the license agreement is signed, that also includes the future royalties. So we tend to work on engineering services type joint developments with about a 50% margin, license fees, which are significant upfront, which cover the technology Transfer, so where we actually provide technology directly to partners and then recurring royalties once that partner actually commercializes. A good example of that is Miura, who've gone all the way through that cycle from early stage drug development through to building their own products in Japan And now actually sell under license from SIRIS. So that's the partnership. In relation to the question regarding ITM, Anything is possible. I respect ITM. I know, Graham Cooley and the team pretty well. So But I don't think that's really on our agenda right now. We're focused on getting our technology to The demonstration phase in the next 18 months. And also, if you look at the size of our partners, we tend to look at Large industrial players who are very additive to SARA. So that's who our target is right now. Great. And perhaps one final question before moving back to the formal part of the meeting. Bruce asked What are the key operational objectives for the business over the next year? It's really delivery to partnerships. So what we are committed to with Bosch on scale up, with Technology transfer and enabling Doosan's scale up and establishing the joint venture with Weichai, there are obviously Three key fundamentals that we're working very hard on, but Sarah's are putting a lot of people and investments into those because that really Takes us forward to commercialization and at the same time, standing up some of the electrolysis side It enables that business to attract partners and to grow. So it's really delivery. Delivery to existing partners is number one priority And then growth and innovation. And we are part of the fundraise was to enable us to do both simultaneously. We can't stand still. We're a very innovative company that relies on technology and IP, and that's what we're going to continue to do. But we also have to mature the technology at scale and speed, and that's what we're doing with our partnerships. I shall now return to the formal business of the meeting. The notice of this Annual General Meeting was sent to shareholders on the 20th of May 2021. Unless there are any objections, I will take the notice as read. Thank you. I will now explain the procedures we will follow. We will first read out and answer any questions related to the resolutions received in advance And those now posted live during the webinar. We will also publish the questions and answers on the company's website after the meeting. If you have not yet done so, please post any questions on the resolutions now. To be fair to everyone who wishes to ask questions, please restrict the number of questions you ask. We will only permit questions from members, Corporate representatives of members and proxies. Due to the current restrictions, the voting for all resolutions at this AGM will be determined by way of a poll of proxy votes received in advance of this meeting rather than by a show of hands, And you will not be able to vote live on the webinar. Are there any questions? There have been no questions asked on the resolutions. And accordingly, I will now go through each resolution in turn and share with you the proxy votes received and announce the results of each vote. There are 7 ordinary resolutions And 2 special resolutions. We shall go through the ordinary resolutions first. The first item on the agenda is to receive and consider the accounts of the company for the financial period ended 31st December 2020, together with the reports of the directors of the company and auditor of the company on those accounts. The numbers of proxies I'm holding in relation to this resolution are now shown on the slide you can see. I therefore declare Resolution 1 carried. Resolution 2 Is to reappoint BDO LLP as auditor of the company, to hold office until the conclusion of the next AGM And to authorize the board through the audit committee to fix their remuneration. The numbers of proxies I'm holding In relation to this resolution, I'm now shown on the slide you can see. I therefore declare Resolution 2 carried. Pursuant to Article 54 of the company's articles of association, The Board is entitled to fill a vacancy or to add to the Board so that the number of directors does not exceed 10. Any such director so appointed holds the office until the next following Annual General Meeting when they retire, which are eligible for election. Accordingly, Mr. William Tudor Brown stands for election. Resolution 3 proposes to elect Mr. William Tudor Brown to stand for election as a Director of the company. He was appointed a director by the board on the 1st April 2021. As such, he now stands for election by the shareholders. The number of proxies I'm holding in relation to this resolution are now shown on the slide you can see. I therefore declare Resolution 3 carried. The articles of association of the company require onethree of the existing directors to retire and seek reelection at this AGM. Accordingly, Mr. Philip Caldwell, Mr. Steve Callahan and Mr. Aidan Hughes stand for reelection. Taking each in turn, Resolution 4 proposes to reelect Mr. Philip Caldwell as a Director of the company. The number of proxies I'm holding in relation to this resolution I'm now showing on the slide you can see, and I therefore declare Resolution 4 carried. Resolution 5 proposes to reelect Mr. Stephen Callahan as a Director of the company. As the senior independent director, Mr. Stephen Callahan has offered himself up for reelection annually. The number of proxies I'm holding in relation to this resolution are now shown on the slide you can see. I therefore declare Resolution 5 carried. Resolution 6 proposes to reelect Mr. Aidan Hughes as a Director of the company. The number of proxies I'm holding in relation to this resolution are now shown on the slide, and I therefore declare Resolution 6 carried. We now come to the special business of the meeting to resolve as an ordinary resolution. Resolution 7 requests authority for the directors to allot certain shares and securities Up to an aggregate nominal amount of £12,295,100 equating to approximately 66% of the currently issued share capital. This resolution complies The number of proxies I'm holding in relation to this resolution are now shown on the slide you can see. I therefore declare Resolution 7 carried. We now come to the special business of the meeting to resolve as a special resolution. Resolution 8 Requests authority for the directors to be able to allot shares and securities up to an aggregate nominal amount of 931,000 £447 without the application of statutory preemption rights. The resolution is being proposed as a special resolution and therefore must be passed by a majority of not less 75% of members present and voting. The number of proxies I'm holding in relation to this resolution And now shown on the slide you can see. I therefore declare Resolution 8 carried. Approval of Resolution 9 will enable the directors to issue equities for UPPA cash Up to an aggregate nominal amount of £931,447 without the application of statutory preemption rights For the purposes only of financing transactions. This resolution is being proposed as a special resolution and therefore must be passed By a majority, if not less than 75 percent of members present and voting. The number of proxies I'm holding in relation to this resolution I'm now shown on the slide you can see. I therefore declare Resolution 9 carried. That concludes the formal business, and I now declare the 2021 Annual General Meeting closed. I thank you all for your interest and attendance. This AGM webinar has been recorded and will be made available on the company's website. The results of the meeting will be announced to the markets through our Regulatory Information Service and posted on our website as soon as practicable. Thank you all very much. Many thanks to the Board of Serres Power. Thank you very much indeed. Could I please ask attendees not to close this session as you'll now be automatically On behalf of the Board of Cerus Power Holdings Plc, I'd like to thank you