Cathal Friel announces plans to list ‘EGT’ to fund green transition portfolio

The venture has existing assets, including a rare earth minerals exploration licence in Sweden but will look to raise equity via a London listing on the AIM market to fund further merger and acquisition (M&A) activity to build up a portfolio.

Panmure Gordon is acting as Nominated Adviser, sole bookrunner and broker to the Company on its proposed Fundraise and Admission.

EGT also intends to launch a retail offering through the Bookbuild platform and a further announcement will be made in due course.

Cathal Friel has already delivered four stock market listings – Fastnet Oil and Gas in 2012, Amryt Pharma in 2016, Open Orphan (now hVivo) in 2019 and Poolbeg Pharma two years ago. The Dublin based businessman has developed a model of equity-funded expansion including organic growth and buying low-cost or distressed assets with ­paper rather than cash.

Amryt Pharma floated with a market cap of €29m and was sold last year for $1.48bn (€1.38bn).

The new venture, EGT, is developing a portfolio of green economy assets in Europe.

It will launch with a number of existing assets including the mineral licences in Sweden known as the Olserum Rare Earth Element (REE) project. REEs are a set of 17 metallic elements used in technology including electric vehicles and wind turbines. EGT says Olserum has the potential to be progressed to become Europe’s first commercial stage rare earth mine.

In addition EGT plans to follow what it says will be a disciplined M&A focused model and has already acquired an exciting portfolio of assets, notably their principal Olserum Rare Earth Element (REE) project.

Management has already identified a pipeline of additional green economy assets, some of which the Directors believe could be acquired for a fraction of the capital that has previously been invested in them.

Cathal Friel is heavily involved in the new venture as co-founder, largest shareholder and non executive director and the leadership team also includes CEO Aiden Lavelle, a Chartered Geologist with 16 years’ industry experience; and CFO Jack Kelly, a Chartered Accountant with extensive experience in M&A.

Commenting on the plans Cathal Friel said EGT will apply an our M&A focused approach of targeting distressed and undervalued assets towards prospects in the green economy.

"This approach has already generated success, delivering value across a range of public companies, namely Cove Energy plc, Amryt Pharma plc and hVIVO plc. We aim to repeat this formula with EGT.”

“We have chosen to list in London as we are very confident in its depth of capital and talent, and its unique understanding of green economy projects. London is a world leading capital market for small cap companies, and in particular for European-focused businesses with strong credentials to support the energy transition, such as European Green Transition,” he said.