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Ah, I see you have that dream as well. Scary how much this promises, and yet it always feels the stuff of dreams. I've def. been here too long.
Hi again G_G_G,
Of course , if I were in full on 'ramptastic' mode (patent applied for by the twitterati), I'd assert that thinking of funding requirements on a WEEKLY basis/ coupled with ZIOC's rights to suspend, terminate and claw back, was a 'strong hint ' (cough) that news was 'imminent' (patent applied for) and a sign that the BoD and incentivised management were desperate to avoid any unnecessary dilution because of the humongous future value of each share.....;->
In my dreams...
ATB
Hi G_G_G,
.." Shard could drip feed shares into the market to be picked up by PIs.."
How would that work ? Shard only gets paid for shares subscribed and for which it receives X, before passing (X-5%) to ZIOC . I think of their 7M 'subscribed' as , effectively, an 'at the money' warrant, that will be 'exercised' = paid for and turned into (tradeable) shares gradually.
The 75K per week figure in any case would be in the context of an average 1.2m traded daily over the last 3 months (per s'pedia), so any 'signal' that was being sent would surely be lost in the surrounding 'noise'.
As to your other suggestion re 'critically important' investors, let's wait and see how quickly we do in fact move to Tranche 2.
AIUI, btw, there's nothing to stop anyone who's ''connected but currently below 3% " from subscribing = generating funds for ZIOC....
Incidentally, I've learned that AT and Hanno Pengilly (CEO at Ncondezi, prev . with JP Morgan / Howarth's alma mater) are old muckers, I'm sure there'd have been opportunities to discuss the pros and cons of 'shareholder loans' a while back.
Why the 'Shard solution' only materialised a couple of days before the reporting deadline...and months after it'd been flagged up here and on other BBs as an issue.....remains a mystery...and possible concern.
ATB
Hi extrader, appreciate the thoughts below. The comment from Trahar does bother me a little though. t sounds to me like Shard could drip feed shares into the market to be picked up by PIs given he mentioned weekly volumes, rather than a preferred (rose tinted) view they're discreetly placing large blocks with unnamed but critically important investors who may or may not be Chinese and Congolese.
PS Hat tip to Longlad for a classic Freudian (?) slip :
.."at what price is the SWEAT spot..."
Priceless ;->
ATB
Hi Hawaiifive0,
.."The market makers could take the price to wherever they find retail buyers/volume.."
I look on the Shard subscription agreement as being supplementary/complementary to the 'normal' ebb and flow of market-makers, that's the point , surely ?
AIUI, they're incentivised to 'flush out' potential buyers who for whatever reason haven't bought so far. They do so on an arm's length basis and may (perish the thought) be a bit more 'promotional' than ZIOC can /wants to be.
Many of us walk around a shop, check out whatever we're interested in, badger the shop assistant for extra info....and then go home and buy on-line....
I'm not clear how (to pursue the analogy), Shard / ZIOC can stop that : I might be persuaded to buy by Shard's marketing, what's to stop me just buying in the market (rather than 'subscribing') , which doesn't give ZIOC any funds ?
Which brings me back to : the Shard structure only makes sense if it's intended to tap a discrete investor pool.
AFAICS, the only 'hard info' we'll have re progress (the first Tranche having already been issued) is when we're RNS'd of a 7M increase in 'shares in issue' , being the Second Tranche.
Proceeds of Subscriptions are to be paid to the Company on a weekly 'sweep' basis, it would be useful to be updated on how things are going.
Trahar mentioned in passing that 7M over 90 days was about 75,000 per week, which struck me as an interesting way of looking at things : perhaps there's a 'tame' subscriber or subscribers lined up, to provide funds only as-and-when needed. A
Glass half full/ glass half empty ?
ATB
Funding is obviously required and IF Shard can’t find sticky hands then volume will be required to facilitate liquidity, at what price is the sweat spot, obviously nobody is interested at 5.5p, so how low will it be taken to gain some traction? We will know when we are there as #zioc will be trending with ‘rocket’ and ‘bag’ emojis
Whilst not wishing holders ill fate it does appear downside chart resistance of 5.75p has been broken today, next resistance is 3.90p
I feel the shares will head lower therefore, no matter how the funding is dressed up 7m shares need to find a home, even assuming some may go to sticky holders of Shard some will inevitably get dumped onto the market IMO.
The market makers could take the price to wherever they find retail buyers/volume, we will soon see, as a trader I will watch carefully, 12 month low was 3p.
It looks like the subscription agreement is a kind of death spiral facility, so Shard will be issued with tranches of 7m shares which they will then dispose of in the market and pay ZIOC.
The question is where does the volume come from to sell these shares, how low does the share price fall as a result of the selling.
I similar funding deal took place at AST where a certain number of shares were supposed to be sold each month and the company would receive the cash, what happened was the share price plummeted to such an extent that the whole deal had to be aborted, the volume was simply not there to allow the selling.
These deals are OK in principle but Directors simply do not understand the mechanics of the market, so can 7m shares be sold in the market in batches, probably, but at what price ?
I have traded this stock quite successfully but am now wary, the market makers are aware of the situation, could the share price plunge to new lows as a result of the funding deal ??