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“Don't worry about warrants. “ I’m not! However, I am a bit more concerned about the £2.1m of clns that potentially get sold here, a placing to take them out would be better.
Don't worry about warrants. its part and parcel of placings nowadays. Look at the likes of EUA and GGP. Both had warrant chunr. EUA had first warrant churn under 1p before it took off and GGP at circa 0.6p from memory.
In fact if you follow twitter, the likes of Longergame and Diamondhorse appeared to go short on EUA under 1p based on they thought EUA was a spoof and the news was "just to sell warrants"
Now the SP is up 25 fold they are probably living in the shed.
Amapa is a game changer for several reasons. Immediate revenue from shipments is one. Iron ORE price gone up 40% since when amapa was announced. Also the book value of this asset should be stonkingly high as it will include rail link which in itself can be a revenue earner.
The previous issue with this share has been a collection of assets which are all at different stages of development which all need capital and don't produce any cash flow
Amapa changes that in a shot. I expect probably 50p when shipments and creditor agreement reached. That could be within days
Cheers @Dallas. I was setting you up to reply: "Terrible". LoL!
Legal / illegal, its a grey area in an unregulated market.
@Obs...Nice summation, just about covers it.
I hear what you are saying @Ivy. My belief, and this applies to any AIM company, is that if the BoD have good reason to believe that the share price will remain above the placing price in the short to medium term that they should offer to existing shareholders. However, for the types of recent raise we are talking about which happen *after* news (the potential $3.5m to 27% and potential $24m to 49% are different kettles of fish as they *are* the news) it is acceptable IMHO to follow "normal" AIM operating procedure. Not saying I particularly like this! But I tolerate it. We are on AIM after all...
In my experience it goes like this: company releases news, share price rises on back of it but by an unpredictable amount, BoD sound the market to see what volume and at what price it will support a placing which will naturally be below prevailing prices: those in possession of the sounding should not trade in this period, but some likely do. When terms eventually announced, all involved in the sounding and placing can then trade (either borrow and sell until until they are in possession of the placing shares, or sell existing shares, and eventually this selling pressure, accompanied by those who understand AIM dynamics, lower the share price to just above the placing price. Eventually it sinks below the placing price affording the patient in below it.
How does that sound @Dallas? ;-)
@Obs Afraid I am of the "old school" and would consider that action rather underhand.
Unfortunately for me, perhaps, I would wish my dealings to be completely open
and not be given preferences.
Nevertheless on this occasion I was able to add considerably to my holding at prices
below the placing, so not at all upset.
However, I consider a public offering should have been made in this instance.
@Ivy I think I've mentioned this before, but if you are a sophisticated investor (as defined by the rules) you probably could have partaken had you kept your ear to the ground, or even contacted the BoD as soon as it was announced. My understanding is that someone did just that...
@Observer842 re 09.48 post.
It was me who asked the question at last AGM. Trouble is nothing has happened.
As you are aware I lost confidence in BOD until cap raise was made to cover expenses.
Would have been nice to partake in that event. I certainly would have!
LoL @Bannor. I agree, although playing a large part in our prior history the fall in lithium prices impacting our stakes in BCN and EMH turning what was once a reasonably leveraged loan with respect to NAV into a somewhat painfully over-leveraged one, wasn't fully responsible for our problems, it did mean our subsequent pivots to South America and Australia lithium assets were also doomed to fail in the short term amplifying them. You are right that I have justified the past to myself, especially the parts around BCN. I continue to be surprised you never did as you don't strike me as someone who would sit back and take a kicking when someone tries to steal what is yours from you. This is in reference to the whole reason we took the CLN loan in the first place: to prevent BCN from re-domiciling which would have adversely hurt our JV's, and subsequently to try to take control IMHO to satisfy our Tesla play: BCN were adamant they were supplying China. We didn't do this for fun - it was a serious attempt, but we didn't have the necessary backing when it came to the crunch: and I can understand why Tesla failed to back us - they too were in a very critical period! Now? Not so much. ;-)
I really don't blame the BoD for focusing on Lithium in the short term. Heck it was us (perhaps even me!) who introduced them to Tony Seba's exponential view of the world, and like the BoD, I absolutely did not see Lithium prices sinking back to today's lows. I blame myself for not seeing the unprecedented growth in the Australian hard rock suppliers to meet the growing demand. Of course they too are in trouble now, but that's another story... Lithium will come back, and with a vengeance IMHO, unless Tesla announce they no longer require lithium in their batteries at battery day. LoL. Gulp! ;-)
Anyway, if, and I mean IF, this play comes off, and not really wanting to boast..., but one silver lining for me is that I stand to gain handsomely from the CLN "fiasco", as it has afforded me to now hold over 10x as many shares (in old money) as my long term holding, the vast majority bought between 3 and 9p, which I would have been unable to achieve otherwise. Yes if it fails I stand to lose a small fortune... :-( Nothing like a gamble with what seem like very good odds! 20's on shipping news? 40's on agreement with banks? Probability of both these things happening? You do the math! LoL.
Have a good weekend @Bannor
Well Ban I agree with the 2nd to last paragraph But I think some of what was done will be to get the end result we all have been hoping for since day one . I think it has been a ‘minefield ‘ as well in the lithium space causing us to delay plans etc.
...and yes, we are at the very bottom of the pecking list. But this is turning nicely for us now and Amapá will kick start it. This is only my opinion after sitting on the sidelines and watching this complicated operation progress
..... I will & people should understand the history in my opinion ... again I stress my positivity on the Amapa project & deal both the structure of it and the potential regardless of which way it goes because regardless of which way it goes I feel it's the one deal we've gotten involved with that provides some direction, hope along with protections ..... unfortunately not much of the same can be said for much else that's occured over the past 4/5 years.
You keep blaming it all on the fall in Lithium prices & whilst it might have had some impact on some of whats occured it's not the panacea for me & all my issues that you seem to have justified everything with for yourself.... there's a lot more to it than that & you know it..... I'm still not convinced that part of our nosediving wasn't done intentionally or at best self inflicted....
Anyway I've got things to do and places to go so have fun blowing trumpets....
LoL @Bannor. Let it go dude ;-) The CLN gamble didn't pay off. I didn't expect lithium prices to plummet, and neither did the Bod. I doubt you did either. Totally blew up our and BCN's plans. Anyway, ramble as you like - I do like reading your posts, but I slightly worry you inadvertently put off new people looking in.
@Ivy. Worth reading your post AGM comments again. Especially the one on 06 Oct 2019 11:46: "d]There was confirmation from BOD that existing shareholders would very likely be offered opportunity to share in any equity raise."
Cap raises don't necessarily come with warrants attached Ivy .... a placing to shareholders can also often be underwritten to take up any slack (shares to be issued) shareholders don't apply for ..... the purpose & benefit for a cap raise to take us to 49% should be at a time when everyone knows what the stake will be worth to us (scoping studies / valuations all done etc) ... so the enticement of warrants isn't necessary & to be honest would you want even more dilution on the scale that might be required..... no I think a simple underwritten placement to existing shareholders 'should' be on the cards .... question us will they do it or will we get stitched up behind closed doors again .... don't forget the size of their 'authority to issue' would be a key indicator as to their options and thoughts on this.
I'm now half expecting a CLN conversion for the balance of the $3.5M dollars & possibly some working capital.
To be fair I'm also half expecting a stitch up when we need funds to go to 49% but let's wait and see....... how many shares they want authority to issue, when that point comes & what occurs you never know I might be pleasantly surprised.
God it makes my blood boil and spit, when I think about what we had, held prior to that effing Iskander Loan...... at least most (if not all) they did with it .......& what we have & hold now as a result, Obs seems to expect me to just forget about it :-# & not mention it ever again sorry no can do ....... Amapa could've happened & diluted us as it has (willingly) but no .. . as I've said one 'potential' well structured success doesn't recover all the mistakes & mess (OK that's as I see it ) over the last 4/5 or so years.. Amapa needs to be turning point on that with all the past lessons learnt in my opinion..... maybe then some of the 'heat' I feel over the past years will lessen.
And yes TC perfectly legal and doesn't have to be forward sold to work .... say you bought 500k shares with a warrant for each at 6p in a placing & the price rises to a point where you can get 12.217 a share .... you could simply sell the shares you bought at 6p for 12p for £60k in your pocket & then at the same time or just after exercise your 6p warrants..... for an initial outlay of £30k months ago you've now got £60K value of shares at today's prices that have effectively cost nothing .... & we know who potentially got a slice of that action!!!
As far as I'm concerned MMS is pretty much a sideshow for us now with the pittance we have left ... not gonna go very far in either settling the CLN, funding Amapa or on going costs unless it 10 bags in really short order....
Just a rambling.
Morning, MrsB - plenty space in the room to be 3-6ft apart, with masks, if usual attendance occurs....unless, all of a sardine, more caddies attend!
Didn’t Baccie or EMH have a virtual one?
How did that work? Like zoom, or like a call-in webbyjobby?
Blimey. I’ll have to have 5 chums around to help me, if it’s zoom.
And, if it’s a webbyjobby, then, how do we make sure that a fair sweep of the quezzies, if not all, are asked......and not brushed away? Because, at an AGM, everyone is heard asking. And, to be fair, every quezzie has been answered. Politely. And clearly.
Maybe a list, where everyone can ask, and see, other, asks? Pre-meeting, and also, continuing during the meeting.
Like a normal webbyjobby, but with extra bells on it.
The BoD have hitherto been most obliging with staying on at AGM’s, if lots of quezzies were in the air. Which is good. And, appreciated. So, no real time constraints on it, please.
Ivy, MrsB, anyone who attended, maybe even whoever asked......didn’t someone ask, at the last AGM, whether shareholders could be included the next time money/shares/somethingty was raised?
There was a block of, delayed, big shares, are they all warrants? And, do we know whose warrants they were/are?
Also, are they some of the things, which are given a price, less than the current value, when they are issued? Like when the BoD buy shares? Always a great show of confidence, to pay what others are paying, at the same time.
Commonplace, or not..reduced prices for some, really gets my goat climbing a tree.
if everyone has the same goals, then the playing-field may just as well be level.
2 posts above. Hope they are posts with a goal in them........
Taken ages, getting tea ready takes longer than coffee......
Wonder if it can be done on zoom?
Will the normal AGM even go ahead this year ? Probably virtual.
Yes I know these particular warrants were as a result of CLN renegotiation.
My point is shareholders should be given some equal opportunity occasionally.
Maybe as this is AIM we stand little chance. AGM question?
As the shares in the exercised warrant will not be admitted until 20th August, I guess the shares
sold were part of a larger holding [or borrowed] from the same source. Thus perfectly legal.
On a cap raise new warrants should be available for all holders to participate.
I know it takes longer and more costly but this has never been tried by kdnc.
Why let pals of W H Ireland have all the cream?
is that legal...
Yep ..... more easy money for usual suspects .... warrants exercised RNS today at 6p each for a sell yesterday at 09:51:43 reported today for 12.217 p each .... easy way to double your money just not for us PI's & LTH' s........ AIMs a cesspit & no doubt......
Assuming we get our 20% let's see if we get a chance to fund the balance of the $3.5M needed or even the funds to take us to 49% rather than the usual stitch up of a discounted placings made to the likes of Gobbygas & co simply announced after the event....after all there's no need for secrecy about it & the potential benefit so there's no reason for it not to be offered to existing shareholders as a preference......
@Cause17, basically forward selling occurs when a company agrees to issue shares to a third party (placings / warrants) and that third party sells those shares in the market, prior to actually receiving / exercising them.
@Dallasdaz - What is forward selling please? I remember some loans were converted around the time when shares pushed up past 12.5p but the exercising price was 12p at the time.
Exercise of warrants...