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For the sake of transparency, I sold my £5k stake last week - had to sell in 6 lots. My reason being I was going mainly to cash given the CV issues and think funding will be harder to finalise given the lack of clarity on CV. I think therefore will be an equity placement which may dilute materially and therefore I would rather risk being out rather than in, even if I lose out by doing so. I do think there is value here and I hope for all LTH's I am wrong and sincerely wish you all the best. I will keep an eye out here and will have no hesitation in investing when there is more clarity. If it had not been for the CV issue I would have stayed in and taken the risk.
Stouf chap. I will be polite..Last time she didn't say much about the cyber incident but we had Rns the next day. Hopefully a little reminder might prompt some news about the funding.
No flirting Woody!!!
I will telephone Caitlin the communication officer tomorrow to nudge her for a little information on any funding news.
Will let you guys know how I get on.
Woodie
Hi Bertie, - With regard to the Elephant, here is a google explanation:
If you say there is an elephant in the room, you mean that there is an obvious problem or difficult situation that people do not want to talk about. It is a figure of speech that has perhaps lapsed, - my apologies.
CV = Corona Virus.
Please don't get me wrong, I want Gareth Jones to be successful in his efforts to negotiate another loan,
but he has been at this task since November.
I don't think it was a coincidence last November that the loan was re-arranged, and 4 days later the CFO resigned.
He had only been in the job 2 months.
I can see Gareth giving this maximum effort until April when if he fails, we fall back on the present loan, with access to Tranche 2 at MidCap's discretion.
Lets hope he is successful before, and we don't continue with the present loan, because it is clear the board dislike it.
B2 please state clearly what you mean, in particular what you mean regarding the elephant in the room and what you mean by cv.
I appreciate your postings.
Many thanks.
Bertie.
Hi B2HS2L
I don't profess to know exactly what is going to happen regarding the financial needs of TRX but I do hope I'm nearer the mark than your vision of a last minute marriage.
I've followed this company for quite a while and the BOD have never struck me as amauters. The fact that they did a deal with MidCap way back last year and set out how they were going to bridge the cash shortfall as they moved ever closer to a breakeven turnover. It all seemed pretty professional to a small time investor like myself.
Why the income forecast began to slide I don't know exactly, I presume from what we have gleaned after the event, that customer pressure to produce more of one product than another skewed the manufacturing output to favour a more difficult and time consuming mix, (plausable).
It's the joy of business, projecting sales figures, budgeting for increased productivity, forecasting which way the wind will blow, sometimes through no fault or lack of diligence by the management things don't go as planned.
'Vision and Reality'.
So MidCap asked them to re-budget and recapitalize the business. We don't know if that felt to be overkill by the BOD or not but the funding is still on the table from MidCap as far as we know.
Let's hope I'm right and there is an RNS at some point next week.
Chester.
I am kind of envious of Stu's position, in that he has a group of investors each chipping in their ideas.
Here's hoping your efforts succeed Stu.
I have been a shareholder since 2014.
Unlike yourself chester, I don't see a resolution of funding being iminent.
I don't believe tranche 2 of the loan will be drawn down until negotiations with other providers has stopped,
and I don't think that will happen until the money has nearly run out, and they have no choice but to continue with MidCap.
The loan will fundamentally affect the finances of the company for the next 4.25 years, and the deal must feel right for the board, (mostly guys with relevant financial experience).
They obviously are not not in love with the MidCap deal, as they make no effort to hide they are still looking for finance.
And because finances have kept the sp low, I feel the company has been running a risk of being bought out.
Bigger concerns with the necessary access to cash could soon progress what TRX has been trying to achieve since November, when the present loan was re-arranged.
The Elephant in the room is how much disruption will be caused by CV, including any disruption to fitting out the new San Antonio production facility. We can't know this now, but we should expect it.
The Company continues to experience significant constraints on its working capital however the Board believes that the available cash runway will continue to support the working capital requirement of the Company until the end of April 2020.