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"exercise price at a 30% premium to the 5 days VWAP"
Would someone please tell me where I can find the Volume Weighted Average Price for AAOG as I would like to see what the share price would be if that formula was applied today. Thanks
I am not doing this manually:
Calculating VWAP
The VWAP calculation is performed by charting software and displays an overlay on the chart representing the calculations. This display takes the form of a line, similar to other moving averages. How that line is calculated is as follows:
Choose your time frame (tick chart, 1 minute, 5 minutes, etc.)
Calculate the typical price for the first period (and all periods in the day following). Typical price is attained by taking adding the high, low and close, and dividing by three: (H+L+C)/3
Multiply this typical price by the volume for that period. This will give you a value called TPV.
Keep a running total of the TPV values, called cumulative-TPV. This is attained by continually adding the most recent TPV to the prior values (except for the first period, since there will be no prior value). This figure should get larger as the day progresses.
Keep a running total of cumulative volume. Do this by continually adding the most recent volume to the prior volume. This number should also get larger as the day progresses.
Calculate VWAP with your information: [cumulative TPV ÷ cumulative volume]. This will provide a volume weighted average price for each period and will provide the data to create the flowing line that overlays the price data on the chart.
It is likely best to use a spreadsheet program to track the data if you are doing this manually. A spreadsheet can be easily set up. The appropriate calculations would need to be inputted.
The Riverfort funds were gained June 11th, specifically stated to use for the following:
"Any funds advanced under the Facility will be used to support the Company's ongoing working capital as it pays down creditors and seeks to secure reverse takeover opportunities"
So as there are now no more creditors as all debts passed onto Zenith, they had enough working capital for admin costs for five months as of May 4th, the RF funds must have been used solely for reverse takeover opportunities due diligence, since June 11th is eight weeks of DD activity as of today.
As a benchmark - DS spent £300k of AAOG funds on Tunisian asset due diligence.
So as AAOG gained £160k up front and then £100k p/m since they may have had £360k so far drawdown in total, which does not have to paid back for a year, and then in shares is intended.
"Each Drawdown shall be repayable 12 months from its issuance;
· All Drawdowns and fees associated with them shall be convertible into ordinary shares in the capital of the Company"
So RF happy to lend in the first place and gain shares back in a year time.
so they expect:
1- Expect the company to be in business in a year
2- SP is expected to grow in interim period and so value of the shares
They also added warrants to sweeten the deal
"The Lenders shall receive warrants to subscribe for such number of Ordinary Shares as is equal to 25% of each Drawdown with an exercise price at a 30% premium to the 5 days VWAP prior to such Drawdown, exercisable within 48 months from the date of issuance."
That looks like RF want a stake in the company going forward, upto four years to exercise warrants is telling, they must have known what the scale of the plans to lend in the fist place and so ask for warrants as part of the deal.
otherwise AAOG delists and who pays them off with no assets or cash?
So a reasonable amount of DD completed so far, news within weeks may not be an unreasonable assumption.