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That is the element most required urgently required now . The Islandmagee part of that should be satisfied when the Marine Licence is granted and the H&W element may well be satisfied even sooner. In both cases JW has assured us that those negotiations are at "an advanced stage". The EU money will go a long way to help with the next tranche of the H&W payment due on 31 October or,more likely, that will be deferred to the "backstop date" of 31 December upon a failure to complete due diligence by the earlier date.
I was disappointed with the affect of the Riverfort finance on the sp which would have soared without that complication, but I am now more confident than I have ever been of the ultimate success of the Islandmagee project.
Very true spud.
And lol Speedy :)
Wise words indeed from a man who knows more about strange abbreviations, Capex, caverns and pipelines than he does faucets and stop-****s!
A few have Learned what CLN with VWAP means now.
My guess is they had to raise the deposit quickly and there wasn't time to get a book build going with a broker.
The H&W deal is a game changer imo, saving 10s of millions in Capex means we should keep a larger equity share of projects imo.
The expected newsflow over the next few months should provide the volume needed to clear Riverfort quite easily imo. Yes more dilution but this is value creation dilution and any projects for H&W that come along will provide revenue for us (as long as they get the finance deal sorted)
Very appropriate for you to drop that news, Snowy! Lets hope it's not like they predict. Gosh no, what would the govt say if we ran out of gas, even for just one day. BEIS would be scratching their heads wondering how all their calculations, confirming the energy system is "adequate", was wrong! Then our friend BoJo would step in saying, "this will never happen again, we are immediately announcing the building of new gas storage facilities in N Ireland!"
Mate. You couldn't figure out how the HW employees would be paid earlier in the week. Took me all of 5 mins using something called Google. I take all your midas/de-ramp statements with a very big dose of salt cavern remains
BRITAIN is just 10 days from what could be the first freeze of the season amid warnings this winter could be one of the coldest and snowiest for almost 70 years.
https://www.express.co.uk/news/weather/1186627/uk-weather-forecast-snow-met-office-weather-warning-long-range-bbc-weather
.........Happy days!
I thought this was the case. It’s not ideal, but if it saves 15% of all future project costs and means we retain more equity, it will be a master stroke. I can’t see BDO or the NI government signing this off after all the due diligence to have the same problem in 12 months time.
They will suppress shareholder value and absorb any SP bounce. Once it rises they will concert and offload, leading to dilution and lowering SP. vicious circle here for a while until they are gone.
Agree. Best to get rid of Riverfort as people who profit on short term strategies wreck shareholders value.
54 titles when 1 is good enough!
Maybe, just maybe, we will have another positive RNS out early on Monday to help deflect the RNS of today ..just a thought ...it's jolly well about time that Mr J arrive from Brussels with his suitcase !
Riverfort can’t be blamed. This is their way of derisking early and making money. I know people got annoyed at me for previously warning of dilution after dilution but I am trying to share my knowledge of how this game works. Unfortunately all upside is taken off the table for loyal shareholders by this type of structuring when companies don’t have their own cash piles.
How’s their another 125 million shares at .38p coming? The £100k worth was in the rns on Tuesday hence the pump50%. What you think they will hold this down in Q4 lol news rich period this is short term loan. You think all them workers get let in to work cause we got a short term loan lol. My bet is this deals went on for months and it was getting close so used YA
very helpful info ..ty all....so the botttom line re sp on Monday is?
So basically around another 125mn shares to be forward sold by Riverfort, with a book cost of 0.38p or thereabouts, depending on the 5-day VWAP, to repay the £700k loan in total.
That will knock the stuffing out of any forward momentum on the good news of the H&W acquisition.
Long term funding, with a long term, industry partner, is what will drive the sp higher sustainably.
No, See Scots post @ 5:15
And they warrants too....
The Investors will also be entitled to warrants over new Ordinary Shares equal to 30% of each drawdown. The number of warrants will be calculated as a quotient of the drawdown divided by the closing price of Ordinary Shares on the date of drawdown. The exercise price on such warrants will be 150% of the closing price of Ordinary Shares on 30 September 2019 (being 0.69p). The warrants will be exercisable for a period of 24 months from the date of issuance or 12 months if the daily VWAP, during the first 12 months, is at or above 1 pence for 20 consecutive days at any time during that period. Accordingly, 45,652,174 warrants over new Ordinary Shares will be issued to the Investors in respect of the First Draw at a conversion price of 0.69p per share.
Jeeze, nearly 8 years of dilution after dilution.
I'm off to the pub to dilute my blood with Guiness.
Cheers all Si.
GUYS a little help is this not so good they can convert at 0.38 so will the share price drop i hope not thanks for any replys
dawski- your intuition serves you well. It was clear JW was behind the 8 Ball getitng funding without current revenue so I suppose we were not going to get a "0%" apr, sooner we get rid of riverfort though the better.
That’s how I read it and at today’s SP and same terms, with potentially another GBP2.1m of the loan and future loan that would make a cool (nearly) 800k profit for Riverfort. For longer term funding requirements a rights issue might be interesting for some of us.
Could explain why the sell side outweighed the buy side on big volume day's and why the sp hasn't risen further.
Mr T
Noted,Tango ..only intuition dear friend ...not fact ...the transformational deal had to have a downside regarding funding hence comments about " choppy seas " and the like ahead .I wasn't even aware of the announcement until the day but made my own judgment as to the SP --When we have all the jigsaw pieces in place later this quarter then ....................!
Yes - we borrowed £700k, £500k down payment for H&W
The £700k can be converted at any point:
The conversion price will be the lower of: i) 130% of the closing price of the Company's shares on 30 September 2019 (being the date of the Loan agreement) ("Fixed Conversion Price") and; ii) 90% of the lowest daily volume weighted average price ("VWAP") in respect of Ordinary Shares during the 10 days immediately preceding the date of any conversion notice.
As long as JW doesn't draw down the other £1.5m this will churn with good news, real debt funding is needed fast otherwise this becomes a problem. So £100k already converted and likely already sold to retail. £600k remaining, but half a million has gone to administrators towards the £6m purchase of H&W
Until riverfort are out the sp will be subdued imo
We need volume and that should be created by the expected newsflow