Petro Matad CEO Mike Buck confirmed that he believes the Exploitation Licence for Block XX in Eastern Mongolia is likely to be awarded in Q2. Watch the full video here.
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Whatever it is however in Pluto must be pretty good looking at the level of quick, high investment going in. As expected Argo are taking advantage of the recent sp increase but it’s a big chunk into Pluto
I don’t understand any of it, but let’s go with it and see what happens!! Gla
RNS from ARB @ 17.00 8-3-21.
To raise £26.8M of which £7.3M will be invested in Pluto to maintain its c25% shareholding. Presumably this is part of the fundraising referred to in the RGO RNS of 4-3-21.
Argo has agreed to invest approximately a further GBP7.3 million in Pluto as part of Pluto's current funding round in order to maintain Argo's shareholding in Pluto at c25%. Argo will receive 121 million ordinary shares in Pluto issued at a price of 6p per Pluto ordinary share. As part of this round, the Company will also receive 121 million warrants exercisable at a price of 12p.
Argo is currently focused on Proof-of-Work consensus mechanism (mining), while Pluto has a strong focus on Proof-of-Stake projects. Further to this, Pluto will generate revenue from running nodes and validators versus Argo's revenue model which is currently focused on mining. Pluto is deeply networked within the Web 3.0, Ethereum, Polkadot and DeFi communities which means they can invest in early-stage projects with high return potential, giving the Company further exposure to the crypto ecosystem"
Warrants mentioned again in relation to the Argo investment.
Even better than that ukvrkw, it's actually a total £1m investment with an attributable current valuation of £1.28m (@ 6p Pluto's last funding round) from a market cap company of £10m. As you suggest, it only goes to underscore the value here when you also consider the 18.2% of PIRI worth near £4m plus 10m warrants there worth near £1.1m if exercised all of which, in turn, gives RGO an indirect holding of even more Pluto!
So, all in all, just PIRI and Pluto currently account for about 63% of the RGO market cap but we know there's so much more in there, not least stacks of warrants in tens of companies that are not and will not be seen in RGO NAV terms unless and until they are exercised.
Also, check out the Kodal RNS Friday. The initial outline deal with RGO “parent” has been varied but is in final legal stages so expect a final announcement very soon. I imagine due diligence threw up one or two insecurities and perhaps a longer timeframe over which to maximize the proving up of asset potential so it will no longer be interest free nor ready for JV or whatever else by Oct 21.
Rather it will now be a more typical 24-month secured convertible loan note (the 'CLN') with no repayments before 18 months, and a 10% per annum interest, rolled up and payable on maturity, and an implementation fee of 5% of each tranche advanced. Each tranche of the CLN may be converted by RGO et al into new Ordinary Shares of Kodal and RGO et al retain the right, but not the obligation, to convert all or part of any outstanding balance of the CLN, up to a maximum of US$1.25m for a 20% shareholding of the Company's subsidiary that will hold all of the Company's gold assets.
The thing to bear in mind here is that since the initial Dec announcement, the portfolio of gold properties has almost doubled (to 8 in total) following KOD regaining 100% interest in the Nielle, Tiebissou and M'Bahiakro (application) gold concessions after termination of the Corvette JV with Resolute Mining after Kodal deciding to refuse Resolute’s extension request.
So once again, a rounded, low-risk, secure deal with high fee and interest-bearing benefits and with significant options, but not obligations, of gathering stakes in both KOD and in the gold assets should exploration go as is hoped and a “monetising event” then occurs (see KOD announcement for details) and/or KOD also gets the go-ahead over this period for its major battery-metal lithium asset which could also be increasingly hot as fossil fuel is dumped in favour of batteries for e-vehicles.
Yet another win, win.
It’s a £700k investment from a market cap company of £10 million. They stated last year the divi was already secured from Q3 so I’m assuming the cash generation continues allowing a significant investment on top of the feb investment meaning we are in good shape.
Next is 0.04 of a pence to finish divi alongside any other updates. Always like to know what the cash generation is like without selling warrants and shares as ideal too keep longer term and generate sufficient through loans.
I bought about £7.5k this week, it’s now one of my higher risk shares but hopefully I think I’ve taken some of this off the table by letting them make the actual investment decisions
Somebody selling, somebody buying too, all makes a market. If the selling side was causing us real trouble, I'd be more concerned but approx 50% up since the turn of the year after a couple of years in the doldrums is pretty staggering for the high dividend-paying, safe-haven, growth stock this is becoming.
Wasn't always true but Brian Kinane of what I call "Big Daddy" i.e. the unlisted Riverfort Global Capital came along and has been behind the transformation of RGO into a quality class-act, too classy for typical AIM boom and bust, a real keeper.
I invested thinking maybe to expect 5-20% growth on top of a nice dividend each year. However, my recipe card at the time said "steady with benefits" whereas now, a new disruptive ingredient called "excitement" has been added to the mixing bowl in more than a little good measure.
The way things are shaping up here, it looks to have it all. Potential for dynamic investment growth, solid earnings, high dividends likely to be maintained, safe haven protection from the worst of the inevitable cyclical storms. Too good to be true? DYOR.
Maybe overall investment update soon??
Hi Markjenn, we dealt with that IES question to conclusion back on 15 Feb, didn't we? There was then a 50-1 consolidation so my calculation the warrant price would now be 107.5p.
These are the deal as a retail investor I get really ****ed off about as the agreements are so good for investment, loan companies like RGO. Hence I like this dynamic being on the other side. They earn money through actual £s loans or by getting shares, the % chance of failure is far less as the deals all written to place most risk on retail shareholders that come next,
I bought some more RGO today and I wasn’t hard so there are a few out there
Poppyseed, I read the PIRI rns earlier interesting and a hell of a deal, I would think we have must have warrants as well
Below is an extract from the IES admission doc, what is you via on the warrants last section at 2.15p
Is the exercise price really 2.15p ?
Riverfort Investment Agreement
An Investment Agreement between (1) the Company, (2) YA II PN, Ltd, and (3) Riverfort Global
Opportunities PCC Limited dated 13 March 2020 pursuant to which YA 11 PN, Ltd and Riverfort
Global Opportunities PCC Limited agree to lend £3.0 million (the “Principal Amount”) to the
Company (the “Riverfort Facility”).
The Riverfort Facility incurs interest at a rate of 12 per cent. per annum and is subject to a 2.5 per
cent. commitment fee on the Principal Amount and a drawdown fee of 5 per cent. in respect of
each advance. The commitment fee can be satisfied by the issue of Ordinary Shares. The
Principal Amount is advanced in tranches over the 18 month period following Admission.
The Principal Amount and all interest accrued is convertible into Ordinary Shares in the Company
at the lower of (i) 90 per cent. of the volume weighted average price in the ten days immediately
preceding the date of the relevant conversion notice; and (ii) 130 per cent. of the volume
weighted average price for the five days immediately prior to the relevant advance.
In addition the Company has agreed to issue, at drawdown, warrants over Ordinary Shares equal
to 50 per cent. of the Principal Amount, exercisable over a period of four years at a price of
2.15 pence per Ordinary Share.
PIRI RNS on the same subject is a bit more forthcoming and suggests RGO will now hold approx 21.34m shares in pre-IPO Pluto for its 4.2%.
PIRI also mentions what looks like a stonking warrants deal alongside this raise so strange that RGO does not mention warrants. I can't recall seeing a placing where some participants get warrants and others don't so....
Thing here is that PIRI paid in a non-cash manner using 1.9m YOP tokens and a transfer of its DeTech holding to Pluto. That DeTech holding plus 4m YOP tokens cost PIRI just US$200k only a few months back. Now that US$200k holding but with only the remaining 1.9m of those YOP tokens received at the time buys 23,301,633 shares in Pluto @ 6p, the attributable cost of investment being approx £1.4m. Plus 24m warrants exercisable @ 6p, 6m vesting immediately. Nice!!
So getting back to RGO, my extrapolation of the PIRI RNS is RGO now holds approx 21.34m shares worth £1.28m @ the latest Pluto raise price of 6p but which cost them only £1m.
Plus a slug of warrants a la PIRI? We can only surmise. However, what is in no doubt is that RGO also holds 18.2% of PIRI!
Value and hidden value just get better and better here, plus 4%+ pa dividend! Happy to have a large foot in the disruptive tech/crypto arena via RGO and let others make the calls on stuff I really wouldn't want to call for myself.
And we will have approx1% via our holding in Piri
Still a seller in the background though, got to be cleared soon
still about the choice of investment of course. however they also get in earlier before retail investors so get the best deals. i.e. pluto will come to market and raise more i would think at a higher sp level which puts us in a good position to then sell down stake on ipo if we want.
The investments in Pires and Pluto should have a positive impact on the Asset valuations at the moment. How this continues will probably depend on Pluto's valuation. Will be interesting to see the "Statement of capital following an allotment of shares" on Companies House when it appears.
i know very little about digital businesses and investment hence the ideal to leave RGO to do this for me. it all reads and sound great, no idea really as I'm still in Aviva and mining but lets hope and see where it goes
Big investment in comparison to the market capitalisation of RGO.
Further investment in the digital assets sector
RGO is pleased to announce that, further to its announcement on 4 February 2021, it has invested a further £700,000 in newly incorporated Pluto Digital Assets plc ("Pluto"), as part of a fund raising by Pluto to raise a total of in excess of £20 million. Post this fund raising, RGO will have a 4.2% shareholding in Pluto.