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Theeee:-
Read my previous post - you are assuming the share price will rise 10 fold and stay there - IT WILL NOT.
Even if it does rise 10 fold, it will only still be .07p (at the time of conversion) and they will need multi billions of them to remain afloat.
Nibble, the number of shares you own will be divided by 10, but the share price will multiply by 10 at the same time, so value of your shares remain the same - For then. To me this only happens when company SP has gone below nominal value and they desperate to place more shares. IMO and DYOR
Bid price ticked up. +6% tis moving back up.
Consolidation alone will not impact a shareholders £70 worth of shares. If no new shares were to be issued its possible he could still get £70 back (IF there were no dealing costs ,,lol)
But we know UKOG is in desperate need of more cash
Its the creation of new shares thereafter that will dilute and reduce the value of that £70 shareholding to, in my possible scenario; maybe circa £24.
1m at 0.007p should become, in theory, 100k at 0.07p: shift the decimal point for the new share price.
"Conversion of these Equity Shares by the Investors now reduces the balance of the £2 million gross first cash sum received to approximately £0.66 million."
This is why they have Resolutions 3 and 5 so they can raise the cash to pay off YA.
They still have to deal with "£0.5 million receivable by no later than November 17th 2023, and £0.5 million receivable no later than February 16th 2024," if it ever goes through.
At the next AGM you can probably expect a resolution to raise at least another 20 or 2bn shares depending on the outcome of the GM. Whichever way you look at it UKOG has cooked its own goose.
So let me clear this up.
Say you have 1,000,000 @ .007p = £70.
If you then apply the 1 new share for 10 old shares this gives you 100,000 @ .007p = £7.
That presents you with a £63 loss.
Unless you think the share price is going to increase by a factor of 10 ( which it won't) you are a crap investor
"...the effect on the market cap should be zero."
The great pain will come when UKOG has to issue a massive number of new shares just to remain a going concern.
Not sure that some have fully understood what's coming. How many shares will be issued by a company with a market cap now of circa £2 MILLION to raise, maybe £4 MILLION?
I have previously tried to spell this out. It will be devastating .
If, behind the capital reorganisation, they then proceed to a placing, that is where there is likely to be an impact on the price of an individual share. But, in theory, the capital reorganisation itself is neutral.
That's the way it works. All they are doing is dividing the number of shares by 10. In theory, the effect on the market cap should be zero.
Explain
I'm old enough to remember the death throws of Laker Airways and just before the end there was a surge of buys from people who just were hoping for a miracle to make a quick profit. Good luck guys and girls but I hate to tell you but miracles are very rare nowadays.
NibblePibbley,
The vote is to reduce the number of shares by 10 but, in theory, the price of each new share should multiply by 10.
How can anyone, with any sense, think that buying 14285 shares for £1 is a good investment, bearing in mind there is a vote on the horizon which could effectively reduce the investment by a factor of 10. ???
Wednesday 6 March 2024
9:45am
Courtroom 2
Judgment hand-down
Lifestyle Equities CV and another (Respondents) v Amazon UK Services Ltd and others (Appellants)
Lord Hodge, Lord Briggs, Lord Hamblen, Lord Burrows, Lord Kitchin
----
Bertino (Appellant) v Public Prosecutor's Office, Italy (Respondent)
Lord Hodge, Lord Sales, Lord Burrows, Lord Stephens, Lord Burnett
----
Merticariu (Appellant) v Judecatoria Arad, Romania (Respondent)
Lord Hodge, Lord Sales, Lord Burrows, Lord Stephens, Lord Burnett
Cyan2 - Very Good - what more can be said, except this share is doomed.
Get out whilst you can.
Sorry technical hitch. Repeating myself; a sign of old age lol
I think there are some who believe that if UKOG is successful in a fund raise then the share price would rise, probably on relief that administration has been dodged for the time being.
I posted an example before; a £4m fundraise which might be sufficient to provide annual admin costs of circa £3m and provide for another "roll of the dice" (Sandersons words") , a single Turkish drill.
I demonstrated that the fund raise in my specific example might see the number of shares grow ; from 33billion to circa 113 billion.
It follows that an existing shareholder would need the share to dramatically increase for their existing equity to have their present sale potential return.
If you have Y shares at say 0.0062 p and UKOG increases the share number; say 3 fold to 3Y; your shares VALUE has been cut ; they will yield one third of what they could have before the new dilution.
£100 worth of shares TODAY might be worth £33 after a confetti based fund raise.
The rampers will say that after UKOG is funded the share price will rise.
My argument is ; just to stand still; UKOG's share price may have to multiply by 3 just for your investment value to just stand still at todays value.
Why would anyone want to buy this share?
I think there are some who believe that if UKOG is successful in a fund raise then the share price would rise, probably on relief that administration has been dodged for the time being.
I posted an example before; a £4m fundraise which might be sufficient to provide annual admin costs of circa £3m and provide for another "roll of the dice" (Sandersons words") , a single Turkish drill.
I demonstrated that the fund raise in my specific example might see the number of shares grow ; from 33billion to circa 113 billion.
It follows that an existing shareholder would need the share to dramtically increase for their existing equity to have their present sale potential return.
If you have Y shares at say 0.0062 p and UKOG increases the share number; say 3 fold to 3Y; your shares VALUE has been cut ; they will yield one third of what they could have before the new dilution.
£100 worth of shares TODAY might be worth £33 after a confetti based fund raise.
The rampers will say that after UKOG is refunded the share price will rise.
My argument is ; just to stand still; UKOG's share price may have to multiply by 3 just for your investment value to just stand still at todays value.
Why would anyone want to buy this share?
You are easily led
65m shares says so.
Down:-
Off you go then and buy 10million if you are so confident but I think you are misinformed
V.little resistance if 0.0075 breaks. target 0.0175
Cyan - I think in reality that the regular rampathon merchants that come on here claiming to average down or buying at the bottom are total walter mitties with an ulterior motive. I can't fathom what it is. Misplaced loyalty to SS? Family member? Marketing shill paid for by UKOG? Deranged wind up merchants that have drunk too much trying to wage a war on the so called 'greenies' etc etc. I'd be very surprised if any self respecting PI would jump in here now or for the last 6 - 12 months. Like trying to catch a falling chainsaw. Of course there is an extra special case on the Hill with Stockholm Syndrome - and that individual in one of 'their' guises as in the past actually apologised for costing people their "hard earned" with his misplaced, devious and disingenuous ramping posts. There will always be the pipeline hey !
There’s no way back from death spiral finance, it’s ruthless …