Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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E_AL: "Now think of Andrew Fargos as the guardian angel of this company"
if frangos is the guardian angel for shareholders here, then he's been doing
a pretty terrible job since it began with astar becoming mxo back in 2014.
https://investegate.co.uk/astar-minerals-plc--mxo-/rns/final-results/201406271407407783K/
anyone who invested in mxo at 1p a share (pre-consolidation) when all this began
under stefan & frangos in 2014 & left it in would have lost 95% of their money by now.
My point exactly, only you put it more clearly than I did.
So my ponder is: who's the institutional investor about to nearly match Zark's holding?
Slowlyslowly, the company wont depend on private investors to raise funds at this stage. As you can tell, the market's sentiment is not in our side atm & trading volumes have been relatively low so unless the company brings attractive business opportunities to the table, new PIs wont participate in any future fundraising and without funds they wont be able to close new investment deals so its more of catch 22, this is why they need the involvement of new iis.
Now think of Andrew Fargos as the guardian angel of this company, the chap in the background who owns a chunky position in the company, adme ex MD, successfully sorted out the recent fundraising (via his company Pello), convinced the SWISS (yes the SWISS!) to pay premium for 7% of a company with negative cash flow & very likely the one who brought the sheikh & the CEO to ADME.
This dude is well connected & I am pretty sure that he (and the new CEO) already secured very good business opportunities for adme , otherwise we wont have the support of Peel Hunt (MM!) & the Swiss.
I believe the company will be in a very different position before Christmas !
Agreed, E_AL
=============================
The Company intends to raise £832,000 by way of the issue of 11,885,713 new ordinary shares of 1 pence each ("Subscription Shares"). The subscription comprises:
· a £269,640 subscription by Zark through the issue of 3,852,000 new ordinary shares of 1 pence each ("Initial Subscription Shares") at 7 pence per share ("Issue Price"), utilising the Company's existing shareholder authorities and conditional only upon admission to trading on AIM;
· a further £150,360 subscription by Zark through the issue of 2,148,000 new ordinary shares at the Issue Price, conditional upon shareholder approval and admission to trading on AIM; and
· a £412,000 subscription from other investors through the issue of 5,885,713 new ordinary shares at the Issue Price, conditional upon shareholder approval and admission to trading on AIM.
=============================
I'm wondering who the "other investors" are who'll take the 5.8m shares. It's really good to know that Zark are behind this. But it seems their intended investment is 6m. The other half of the planned issue will be by "other investors". The implication of the RNS is that these will be placed imminently after approval is given at the GM. So that doesn't give them time to organise an open offer or similar. Further, I wouldn't expect them to announce a premium-to-price placing of nearly 12m, and be hoping that private investors will be so convinced by the company's fortunes that they'll subscribe for nearly half the planned amount. That would be a strategy to fall short on the amount they need for their short-term pipeline of opportunities.
So there must A N Other investor (or several) in the wings ready to pick up the remaining 5.8m.
The "Results of Placing" RNS will be a very interesting read.
You are welcome slowlyslowly
"I think the 400k they notified buying today is more than this, as it's nearly a whole percentage point. But we may never know."
Since the sp dropped below 6p (last Tuesday) I noticed Peel being the first on Both ASK & BID which confirms what I mentioned before that they are averaging down their position via their MM business. Paying peanuts to sellers but sell at premium.
They are not interested in increasing their position above 20%, this is why they are buying low but the first on the ASK - Keeping a spread of 8-10%
Obviously I am annoyed by the sp drop but with Peel, AF & Zarks on board with averages way above the current sp, I am VERY confident that we'll see sp recovery after the GM
Thank you, E_AL, that is very helpful. I was wondering why they were trading up and down small amounts, tipping over either side of the 19% line. Of course: It's because they hold a notifiable position as an investor, but their market making activity causes their total position to fluctuate. Thank you for explaining.
I think the 400k they notified buying today is more than this, as it's nearly a whole percentage point. But we may never know.
Guys, although Peel Hunt owns an investing business but its also MM. If you gave attention to their last 3 TR1s you'll notice a tiny change in their position which relates to their share trading business.
Thank you - don't know how I missed this. I made a mental note to expect Peel Hunt to reduce when Zark's shares hit the market, then forgot my mental note when it happened.
Yes, we should have expected their percentage holding to drop more than it did, and that's because they topped up to keep their proportion at 19% +/-.
They've gone from 9,572,543 -> 9,975,117
Striking that they topped up on the open market to ensure the placing didn't dilute them.
They recently held 9.5M which has increased to 9.9M
Peel have increased number of shares but due to dilution they have a smaller percentage
The 1 pm RNS shows that Peel Hunt has REDUCED its shareholding; that's discouraging
I forgot to say, Peel Hunt keeps increasing their position (& averaging down) .....they seems to be comfortable with that !
Yes your right setanta , the red keeps piling in by some large invesyor regular sales for months, but who and back to your point earlier the 2 new big investors could be buying for some on else like the sheikh..
Sorry - I thought the current intention is to raise funds ABOVE the current share price.
The investments by two brokerage companies, (one of them rumoured to be for sale), in ADME surprises me somewhat. Between them they now hold 26% of the company. I have difficulty in believing that they are acting in their own interests. The recent activity of Peel Hunt in ADME is very odd. I think it strange that two brokerage companies are so invested in a company whose proximate intention is to raise funds, presumably at below the current SP. Can anyone explain the oddity? It could well be that I am missing some important point!