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Tango, I think this project has been in the pipeline since 2007 with full planning granted 2012, also there were two grants in place, 1 x HM treasury 2013 and an EU grant 2017 that 1 clearly gone now, cannot find what % of the project would of been covered by a grant, and if the ML is granted what is avaible to INFA by way of a state grant.
roly12- Infa has already put circa £15M into the iM project, so they will be looking at getting that back from whoever takes on the project + an equity stake, INFA will also be building and managing the project to completion for whoever takes the FID at the going rates.
Stokey,government funding...........let's see....who wants shipbuilding to return??,who want to Join the hydrogen revolution ??,who wants thousands of apprenticeships in shipbuilding? ?.
Friday's RNS was welcome as was the SP uplift, however having read yesterday's RNS twice not sure why the SP dropped, all I can think of is impatient PI's selling. Correct me if wrong but I think that I read that the cost of developing Island M was in the area of £220M, clearly INFA cannot do that so investment partners WILL be brought in, given the figures I would think that INFA would do a fundraise to cover their equity interest in that project. Getting back to last Friday's RNS, we now have confirmation of our first substantial contract (The 1st 1 always the hardest to get), and I would expect more to follow, let us not forget that our Gross profit from that contract will be in the order of £5-6 M. I for one am looking to increase my holding here soon, just have to put some of my other holdings through a haircut. Roly.
stokey12,
Once again, this is becoming tedious. Clearly you were unaware of the debt facility until my previous post - I will leave it at that.
Stokey I agree that there are many ways of raising capital, but most cost more than issuing new shares. Preference shares would have to at promise future dividends, obtaining a floating charge over assets would incur interest payments, whereas new shares need promise the investor nothing except jam in the future. Of course Infa could sell an asset, but at this early stage of their development I don't think the market would be happy with that.
Ultimately I think it will all come down to management. The potential turnover is there and evident to all. It's up to the management to turn revenue into profit (which previous owners of the various businesses were not able to do). So it is really a gamble on Infa's management skills.
BlairPeach In relation to your 14.21 post you must try better when you want to scaremonger the RNS of 10 February 2020 states inter alia 'has secured a £2 million asset backed term debt facility (the "Facility"). ' While it does say that the facility is secured by a FIRST charge over the assets of H&W (Belfast) the value of those assets exceed the amount of the facility. I would draw your attention to the accounts where there is shown a figure in excess of £6m in the revaluation reserve. This figure relates to the assets of H&W (Belfast) and is the difference between the value of those assets as valued at the time of the purchase and the revaluation of the assets. So as a conservative estimate allowing for interest payments H&W (Belfast) can provide security for £8m by way of a second charge.
stokey12,
Oh dear. May I point you to the RNS released on 10th February 2020? I suggest you sit down before reading, as it seems that you have been investing in this company without being aware of some rather salient points.
BlairPeach In elation to your 14.02 post where do you get the information that H&W (Belfast) is 'hocked to the leg breakers'. My figures were taken from the balance sheet in the interim results.
stokey12,
A reminder that all the assets of H&W Belfast are already hocked to the leg-breakers and that INFA is paying a usurious interest rate for the privilege. Given the collateral-worthiness of the remaining assets, how much more asset-backed finance do you think the company could raise and at what rate? Don't forget that the company has to pay back the principal to the leg-breakers in February (or is it March?) next year. That time is not far away.
As for dilution, mine currently stands at seven-fold, thanks very much.
I got in today as see this as a good entry price. been following for years; looking forward to contracts coming in.
GLA
IvorHunch In relation to your 12.34 post while a rights issue or a placing is possible it is not the only way to raise finance. In respect of the Islandmagee Project there is the option of selling an equity stake in the subsidiary that 'owns' the assets. Also that subsidiary could create a subsidiary with the investors holding a share in that subsidiary. In addition there is the option of preference shares being issued. None of these options would cause dilution. Also as there is £20m in net assets there is the option of a floating charge over those assets. From this you can see that raising finance does not mean dilution.
Personally I am not too concerned whether Infa decides to issue more shares at a later date, in fact I think it's almost inevitable. The stock market is a means for companies to raise capital without adding to borrowings and I have taken up rights issues in many companies that have gone on to do extremely well. My main concern is that it is not a private placing but open to existing shareholders.
The potential for Infa is quite staggering and its turnover will soon be multiples of the present figure. This exponential growth is not going to happen without more funding. Inevitably a placing or rights issue will damage the sp short term, but it will be worth the temporary pain.