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Still nothing...
One more roll over ??
Funny that large sells are accompanied with posts by newbies mentioning "good news", "big movement coming"......two of them in the past 7 days.....someone wants to sell I guess
On £40 trading, the notionals are so low that it is impossible to read too much into the traded prices. 2 days until a further month extension most likely (I hope not though).
Big drop today, when is this good news due?
Definitely next month now along with more good news I reckon.....watch this space
4 days, including today. Most likely will get pushed to next month.....
we are due news within the next 7 days?
Only debating the intentions of the current board and SF. If the equity raise did not happen by December 2020, alternate was to issue warrants to the banks which would have diluted everyone (by 20% I believe). Yet the dilution could also be cancelled if they did manage to raise money in 2 years - i.e. issuing the warrants was not a bad option to buy some time on the equity raise, and move forward. SF and Co. pushed back on that as well. So now we have a board which is still focussed on fixing that issue rather than pursuing operational matters, like hitting 100% utilization for example!
Just want them to wrap this up ASAP, raise some equity if possible, and pursue growth opportunities. There are some interesting distressed deals out there for assets. Check out the prices at which Ezion (rather their banks) are offloading some of those assets!
Raising 70m is a darn side harder than raising 10m especially when it’s to cover debt on which you would default on otherwise. I don’t think that 70m would have been in any way plausible - oil prices and order book was also less then.
The order book and accounts are strong with the debt removed.
I would imagine the whole point of the negotiations is to make it more feasible and realistic than 70m £20m and renegotiated terms with perhaps options or alike @ 10p is plausible.
If the banks can see this is strong ... ebitda at 15m + I can’t see them favouring a default over their interest et al but ofc we’ll see.
Last week of feb this week. Not sure how many more times they will be able to roll over, once more perhaps.
The CEO never said that, but SF trying to meddle with the old board since July and the disruption caused by SF resulted in the old board issuing a statement that said something along those lines. Clearly SF was against raising capital by the old board, for whatever reason. And I don't think its because they can't afford it, because they put in a bid to buy 80% of the company they did not own at 10p, and when it got rejected, bought a 9% stake at 22p!
Raising any amount of money is difficult when you have to raise more than your market cap (which is $50m at 10p) - so unless SF is intending to raise only $10m or $20m, the "difficulty of raising money" problem still exists
4corners - how would it have been possible ? Pretty sure ceo said it looked unlikely to happen ? £70m is not easy to raise for any company least of all for one with par value at 10p abs shares trading below.
can feel it closing in
I think it was possible, and we dont know precisely what the previous boards plans were as they were ousted prior to launching a capital raise
corners
"while rejecting and killing the previous proposal which didnt seem that bad."
Wasn't possible to raise the £70m needed tho eh.
Which is why IO don't think they are in a position to stitch us... & if we defaulted and the assets were firesold off by the banks, could they afford it ? Doesn't sound like it.
Because they didnt get enough support for that bid
Sounds like they couldn't afford it even if they wanted too ?
Didn't they pull their original offer anyways ?
Well said 547. I am not underestimating the potential of SF and Co. elected (not at all independent) board to destroy value for minorities, till proven otherwise. Not a single share purchase by any of the new board members either. 3 months of negotiations and nothing to show for it yet, while rejecting and killing the previous proposal which didnt seem that bad.
To judge the merits of a merger take a look at the debt Seafox has, secured against barges that in no way offset that debt due to their age and simplicity that prevents them from working in many locations. A merger would be a disaster for GMS SHs IMHO....
Fergusinv
Also comforted at the 10p par value.
The shareholders that voted down the original proposal and then got behind the second, I am sure will not agree to any kind of coup, perhaps they agreed to support on the basis of intentions, if those intentions changed I am sure they wouldn't be ready to support an unfavourable outcome.
Yes indeed Camkite. It is for the reasons you express that I find a degree of comfort here now. SF successfully delivered what amounted to a commercial coup. I am confident they will renegotiate a loan package with their funders. What happens longer term remains to be seen. But I am a little more optimistic of seeing a turnaround. I wonder if a merger would be beneficial for both companies.
If their motive is untoward (and I agree it could be) why rack up more interest & spend 3 months trying to negotiate... if they want it... let it default & pick it up on the cheap? Make a bid for 10p after owning enough of a % to get it through buying more shares at 6p ?
If they bought 50% of the company (much of which sub 10p ie: now 6/7p) they would end up with an average price of say 8/9p and only have to fork out for the shares they don't own and cover the debt.
If they let it default then they lose control as the banks will control the assets, said banks could find a bigger buyer so there is risk in there on that stance / motivation.
Publicly announce you are trying to act in the best interests of all shareholders ..! So far I don't think there is any reason to believe they are acting otherwise. Nothing points to that (as it stands) and you can justifiably think that the reason they made the original offer was not because they wanted it but to protect their interests.
They could have had it by now or at least got the ball rolling.
If motive was to................................ Why spend 3 months negotiating ?
Valid concern about SF's motive....
I have always been very sceptical about SF’s motives here. Rather than drive GMS into administration as some have suggested, I wonder if a merger between SF and GMS might be on the cards. Any resultant admin savings and operational efficiencies could possibly assist to broker better future loan arrangements.