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Careful gkb47. It was Diane Abbott who said that.
A TR1 would provide a welcome boost here.
There are certainly factors released via recent RNS that would provide confidence for bigger hitters to take a closer look at Angus.
Surely the risks around SF are reducing with each update and the financials are becoming more robust to satisfy investment criteria for II's?
gla
place, not "play"!
It's still early in the session, but, for the present, volume is negligible, as if there was no placing yesterday.
WH Ireland seems to have known precisely where to play the new shares.
... about half of which will now be loan capital... while the share price remains at its present level!
Agreed.
Another way of putting it is that yesterday's RNS doubles Angus's capital, about half of which will now be loan capital.
It would be quite a coup if George could pull off a debt financing equivalent to Angus' market cap. I say if, as a way to go yet.
This is the share to be in. No longer a punt. 100 million shares will fly through through.
704 million shares in issue. Market value around 21 million very soon at the very least. 3 p per share is a no brainer and very conservative.GLA
£12m is a considerably larger amount than I, personally, had foreseen.
The placing was oversubscribed and completed stunningly quickly, by 9.44am.
The impression given is that this has all been carefully prepared and there are serious ambitions for Angus.
If the debt funding creates over 1 billion shares (in total) then there's no point doing it lol.
That would equate to roughly an extra £3m assuming a similar placing price. Frankly, I think you are talking nonsense.
I agree with Ocelot. This effectively back ends Angus' future funding for Saltfleetby. With £12m in the bank you can hire someone to project manage and get the project over the line sharp-ish freeing up Angus to look at other projects without the shackles of SFB funding. The big caveat being they need to close that loan issuance though.
In order to support the Proposed Debt Funding, Angus announces that it is today carrying out an equity fundraising to raise approximately GBP900,000, before expenses, through the issue (the "Placing") of c.100,000,000 Ordinary Shares ("Placing Shares") at a price of 0.9 pence per share ("Placing Price"). This will form part of a working capital contingency fund that is normally required by debt providers.
'the £1m placing forms part of a "working capital contingency fund"'
The £1m is a gross amount - the net amount will be lower because of fees. The RNS also clearly states that 'small immediate commitments for capital expenditure in obtaining a Cement Bond Log on the potential water injector well at Brockham and in abandonment work of SF06 at Saltfleetby'.
It would be accurate to say that part of the placing forms part of a "working capital contingency fund"; suggesting otherwise seems misleading.
The debt facility is specific to the Saltfleetby project.
I wonder if, financially, this doesn't make more room for Angus's other projects, both existing and future.
Couple of comments:
it's a debt facility, of which at least £3.9m does not need to be drawn down immediately;
the £1m placing forms part of a "working capital contingency fund", a good part of which is probably surplus to immediate requirements.
Dunno about the equity kickers. May be go on the Q&A call and ask Angus? That said my guess is they have only just started work on negotiating funding terms so probably unknown by them at present.
I was surprised about the loan funding, I admit. But that said it should be looked at as 50% attributable to Angus i.e. £6m. As I mentioned earlier I'd want the other entity to be participating on like for like terms though such that they have to also put in a slug of cash for working capital. Put it this way, it's a heck of a lot better than an equivalent equity raise though. As per my earlier post I'd be interested whether Angus or the other entity are leading the charge on securing this funding.
It was in the RNS. Do you read them?
The Proposed Debt Funding
The Company is seeking to raise up to £12m through the issue of a senior secured debt facility which
will be secured, inter alia, on 100% of the Company’s and SEL’s working interest in the Field. It is the
intention that the cash interest and repayments under the Proposed Debt Funding are expected to be
serviced by net cash flows from 100% of the Field revenues generated immediately from the
commencement of commercial gas sales, i.e. including those attributable to our partner Saltfleetby
Energy Limited. As such, the Proposed Debt Funding is to include joint and several obligations of both
Saltfleetby Energy Limited and the Angus Energy Group.
Effectively this is a £6m facility attributable to Angus's share in SFB. So to put things into perspective the pipe work installation amounts, processing facilities, site prep, side track drilling costs and abandonment reserve amounts are being met 50% by Angus and 50% by Saltfleetby Energy. It's easy to jump into the mind set that Angus is borrowing £12m, whereas the reality it is half this amount (although they do have joint and several liability - but that is a worst case scenario).
Having reflected on this over the course of the day, I wonder how much this has been driven by Angus and how much by Saltfleetby Energy - bearing in mind Saltfleetby Energy don't have access to capital markets funding. For instance it would be tough for Saltfleetby Energy to quickly fund their share of the side track upfront.
That said, I would be interested to learn whether Saltfleetby Energy are contributing their half towards any working capital contingency fund.
Entirely my own opinion, but I suspect Saltfleetby Energy are perhaps finding funding hard in this environment
It’s great seeing the posts from those that aren’t invested... ANGS must be rising like the Phoenix from the ashes. Share price held up well given the placing news and continual deramping. Pretty satisfying particularly if you bought back in March Covid lockdown time.
111.1m new shares issued, but the market was calm, with volume of 12.4m (before any further late-reported trades).
Not sure there's much of an overhang, think it may have largely gone into firm hands. But time will tell!
we have seen in VAST and recently UJO, once placing shares admitted, expect overhang to be churned first. so, i expect sp to linger between 0.8p - 1p for next mth. sp may dip just below placing price, as seen in VAST and UJO, but any dip will be quickly bought hopefully.
i am looking to add, but will see how the churning will go. hopefully it wont dip well below placing price.