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Hi guys,
EEE drilling results out today, not brilliant grades but good enough to keep proving up. However, for me the key bit is the find. The RC drilling and more importantly the location tech which is the same process that we will use. The finding process has improved significantly over the years. Covid has knocked the appeal of many overseas developers especially bottom of South America, unrest in Azerbaijan/Armenia has put areas including Georgia off limits, could go on but it really adds up that OZ and Canada and a few select others Ghana/Tanzania are very compelling places to invest.
In Oz mining is a vital industry and even during peak lockdown it still allowed travel within state. A miner with good acreage and using local labour in a safe juro could do very well.
Just part of my investment thesis, but I didn’t pick PALM off my list as I thought it was too expensive for where they were. The sp has since soared so wtfdik!
I have taken a small position in ROCK following a tip here and added its data to my excel. I missed that one on my scavenge. Thanks!
Usual caveats
Trek
isas was spot in here of course yesterday.
"The Placing Shares will be issued with warrants attached on the basis of one warrant
for every two Placing Shares, each warrant entitling the holder to subscribe for one
new Ordinary Share at a price of 2 pence at any time in the 24 months following
Admission and provided that if the volume weighted average price of the Ordinary
Shares is equal to or exceeds 3 pence in any period of five trading days the warrants
must be exercised within 20 Business Days of the Company making an
announcement of such target being met."
20 days should have extra money (approx. £2m) in the company's kitty.
Hi all, I am in here
Trek
thanks for that excellent post
Is it this huge report you’re both reading?
https://w32.3eb.myftpupload.com/wp-content/uploads/2020/10/c117157CCL.pdf
Gosh Trek. You really know your stuff. I’m lost on some of that!
The dilution is pretty interesting here. The strike price of 4.5p adds a completely new dimension. It’s a safeguard against shorting 2.3p options or forward selling. Cutting nose to spite ones face! The market will soon cotton onto the math here as there are other ways of viewing it as opposed to just more shares.
Macap £6m = 3p. A penny for £2m
40% extra shares fully diluted but we get £4m (Page 70) coming our way.
So a case for £10m MCAP (6m mcap + 4m cash ) or 5p can very easily be made. Sure some is probably in the price but you get the picture. The cash will feed into the sp so it’s not dilutive in terms of down from 3p by 40%, it adds 40%. Stats and damn stats!
Obviously asset addition needs to be in place to trigger the options through increased sp but you can quickly see how 40% dilution doesn’t look so bad for a lowly mcap.
If we prove a few ounces this will really motor and no shenanigans will be able to stop it breaking through 5p very quickly in the assets add more than the cash. That’s likely first base!
Then we raise again to prove up more resource and work towards production or JV using the same principles.
This is my point on early posts about getting in below 4.5p; if the campaign delivers, which is why we are here, then just on the financial structure the entry sp gets a buffer before the, hopefully, bigger paydays.
Hope that makes sense!
Usual caveats.
Trek
Probably worth reiterating the VWAP to Craig/Greg/Cobra too so they can get the accelerator kicking off...
Auto calculate throughout the day on level 2...
Key bits?
XV para 9
TERMS AND CONDITIONS OF THE CLNS
The CLNs are convertible into Ordinary Shares at a conversion price of 2.3 pence per Ordinary Shares. The CLNs are convertible, at the election of the Company, on the Company publishing this prospectus in order to allow the Ordinary Shares into which the CLNs convert to be admitted to a Standard Listing on the Official List and trading on the Main Market for listed securities of the London Stock Exchange.
Para 8.7
The New Warrants
The New Warrants are constituted by, and issued subject to and with the benefit of, the New Warrant Instrumented which is dated 23 October 2020 and is executed as a deed poll by the Company. The exercise price of the New Warrants is 3 pence per Ordinary Share and the New Warrants may be exercised at any time from the date of this prospectus up to and including 26 October 2022 (the “Exercise Period”).
If at any time the price of the Ordinary Shares on the London Stock Exchange exceeds 4.5 pence on a VWAP basis for 5 or more consecutive trading days the Company may issue an announcement to the holders of a shortening of the exercise period and any New Warrants not exercised within 21 business days of such notice shall immediately lapse...
Pages 71-74 give more detail....
Fully diluted capital... page 70
Accordingly, at Admission the Enlarged Issued Share Capital will be 262,375,617
If all the outstanding Existing Warrants, the New Warrants and the Options were to be exercised, the Company would receive approximately £4,387,355 in cash and would represent 40.40 per cent. of the Enlarged Issued Share Capital....
Summary of subscription page 74...
.....the Company’s agents, procured subscriptions for 1,500,000 CLNs, which convert into CLN Shares on the date of this prospectus at a conversion price of 2.3 pence per Ordinary Share, in accordance with the terms of the CLN Instrument. The CLNs were issued on 13 August 2020 to existing shareholders of the Company and new professional investors.... All CLNs constituted by the CLN Instrument have been issued.
The 65,217,391 CLN Shares issued on the conversion of the CLNs will represent approximately 24.86 per cent. of the Enlarged Issued Share Capital of the Company on Admission.
The New Ordinary Shares will, upon issue, rank pari passu with the Ordinary Shares.
The Net Subscription Proceeds, after deduction of expenses, will be £1,375,000 on the basis that the Gross Subscription Proceeds are £1,500,000. The proceeds from the Subscription may eventually rise by a further £2,020,435 in the event that all New Warrants are exercised.
In accordance with Listing Rule 14.2.2, at Admission at least 25 per cent. of the Ordinary Shares will be in public hands (as defined in the Listing Rules) upon Admission.
Could the plan be prospectus, drilling news +4.5p over 5 day VWAP and we get another £2m?
https://w32.3eb.myftpupload.com/wp-content/uploads/2020/10/c117157CCL.pdf
Trek
"The Placing Shares will be issued with warrants attached on the basis of one warrant
for every two Placing Shares, each warrant entitling the holder to subscribe for one
new Ordinary Share at a price of 2 pence at any time in the 24 months following
Admission and provided that if the volume weighted average price of the Ordinary
Shares is equal to or exceeds 3 pence in any period of five trading days the warrants
must be exercised within 20 Business Days of the Company making an
announcement of such target being met."
20 days should have extra money (approx. £2m) in the company's kitty.
How do you calculate the VWAP so easily like that?
Thanks-excellent let's see how it pans out now and if the company enforces 2p warrant holders to cash up.
VWAP
3.029594
Dan was the 3p vwap achieved at the close of play?
I added just a few more....and have a feeling 3p might be a price we won't see again for some time - but what do I know.
Dow going to interesting this week, soft - but gold might do well.
2.999765p is current vwap, just a few more buys needed...
Exactly, fancy buying some more...
Tuesday- my thinking if we close above 3p, could flush out the 2p warrants and the company could have £2 million to expedite IOCG targets.
Tuesday I believe.
When we first closed above 3p, was it Weds?