Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Best to wait for the announcement
If a holder takes up the RI, they can still own the same percentage but without knowing what the sp will be when announced they could get hit very hard.
Thanks Dan. Understand now. Appreciate the explanation
Rights issue means existing shareholders retain their interests.
No impact from lower share price or discount.
If you had 0.1% before the rights issue and you take up your rights then you still have 0.1% after the RI. Company sorts cash requirements via funding from shareholders.
Every one is a winner.
Believe in the science.
Farn contemplates alternative short- and long-term financing options. One of those alternatives is most certain to dilute shareholders.
A huge sp drop, and a possible RI are good reasons to suspend.
This could be taken down much lower before an RI can be confirmed. Again , bad management ....
But the share price will only go down from here as what is the point buying now? Or have I missed something
No reason to suspend.
No false market.
Just pray that they sort themselves out whilst looking after shareholder interests.
Exactly and what’s the point buying anymore now when it will be discounted further as a rights issue??
The share should be suspended, how low can it go leading up to the AGM....
Rights issue at AGM..
If the science was solid - it would have been bought out by now.
The science IS solid so i am personaly not too worried about the finances ..
Money will Always be found when the science IS sound
Patience IS the Key here as Always,imo
An RI is only good for the shareholders if the company and its products have genuine potential. The board would need to reveal more info about partners etc. Just keeping pumping money into hope never ends well.
You wouldn't do a rights issue for a small amount of money as its a big hassle. My interpretation of this is that this issue has caused the door to be closed for now on any potential partnership deals and they are now going to raise funds for the next 1.5years to complete the trials themselves.... means we wont see SSV for quite some time now..... i am here for the long haul so will ride it out
The ship needs steadying.
Rights issue is not a bad alternative.
Can someone explain if that is good or bad news. Apologies for my ignorance in this
This situation needs clarification asap from Faron. In general the investors in this type of company -ie high risk but potentially high reward are supportive over the years.- The management at Faron have been doing a decent job - they have been a bit less than transparent at time but no less than other boards . Obviously their hand has been forced but as share holders we deserve an explanation and reassurance-soon. If this goes on the SH will drop further which gives Faron fewer options for getting back on track. If no investors are lined up for a share option - or Timo gets nervous then it may come down to a fire sale which leaves everyone up the creek.
Rights Issue.......
Restores some of the confidence that was shot
This is no more than a careful hold for me. The poor msnsgement that has lead to this situation is very concerning.
Well I bought another grands worth..
Can't see faron folding so once this matter is resolved we should rise back up
FARN were very well aware of the covenants that they have broken and they wouldn't walk into it unawares unless they are totally incompetent (which I doubt). So the big question is why they haven't raised money ahead of time as usual. If it were due to poor results, the Nomad would have forced them to release that to the market by now so it's something else.
We do know that they are inactive discussions for a Bex deal and if that is nearing completion they may have brought some of the big shareholders (e.g. Timo) into the insiders group. If that's the case (big IF, I know!), then clearly Timo et al would not be able to help with financing at the moment as that would be insider trading. The wording of the RNS "The Company presently does not have the ability to remedy the breaches" would make sense in that context.
They always had a big choice to make at this point - take whatever deal they can get or raise a lot of money to go it alone to the end of Ph2 (and likely delay other expensive trials like Bexcombo). So I think it's quite likely the big shareholders, who also provide most of the finance, would be active participants in such a debate.
So my best guess is they have tied themselves up in knots and are trying to unravel it!
Thanks Drac,I have been invested in Faron since the drop from £8.adding more over the years I too believed that Faron was different from many companies on AIM.Hopefully our faith in Markku and co will be restored soon.
West, It used to be believed that they were a signal of an up coming RNS. In my experience It happens only on rare occasions. Another belief was of MMs balancing their book. I thought both Faron and Scancell were two well run Cos and that there was promise In them. Compared to one other absolute disgrace of a co I was Invested In. One thing for sure after Markku's ( whom I trusted) up lifting predictions of Billions. You can't believe anybody. AIMO of course.