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Canine_With_Ticks,
You can consider the situation re: BM in two ways: either he is aware that a "Deal" is coming and is happy to accept shares in lieu of a cash payment because there is a good chance he will make more money. Or that he was told carte blanche that it was the only method of payment available to him due to the ailing cash position. The RNS certainly points to the latter scenario IMHO and so it is left to BM to do as he will with the shares he will inherit. I am always sceptical when a member of the BOD is paid-off in shares rather than cash. It is usually a sign of what is just around the corner. There will be many on here who will view this as positive and others like me who see this as just another red flag. You decide.
whosthefather,
I would say that BM was given those shares at circa 12p as some sort of bonus payment and in an attempt to inject some buyer confidence at that particular juncture in time. He has now been forced to take more shares in lieu of a cash settlement, which I reckon wouldn't have been what he desired, but was probably told carte blanche that, that was the only offer available to him on the table given the current cash crisis.
It's as if they have acknowledged that the "deal" is now not taking place and that post Feb 14th, they now need to have as much cash left in order to execute a 'Plan C', which IMO is delisting from AIM or selling-off the company to a n other outfit for a pre-agreed, nominal amount, which in theory should cover and of the remaining debts and severance payments owing to various individuals / parties.
I guess all will be revealed soon enough. This reminds me so much of what happened over at MYSQ. That lesson, as you know cost me and countless others, a lot of dosh.
JTF
Jones- I think it all stems from being too confident in the sale of the Horst/exploration. With the TR-1, it's either notifiable or not. Unless you don't adhere to the AIM/FCA rules of course. Unlikely, so it was probably multiple parties or engineered as such.
You'd hope so Wh0s.
Soundingoff,
It probably goes without saying but when looking at how much cash a company has in its coffers, you must always consider how much debt there is left to pay too. In SOU's case, there is that circa 30 million EUROS that is owing to Marco, which is to be owed by 2021, but I suspect he will do all he can to recoup his losses sooner than that where / when possible. There is also severance payments to take care of. Even if they are to be paid back in shares, it will usually be at the expense of the good, honest shareholder who will have to be faced with more dilution. It doesn't appear that any II's are purchasing shares in vast swathes and I'm not even sure at the current market cap they can. There are no Director buys either and that may be down to SOU being in a 'closed period' due to the forthcoming "Deal", but there remain just too many unknowns. The rate at which this lot chow down on cash is alarming. There must only be a few million tops left in the trough to swill over. I think the situation is becoming more and more desperate and they certainly aren't giving off any vibe that suggests there is a pending deal just about to be penned. I could be wrong, as I have already commented, but I believe they are just about to show you all their true colours....again. Fasten your seatbelts.
FWIW, I honestly think it's more a case of BM being happy to accept stock given the depressed share price, and it makes sense for SOU not to spunk some of the cash that was recently raised. It'll be ludicrous if cash is running short again!
BM is not exactly Warren Buffet with his last trade, but it's got to be worth a punt at 1.75p surely....
I posted this after the placing:
'Wh0s-£1.5m gives us just over another 3 months of annualised Opex and interest payments at the reduced 2020 rates. I'm surprised our cash balance was that high but it's clearly a pointless number without current debtors/creditors. If we need to run to end of Q2 to sign the deal off then we probably would have needed more cash. '
No-one knows if we need the cash or not. There's a difference between conserving and running out of, but those who want a trade or just enjoy the negative narrative will continue to shout.