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Fully agree with you there, Seb - but not “everyone” posting in that vein, just the usual suspects!
Billy, for once we are in agreement but everyone is posting as if Viridian as sis two bit operation here only for a quick buck. I can assure you they are not thinking about “get this to 60p and we are out”.
This company along with the other recent sign ups are looking at many Chill and global brand. At which point 60p will be left light years behind and no one invested with give a flying f@@k whether it was 1p, 60p, 25% quarterly, etc.
DRB & Cranleigh,
For the record, I fully agree with your interpretation of the Viridian agreement.
Buy for 1p within a five year period once shares hit 60p (full entitlement) or after 12 months (but limited to 25% each 3 months (quarter).
I do not believe Vas is correct as regards the 60p.
I do not believe Blue is correct re the 25% being every year rather than every three months.
Still think we should ask the question to the bod. Who is our spokesperson/people?
Just watch the video again.
“This is an opportunity to build one of the largest brands in the World, that’s why I’m here”
That’s why Viridian are here, and that’s how long we have them for.
Yes. Can one of our connected investors maybe ask the question to the company. 'how long do we have Viridian working with us'
They will clearly bring a magnitude of knowledge and experience and get us in with all the right people so the longer the better.
Another benefit to this agreement is the cashflow. We get all the benefit of Viridian at zero cash outlay. The enormity of this partnership shouldn't be overlooked imo.
I imagine if this is the case then Viridian would be contracted to work with CHILL over the five year period because as the DR mentioned earlier, its difficult to tell at what point Viridian could in theory exit.
Ok. still not convinced but I've been wrong before so If this is the case. This deal is extraordinarily. They have given Viridian the rights to buy 5% of the company in the future at 1p per share, once the SP is over 60p which the share price was in June 21! i guess this is an excellent deal for Viridian and hopefully CHILL as Viridian do not need to make an investment and have no risk...as sp will not hit 1p .
I'm happy to see what others make of the warrants RNS but thanks for you opinions.
2nd to that. These are not typical warrants like you would see with a capital raise where you sell X amount of shares for say a 20% discount to the current SP, and then as a kind of incentive or thank you, you give X amount of warrants with an exercise price which can be a lot higher than the current price.
The Viridian deal is not like this. It's warrants for services rendered or to be rendered. There was probably some politics as to why the bod couldn't give them away so had to apply the lowest possible price which would be the nominal value, hence 1p.
I guess it was Viridians security to ensure they didn't work for nothing.
Vas, the RNS does clearly state the exercise price. 1p. It then goes onto state when they become exercisable. Imo you are letting the 60p confuse you. That is not the exercise price but the point at when the warrants become exercisable.
"As part of the agreement, Viridian has today been issued warrants exercisable into 4.9% of the Company's fully diluted ordinary share capital (representing approximately 11,290,826 ordinary shares), with an exercise period of five years and an exercise price of 1 pence per ordinary share of 1 pence each ("Ordinary Shares"), which are exercisable on the Company's Ordinary Share price appreciating to 60 pence, or otherwise, exercisable at 25% per quarter following the 12 month anniversary of the grant date."
Vas, kindly leave the stage until you are able to read and understand an RNS.
I am not at all convinced that Viridian can take warrants at exercise price of 1 pence per ordinary share !!!
this sound wrong.
Warrants however they are structured, forgetting the timeline choices have a strike price. this strike price is always higher than the sh at the time of the warrant's creation. The strike price is 60p , not 1p .
How Much Is My Warrant Worth?
"First, understand some basic terminology: The strike price, also called the exercise price, is the price the warrant holder pays for the underlying stock when exercising the warrant.
When the warrant is issued, the strike price is higher than the market price of the underlying security at the time. The strike price may rise over time according to a predetermined schedule.
To determine the price, you can use multiple methods. One such method is the Black-Scholes method. But each method, no matter which one is used, demands a basic understanding of things that can influence warrant prices. First, understand that the intrinsic value of a warrant is just the difference between the strike price and the underlying stock price. So, if the stock price is above the strike price, the warrant is in-the-money and has intrinsic value. Time value refers to whether a warrant, and its underlying stock, will increase in price over time (or that it will be in-the-money), but it usually declines as it gets closer to the expiration date, called time decay. If the stock price never exceeds the strike price, it is worthless upon expiry."
It states 1p twice. The 1st one is the exercise price, the 2nd one is the nominal value. Let's not forget that this is the payment we are making to Viridian instead of a monthly invoice. So yes we are effectively giving them shares in return for their services.
Yes, Viridian can't exercise any of the shares in year 1 unless the SP appreciates to 60p. If it does then they can buy the shares immediately if they choose for 1p and sell them for 60p if they choose. That means they would receive £6.6m ish in wages. If the shares don't hit 60p by 1st Oct 2022 then 25% of the shares can be bought for 1p regardless of the sp. Another 25% can be purchased the following quarter and so on. What this does mean is that if the SP is say 30p in Oct 2022 then Viridian will still get their shares despite not performing. Imo this won't happen but it's worth pointing out.
The other thing to consider is that I feel with a good Q3 sales result we could have got back to 60p on our own. I think 60p was too low given we were at 100p not too long ago.
My last point would be, how long are Viridian employed for. This does not appear to be clear. Surely they can't just sell up and run at 60p. Blue says they won't but what assurances are built into the terms to prevent this. Don't trust anyone in business. It's just not clear.
If I may give an example of Power Metal Resources .
"Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce it has received notices to exercise warrants over 15,747,400 new ordinary shares of 0.1 pence each in the Company ("Warrant Shares").
The Warrant Shares are being issued pursuant to the exercise of 3,997,400 warrants at an exercise price of 1.0 pence per ordinary share of 0.1 pence each in the Company; the exercise of 6,250,000 warrants at an exercise price of 0.7 pence per ordinary share of 0.1 pence each in the Company; and the exercise of 5,500,000 warrants at an exercise price of 0.75 pence per ordinary share of 0.1 pence each in the Company."......
"The Warrant Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.
Following Admission, the Company's issued share capital will comprise 966,988,942 ordinary shares of 0.1p each."
The warrant strike prices are .7, .75 and 1p
Thanks for your reply blue.
So are you saying that it is only in the first year that Viridian can't exercise for under 60p ? Where does it say that?
If they have the right to buy shares at 1p, ( forget timeline stipulations for now) as you said then they will have a 20 bagger at todays price by this time next year! They could sell warrants at 20p or more or less
I thought ( maybe wrongly) the 1p is a nominal value often shows up with other company's in similar situations. The key number is the 60p, and any warrant they sell over 60p ( regardless when etc ) will then be in profit, obviously the higher the SP over the warrant price the more profit for Viridian.
It does state "which are exercisable on the Company's Ordinary Share price appreciating to 60 pence". It does not say in first year?
This is not a criticism, just trying to find out how Viridian could take a 20 bagger , maybe a 40 bagger in 12 months time, where is the incentive. The real incentive would be Viridian don't get any profit from their warrants until SP is over 60p whatever timeline they choose.
Thanks for bringing it back to Chill Cranleigh
You're right, I'm not great at letting things slide. Your attitude and tone attracts conflict which apparently is the very thing you want to avoid so you can focus on Chill. Me too, just bothered about Chill here. Control the attitude and we can start to concentrate on CHILL.
Can you not see how the conversation was about Chill and since you joined the conversation it quickly got rude and condescending which ultimately lead to the conversation moving away from Chill and here we are.
You may have been 100% comfortable around the terms of the Viridian deal but I can guarantee you that many here weren't and that a logical discussion around them would have been beneficial to many. That is why most of us are here, to learn and build our confidence in our investment.
If like Owen says you are one of the best contributors here then use that ability to help others, otherwise why are you here other than to massage your own ego.
Fully agree, Blue, except for your 5 years.
Surely “exercisable at 25% per quarter following the 12 month anniversary of the grant date” means 25% in each of the 4 quarters of year 2?
Well DRB, first off, I would very much dispute the arrogance accusation, but second, and way more to the current point, Ya didn't 'let it slide'. For the record, writing, 'Blah, blah, blah, arrogant, blah, blah, blah, but I'll let it slide....' is NOT letting it slide. Again, I'm not the least bit interested in your assessment of my character, nor any lectures on message board etiquette. What I am focused on is raising the quality of content here and correcting mis-information. I don't care if this vascular/character were the last creature on earth, his posted responses to you regarding the share payment to Veridian were almost entirely gobbledygook. By engaging, you legitimise him and his blather. And while we're at it, your original post unbraiding LK and others for sometimes losing their nut with this poster, aside from being painfully self-righteous, was a classic exercise in moral equivalence, which further legitimises a genuine troll. You should watch that. Could be seen as intentionally unethical behaviour, you know?
Hi Owen, thanks for the warning. I'll bare it in mind
Arrogance grinds on me that's all but happy to let it slide this time.
If we are going to move on from the Vas and clang feud then it may help just to say things in a better way. After all I'm a relatively new poster on here that started an actual thread about Chill which within about 5 or so posts turned to insults.
People need to decide if they want to talk Chill or just argue.
jesus dude. I put most of the blame on the other guy, which is as close as you're going to get. Otherwise, I don't have the time or the patience for your hurt feelings or lectures on message board etiquette.
It's called being polite and not shooting someone down especially when I asked for an explanation and he was the only one that provided one at that point.
I feel that approach works best rather than the 'you're wrong, I'm right approach' doesn't sit well with me that.
That's a joke, right? '.....Thanks Vas but clearly a very subjective set of terms that can be interpreted in various ways....' No they can't. The rest of the hash is, admittedly, with the other fella however, I will grant you that.
Thanks blue. Pretty sure that is exactly what I said if you read my posts so not sure how you think I made a hash if it.
11m warrants @ 1p =£110k
Become exercisable when SP reaches 60p OR in 25% tranches after 12 months (whichever comes first)
This means once SP reaches 60p they can buy 11m shares for £110k. They don't have to sell them and can hold them for 20 years if they like.
I also said that I expect them to maximise our potential therefore £2.2m will be worth it.
The only point I wasn't clear on is how long they will be working with us.
Please ensure you read all posts before having a derogatory dig at someone. It's uncalled for a doesn't help.
Yes, I have a view, but you're not going to like it: you've both made a complete hash of this, wildly overcomplicating the terms of the deal and frankly, made me wince as I read your exchange. Here it is, just this once: issuing Veridian 11m warrants 'struck' at 1p (ie., virtually 0) is precisely the same as awarding them 11m shares. Period. Absolutely no difference from any economic or accounting point of view. The only reason the payment was structured as a warrant is so the Company could put some small restrictions on Veridian's ability to exercise them, namely that in the first year, Veridian won't be able to exercise any so long as the share price remains under 60p (so of course they are motivated to get the sp there in a hurry), but after that one year expires, regardless of the share price, Veridian will be able to exercise 25% of the amount each year at just 1p, until the warrants expire in 5 years, which they of course will do. So, despite what I wrote, issuing Veridian the shares in this manner, is slightly less costly from an accounting point of view for Chill since exercise is slightly restricted. However for all intents and purposes, Chill have hired the best financial advisor in the CBD market with 11m shares, and I can tell you for free, none of the deca-millionaire partners at Veridian are rubbing their hands together and looking to sell any of those shares now, or at 60p or 160p. These guys don't get up in the morning for less than the value they would get at 5 quid or higher. So the ONLY thing they'll be focused on now and for the very foreseeable future, is getting us world-class executive board members, promoting Chill's products and potential and transitioning at least 25% of the Company's shareholder base in and to the U.S.,
and certainly NOT turning a measly £2m in shares into a couple million quid profit.