Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Sounds great !
But I would like the contrarian view from our high priestess Pythia, our resident Oracle of Delphi; blessed are we.
Step forward SkipperNel.
What are your prophecies?
Rare post from me
Have to agree that this is a very clever deal – and one that could only be achieved on the back of strong confidence.
Bergen is a relatively small fund – and the modus operandii almost certainly revolves around identifying strong opportunities and then introducing their investor list to the opportunity. They cannot afford to make too many mistakes – so to take such a significant upfront risk implies serious conviction.
To get your head around it just think about the process. The small team – Bergen BoD included – review the opportunity. They meet with the QFI BoD, do site visits, basic research, certainly secure independent technical advice, and almost certainly meet with some prospective customers. They then agree to this in part upfront funding, and sell the opportunity to their investor list. A big leap of faith in my view – which should give all holders confidence.
Concurrently they offer existing shareholders a new offer designed to reward longer term holders – their way of saying “stick with us, and thank you for your support”. I have no doubt in my mind that the offer will be oversubscribed, and it kind of messages that this may be your last chance to board the train.
As for the person/s who said this is death spiral financing that is sheer drivel. This is funding based on confidence from both parties – and I think very clever. Still risk of course – but a lot less than on August 22nd in my view
With thanks to Bod100 on the forum
Dusto you are absolutely correct. The convertible security must first be converted into shares . The conversion price is clearly stated as either a)5 daily volume weighted average price during a specified period before the conversion date or b) they can have £800k worth at 5.78p AND they can’t convert within the first 30 days. They DO NOT CONVERT AT OUR NOMINAL VALUE OF 1p.
We ALSO need to approve at AGM an increase in head room to allow conversion of some of tranche 1 and all of tranche 2 BUT Bergen will fund the entire £2m of tranche 1 without waiting , an act of huge good faith in my opinion BUT imagine they have driven our share price into the rubble?
By 30 September one of our partners is on a timeline to get something away.
If they do the share price will rise
Why was b) stipulated. It is not normal
It gives Bergen £800k at 5.78p
If Bergen not interested or thought this totally irrelevant why is it there?
We are not in a death spiral funding aka UKOG was for example
We have definite prospects for seeing a significant share price rise within the 30 day minimum period that Bergen must wait BEFORE ANY CONVERSION can occur WOULD YOU SHORT under these circumstances/laid down conditions? It is also banned in the agreement but I appreciate some would argue that rule can be circumvented BUT for any shorting to win you HAVE to be able to buy the stock you have sold without owning at a cheaper price than you have sold and Bergen can’t convert for 30 days ,to me this is another very clever and protective condition in my opinion
Then in a year Bergen have the right to the 2nd tranche of convertible security AND to get this our market cap MUST be double where we now are (the 3.5% rule)
I think this is VERY clever on Mike’s part
We won’t need the money then, if no deals by then we all lost. I think this is there as a huge carrot ?? to ensure WE ALL PLAY FAIR
IMHO this is a CRACKING DEAL