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Marine Power Systems

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Our mission is to be a world leader in the manufacturing and supply of marine energy extraction hardware.

154%
 - 
Funded 28 Jul 2020
£1,500,016 target
£2,314,097 from 1,651 investors
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Business overview

Location Swansea, United Kingdom
Social media
Website www.marinepowersystems.co.uk/
Sectors Energy Non-Digital B2B
Company number 06669123
Incorporation date 11 Aug 2008
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Investment summary

Type Equity
Valuation (pre-money) £60.7M
Equity offered 3.67%
Tax relief

EIS

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Business highlights

  • Global sales market forecast a £multi-billion industry by 2030
  • Unique tech portfolio: solution to harness ocean energy
  • £17m+ grant secured as a result of detailed 3rd party diligence
  • Proceeds to deliver commercial demonstration of the technology
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Key features

  • Secondary Market
  • Seedrs nominee min. £17.91 +
  • Direct investment min. £20,000.00 +
  • Pay by Bank payments not accepted
  • Idea
  • Team
  • Updates
  • Investors 1,651
  • Discussion
  • Documents

Idea

Introduction

The world is transitioning to a low carbon future in which clean, affordable, renewable electricity powers our lives. We estimate global electricity consumption represents a £2 trillion annual market that is growing rapidly.

The ocean’s waves & offshore winds are an immense source of power that will become a vital part of the world’s low carbon future, generating low cost renewable electricity for towns and cities globally.

MPS has developed a revolutionary, flexible technology that can be configured to harness wind power, wave power or combined wind & wave energy at grid scale. This approach is unique globally, and patented by MPS - watch the video below.

This capability to harness any combination of wave or wind energy enables MPS to deliver the energy generation solution that best fits the ocean resource our customers wish to exploit. Maximum energy extraction will be delivered from a given area of ocean whilst ensuring that our customers benefit from the lowest possible cost of energy & ownership.

Intended impact

In addition to the world’s existing energy consumption needing to be ‘decarbonised’ in the near future, the International Energy Agency forecasts global energy demands will increase by 30% between now and 2040, equivalent to adding another China and India on top of today’s energy consumption! This is driving global energy suppliers to actively prospect for technology to extract clean, renewable power from deep water wind and waves – a vast energy source that is currently largely untapped.

MPS’s revolutionary flexible ocean energy technology can be configured to deliver floating wind power, wave power or a combination of both and is a unique proposition at the forefront of developments to harness deep water ocean energy. No other company can offer a portfolio of technologies that can be deployed together or individually in the optimum layout to best exploit the ocean energy resource at each farm location, such as ours.

The fundamentals of MPS’s platform and its proprietary wave energy technology have a number of performance and cost advantages over alternative (individual) approaches, leading MPS devices to have a strong forecast for cost of energy in the sector.

By providing an ocean energy solution that simplifies offshore operations and aiming to offer industry low costs, MPS expects to be one of a small number of companies that is successful in an industry that is forecast to grow into a multi-billion pound sector over the coming years.

Substantial accomplishments to date

Marine Power Systems was co-founded in August of 2008 by Dr Gareth Stockman (CEO) & Dr Graham Foster (CTO).

Since then we have expanded our team into the fantastic group of engineers, scientists & managers we have with us today. Our team also includes some of the best suppliers, sub-contractors and independent experts in the business, increasing the knowledge and experience available to support us on our journey.

We have rapidly progressed into one of the leading marine energy technology developers in the market by testing a series of increased scale prototypes, proving and de-risking the technology along the way.

In parallel with our protype testing we have developed a highly sophisticated computational simulation capability which has enabled us to further optimise the performance capabilities of our unique technology.

Most recently we completed a multi-million pound project to design, manufacture and sea test a 1:4 scale prototype at Falmouth, UK. This test proved the many advantages of our technology and the ability to generate grid compatible electricity. The technical validation and the experience gained from this testing means that we are now ready to prove our technology at full scale ahead of commercialisation. The whole team is motivated and passionate to take the business forward at this exciting time.

Monetisation strategy

The commercial opportunity is from device sales to developers, who will supply the power generated to electricity grids. The global resource is vast and will require hundreds of thousands of devices to be installed over decades to exploit (by which time first devices installed will need upgrading!). We believe that MPS has the opportunity, even as one of a number of companies, to grow into a multi-billion pound annual turnover company.

MPS’s strategy is very similar to that of wind turbine manufacturers. This is a proven model with many successful examples: all market leaders are $multi-billion turnover companies. (Case study: Vestas, market leader, turnover of €10Bn/yr).

Global decarbonisation and ever-increasing energy requirements are creating a huge & accelerating demand. Oceans can provide this energy and MPS’ unique, lower cost tech is perfectly placed to deliver. MPS is confident that its current position as a tech leader will successfully translate into significant global hardware sales in coming years.

Use of proceeds

The funds raised will be used to match-fund £17m+ of non-dilutive government grant funding that is already secured for a project to design, manufacture & test a full scale device demonstrator that will prove the technology is ready for commercial sales.

The government grants were awarded after significant 3rd party due diligence and are testament to the belief that MPS’ technology will be a market leader.

In parallel, business development and regulatory activity will place MPS in a market ready position able to close sales with our customers.

We believe that upon completion of this project, it will be the optimal time for an IPO, secure growth capital, and allow investors to exit and hopefully realise a return on their investment.

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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.

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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 £60,714,363

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.

Pitch type

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  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

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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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Seedrs nominee

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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.

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Secondary market

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Direct investment

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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.

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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

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