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We know from Julian’s interview yesterday on Proactive that a number of existing institutional investors took part in the placing. Which means they probably took place in the last placing at 18p and like me didn’t think the sp would drop below 18p again. They are being given the opportunity to provide the company with cash at 14p which is obviously useful to have to see us through to first gas as the FID has probably taken a little longer than originally anticipated and the onshore drilling does seem like a good opportunity to bring in earlier cash. So in many ways it is mutually beneficial to allow the II’s to top up at 14p to average them down from their 18p investment. The same option is available to existing investors via the open offer and if you wish to avoid dilution you will have the opportunity to pick up further shares at close to the placing price in the market. I have taken part in all the open offers in the last 2 years and bought additional shares at the same price and am happy with the gains I have made apart from the 18p placing but I am expecting that to be corrected very soon.
IIs are not interested in SP direction or SP predictions Ianfer, they are only interested in a risk free (or as risk free as possible) investment or trade. They were probably told/asked about the placing several weeks ago so will have forward sold shares they already own at 15-17p and will use those funds to purchase at 14p.
Similarly, if the SP goes to 18-20p after the placing and prior to an Anchois news updates, they will more than happily sell the whole lot (given the opportunity) and never look back.
Whimax I take your point, but it doesn't normally sound good sense to buy a share when it is going down. But going up, especially after some good news and at least 3 brokers expecting a 60p+ value would seem like a better bet. It maybe the IIs are so confident of an eventual large re-rating they don't want to miss the boat?
Inafer you said “ If the sp moves upwards shortly it will probably be because of a positive announcement. But why would there be a placing and rights at 14p if the sp was expected to move skywards?”
Unfortunately that’s not how it works.
The simple answer is, there ALWAYS has to be a potential catalyst to persuade/encourage institutions to invest. Where is the incentive for them to invest AFTER news and when the SP is significantly higher? There isn’t.
Tell me the last time an AIM company did a placing AFTER they had announced a significant SP catalyst? I save you the time and the effort………..you won’t find one.
Good points for Sure ty. They may not have got the best deal without showing they were financially safe. But if these 4 wells cost more than £3m each they'll need another rights issue yet. Maybe to get the licence they also needed to show they could afford to drill. Chicken and egg - need the money to make progress and need to progress to earn the money. So expect an announcement soon after the shareholders meeting - is it 3rd August which will accept the placing and they know how much comes in from the offer.
"In all cases they needed the funds to do the deal, to make the announcement.."
Of course but 'mates rates' are not mutually exclusive, their just 'lucky' with timing of placing no doubt.
aimo & dyor
Surely the point is they needed the funds: i) to secure the farmout and make the announcement i.e. liquidity not being used as a lever for the farminee to improve terms ii) secure the licence risk if the fairways were extending into an different onshore licence area ?!? iii) Becoming cash generative earlier given Anchois will be mid 2025 (and therefore more attractive to institutions) iv) Related to point iii - Create a continuous trigger news flow which theoretically means the institutions are less likely to cut and run. In all cases they needed the funds to do the deal, to make the announcement..
IMHO
"our mates" being Chariot talking about their mates. ... Institutions and other contacts who can accumulate stock cheaply b4 the sp rises.
Ian "The only explanation I can see is let the sp drift and then look after our mates with a cheapo before announcing good news."
"Our mates"?
If what you say was to be correct can you please explain how are they mates of us, as ordinary shareholders?
If the sp moves upwards shortly it will probably be because of a positive announcement. But why would there be a placing and rights at 14p if the sp was expected to move skywards? You would make the announcement and then do the placing. That didn't happen but we do expect good news soon. The only explanation I can see is let the sp drift and then look after our mates with a cheapo before announcing good news.
Well, let's hope it falls into the 13s fairly soon. Always nice to pick them up under the placing price.
Away and get another meal at Wetherspoons with your wife ya dafty and stop trolling my posts🤡
Zzzzzzzz
And we mustn't forget that the driver behind these "good opportunities" sometimes come with a great big dollop of dilution on the side for free... Yippee aren't we lucky🙄
And we're lead to believe with every RNS that lands our opportunities grow and the "catalyst" draws even closer.
Yet it's nearly always to the backdrop off a lower share price and a diluted holding for existing shareholders.
Jam tomorrow anyone😏
That's the beauty of Chariot, there's always plenty of "good opportunities"🥱
Early days. Good opportunity to pick them up in the 14s.
Speculiar I think it would be fair to say the excitement shown by some on here is not being reflected by the market 🤔
Is there anybody out there....
SHC, The forgotten man … almost!
Ianfer I’ll see what I can do 😅
Goon, have a word with SHC about sailors. He should be able to put you in touch with a cabin boy or Jack tar.
SHC, if you’re still doing the rounds, feel free to chip in. Rodentonwhiz has done a Johnson, it seems.
Count me in Gooner if it's Windermere or Abersoch or Pwllheli !
“Looking forward to the launch of Goonerpete's Oyster Alika.”
Me too Snott!☝️😅
Once we have gotten over the line with the next 3 milestones (🙏🏼🙏🏼🙏🏼) I will be looking to recruit a sailor or 2 😀⛵️
I note he didn't make the mistake again of being filmed with a backdrop of NSFW literature.
They 'just' need to announce the result of their competitive farm-out process and start generating revenue from the new licence. Easy peasy.
Looking forward to the launch of Goonerpete's Oyster Alika.
Clear explanation of the recent fund raising and open offer. Good prospects from the onshore drilling which they believe mirrors the Anchois structure based on their 3D seismic. He thanks existing institutional share holders for investing again in the placing and welcomes new institutional investors. Looks as if institutional investors are pleased to acquire more at 14p in advance of the imminent news about Anchois.
7 wells in 18 months, starting at the end of this year.
https://twitter.com/chariot_energy/status/1680897237931421696?s=46&t=CfuFJqRZzpmW0bqPoYobnQ