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Pg 6 of the doc, 'Board & Management' it mentions xx yrs of experience in other bogus AIM companies. These guys couldn't even get across the line. When I mentioned heavy weights in the weekend, these guys aren't it and considering it's AIM, I think that's the best Kibo to get, mainly chancers and all talk.
Well, let’s wait till the 6 Month Interims are published on Friday and see what the Jan to June cash burn actually was first. They may be conserving cash to such an extent that the next £500k isn’t needed for months yet.
It’s the path of least resistance, Bcl. There is also no way Sanderson will allow dilution to oblivion they will demand LC uses the facility at hand and they will (which is why the previous cash has lasted so long) demand that they ‘cut their cloth’ suitably.
We will hobble on (if we wish to call it that) this way until projects have advanced to such a point that future funding becomes available at a price Sanderson / Kibo are happy with.
I suppose now that we have taken the 20% discount/fee hit in shares you are right we may as well use it. It could see us through to Q1/Q2 next year when the MED cash flow is meant to take care of a substantial part of our working capital requirement. Let's hope the SP is higher by then as we could have to issue shares for another £1.5m anyway if Sanderson so choose.
“The Term Sheet also provides for the continuation of Kibo's USD 2,940,000 Forward Payment Facility (the "Facility") signed between Kibo and Sanderson, the full details of which are contained on the Company's RNS dated 21 December 2016 and which remains available under the same terms and conditions save for points covered below. The facility is currently undrawn with the previously outstanding balance having been settled in full in July 2018 (see RNS dated 9 July 2018).”
I am assuming that SEPCO would love to buy-in but LC is playing hard ball. The way I see it he can either give up 15% of the business now to SEPCO for, using your figure of £6m ( 138m shares at 4.3p) which will give a huge positive sign to the market (and potentially allow a lot of LTHs to cut their losses and sell out) and provide us with working capital for the foreseeable future, or he can place 100 million shares at 0.5p on multiple occasions with the usual suspects to achieve less. Shares have been issued like confetti over the past 18 months or so. A further 138m to get the buy-in of SEPCO seems a no-brainer now against a backdrop of a 0.6p SP. From where are you expecting our much needed cash to come? Maybe I am missing something - seriously.
You’re only going on the assumption that it is SEPCO3 refusing to buy in. That has never been disclosed. It could very well be the other way about i.e. Kibo refusing what they deem a ‘low ball’ offer from SEPCO3 and wishing the projects to be further advanced and thus getting a better SEPCO3 offer further down the line.
As I said previously, SEPCO3 / Power China (the Chinese State) end up owning all of our three major projects sooner or later. The question is how much does LC extract off of them for the pleasure of taking on three of the projects and how advanced they are at the time (development / construction / production).
He has one go at this, by giving SEPCO3 the keys to the castle for £5/6m quid is a failure for him (and us).
It does work like that JD. That's exactly why they had the option to buy-in which ultimately expired after 2 (or was it 3) refusals. They could ensure that KIBO actually firstly survives and then prospers to the point where it can have an EPC role to play because at present I would say that survival certainly isn't a given. A chicken feed (whether they pay 0.5p a share or 5p a share is irrelevant to them but crucial to KIBO) buy-in along the lines of the expired agreement appears to me to be a sound multi-decade strategic play (unless they think KIBO's projects are never going to happen).
It doesn’t really work like that, Bcl. SEPCO3 aren’t here for KIBO ENERGY PLC. They are here for the 3 No. African Projects on an individual SPV basis, both in terms of the Equity, Debt (their parent company sure as hell is) and then then EPC Contractor Role for SEPCO3. And with all respect, they don’t think like you and I. It’s a multi decade play for them, $1m or $100m, it’s all chicken feed to them.
If I were SEPCO and I thought there was any likelihood of any of the Power Plants actually happening I would be offering LC £700,000 for 15% of the business now. Its petty cash for them. They could go the whole hog and offer £1.3m for 25%.
And just so we are all clear, this means absolutely nothing 'At the date of preparing the Circular, the Board had no plans to allot New Ordinary Shares'. One way or another funds = allotting shares and we have little or no cash. There is no way that LC has found a way to obtain money for nothing. Question - How low does the SP have to go before LC thinks we might actually have a problem? 0.5p, 0.3p? as these feel eminently and imminently possible. Louis wake up and smell the coffee!!
Fair point SirG, and certainly these will be built much more quickly than a conventional plant, and yes, they are largely pre-fabricated or built offsite at a plant, with the main components being shopped and assembled at tested but I still think its'a tall order. We need to start seeing something delivered. Confidence is low and the Company cannot continue to fail and continue to miss deadlines. That said the UK will not involve brown envelopes (in theory) so that should help.
SirG if there is one thing you really can put your house on with KIBO it is that it will miss any and every timescale. MED first production was initially going to be Q4 this year, it is now Q1 next year. My bet would be Q3/Q4 because that is just how KIBO is .
Absolutely everything is always soon, tomorrow, next year, continuing to progress. All our agreements are non-binding. Everything comes with a caveat. For goodness sake let’s actually arrive somewhere, anywhere. Deliver something!
Davey ... in which case the RNS and presentations are misleading to quote 6 months timeframes?
Whats involved in building a flexible peaking power plant? How much is prefrabricated
And lets just think about the business model. How can you have a flexible power generation market if it takes >12 months to build, test and commission a site? Doesn't that defeat on eof the primary objectives which is to meet / fill gaps in short term demand .
I agree bcl but I cannot see MED delivering any cash to this Business for at least a year, if not longer, and their timescales to have plants built, commissioned, tested, and delivering power are, in my view unrealistic. I cannot see anything other than another dilutive placing probably at or below 0.5 pence to get it away