Non-renounceable pro rata entitlement offer 

On Friday, 14 July 2023, we announced a non-renounceable pro rata offer of one fully paid ordinary share in our company for every two shares held by shareholders, with one free attaching option. 

This offer for shareholders to extend their investment in our company opened on Monday, 24 July and will be open until Monday, 14 August 2023. 

It’s an important opportunity to help accelerate commercialisation of 1414 Degrees innovative thermal energy storage technology.  

We appreciate and thank our shareholders for their investment in our company and invite you to learn more about this new offer. 

To ensure eligible shareholders have essential information, this page summarises the offer and outlines communications you can expect to receive over the course of the offer period. 

Communications shareholders can expect 

Monday, 24 July Email to Shareholders 

On Monday, 24 July 2023 (the day the offer opened) you should have received an email explaining the offer, titled ‘Non-renounceable pro rata entitlement offer’. That email provides links to enable you to participate in the offer and would indicate the sender is “1414 Degrees Ltd”, having been sent via donotreply@computersharecas.com.au (check your spam/junk folder if you can’t find it in your inbox).  

This bespoke email to each eligible shareholder contains a personalised link, that enables you to skip verification steps, and participate in the offer. 

It also provides a link to the Prospectus document, details of your Entitlement (including how to pay by BPay) if you would like to participate in this offer. You should read the entire Prospectus carefully before deciding whether to invest in new shares. Click here to view the Prospectus now. 

Phone call from Peloton Shareholder Services, a financial services firm that provides shareholder advocacy 

Peloton Shareholder Services (who have been engaged to support us with this offer) will be phoning eligible shareholders to discuss the offer with them.  

This conversation will be tailored to your unique circumstances and the size of your current investment, to help you understand the relevance of this opportunity to your own investment decision. 

Keep in mind all conversations with Peloton Shareholder Services is NOT personal advice.  

If you need more information 

If you have any questions in relation to this offer, please call the Information Line on: 

1300 850 505 (within Australia) 
+61 3 9415 4000 (outside of Australia) 

Monday to Friday, 
8:30am to 5:00pm 

 

If you are an eligible shareholder and did not receive the email on 24 July 2023 

Click the following link and follow the instructions: https://14dentitlementoffer.computersharecas.com.au/offer/  

*Make sure you have your SRN/HIN handy. Your HIN or SRN can be found on your holding statement and other security holder communications. 

Offer summary 

On Friday, 14 July 2023, 1414 Degrees Limited announced a non-renounceable pro rata offer of one fully paid ordinary share in the Company (New Share) for every two Shares held by Shareholders registered at 7.00pm (AEST) on Wednesday, 19 July 2023, (Record Date) at an offer price of $0.045 per New Share, with one free attaching Option exercisable at $0.10 each on or before the day that is 24 months after the date of issue (New Option) for each New Share applied for and issued under the Entitlement Offer.  

1414 Degrees is also offering eligible shareholders who take up their entitlements under the Entitlement Offer in full the opportunity to apply for additional New Shares (with free attaching New Options on the same basis as the Entitlement Offer) in excess of their entitlements pursuant to a top up facility (subject to applicable laws and the terms and conditions set out in the Prospectus dated 14 July 2023 (Prospectus)). The top up facility has been included to provide maximum opportunity for existing 1414 Degrees shareholders to apply for further Shares (and free attaching New Options) in the Company. 

20 July 2023

Today our Chairman wrote to shareholders summarising key details about a non-renounceable pro-rata offer of new fully paid ordinary shares, each with a free attaching option (Entitlement Offer).

The letter is provided here:

Recently, in March 2023, the Company attracted funding through a placement of Shares at a substantial premium and your Board has been assessing how to fund the development of its products for commercialisation to maximise Shareholder participation and value.

We are aware that there are a significant number of Shareholders without a marketable parcel. We are also aware that there is substantial body of Shareholders who have invested at higher prices, and some with large shareholdings who have invested at substantially lower cost.

On 14 July 2023, we announced a non-renounceable pro-rata offer of new fully paid ordinary shares each with a free attaching option (Entitlement Offer) and this letter summarises key details.

Key details of the Entitlement Offer:

1. Opening date: The Entitlement Offer will open on Monday, 24 July 2023.
2. Prospectus: You will be sent the Prospectus and your personalised Entitlement and Acceptance Form on Monday, 24 July 2023. Please also refer to the Important Notice below.
3. Entitlement Offer: You will have the opportunity to apply for one new share for every two shares you hold at 7 pm (AEST) on 19 July 2023, at an offer price of $0.045 per new share
4. Free attaching option: For each new share applied for and issued under the Entitlement Offer, you will also receive one free attaching option exercisable at $0.10 each on or before the day that is 24 months after the date of issue of that option
5. Eligibility: Only shareholders who:
   1. are registered as a holder of shares as at 7 pm (AEST) on 19 July 2023;
   2. have a registered address on the Company’s share register in Australia or New Zealand, or are, in the opinion of the Company, otherwise eligible to receive an offer of new securities under the Entitlement Offer; and
   3. are not in the United States and are not acting for the account or benefit of a person in the United States,
      are eligible to participate in the Entitlement Offer (Eligible Shareholders).
6. Top up facility: Eligible Shareholders who take up their entitlements under the Entitlement Offer in full may apply for additional new shares at the offer price under the Entitlement Offer, with free attaching new options, subject to applicable laws and the terms and conditions set out in the Prospectus.

Taylor Collison Limited will act as the lead manager to the Entitlement Offer, including any shortfall to the Entitlement Offer. Taylor Collison will place any shortfall that is not allocated pursuant to the top up facility with sophisticated and professional investors on a best endeavours basis.

Any allocation of shortfall (including under the top up facility) is subject to the discretion of the Company’s directors as to the allocation of shortfall.

This email does not contain all the information that you may require in connection with the Entitlement Offer or an investment in the Company. It is provided to you for information purposes only and does not constitute an offer, invitation or recommendation to subscribe for, retain or purchase any securities in the Company.  We encourage you to review the full details of the Entitlement Offer in the Prospectus, which will be sent to you on 24 July 2023 and is currently available on the ASX at www.asx.com.au and on the Company’s website at www.1414degrees.com.au.

Thank you for your continued support as a shareholder of 1414 Degrees Limited.

Sincerely,
Dr Kevin Moriarty
Executive Chairman, 1414 Degrees Limited

IMPORTANT NOTICE

In accordance with section 734(6) of the Corporations Act 2001 (Cth), the Company notes:

1. the Company lodged the Prospectus in relation to the Entitlement Offer and certain related offers with ASX and ASIC on 14 July 2023, which is available at www.1414degrees.com.au;
2. the Company will be the issuer of securities referred to in this email pursuant to the Prospectus;
3. the offers of the securities under the Prospectus will be made in, or accompanied by, a copy of the Prospectus;
4. a person should consider the Prospectus in deciding whether to acquire the securities in the Company; and
5. anyone wishing to acquire the securities under the Entitlement Offer or any other offer made pursuant to the Prospectus will need to complete the relevant application form that will be in or will accompany the Prospectus.

If you receive this email and do not satisfy each of the criteria above for being an Eligible Shareholder, you are not entitled to participate in the Entitlement Offer (please refer to the Prospectus and the ‘Notification to Ineligible Shareholders’ announced by the Company along with the Prospectus on ASX on 14 July 2023 for further information).

The content of this email is not, and should not be considered as, a securities recommendation or financial product advice. The information in this email is general information only, and does not take into account your individual objectives, taxation position, financial situation or needs. Before acting on the information, you should consider the appropriateness of the information, having regard to your objectives, taxation position, financial situation or needs. If you are unsure of your position, please contact your stockbroker, accountant, taxation adviser, financial adviser or other professional adviser.

6 July 2023

Pictured above is one of Refratechnik’s refractory brick manufacturing facilities in Germany.

ABOUT THE REFRATECHNIK GROUP

Founded in 1950 and headquartered in Munich, Bavaria, the Refratechnik Group is a global network of companies, active in the refractory and raw material business.

Their advanced products as well as their service and processing expertise are applied worldwide in all high-temperature industrial processes, for example in the cement, lime, ceramics, iron and steel, aluminium and non-ferrous metals industries.

For more information on Refratechnik (which is part of the Refratechnik Group), please visit www.refra.com/en/Refratechnik-Steel/

Today our Chairman wrote to our shareholders and stakeholders, wrapping up the 2022-23 financial year and outlining plans for the year ahead.

3 July 2023

As we formally close the 2023 financial year, I am writing to thank you for your support this year and to address the recent unfortunate poor performance of our shares. I would also like to extend my thanks to those of you who raised concerns with me directly. Hearing directly from shareholders provides valuable feedback and helps us calibrate our communications, especially considering we have an innovative technology for a new market.

As little as 12 months ago very few industries and even fewer companies were considering technological solutions to abate complex and hard to decarbonise industrial processes like cement, aluminium, or iron and steel production. Receiving support from one of those forward-thinking companies, Woodside Energy Technologies, and the Australian Government has enabled us to develop a truly pioneering heat storage technology that can be integrated into major industries globally.

Renewable energy and renewable energy solutions have received significant attention following the commitments made by governments worldwide at COP27 and prior meetings. While this is encouraging for the sector many solutions face technologic and economic challenges and it is important that real solutions are achievable in the proposed timelines.

We encountered natural teething problems in our innovation journey up to 2020 and these experiences have proven valuable as we navigate commercialising our technology in an increasingly supportive legislative environment. They provide us a commercial clarity about attainable goals compared to other companies in the broad sector. We are focused on achievable goals which are underpinned by a business model designed for success.

Our model involves licensing existing refractory plants to manufacture SiBrick™️ and licensing SiBox® to third-party engineering companies that build and service industrial plants. This approach allows us to expand production with minimal capital and generate recurring revenues, while our team continues to focus on the research and development of even better and more cost-effective products.

With the recent encouraging results following four years of innovation, we see a growth trajectory ahead. Retrofitting our silicon technology into existing processing lines will help industries reduce their reliance on fossil fuels and immediately impact emissions. This approach minimises capital risks and is attractive to industries since they can adopt the new technology without significant disruption, retaining gas burning as an adjunct or backup. This is sensible – our technology produces a controlled stream of very hot air using standard processing equipment, ducting and fans so we have a path to the lower costs essential to incentivise industry.

Our competitive advantage lies not only in harnessing the very high energy density and temperatures of molten silicon, but that it is contained in brick form which facilitates scalability and mass production. Heat is a new market and needs to be proven to industry, but we have the most commercially advanced technology for high temperature industry to reduce emissions.

Our commitment to getting it right is underpinned by the vast scale of the heat market. Replacing even a portion of fossil fuel consumption in this multi-trillion-dollar market is incentivised by various forms of carbon taxes or penalties. 1414 Degrees’ technology can help major industries to reduce their compliance costs while producing greener cement, aluminium and steel.

We have turned our technology around at a pivotal time in Australia’s energy transition journey making this a very exciting stage for investors and industry.

Lastly, I am pleased to report that as we continue to strengthen our corporate development team we have engaged London-based Hannam & Partners to ensure we receive appropriate recognition in the wider investment markets.

Thank you for your support in this pivotal year and I look forward to reporting substantial results in the coming year.

Kevin Moriarty

1414 Degrees has received significant interest from investment advisors regarding the potential of the Company’s technology in decarbonising industrial processes. 

This interest follows the recent announcement of stable heat flow from the Company’s SiBox® Demonstration Module, which showcases the viability of the technology under simulated industrial conditions and serves as a testbed for the innovative SiBrick™ silicon storage media. 

Accordingly, the Company has prepared a presentation to provide insights into the Company’s technology, its capabilities, and the potential it holds for addressing the challenges of decarbonisation in various industrial sectors. 

It is important to note that such presentations are intended to be accompanied by a narrative that offers further context and explanation. 

Shareholders are encouraged to reach out to the Company directly should they require any clarification on specific points.

Click here to view the Investor Presentation.

1414 Degrees Ltd is pleased to announce the choice of a name for its groundbreaking silicon storage media, previously known as the 14D Brick. 

(pictured: Dr Mahesh Venkataraman CTO, holding a SiBrick™ in front of the SiBox® Demonstration Module and a wall of SiBricks)

From 260 names suggested by shareholders, “SiBrick” has been chosen for this proprietary innovation.

The Company has lodged a trademark application for SiBrick™. SiBrick™ represents a significant breakthrough for hard to decarbonise industrial processes. It harnesses the powerful latent heat capabilities of silicon to provide zero-carbon heat for high-temperature industries. 

The name was chosen after an enthusiastic response to a competition conducted through social media and email, encouraging shareholders and followers to contribute their ideas.

Among the suggestions, SiBrick™ stood out due to its association with silicon and the registered SiBox® trademark. SiBox® is a complete thermal energy storage system, designed to be retrofitted into industry processes, providing a sustainable alternative to fossil fuels by delivering high-temperature clean heat generated from electricity.

SiBox® reduces the cost of industrial process heat by charging when electricity is cheaper.

These modular and scalable bricks possess remarkable attributes of high-energy density and high thermal conductivity. 1414 Degrees has a partnership with a top-tier European manufacturer to develop and mass manufacture SiBricks using their existing infrastructure.

SiBricks are currently undergoing rigorous testing in our SiBox® Demonstration Module, storing and delivering high temperature latent heat. This critical work brings us closer to our vision of electrifying industrial processing and revolutionising the way we meet energy demands.