Sound Energy #SOU provides an update on a potential farm-in and operational progress in Morocco Watch Now
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I’ve never understood why the listed companies were not traded. Loads of missed opportunities to make money for this company buy just sat back and did nothing.
You have to ask yourself how do they finance ops going forward. So they buy a load of shares in unlisted stocks that don’t pay a divi in the hope that they rise. The money is then locked in, some investments have done well some not so well. So how do the BoD pay themselves. They take money out of the placings or sell stock.
In all honesty they’d have been better buying a divi paying etf. At least there’d be cash flow and more safety for investors.
I was naive when I invested here because of the hype, actually made a few bob on the run up to a penny and then i tried to work out how they would make cash as I realised they weren’t offloading stock and if they did it’s akin to selling assets so I sold out.
This is not a ramp or deramp. Just have a serious think about the business model here.
As for them raising money, I’m gobsmacked that someone(s) would put cash in here no matter what the discount unless of course it’s a buy to fail move. I.e they know this is on its last breath and when the lights go out the liquidators then the bondholders get first dibs.
There so the investment is at a discount to the underlying assets so that when it fails the liquidators sell the lot, pay the bondholders and the PI gets what’s left. How much is a mug nowadays?
That’s harsh Trek, yep it is. I had a similar experience at XEL. So happy to share my learning, but hey it could now multibag to 2p!
Think about it. No sanctimonious intentions and no advice intended just be careful.
Good luck guys.
Not that it matters much ATM but BITK Up 34% to CAD 0.67.
Stick it all in NPR..... Go for Gold!
Apologies in advance but I have never experienced this situation so far. Regarding NewCo and the 10-1 share deal, how would you access those shares to but or sell as the company isn’t listed.
It will be interesting what they plan to do with the ~£850K left over from the placing. They talked about investing big in a company or a reverse takeover. All we can do now is wait till end of August.
mine are a free carry from over 2 years ago , but i`m still surprised at how many new shares and warrants will be in circulation going forwards .
what`s inevitable will happen though so will just have to see what happens
Not a chance of those warrants @0.06 being exercised for years if at all, they mean nothing, investors have just been pretty much totalled here and you think it’s a great RNS.... wow
Put it this way, very happy with my position here. Added bonus is warrants
The shares in issue at the end of the day will be at least 10 billion from 1.7 billion shares. When the placement and pro rata warrants are exercised. Anyway, will leave you to it and wish you all the best.
Having only 266M shares in issue and having the group 2 assets including Vibe ( which I feel is worth more than the £855k valuation for all assets alone) could be where the money is made. For every 10 shares you hold in Vela you get 1 share in Newco..
It's already arranged. Are you saying your in at the placing price? I'd stab at no and most Joe bloggs if not all Joe bloggs on here won't be so it's still not a what's not to like I'm afraid.
Yes, but if you are in at the "placing price", it is a no brainer
Yeah I grasped it Rob but you said....
'Bondholders will want to see their investment make a profit, so upside from the placing price is probably 3/4 fold'.
That's right but the placing price is several time lower at a 60+% lower price than the current share price today. Even the bond conversion is still 10% lower than today's price.
In fact the shares in issue were 1,748,943,717 and the placement alone is about 2.5 times that. So the market cap needs to fly to maintain value and the underlying investments are what they are.
Simply saying it's not a good thing. Sorry, not wanting to rub salt into the wound but it's not a 'whats not to like RNS'.
Hopefully the reorg etc works out in the longer term and allows to continue to be an ongoing concern and do well in the future.
Finally, someone has grasped it
I think Robs point is the conversion of existing bond holders @0.06 whereas the placing is 0.024.
Not invested here was some years ago but read the RNS and it's rock and hard place situation.
Rob the placing that has to be accepted is at a deep discount not a premium. The placement price for the raise is .00024 not .0007 which is current price. Fingers crossed these reorg help long term for everyone here. Better than a weve gone under RNS I suppose.
Yes exactly, my point mark in the wrong place
Still 2.5 times about the placing price
Read the RNS carefully.....
0.024p and 0.06p
Current share price...0.07p
No premium as far as I can see.
The Company has conditionally raised £1.0 million via the placing of 4,166,666,875 ordinary shares in the Company at a price of 0.024 pence per share. In addition, 4,166,666,875 warrants to subscribe for new Ordinary Shares at a price of 0.06 pence per share are to be granted to the subscribers in the Placing on a pro rata basis to the size of their subscriptions in the Placing.
Read the RNS carefully
Raised £1m subject to aspproval
Bondholders could have taken over this Company, but got Zilch
They have converted their debt at 0.60, why because of the new Company that is going to be reversed in to VELA
Do you think they convert at a premium of 2.5 times, just for the fun of it
They know and I know whats happening
Its going to be massive
See who is behind the newco
Watch this space
Well that’s a shocker to say the least... It would appear that there is no other option but to accept all conditions or delist is the alternative. Will watch closely as I had quite a few in here. GL and fingers crossed.
What’s not to like?
Well, when they come out of suspension, if resolutions are voted in you will lose 50+% of current investment value, if not voted in will delist and lose everything, if that’s the sort of stuff you like good luck lol
I think your namesake has pretty much zero chance of winning the election in November but will probably be in office longer than this company will be in business. Dire...
Wait to see what the new board do....
Bondholders convert at 0.60, placing at 0.24 - what is there not to like ?
Bondholders will want to see their investment make a profit, so upside from the placing price is probably 3/4 fold
What is there not to like !!!