So sciencey details aside, 1414 Degrees has spent years researching and developing their technology and is currently trailing their pilot plant with South Australia Water. Their success as a company hinges a lot on the success of the trial, which we won’t know for another 12-18 months.
Having said that, the SA government backs the project and has already provided grants to the company (similar to how Tesla received funding for his batteries). They’ve also generated a lot of interest with industrial plants.
For me, this is a speculative investment. There are risks as the company still needs to prove its technology before it even builds a customer base. It likely won’t turn a profit for years, if at all.
However, the support it appears to be getting from the South Australian government, combined with the support and potential it has within other industrial plants leaves so much potential for growth. The patents it holds stand in several other countries as well so there could be potential for global growth if all goes well.
As such, I’ve decided to buy into the IPO of 1414 Degrees. The minimum buy is 6000 shares for $2,100 (35c a share). For me this is about a 1% total portfolio valuation which I think is acceptable for a risky, speculative share.
As before, this is what i'm doing. Feel free to take ideas and whatnot but always consider your own situation.
EDIT - As of 14/7/18 the IPO has been extended to August to and bonus options are on offer. At this stage am not sure whether I will contribute more to the IPO and I will likely keep my initial investment amount.