Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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So if the takeover/going private option did ever proceed they would have to pay current shareholders at least 27p per share as things stand as that is the highest price that has been paid in the last 12 months, obviously thats much less than I envisaged receiving 6 years ago when I set out investing here but I can think of much worse outcomes.
It's irrelevant now anyway as the company have categorically stated today that the company will not be going private so no worries on that front but at least we know the minimum price we would receive if it were to happen in the future.
"The scene is set! Time for the final act."
____
Of course it is. After his multiple failures to deliver the funding package and disastrous drop in share price over the last couple of years he now decided to blame literally everybody and everything around but himself....Misjudgement resulting in major cost increase and misallocation of available funds resulting in failure to de-risk the project sufficiently before approaching capital markets for the money, dilutions, helter skelter form 52p to 3p, multiple leaks, disastrous conditional deal with JPM, failure to sell the bonds, limited options, despair, frustration, now potential de-listing.....And the CEO of the company openly washing his hands of all of it in public.
He's probably well aware he he will need a bl***dy good explanation in the coming month(s)....
KOH
“ You've provided risk capital to a speculative investment.”.
Exactly what CF has been saying to investors. (I’m no longer implying that Devon is CF).
The scene is set! Time for the final act.
"its bordering on criminal. At the very least immoral."
You've provided risk capital to a speculative investment. If does fail, failure is neither criminal or immoral, it's just part of investing in highly speculative companies. Unless you know of some criminal activity?
Bobster - the reality is nothing has changed in the last 24 hours, we still have no news and are waiting to understand what options are going to be presented and what they mean for PIs.
Clearly, administration is the least likely scenario. (IMHO)
Let’s see what Monday brings..... could be a good day for the traders.
its bordering on criminal. At the very least immoral. We have well and truly been sewn up like a kipper. Well we tried to better ourselves, improve the area and create quality jobs. All of that looks like it is lost now. This big hole will be filled in. Such a pity. I dont know if im upset or angry. Probably both in equal measure. disgraceful!!!!
"I buy what you’re saying, but since everything we are discussing is speculation, I think he is softening people up for a less than favourable outcome"
It depends what you consider "less favourable". I happen to invest in listed/unlisted equity and debt. I don't consider unlisted equity/debt as unfavourable. But it does limit your protection, but you still have LOTS of it, and of course realising your investment is limted to an offer, IPO or private arrangement.
As you say, all speculation, but if he's suggetsing "going private" and there's an offer on the table somewhere, he'd have siad that.
I think it's deisre for less public speculation, private companies, and some investores, don't have to deal with that every minute of the day.
Thats what cr the ceo is paid lots of money for,but whilst the leaks are coming out,and pi unrest,,then he is fighting a losing battle,its a shorters banquet,
Also for me i can get back to a good nights sleep,and not have the smirking vultures spewing crap down my throat all the time.
For all we know,he may have the answer already,but would like to see it through without any leaks that may thwart it.
We will soon find out.
Devon - true, it’s not the same potential scenario.
I buy what you’re saying, but since everything we are discussing is speculation, I think he is softening people up for a less than favourable outcome. All IMO
Nixon- sounds good, one question remains, how do we get the cash we need?
If we were to get an rns stating that for the good of the company,and investors,sxx is going to de list whilst investment is sought,
and then mine built,but will relist when times are more stable,,and shorters,,dead wood,hedge funds etc are out of sight,I for one would be happy with that,Better than what we have now.just my opinion.
"When Musk suggested taking Tesla private the stock reacted positively."
Wasn't the difference that he said hes was going to take it private, make a bid for it. That's not the implcation of what the CEO is saying. He's talking about taking out of capital markets.
NaPoM.
If that’s true (not saying it’s not) then we will see a good Sp increase on Monday. When Musk suggested taking Tesla private the stock reacted positively.
Monday will be interesting.
Watch out for the spike mind! (Or the pit)
"SXX is NOT a private equity buyout contender."
They like to load companies with debt, not stuff their own cash in. We know what the debt markets think of very speculative invetsments that don't/can't pay interest don't we.....
SXX is NOT a private equity buyout contender. PE buy companies with revenue and recurring costs, ie retailers, service providers etc etc. They strip out costs, borrow based on the revenues , pay themselves handsome dividends and at a propitious moment when the accounts have been "tidied up " read , massaged to appear positive , they sell out a highly leveraged company in a legacy niche to foolish investment managers. See AML, AA ,SAGA,,,,,,,,
"Not quite in the situation forcing it to delist unless there is a takeover and the offer would have to be high enough to get approval from 75% shareholders"
But there's not been an "takeover" and you agreed earlie that a Board does have the rights to take a company private if it believes the future of the comapny would be better served in that situation over the long term (or if it's finances are precarious). They them just need to give you 20 days notice.
It's not a case of "forcing to delist", but serving the best interests of the company.
Not quite in the situation forcing it to delist unless there is a takeover and the offer would have to be high enough to get approval from 75% shareholders
SXX has cash in the bank and recent decision to halt development reduces the OPEX outgoing.
"I agree Tex. Wouldn't be surprised if Devon is shorting this."
LOL or just bothered to read the FCA handbook?
I agree Tex. Wouldn't be surprised if Devon is shorting this.
"Devon, your posts are misleading.
Companies can be taken private by PE buyout. What happens to your shares in that scenario? They get purchased!"
Then I suggest you read the FCA handbook.
"Companies can be taken private by PE buyout" true, but they can also just de-list.
" There is no way he would want 85k of us on the private register."
You would still be shareholders, may be dissenting shareholder, on dissenter register, but that doesn't imply a company would buy you out. Lots of companies have dissenting shareholders, and dissenter registers.
Devon, your posts are misleading.
Companies can be taken private by PE buyout. What happens to your shares in that scenario? They get purchased!
Like I said Tex. See link below. The offer would need to be the highest price paid in the last 12 months. Cant be any lower than this.
Rule 9 requires a mandatory offer to be made in cash (or be accompanied by a cash alternative) and at the highest price paid by the bidder or any concert party for any interest in shares of the relevant class during the 12 months prior to the announcement of the offer.
Agreed FFC. SXX would need a good reason for shareholders to approve going private in which case the offer would need to be a lot more than the current SP.
...... the good reason could be this “this is the deal we have, if we don’t accept it we run out of cash and go under....you decide what you want to do shareholders?” How do you think everyone would vote in this situation?