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H&N..... nope not foxy, just pi55ed off. I thought that wsg had actually turned the corner with Tema revenue to act as a solid foundation to fund future growth prospects. All these super heroes Peter has employed and sprinkled around his business further supported the view we were on to something big from both KSA and other continent’s..... this latest Ponzi scheme of funding suggests something different. We are still scraping a living and will be for the foreseeable future. Peter appears to be another Walter Mitty character who lives in a world that shareholders don’t. This is a proud man who loves his workforce like children, and as long as he thinks he is wonderful and continues to string off his achievements to doubters his ego will continue to grow. A good contact list is better than profit in his book. We are all doomed to a life of misery and poverty under peters stewardship, give the helm to someone else I think as he has had his go and nothing has changed. Imagine how fooked we would be without tema pennies. IMO off out to feed the tema cash mouse. Roll on April, I can sell my shares that will still be sub nominal no doubt. B
AIMing_high That can be said for most AIM company's and brings into question why are they running them. Life style and kudos with never ending placings for over inflated wages . IMO
Vander: i can neither confirm nor deny
I've met a large number of very senior management of many companies as part of my work and i must say that most tend to be more impressive than PF.
(and by "most", i mean "all", and my "tend to be more impressive" i mean "are a world apart in terms of impressiveness"
that said, he's got a tiny, loss making company into some positions to have some sizable contracts......he just needs to convert one for once.
All IMO off out to find pennies behind the sofa to top up when this hit's Gige's 6p
Aiming- do you realise that your description of fowler depicts him as a half wit - someone who is not even aware of the shareholders agenda, which may be different to his own or that of employees- and yet he ploughs on regardless
the one thing that i'd say in agreement, Win, is that at the AGM he seemed insistent that he was really proud of what the company had achieved and how great all his staff were. it was nice to see him being proud of his employees and his business...but he needed to recognise his audience. He was going on about the amazing growth they'd had without realising that he was talking to the people who funded him and who'd seen him oversee massive value destruction in the share price. yes, he's developed the business, but it's still been loss making and an atrocious investment.....granted, he may have laid the building blocks for some "transformational" growth over the next few years....but he needs to deliver for the people paying the bills.
It is not that people see positivity at this price, we just know they can sell some more BS to the market at this level to spike it again. Shocking RNS and admission they never intend to make any profit out of anything they do, they can shove EBITDA up their arses. Why the extra money above the amount needed to repay their finance obligations. Every time these thieves do a project it always needs finance, if they did their homework and made money out of something they should buy back shares once the project completes - shameful and disgusting. OUT
Jimzi - just to pick up on one point.
I read it that the investor can sell as much or as little as they like - within limits - over the next 12 months, extendable to 24 at their discretion. There is no commitment to a 1.25 million figure each month.
Also, still concerned that PF has discretion to issue CLN rather than pay a monthly instalment. I don’t think he gives 2 hoots about shareholders, shares in issue or the share price and would gladly keep the cash.
Christ, what an utter misery Yrab is........are you foxy?
Well someone is still optimistic - £23k buy this morning
A few chunky ones yesterday, with the £59k buy particularly evident. So there clearly still people who see some positivity at this price
Whichever way you look at it, Peter has once again managed to turn optimism off. Tema sounds more like a cash mouse rather than cash cow and the extra money to fund growth just code for we are still loss making and need bumbly towers tea money. Back to BAU where we wait for the msc graveyard to fill up some more with the KSA corpse to follow where Iran and Africa are laid in rest. Svs have shackled me in here which is very frustrating, a bit like being handcuffed to Donald trump or worse Peter Fowler . Who tells you one thing but delivers something different and disappointing. This roadmap Jimzi is no different than all the others, they lead to an empty car park . I spotted a 7 year holder leaving the building yesterday..... more will surely follow. B
Correct. So we have a monthly mini placing over the next 12 months of 1.25m shares at roughly the prevailing market price each month.
Much better than 14m a) hitting the market now b) at this price level. And much better than 23m hitting now at 10p.
The price depends upon news flow.
And these shares can be sold at a higher amount should by some miracle WSG find an investor.
Basically, the Bod have one year ( with no finance worries) to transform the company. For once we have a roadmap.
I’m going to switch my positions to Dec 2020 contracts when they are available and if nout sig by then, let them expire at the closing price.
Spot on Esduk, good maths.
Shame YA and Riverfort's names are involved, a real passion killer for most retail investors. A red flag before they dive into the detail. Still, the reality is, the CLNs will get cleared away with a better financial deal and the company has more cash. When the contract RNSs land, it should mean they are ready to fulfil them
WSG will receive the lower of 90% of the volume weighted average SP of the 10 lowest days in that month or the benchmark price (13.625p). As far as I can see the Investor will benefit from a higher share price as they will keep 50% of the upside in the event that the SP sales are above 13.625p (with the other 50% going to WSG). If the SP is below 13.625p they will be paying WSG roughly 90% of what they sell the shares for (maybe a bit less as it's the weighted average of the 10 lowest days).
So lets say the Investor's average sale price in a month was 20p, and that they sold 1/12 of the 14m shares in that month (1.167m). The difference between benchmark price and average sell price (6.375p) would result in the Investor receiving £37.3k profit (6.375p x 1.167m x 50%) and WSG receiving $159k (13.625p x 1.167m) plus £37.3k (6.375p x 1.167m x 50%).
On the other hand if the Investor's average sale price was 10p and we assume that was roughly the same as the volume weighted average SP of the lowest 10 days in that month then the Investor would only make £11.67k profit (1.167m x 10p x10%) with WSG receiving 90% or £105k.
Excellent post jjj. I think the remaining £1.5m mezz facility will be used for growth but also as a safety net in the event that the next five months of subscription share proceeds are lower than is assumed in their calculation (£150k per month), which is based on a 12.5p share price. So they are giving themselves a bit of headroom to make sure they can repay the CULNs on time.
Thank you jjj!
Seems to make sense to me.
2 posts in 18 months.....you must feel the urge to make a comment on the "confusing" RNS.
You obviously feel the need to SAY something....because you KNOW something....again "Thank You"
Gibbo - I suppose my thinking is one sided. At the moment they haven’t paid anything for these shares, the money they hand over depends on the price - lower the price, less they pay.
The question then comes in that a low price means they get less also from selling so I take your point somewhat.
The refinancing is hard to understand and predict in detail
The simple take home message is probably no imminent Tema contract and another rns indication that income will make a ‘meaningful contribution’ to revenue- and by implication will not be transformative- several 100k usd income in 5-6 months- wsg are ‘pleased’ with the provisional contract. Fowler has the same emotion when announcing a placing/ refinance package- he was very excited when describing Iran
Fair point, but to make a profit they still need to sell higher. The option of forward selling at a higher market price and buying back at the resulting lower price isn't there. I think I need to understand the mechanics of how you think they benefit from driving the price lower
Maybe I read it differently. I see it as that they have subscribed and will receive 14 million shares at a ‘theoretical’ price of 12.5p. The proceeds for those 14 million will be received in monthly instalments for the next 12 months and the actual amount received each month will depend on the share price. In that regard we may not receive £1.75 million after 12 months but actually less. The 12.5p is actually just a valuation figure not the true figure being paid for these shares.
Also, hasn't the third party also agreed to subscribe for £1.75m of shares at a premium to yesterday's (and today's!!) closing share price? Again, hardly gives them a motive to drive the price down does it?
win4call - I'm no expert on these shenanigans, but isn't the difference compared to Darwin et al that they cannot forward sell or hold a short position? So driving the price down can't possibly benefit them ie Darwin forward sold and closed the position by buying back lower. As I say I'm no expert, so if anyone can explain how it would benefit them to drive the price down like Darwin I'm all ears.
Sorry - finger trouble halfway through hence the first truncated post.
Jimzi - not sure I agree but then still struggling to understand this fully.
On the loan I see it that we have issued 14 million shares for a theoretical 1.75m pounds. The amount we really get are spread over 12 months and depend on the share price each month. We could get much lower if the price stays low and whilst they can’t short, they have 14 million shares to create a big overhang drag.
For the loan to repay the CULN, whilst that can be repaid each month, PF could instead keep the cash and issue a CLN instead. In theory we could’ve swapped a 2.25m CULN for 3m of CLN’s ? Highly unlikely but I wouldn’t trust PF not to go down that route at some point.
Of the initial 1.5 m drawdown how much has gone towards paying back the CULNs and how much held back for working capital. I guess we won’t get to know that. I assume that none of the CULN has been converted at the 10p price as we’d have to issue the shares and announce accordingly.
My fear is that this has put a lot of stock in the hands of these institutions and potential control of the SP for at least the next 12 months. Whilst they can benefit from an increase in SP history tells me with these sort of arrangements that the SP tends to be worked down as low as possible - look at our past dealings with Darwin.
I may have read some of this wrong, not clear how this 12 monthly payments gets calculated when they talk about the difference between the 10 day price and the benchmark 13.625p figure.
It still looks to me that, worse case scenario, this could cost more than the old CULN’s but the whole detail is very opaque and depends on what happens in the next few months.
As ever a lot will also depend on how much PF has to announce that may lift the SP . Tema doesn’t look like the hotly anticipated catalyst so can we expect something extra ?
Jimzi - not sure I agree but then still struggling to understand this fully.
On the loan I see it that we have issued 14 million shares for a theoretical 1.75m pounds. The amount we really get are spread over 12 months and depend on the share price each month. We could get much lower if the price stays low and whilst they can’t short, they have 14 million shares to create a big overhang drag.
For the loan to repay the CULN, whilst that can be repaid each month, PF could instead keep the cash and issue a CLN instead. In theory we could’ve swapped a 2.25m CULN for 3m of CLN’s ? Highly unlikely but I wouldn’t trust PF not to go down that route at some point.
Of the initial 1.5 m drawdown how much has gone towards paying back the CULNs and how much held back for working capital. I guess we won
Couldn't have put it better..