Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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The YG merger has absolutely nothing to do with the dispute and the uptick expected if it is a favourable outcome
100 who helped steer the Yourgene takeover from the Yourgene side?
Whilst know doubt getting clobbered on his Yourgene holdings...
This is reward for past and future efforts and frankly another way of stating the obvious in that...
NOVA WILL WIN HANDS DOWN AGAINST DHSC without rubbing it in? all imo of course
No, you haven't. You're broadly right. It is growth PA, so compounded is how I read it over 3 years.
I set out my expectation depending on outcome of DHSC dispute - all point to above £1 and some even more. BUT like I said, that's a moment in time and in the next few months we will know. The task of the Board is to keep it there and grow it! If they do, then fair play - take the award!
Well over £1.28 methinks!! Start thinking in the £3 range.
"The baseline for TSR is based on the average closing price of the Company's shares in December 2023, which was £0.63. This will then be compared to the equivalent figure in December 2026."
GL - correct me if i am wrong but they are comparing the beginning to the end of the 3 year period
so increase of 30% from 0.64p - would give 10% per year over 3 years
increase of 90% - would give 30% per year
i think we would all expect the price to be over £1.28 if we win
or have i got it wrong?
Swag - exactly my point. LR walks away with shares with £1m+ for doing absolutely nothing. Nothing against him obvs, but he had no involvement during covid and has no impact on the dispute so all he needs to do if we get a good outcome is nurse the company through a couple of years of stability with no real incentive to take risks and he becomes a millionaire (if he isn't already).
Don't get me wrong, fair play to the man. None of us would turn down £1m+ for doing absolutely nothing.
My point about it being a 'bonus' is that if we get a favourable outcome and say add £40m cash to the pile then that gives us almost £1.38 marcap in cash, therefore they'd have met it and just need to dawdle along slowly maintaining that SP, minimising losses and preserving the cash. They'll want another LTIP when this ends so they aren't going to want to start that at £2/2.50 or whatever as it'll be practically impossible to achieve.
I appreciate that if they are awarded the shares then yes they will want the price to rise but they also may just want to duck out at the earliest possible opprortunity with a bag of cash for doing nothing, and not have the desire to grow the company.
I guess I am just very scepitcal about it all. The last LTIP was set unrealistically high and this feels far too low.
Totally agree with kaeren on this one.
the LTIP should have been set after the court case or based on profit rather than sp
if we win then it is a guaranteed pay out for them - they won't have to do anything. most of them having done very little in the first place - and certainly nothing to support shareholders interest in the last two years
how is this an "incentive"?
sorry just another AIM lifestyle piggy in the trough move for me
PI100, what you are saying makes no sense at all!
(a) This is a 3-year LTIP scheme - so, it is as much a retention tool as it is a reward scheme. It only vest at the end of measurement period ie 31 December 2026;
(b) The management team now have an incentive to deliver TSR of 30%+ PA over the next three years to trigger the 100% award......it is meant to be achievable whilst giving SH a decent return too.....
(c) Any talk they just get a nice bonus / bump post DHSC dispute (subject to outcome) is not right. Even with the bump, they have to keep it there and for the next 2.5 years!;
(d) They now have every incentive to drive SP higher than £1.38......I was concerned the new directors have little / no shareholding and with the closed period / sensitive time now, unable to buy even if they wanted to. So, I really like the fact they have this now;
(e) As people pointed out, it's not that many shares in total - enough as an incentive, not too big to cause a fuss re massive dilution.
All in all, pleased this has been done. Another piece of the jigsaw in a proper functioning growth oriented company. Over to you Lyn & co to deliver this time!
The more I think about it the more I think it's just a bonus for doing nothing. Not a single member of that board will impact the dispute outcome yet they'll all become hundreds of thousands of pounds (LR over 1m) better off if it goes our way. Something about that is just wrong.
Once it gets to £1.38, if it ever does, they have zero incentive to push it higher until the next LTIP is reached, so it would seem that that is the ceiling until Dec 2026. Very poor. At least making it £2+ incentivises them to actually do something with the money. They could hit £1.38 and leave the cash in the bank for 2.5 years.
Hi HarChris .... aligning there interest with ours .....did you vote for it ...I didn't ...they should be giving it back not taking it out ......they have too much cash to be beneficial to shareholders or share price ..
I think they deliberately used the December 2023 SP for LTIP and they needed to get this sorted quickly so to make sure of a low SP base for LTIP . If they had waited till December 2024 , who knows what the SP could be then ? £5 , £10 , £15.....
But I am not happy with the fact they don't need to work hard to reach £1.38 .
I had to pay a incredible lot of money for my shares whereas LR will get close to 1 million shares for free
'We've already seen the impact of LTIP's on this share. '
Exactly, they don't have much impact, if any. This is just essentially a way of giving the BOD 2.2m shares between them over a three year period and aligning their interests with ours. They could have doubled that and we'd have just had to put up with it.
The biggest take away is that they continue to act as if the dispute is going our way, for me that's the most important thing at this point in time with how many shares I'm holding pre resolution.
If they are confident of a win, they have set a low bar for the LTIP, almost impossible to fail with the funds they would have for bolt on acquisitions.
We've already seen the impact of LTIP's on this share. I would have preferred a higher target. Nobody here wants to sit for three years with a target of 1.38. I appreciate that's a minimum, but not impressed.
Hardly call it long term incentive plan, more a bonus, as once dhsc is concluded and sp exceeds the 1.38 AND IT WILL imo?
The long term incentive imo, will be to KEEP the sp, over 1.38, until they can get it?
A lot can happen in 3 years... Double, treble, quadruple, even 10 bag...
or maybe loose the lot?
#BringItOn :) dyor imo
BoD detailing a Long Term Incentive Plan.
Not thinking about how to repay £ millions back to DHSC after losing a court case.
Every picture tells a story.
It's not about simply crossing £1.38 but being above that in three years time. Yes that is easily achievable but it's not a given, even if they win the dispute, it will still require they are successful and don't fail from here.
As I've said before it could have been far more egregious but at this modest dilution in three years time it will make no difference to long term shareholder value and they are now incentivised to see the share price go as high as possible as those shares can make them all multimillionaires if they maximise future value here.
You might not like it from a personal level seeing these directors enrich themselves but it's fine from a company standpoint.
£1.38 is quite a low bar, it will jump past that when we win against DHSC, this having nothing to do with growing the company. Money for nothing.
Yes Naewise I think this is a way to get around the fact that they can't buy on the open market now and won't be able to buy until after the dispute and the share price is a lot higher. So at least doing this now gets them a good future remuneration package.
Many management teams give themselves humongous options so this is really very modest to me and points to them truly expecting the DHSC dispute to go their way, so i'm happy with it.
Can we read anything into this in as much as they have published their incentive scheme NOW as opposed to AFTER DHSC announcement? Or is this simply a legal requirement?
At least it is realistic unlike the last one. £1.38 is a fairly paltry bar but I expect many of us will be gone by then anyway.
What is frustrating is there is no incentive for them to push beyond the max figure and if they somehow achieved it, wouldn’t want to anyway as it would increase the base for the next one
So essentially the board have put a £1.38 ceiling on the SP which is about £95m marcap - if we don’t lose the dispute and get a bit of cash back this seems fair as it may represent cash.
An actually vaguely sensible rns for a change
HC, they already have a good rémunération also.
Its not about the number of shares created for me.
If they think they Can achieve 1.3+£ then also start buying shares.
For me its not a Bad news or a good one.
I don't think it really matters, the number of shares awarded in total is minuscule - total shares would go from 70.6m to not even 73m.
Happy with this, ensures they are all incentivised and will still want the share price as high as possible, not just greater than £1.38
30% pa compounded my basic maths gets to 1.38 ish ? Or would the baseline reset each year to previous year close ? The next few weeks could see it be an impossible challenge or an incredibly soft one.
My easy thought :
The baseline is based on the SP at end of december 2023, 0.63£.
That is an easy base for your bod @NovacytGroup if you win the DHSC case.
Best you start also buying shares asap on the market to show your interest and belief in the company !
(If/when no closed period as discussed of course...)
https://twitter.com/Larry64450205/status/1782655352795758702?t=4_1WVAsf2HeRfnwSy0SYkA&s=19