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A complete and utter disgrace. These people should not be trusted IMHO.
That's your prerogative.
I disagree !!
India up to 46inr on 2.5m...might put 0.25p on the UK line today.
Realistic.
so negative
No chance!
SP climbing in India. Should see similar value here very soon.
Got pleasant, timely reply from her. She says : We are in discussions with the Bondholders for the draw down of the second tranche($15m) and they have agreed to extend the period for the draw down. It is at their option and they will give us the amount only if they are satisfied that we require these funds. Business is indeed picking up and in a month's time we will come out with an update release. Our Nomads are verifying the credentials of the proposed directors. On receiving their feedback we will then proceed with the next steps. ---------------------------------------------- So, 2nd tranche of money very probable but not finalised. Business picking up. Looks like they are delaying the EGM to me but it's still inescapable soon. In some ways, all good.
Thanks for breakdown of DQE business model and realities behind the Bonds. Not sure why the 2nd tranche of $15m will be drawn down at the option of the Investor - surely that means 'we'll give you the extra bit if we want to whether you want it or not' ?!? Maybe Nomad or Rashida should inform if someone can be bothered asking - Smudge, could you email her? That 25% Mgmt Options pool on DQE Mauritius at liquidity event, the last 'throw-away' sentence in the Dec '14 mega RNS, is rather nasty isn't it - don't suppose many noticed it right at the end.
l2309, I meant there was no RNS on the first tranche, it merely found its way into the figures. That may be the case with the second tranche. Off to Robben Island today, and seeing in the New Year on the V & A Waterfront, so no more responses from me today. Wishing you all a happy and healthy New Year.
of $15m. In case that it did not happen, will OCP Asia get all 56% of DQE Mauritius? Probably that would depend on a share price of DQE India at the time of conversion? Which can be anytime between now and 2 years.
May have a turn in fortune now, Busy on here today keep the comments coming
I agree with you. It seems that big sells depressed sp growth here on AIM. It will catch up once seller is gone. Until EGM is announced I expect further sp growth on Indian market and this should reflect here to.
Looks like the seller may have off loaded , maybe we could start the anticipated rise
It has not moved here on AIM but it has on India probably because their market believes that business improved. I believe it should move closer to 7p as this reflects around 10% of DQE India. Have a good holiday break.
Thanks tiltonboy! In your post you questioned if first tranche's drawn was announced. It was. If you look at RNS Q3 results; February 26th: DQ Entertainment (Mauritius) Limited ("DQE Mauritius"), which has a 75% holding in DQE India, executed a fundraising by way of an issue of senior secured convertible bonds (the "Bonds") on 9 December 2014. DQE Mauritius has received the first tranche of funding from the issue of the Bonds, which represents USD 31.4 m, net of fundraising related expenses. Of this sum, approximately USD 8.2 m has been used to repay bank loans, together with interest and other financial charges. Regarding 2nd tranche (rns December 9th) The second tranche of US$15 million can be drawndown at the option of the Investor within 12 months thereof. Most likely it was not as they did not announce. And business is improving after all (see Q2 results plus new agreements announced). I agree that AIM value of around 10% of DQE India is a fair AIM value.
Goldman Sachs Securities (Nominees) Limited 2,025,000shares 3.60% Could be these folk if 2mill on book to be sold. Must be nearly out then. Big bounce coming?
Hours sells resulted a total of sizeable sells for the day of 1.8 m, so seller could be done or nearly done. Hopefully this will be accompanied with a period of increased activity. Added a few more today.
l2309, The price hasn't moved since an EGM was requisitioned.
Sorry about the duplicate post, it said the first one didn't send! Why were the company so lax on the receivables front? If they thought the shares were cheap, why didn't they buy them, or even take them private? There are so many questions but I doubt you will ever get a straight answer from them! Let's see what happens over the next couple of weeks.
Can't believe I'm spending my holiday answering questions on DQE...but here goes! You only have to look at the way that the company is set up to realise that analysing is difficult...so DQE own 100% of DQE Mauritius who own 75% of DQE India who own 100% of DQE Ireland. The valuable part of DQE is possibly the IP. The bonds were issued by DQE Mauritius and $35m was drawn. It is not safe to assume the other $15m has not been drawn, as they didn't announce the $35m had been drawn down? These bonds carry a cash coupon of 6.5%, and a PIK coupon of 6.5%. Let's say that only $35m has been drawn down, then $2.275m is due in interest payments, and the same figure accrues as an increase in the principle amount of the bond, and so on for three years. We now come to a Qualifying Liquidity Event occurring within three years..whatever that is supposed to entail. The bond holders then can force the issue. If they convert into equity they will control 56.5% of DQEM, plus the rolled up PIK interest, plus they had the audacity to award management options over a further 25% of the equity. In that scenario we could end up owning only 10% of something that is currently wholly owned! You mention my "sarcastic" comment about receivables. I can tell you there was no sarcasm in my post. I might be cynical, but I believe with good reason, after following the events at RCG, CAMK, GNG, and a few others. Admittedly the others are all Chinese scams IMHO, but there are similarities here! In the case of GNG, it took them three years to admit that most of their receivables were only due under certain circumstances, and ended up taking a huge write-off. More later.
Can't believe I'm spending my holiday answering questions on DQE...but here goes! You only have to look at the way that the company is set up to realise that analysing is difficult...so DQE own 100% of DQE Mauritius who own 75% of DQE India who own 100% of DQE Ireland. The valuable part of DQE is possibly the IP. The bonds were issued by DQE Mauritius and $35m was drawn. It is not safe to assume the other $15m has not been drawn, as they didn't announce the $35m had been drawn down? These bonds carry a cash coupon of 6.5%, and a PIK coupon of 6.5%. Let's say that only $35m has been drawn down, then $2.275m is due in interest payments, and the same figure accrues as an increase in the principle amount of the bond, and so on for three years. We now come to a Qualifying Liquidity Event occurring within three years..whatever that is supposed to entail. The bond holders then can force the issue. If they convert into equity they will control 56.5% of DQEM, plus the rolled up PIK interest, plus they had the audacity to award management options over a further 25% of the equity. In that scenario we could end up owning only 10% of something that is currently wholly owned! You mention my "sarcastic" comment about receivables. I can tell you there was no sarcasm in my post. I might be cynical, but I believe with good reason, after following the events at RCG, CAMK, GNG, and a few others. Admittedly the others are all Chinese scams IMHO, but there are similarities here! In the case of GNG, it took them three years to admit that most of their receivables were only due under certain circumstances, and ended up taking a huge write-off. More later.
... and since 'Requisitioners' letter share price has doubled. Market accepted the fact as a very positive thing. Share price grew even faster since 9th Dec until today - facility not being drawn down, perhaps sign of better receivables management. Thanks for your input pablo2, find it valuable
Like to speak to you about the 9/12/14 Bond rescue package. It stated : "The Bonds will be issued in two tranches, the first of which will be for US$35 million to be completed within one month from the date of the Bonds, being 9 December 2014 (the "Closing Date"). The second tranche of US$15 million can be drawndown at the option of the investor within 12 months of the Closing Date." We haven't heard anything of this 2nd tranche which is now out-of-date, so perhaps we did not draw on this facility and stuck at $35m? The $35m were meant to really get our projects moving so perhaps business will pick up. Don't like your sarcastic comment on 'receivables' maybe not even being due (presumably you think they are lying?) - that seems strange. We own 75% of DQE India and whether diluted to hell or not this fact remains. So, surely, a relationship with the Indian sp seems sensible though sadly lacking. The 'requisitioners' and the EGM will no doubt happen soon and have been, presumably deliberately, delayed as unwanted and hostile. Looks like they must happen and there intentions made public soon. Won't be long IMO. You're very knowledgeable on this company and really good to have your input and further thoughts on the Bonds and India - would be most welcome. Massive volume today compared to usual may well get us going a bit.