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Well said spaceman
PW doesn't care about existing investors that's rubbish imo. To start with the Sp got ahead of itself that's not his problem, BTC also came crashing down again out of his control.
Jeez this raise hasn't been much different to many other companies I've been invested in over the years. It's raised a significant amount of money that we needed and the discount has to be attractive. It's been put to good use, the amount of placings I've seen over the years elsewhere squandered, saying its going towards this and that and squandered on working capital/wages etc. I know its an IPO but a raise all the same.
These new shares will get flipped time and time again, the company is moving forward so much to look forward to if only some can see past there noses.
Wolf - yes, that's the Celsius one I mentioned. All the rest though go through as normal depreciation though as they were purchased outright - and think the ones we are currently waiting for are too. So not sure if this is the intended way forward but it would make a lot of sense depending on the terms and of course ARB will be in a much better position than us to judge that.
Hi Hexam -nthere a $10m operating lease (under right of use assets) on the balance sheet from the last set of accounts for machines which I think were purchased last year.
Assuming we have access to similar credit lines again it seems like a no brainier to me.
*reduce upfront cash required
Pretty sure only one previous 'purchase' was done on lease (the 4,500 earlier this year from Celsius)? If this is the model going forward though then excellent point. Not only will this reduce upfront costs it gives more opportunity to fund from other possible income (e.g. hosting).
Hi Hexam - my assumption is like previously all new machines will be on operating leases rather than fronting the cash.
The building could also be sold and leased back to out more working capital into the business. Probably a better use for the cash than sitting in a large long term asset that doesn’t generate any revenue.
@Lottohopes
"What are you trying to say? The options are granted with exercise price at £1.57/share ie they pay that price. You make it sound like they are issued free. Any of us could buy shares lower than this right now."
Well corrected, I read the RNS but didn't process it correctly. As you've put (and I. Intended) I thought they were freebies as soon as we cross 1.57 but they are options so will have to pay.
Of course they don't actually.pay anything though if they want the cash, they just cash in at x price minus 1.57.
But yes we'll corrected :)
"It’s the short term horizon and lack of understanding that the shiny IPO meant issuing more shares, that is ‘shafting’ PIs"
Wolf - I don't think many would not understand that the IPO meant more shares - it is just the size of the discount that has annoyed some (and the impact this has had on sp). Agree with the short-termism though as ultimately I think the benefits from the money raised and the greater access to US investors/funds will more than offset the dilution - even with the discount.
Only concern for me is that this raise is not buying more machines (or very few) - just the building to put them in (and pay off some of the Galaxy Loan). So really providing a stepping stone to much better things - albeit a vital one.
Well said @The_Chuz. PIs well and truly shafted here there is no doubt and quite blatantly and callously at that. Wealth slaughtered.
Must admit I was swept along with the optimism and enthusiasm also , when Zphr dual listed the other month it was a smooth transition and I thought the same would be true here with more positive exposure etc and be 30 % up not down !
I am putting this in the bottom drawer for now ,
It will come good in no time , be positive.
GLA
I think at unfair to say PW doesn’t care about investors, he does, unfortunately it’s only the NEXT set of investors he cares about, certainly not existing ones.
“As we all know the share price is also pretty irrelevant to the team, yes they will make it rich at £1.57 as Individuals…”
What are you trying to say? The options are granted with exercise price at £1.57/share ie they pay that price. You make it sound like they are issued free. Any of us could buy shares lower than this right now.
AND I never thought the utopia of Nasdaq listing would cause our underlying lse and otc price to fall by 30 percent to align to the 20 percent diluted adr shares on the Nasdaq.
I would absolutely have thought our ipo would create growth not a negative outcome even if it’s just 2 days.
It’s absurd that management went to list on Nasdaq and give the shares a discount. In Pete we trust ;(
To put all this drama into context the closing SP today is the same as 12th September ….
On a share like this while we like to ‘buy the dip’ it’s worthwhile learning to ‘sell the spike’ as well.
Javier, 2.6 million shares yday on the short side. How many today?
Chuz, feels rotten to be fair dilute 20 percent of the company at 1 dollar 50 see all your existing shareholders get mullered.surely the rise from 133p to 173p would have been a good enough enticement…..short interest is Blowing me away to be honest think this gets short attacked….. At least the genie is out with Pete now. If he ever does a live q and a again I don’t think people will be asking him about footy or favourite colours. He’s doing what most ceos do and makes sure he’s at the trough first lol I say Keith Gill as ceo at least he would **** up the shorters.
In jest,peace and blessings x
Onwards we go.
It’s the short term horizon and lack of understanding that the shiny IPO meant issuing more shares, that is ‘shafting’ PIs.
Short Volume really high last 2 days. Hoping for a short squeeze in the upcoming weeks
Short vo
Do feel ****ed off though to be fair. Annoyed really .....
Will hold till I make profits.
Bit like buying land and not getting planning. You will eventually......
Cash rich . Don’t worry
Unfortunatly the existing shareholders are now surplace to requirements, in fact the LSE is. Cash pigs went to slaughter.
PW and team will not batter an eyelid if all the current investors lost loads of money, you served your purpose ages ago now you are actually a hindrance with your vote casting.
As we all know the share price is also pretty irrelevant to the team, yes they will make it rich at £1.57 as Individuals but the actual cash to company has happened now, us buying and selling shares does nothing whatsoever for the company finances.
It's just the way it is, you issue 20% shares and you lose 20% of the individual price. My greed mind kept telling me it would be differnt this time but as we now know it.wasnt.
We will get our money back it.just means waiting for it.
Hopefully now investors will realise that PW was never thier mate, he never had thier best interest at heart, he doesn't 'like' private investors. He is the same as every other CEO that will just burn any investor for the good of the company.
It's the way it has to be otherwise there wouldn't be any company left.
Shareholders do not need to be kept happy, they need to be appeased and steered so they don't block company plans.
PW and the team will make a personal fortune from the shares they granted themselves as a very low vesting price... And if I was CEO I would of done the same as I know the current shareholders arnt to be looked after they are an annoyance to appease.
It may be good for those that have more £ to buy more but let’s be right.. the “gift “ PW et al gave to the USA, has dropped the crap outta the U.K. SP again, which is where most of “us” are / bought.
Sure, it will come back if they spend their new money wisely.
As a low average holder, ( 12 months is hardly LTH-but then no ones been here a long time!!)hope so.
Where is out 640PH and what machines have they ordered for Texas.. long lead times and the place should be up in 4-6 months!! Fingers crossed