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Hunniford - I read the Sharing Agreement slightly differently, in the mechanics.
Or maybe I've misunderstood your thinking...
1st Aug 2023: Lanstead pay ORR £1,767,000 and receive 930,000,000 shares
Lanstead can sell these shares in open market at any time.
1st Aug 2023: ORR enter into a Sharing Agreement whereby ORR give Lanstead £1,767,000
13th Sep 2023: Lanstead start paying ORR 24 monthly payments that are linked to share price.
The monthly payment is the cash equivalent value of selling 29,066,324 shares at the VWAP.
No shares are actually sold - Lanstead are just paying ORR directly in £.
ORR get a 'good' deal if VWAP is over 0.2533p benchmark share price.
ORR get a 'bad' deal if VWAP is under.
1st Aug 2023: Lanstead receive 83,700,000 Value Payment Shares as a 'bonus' for entering the Sharing Agreement.
Lanstead can sell these shares in open market at any time.
This is a great negotiation by Lanstead. They have based their worst case scenario on a share price of 0.2533p. BUT, can hedge their position by simply selling monthly tranches of shares at the same time as making the monthly payment to ORR... They also mitigate exposure through the Value Payment Shares (c.9% premium).
Essentially, Lanstead have a risk-free position - unless ORR go bankrupt.
my musings...
Lanstead would have known about the BCM negotiations and would have factored this into their calculation of the benchmark share price.
I think the share price will have a constant pull towards the 0.2533p benchmark until the Lanstead Sharing Agreement ends (in mid-Sep 2025) or we get more transformational news on resources, JV partnerships, etc...
Hawaii
If we go by your understanding, my view on why they would have sold a number of shares early on is because they are probably balancing their books and the risk. If I was them I would be selling more shares if the share price was higher than at the start, to ensure there is money available to pay Oriole. AIM is so wild in its ups and downs I'd be making sure I stayed the right side of the share price to meet my obligations and make a profit. So selling as much as possible when you're in a good price range seems sensible from a profit and balance sheet perspective because they are managing their exposure to risk of it going down. So, all the while it's higher, and staying higher, I'd be expecting them to cut the losses in an emotionless way. If it goes up further, I'd probably ramp up selling even more. This is all on the assumption that they are trading to make a profit on the share price.
Saying all this, the counter process (which is how I thought it worked) is that they don't care what the price is and they just sell the same each month and it is what it is. If it's low, Oriole and Lansted get less, if its high they both get more. Otherwise at what price would Landsted be paying them an amount each month???
PI's buying now! Won't be long before we enter a rich news flow period...
Lanstead at it again?
No PI’s will be selling right now.
@ H5O - I hope they are teaching them how to dig and run a wash plant!!!
Cekim
these credit type facilities are everywhere,
like on tm1,after todays rns,you could buy and buy all day,but the sp wouldnt budge an inch past 0.70p......no doubt,atlas offloading
We await next news RNS. I don't think long term PIs would be selling so have to assume Lanstead kicking a few more out.
Interesting thing from the Lanstead RNS is the company will be receiving monthly payments. So... the insiders in the company will roughly know how much is being sold based on the payments they receive and a quick calc of the average SP in the month. Text from the RNS.............
"The £1,767,000 gross proceeds of the Lanstead Subscription will be pledged to Lanstead by the Company pursuant to a Sharing Agreement with Lanstead. The Sharing Agreement, details of which are set out below, entitles the Company to receive back those proceeds on a pro rata monthly basis over a period of 24 months, subject to adjustment upwards or downwards each month depending on the Company's share price at the time relative to the Benchmark Price of 0.2533 pence per share. The monthly settlement amounts for the Sharing Agreement are structured to commence approximately six weeks following Admission.
This is where we will see how corrupt this is . There is only 4k diff with sells and buys. A lot of buying after the 6% drop but still no change .
Snapped up some more. Can't see it going any lower than 0.3399...
Increase in shareprice benefits all parties holding shares including Landstead as far as I can tell with the deal structure.
God of HF
Why did they sell 200m in the 1st few months of the deal, if they wanted to benefit from a SP rise.
I had a post removed (no doubt due to ORR censorship) when I stated that Bob (the CFO) was wrong when he claimed Lanstead would have to declare every 1% they sold, I was correct he was wrong.
Make no mistake Lanstead have sold far far more shares than they would have done at this time, that is why they do not declare.
Contrary to their waffle on their pathetic website they sell shares to cover payments, if they wanted to benefit from ORR's success then why sell any shares at all.
This matter will not go away however their messing around provides opportunity to bag cheap shares, eventually as the months pass they will increasingly be out of the equation.
AIM is unregulated so they can do what they want. That is how the SP gets played so much.
Hawaii can you explain why you think Lansted wouldn't want the share price to rise? I'm not sure I understand because my view was that if the share price goes up both Lansted and Oriole benefit.
My assumption on the lack of RNS from them is that there must be a legal loophole that means they don't have to because, again, it wouldn't benefit them to break rules or the law
It looks like Lanstead at 'at it' again, the market makers were offering a generous sell premium quite recently and it was nigh impossible to buy around the same time, that situation is currently reversed.
Still no TR1 from them, now nearly 4 months on, totally disgraceful, ORR management do not appear bothered which I find more than strange, they clearly read these boards and are happy to 'act' with critical posts from shareholders but they must be aware Lanstead have traded through a number of declarable positions, a simple email from them (to Lanstead) reminding them of their responsibilities would suffice.
You can bet your bottom $$$$ Lanstead have probably dumped 500m of their 1 billion shares at this juncture, they know if they inform the market the bulls would charge and the SP appreciate strongly IMO.
All one can do is use the opportunity to acquire shares at current levels, the new floor seems to be around .35p
Hunniford/ckim
i think its geopolitical enduced.
israel didnt escalate with iran
ukraine got its aid
the oil price asnt shot up
so the gold price has drifted $40 lower.....sending goldies with it
Whos doing all the selling today?
Can't be Lanstead they've nothing left to sell. Oh wait how do we know that when they've not disclosed anything yet!!!
Worn record but the sooner ORR start generating income and then a share buyback the better for all of us! Alternatively, at this stage, a reckless takeover offer might suit all concerned. 3p would be wonderful! Might sound fanciful but it could be a bargain price depending on what's in them thar hills. GLA!
@Troaj I'm an electronics kind of guy so let's hope your alarms are good!!
Orr are often fond of a Monday morning RNS so maybe they have something decent in store for us next week. Otherwise it is just a case of waiting and seeing what comes next. BOD with significant skin in the game will be as keen as some of us LTHS to see us moving into .5 territory, shouldn't take too much to get us there but then most likely Lanstead will be back. The mystery surrounding the Lanstead holdings continues and adds a certain amount of drama to the story!!
That will disappear at 4.30. LOL
Sort of Blue!
Hunniford
well,my jobs in banking,me and ronnie are after either a shooter,or a getaway driver.
if you interested.lol.
I still have some Sir Jimmy Saville memorabilia, not sure how much that would fetch. Now then , now then!!
You could always sell your old gold medallion if your clubbing days are over! That would be ironic!
Anyone know what a kidney goes for these days? I'm trying to figure out how to raise cash to get in here :o)
To be fair I'd probably have to offer a discount on mine, it's been well used!!