Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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It's nice - and surprising - to hear that an AIM Nomad is for once bothering to be a stickler for the rules and regs. All too many times and across all of AIM they seem to turn a blind eye to their overseeing responsibilities and their duty (struggling to keep a straight face here) to protect PIs by ensuring truthfulness and proper practice. It's probably because the current AVN restructuring is both so large and so high-profile.
I telephoned Avanti around the 12th and spoke to one of their people that I've got to know through attending their AGMs. This is part of a iii post I made at the time; " The main reason for all this paperwork is nervous Nomads and the Takeover Panel. He also mentioned lawyers and advisers in addition but it is the TO panel and Nomads who are yes men to the TO panel that create this need for being whiter than white. Because Solus will end up with a large percentage of equity but don't wish to buy the company they need to get a Rule 9 waiver from the panel. This means that the paperwork works almost from a 'worst case' scenario which means that insolvency rears its ugly head. Yes there is a risk of insolvency but also a chance that I may get run over by a bus tomorrow or Russia will bomb Salisbury. The word 'paranoid' was used when Nomad was mentioned." I don't think I was lied to and there are no guarantees in life but it did make sense to me. Their are responsibilities when one becomes an executive or Director of a quoted company and penalties if you breach them. I doubt Paul Walsh and others with a significant industry reputation would want to be the subject of any negligence claim and we all know what happens when compliance get involved. In short we have had to read the disclaimer that accompanies almost everything we have to deal with nowadays. I'm sure a Sky or mobile contract has some scary wording (I wouldn't know for sure as I've never read them).
Around $40m is the responsibility of the debt holders anyway as this is their 92.5% share of the open offer. The only question is whether they are happy to wear the extra ~$4m that the PI's (owning 7.5%) probably won't be taking up. I would say there's a ~70% chance of it happening and a ~30% chance of insolvency. As the chance of survival is >50%, and I think the shareprice will double if it does, it's a reasonable, if very high risk, punt (but I wouldn't risk more than a few hundred quid).
WO, two things... I agree that the implication is that Solus may with a sigh put its hand in its pocket yet again re the $44m - but I think everyone could do with a bit more than a hint at this stage. Secondly, re your "a step too far" comment, I strongly doubt that this was an active choice for AVN to make. They'd have been compelled under regulation to release that going concern information, given that it's so pressing and so imminent, JMO.
At the current share price the Open Offer is doomed to fail and the company will be insolvent
Actually, I think that's a reasonable summary. Only bit I'd draw an issue with is '...surely they know what they are doing' which I think is very much open to question in a general sense given the history here.
To correct my original post, I meant the issuance of 13.33 x the number of shares currently in issue, thus resulting in currently issued shares then being only 7.5% of the new total number (presuming the D4E deal goes through). However, my question still remains - Scotty, thanks for your views. It's reassuring to know that I'm not the only one who hasn't got a scooby on this just a tad important issue..
That's the million dollar qs. There is some suggestion that the offering to Solus extends to this amount but I don't see any details about the solus offering or the value of it. So not sure if Avanti are seeking another loan on top of the d4e swap. Seems like its never ending pit and I wouldn't be surprised if the lenders simply pull the plug.
Trawling through the Apr 9th RNS, AVN refers to three major tranches of debt, namely:- USD 118.0m on the 2020 bonds, USD 323.3m on the 2021 bonds and USD 557.0m on the 2023 bonds. This is of course not new news. It then mentions again the already tabled D4E swap, exchanging the half a billion dollars or so of the 2023 bond debt into newly issued equity - the 92.5% expansion of shares in issue we all already know about. This presumably leaves the other USD450 million of bond-related debt largely unaffected, but again not new news. It then mentions that it's going to need another USD 50 million of funding by end Jun and land a one-off USD 40 million deal in the same timeframe, if it's going to be able to keep the lights on. Then it mentions the open offer (which will probably be fully taken up by Solus, reading between the lines - because God knows, I can't see any reason for PIs to touch it), which would raise UKP 4.33 million... so call that USD 6.1 million. So... my question is simply this: Where's the other USD 44 million of funding required by end June going to come from (or make that a USD 84 million requirement, if that "infrequently recurring revenue" deal doesn't land)?
Mental impairment perhaps? So probably half the posters on this Board....;-))
11p on offer and 5p at current price are we living an alternate universe?
Exactly. Is there any reason anyone would buy at 11.225 when shares are available at 5.6 on the open market?
Yes I agree reaching geo orbit is the 2 of 2 in the riskiest part of satellite launches that fact there all up in position with no concerns is fantastic well done avanti - let’s hope the IOAR completes timely june or before to see the enablement of precooked capacity contracts to begin - I recall at least one is Bentley Walker which has been announced
More good news which leads me to believe that as soon as the current Share Price manipulation period is over this could see the biggest percentage increase AIM has ever seen ! Well dome Avanti !
Bit of a no-brainer decision: The new shares will cost 11.225p each in the Open Offer, or shares are available at 5.6p in the Market.
Actually, I'm glad you posted it as I haven't seen that despite being a long term share holder. .
Wasn’t sure everyone would have the same detail, why does it say raise £4M? I thought the price needed was £50M? Or is that perhaps the maximum which can be raised from the PI’s unless they excercise rights to buy more than allocation ?
What is happening? Avanti Communications Group plc has recently announced details of an Open Offer giving you the opportunity to buy additional Shares. As a holder of Avanti Communications Group plc Shares in your Hargreaves Lansdown Vantage Fund & Share Account you are entitled to participate in the Offer. What are my options? Option 1 – Do nothing. If you do not return an election by the deadline of noon Tuesday 24 April 2018, the Offer will lapse. Option 2 – You can purchase new Shares. The terms of the Open Offer allow you to buy 5 new Ordinary Shares for every 21 existing Ordinary Shares held at the close of business on 6 April 2018. The new Shares will cost 11.225p each. What is an Open Offer? An Open Offer is an offer by a company to its Shareholders to buy new Shares in the company at a fixed price. Companies use Open Offers as a way of raising additional funds. In this instance, via an Open Offer, Avanti Communications Group plc is seeking to raise net proceeds of £4.32 million to fund general working capital requirements. (Source: Shareholder Circular, April 2018) When do I have to decide by? Any instruction must be received in this office by noon Tuesday 24 April 2018. If no instruction is received the Offer will lapse What is the difference between an Open Offer and a Rights Issue? An Open Offer is similar to a Rights Issue. However Shareholders are not allocated Nil Paid Rights, instead Shareholders are given Entitlements to buy new Shares. These Entitlements cannot be traded on the market and so unlike a Rights Issue you cannot sell your Open Offer Entitlements. In turn, if you do not take up the Entitlements then you will not receive a lapsed payment. Please note that if you do take up the Entitlements the resulting new Ordinary Shares can be traded in the same way as your existing holding. Will the Shares purchased be identical to my existing Shares? Yes, new Shares purchased through the Open Offer will be identical to existing Ordinary Shares. Can I elect for more Shares than my entitlement? Applications for new Shares in excess of your Basic Entitlement can be made. Shareholders can elect for any number of excess Shares, in addition to their Basic Entitlement, also at 11.225p per Share. Excess applications may be subject to scaling back so no assurance can be given that applications under the Excess Application Facility will be met in full, in part or at all. Please note that any election must state the total number of Shares you wish to apply for, including any application for Excess Shares. You may apply for less than your allocated entitlement if you wish. Please note that due to the fact your Shares are held in a pooled nominee account any scaling back of Excess elections may not be on the same terms as those announced by the Company. You may therefore receive a greater or lower percentage of your Excess application than that announced by the Company. If you app
I do wonder whether i should top up on this current low share price of 5p. I have been in here for quiet a few years and it is frustrating to see things the way they are right now, but as Hylas 4 is in position now and if the open offer gets taken up by solus or whoever buys them at that price, (of course we all want to buy at 5p rather then 11.225) then given time things could start to look brighter for this troubled company. Its a long hard slog but hopefully it will be worth it.
JTIS - This argument only applies if you're buying less than �5 worth of shares. I realize we're all PI's and not institutions here, but who on earth bothers to trade in lot sizes that small??
The only time the OO might be worth taking at the moment, in my opinion, is if you only want a small top up and your trading costs would exceed the difference in price between the ask and the OO price. My trading costs are �5 per trade so if I only wanted an extra 50 shares it would work out better to use the OO.
Yes my bad WO. I confess that previous posts from you had left me with the view that you are a complete numpty when it comes to investment, and as such, I has discounted the possibility that you could actually develop a logical thought ....;-)) At least I say when I buy and sell. So come on then, don't be coy, have you been 'topping up'?
you pay 11p per share on offer? current sp is 5p. doesn't make sense.
Good to note. Thanks for the update.
If I may suggest a further strategy which will ultimately be a good one is to stop buying at all at any level. PI�s get wiped out every time in these situations. Market price action tells us all its a gonner