Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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When the company are running on fumes the relevance of the utilisation of a statement like “the sale will lead to a significant strengthening of the company balance sheet” is IMHO a mute point.
If the balance sheet is euphemistically zero, to receive a euphemistic fiver is significant.
look at the accounts, look at the running costs for past 12 months, deduct the revenue and costs related to the disposed assets and then you have a rough 12 month running cost for the remaining company, they expect the sale to generate whatever that figure is as a minimum to achieve “going concern” status.
Not hard really.
No, you should sell, because you think it makes sense that the business is done for and highly distressed. Something is better than nothing, after all. So, I'll look for the huge dump of shares. You're welcome.
City boys are utter morons.
Ant to be honest its a flip of a coin at this late stage as most would agree, i'm in deep since I punted early on the Gib thing so I will stick out until the bitter end......if it doesn't turn Blue in a big way......back to the Racing Post.!
Yeah, should we all sell then? What's your opinion? No point being here and posting, eh?
To be honest muggins speaks a'lot of sense, my point has always been you need more than one interested party to get the 'desperation' out of the equation, lets hope they have more money in the bank than has been suggested.
Filtered too, just a waste of time.
I deeply apologise for my error. I should clearly have said "The only 'relevant' facts are that they have pretty much run out of money and the sale has not concluded.
That is a dangerous combination."
If they are about to run, or have run, out of cash then pretty much everything else is irrelevant.
I am well aware of the half year report and the numbers quoted earlier were from that report. Cash is king - everything else is speculation.
I am very sorry if the relevant facts upset you but even so, rather than spouting bile, a focus on analysis would be welcome.
Here is a bunch of other facts - https://www.lse.co.uk/rns/MWG/half-year-report-ih86uhxjxjitj9r.html
If you're so blinkered that you can only see two, I suggest you have a pretty severe negative confirmation bias!
I am waiting with baited breathe to hear what the other relevant facts are?
No, they are not the only facts.
The only facts are that they have pretty much run out of money and the sale has not concluded.
That is a dangerous combination.
Sale price is often agreed first, then due diligence is carried out. I know, I've done it. Doesn't take long to work out with a spreadsheet and calculator. The tough part is satisfying the audit and insurer.
'sale price agreed long ago' absolute rubbish
If that was the case they would have to RNS it as it is material news for the company
100%
They left their office in August , it's sold. Just look at Linkedin - you can see activity all around the world and some interesting conversations.
Proceeds from the sale of the assets of the Group's Monitoring Division.
Agree with your comments but the nomad would not allow them to say the above if it was not very close otherwise it is misleading
At the end of June 2019 they had £68k in the bank. Since then they have raised £141k (before costs) from the fundraise. Total funds £209k.
In the first half year of 2019 they chewed through operating cashflow (net of Monitoring and other revenues) of £375k. In addition they spent £354k on patents etc. Total net cash out of £729k over 6 months – roughly £120k/month and there is no reason to believe that this outflow has significantly changed since the half year. With over 3 months of expenditure since the half year they are done (£120k x 3.5 months = £420k ie much more than the funds available of £209k). Even assuming that they stop all expenditure on patents etc monthly spending is over £60k so total expenditure is £216k). No wonder they are leaving their offices.
Whichever way you look at it they are, putting it politely, financially stressed without the sale of Monitoring. The longer the sales process continues the greater the stress becomes.
The potential purchaser will be aware of this and will stretch the process out knowing that vendor’s desperation will only increase – forced sellers are always stiffed.
What I am saying is that is doesn't matter, it's not a business that requires a large space with a warehouse in Guildford.
you clearly don't understand between registered address and trading address for a company
Odd how these guys - https://www.velorution.com/ claim it's their registered business address too? Maybe they are on fumes too?!
The membrane business is a license model with IP and patents, not a garage full of water testing kit. That business has obviously now been sold.
I completely agree. They must be running on fumes and need to save every penny. The question is how long can they last without the sale of Monitoring? Not much longer i fear.
it is what MWG should be doing. cutting costs to the bone while they try and sell the monitoring division
The lawyers are the only business on the 12th floor. The 12th floor is the registered address of MW.
you do understand that solicitors can sell registered addresses to a company for a fee. They don't have to be based at that address. It is just a mailing address for important documents such as HMRC.
It's clear that there are multiple large businesses with that same registered address, yet you pick the solicitors and find a specialty from a great long list. Total bell. Give it up, city boy.