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Chester,
I think the £1m cash available from the Midcap draw down was from the £2m figure accessed already so probably £2m owed and not £3m as you say. I could well be wrong.
When we discussed capitalization earlier in the year I was genuinely disagreed with for suggesting a share consolidation. Mind you that was before we announced the Fundraise and the giant swelling of shares in Issue to come.
Consequently I am more persuaded that a rejig of shares will occur. 1 for 25 or even up to 1 for 100. The discount that way will be eased from focus. You may be right in your reference to poker, but I think someone lost sight of the company's worth in the orchestrated scramble
I agree with Wolfie that a much lower discount was the way to go .
Oh well head down and hope for better things to come
GLA
We don't know and will never know all the facts.
The placing price will have been as a result of many discussions with their current and potential Institutional Investors.
What we don't know is what was being demanded from the BOD by those current ii's to stay on board.
Maybe our BOD are not the best poker players and just got turned over by the big dogs or maybe the writing was well and truly 'On the Wall' and they had absolutely no other avenue.
As from today's RNS we do know that the MidCap loan is still available and was being used, as quoted :
"Drawdown of $2m of the MidCap Financial Term Loan, with access to a $3m Revolving Credit Facility
as at 31st December 2019
+ Net cash at 31 December 2019 of £2.38m (2018: £7.82m), including £1m of the MidCap Revolving Credit Facility"
So there is £3m that needs to be repaid plus a £7m Loss and MidCap probably made it very clear that this placing had to happen.
It is all part of the of the "Capital Restructuring" we debated earlier this year, it would seem that all the chickens have come home to roost at 0.25p.
To my fellow T.L.K. watchers, 'Destiny is All' just two more episodes of season 3 still to watch.
Chester.
After that primary bid discount ,I’ve lost heart In this share for the time being ( I hope it comes back ) but I won’t sell , I hold out for the day it proves me I was right in the first place !
Every time I get a primary bid offer Come through I think why did we give away so much ! No discount is even close to it !
And yes I did buy on the offer but it’s not the point I’m making , you hold all that time and that’s the best they come up with !
I will look forward to seeing who’s here in a few years time :)
Sonnets
I agree, and have no explanation for the absolutely bonkers discount on the raise. Does anybody believe the raise would not have worked at .75p, given all the positive news and feeling for the products, great demand etc.
And if they do think that would have been a struggle, surely .50p would have been easy.
I've kept an eye on primary bid, and checked over the history of bids, and there's been many successfull raises at less than 10% discount, although probably 15 - 20% would be average, with the odd 30 - 35% looking a bit desperate.
TRX should not have been desperate at all, as you suggest, but they opt for a 76% discount? I just can't reason that, from any angle.
tom111 - you mention "if you had bought 3 years ago", well there are a few of us on this board that have been here longer than that. Me personally, I still have shares bought at just a tad under 21p - ooouuuccchhh, but have kept the faith most probably because I believe in the product(s) and never thought I would ever see these prices we are experiencing now.
When I read some posts that state they have bought their shares at between 1p / 1.5p and they are cringing it might take them another 12 / 24 months to get their money back, and then those who have stated they have a beak-even of less than a 1p, I think "If only I was so lucky".
I still believe this company IF it has the right B.O.D, and is managed correctly, including looking after the shareholders, and not just managed to fill their own deep pockets, then it has a fantastic future. Look at the patented products being produced that are in demand, the 'contacts in right places' to distribute those products etc, etc. The infrastructure is in place - so manage it correctly and let's all get rich !!
The fund raise seemed like a mad dash for cash at any price. A 75% discount to the closing price and a relatively modest capital sum targeted and raised begs the Qs why the substantial discount and why the limited target raised.
Would a company representative like to explain ; after all we were cashed up until August. Is anyone out there going to argue that it was the best that we could achieve? Factor in btw the new collaboration announced and the pretty stella FY Results.
temporary set back lol if you had bought 3 years ago they were 17p probably higher 5 years ago,just look at the chart,a downward trend all the way.Hardly inspire confidence.Might make a quick buck if u got them at .25
LTHs have suffered a temporary setback. The only thing holding the company back was the financial instability which the fund raise has sorted (with an excessive discount imo) and now the future looks really positive...
Is there a case for a legal challenge to the fund raise? (As per my previous question?)
If not, I can only hope the price drops to around 0.1 ish. If it did, I might buy a truckload of them, it would serve the directors right to get shafted like they shafted existing shareholders....
L.
I hadn't appreciated this detail Lunchboxbill, these purchases by directors as detailed in this RNS at the placing price (0.25p) is a conflict of interest in my opinion. Far enough if they were purchased on the open market before the placing occurred but they weren't. In fact this is quite dishonest.
I do wish that I could negotiate a deal where by I personally get an 80% discount on the shares...
Yes serious coin, but surely they'll be reimbursed via salary payments which can now occur via the money raised by the placing anyway? Seems to be a circular economic input to allow migration of shares into the hands of directors.
5m share cap loss of over 7m? at this rate of progress it will take years to make a profit imo
Director buys is serious coin