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Apologies for all my posts:
it's a big raise if one includes all the warrants, 300m shares by comparison to the existing number of 766.5m is 39.1%.
My impression is that they are very keen to get things moving forward as quickly as possible.
There is a very good chance that the warrants will be exercised net month.
Yes, the warrants are all close to the current share price, so the raise is, in fact, nearer £3.5m than £1.5m (although not all warrant holders will exercise at the first opportunity, some will remain long-term holders).
Ocelot, no need to apologise. This placing does not make sense. Closing SP yesterday circa 1.40p, today the SP was close to 1.60p - Why place at 1.0p ... and place now?
Also the warrants! It is the norm to have them exercised at double the placing price ... 1.2p .. 1.35p ... 1.5p for crying out loud. What is going on?
Not again!
Think the warrants form an integral part of the equity raise, which should be seen as a whole: placing at 1.00p, warrants at 1.20p, 1.35p and 1.50p, the total being nearly £3.5m.
Think the company is ambitious and in quite a hurry now and is scaling up in size, both in terms of debt and of equity.
Await figures for the geothermal project(s) with interest.
... as it (Angus) continues its evolution into a more broadly grounded Energy Transition company. We will be following with a comprehensive presentation to shareholders on the strategy, prospects and opportunities of the Company during the course of February and an investor call in the days following."
Wonder if the opportunities for an Energy Transition company are not becoming increasingly apparent.
Showing such understanding for these placings, I cannot make it out. When placings occur the only way for shareholders to keep up is to keep buying more.
Keep buying more cannot go on indefinitely. So every shareholder, if they are shareholders for the purpose of making money, should be concerned, period.
This placing today at 1.0p, when the SP yesterday closed at circa 1.40p, and today was hovering near 1.60p ... is of concern.
If more money is what they wanted (for what ever non-prudent reason, £12 million is coming for SF) why not wait another week or so and place higher?
Hard to digest.
I don't like placing either Yanis.
That said there is a great distinction between equity and debt (loan financing).
A debt holder doesn't have the equity upside potential (they receive a fixed coupon) and so they will be specific as to what the cash can be used for (much like a mortgage can only be used to buy a house). The SFB loan funder isn't just going to provide Angus cash for general purposes (e.g. to pay SFB expenses pre production) as if SFB fails they have little as security for recourse on their investment (ie. they can't ask employees for their wages back). So I suspect you will find the funder says you can only specifically use the cash for x, y, z and in each case you need to provide a drawn down notice specifying what you are going to use the cash for. In otherwords they won't pay Angus' expenses prior to those items x, y, z - they will say you are a listed company, go to your shareholders for cash for those expenses. Hope that makes sense
Galifreyan, I understand all that and I agree with you.
The SF deal (£12 mil financing, etc) WILL DRIVE THE SP UP.
Why didn’t Angus wait a bit, get the SP to a higher level (from the SF finance) ... then place. WHY?
"Why didn’t Angus wait a bit, get the SP to a higher level (from the SF finance) ... then place. WHY?"
Yanis - the answer is obvious - their discussions with possible lenders are not going well - or at least not in the timeframe previously announced. Might be that whoever it is wants to do SERIOUS due diligence and crawl all over the reservoir model, the forecast production and (especially) the implementation plan. Given that any finalisation has moved well to the right they need money NOW to pay the bills, and to drip feed cash to keep SFB inching forward - without the £ 12mm they can't finish it but they can continue to show a modicum of "progress" to the long suffering LTH's who have been diluted (by up to 30%) again.
Another possibility is that they were approached by investors who offered to put money into the company.
My understanding is that directors of Aim companies have to prepare cash/expenditure projections (presumably to the Nomad) and linked to that expectations as to future placings are effectively diarised i.e. you can broadly project when available cash falls below a certain figure and a placing is slated around then.
As such given Angus is not revenue generating yet but has various ongoing costs (particularly SFB) I expect inevitably they had to place again due to SFB delays, perhaps as the SP was good they went for a larger amount to provide a buffer to hopefully get them through to SFB going live and perhaps other Brockham/Balcombe/Lidsey work. As such they didn't really have the option to wait until the SP went higher.
I'm not sure it is worth speculating too much on the reasoning behind this.
It is done now. Disappointing, but we will know in 3 weeks or so on the funding, so can truly judge on the financial situation here on result of that, and any interviews given surrounding their reasoning when this was supposedly so close.
Sad that the decent momentum that had been building here has been halted though.
The placing price will most lkely have been on an average over 7 days or so leading up to the announcement, so timing it a few days later could have made a big difference.
It does suggest that Forest were still buying up until the time they were presumably contacted about the placing (as a TR1, they would surely have been informed and would have had to stop buying in the market, if made an insider).
The change in shares in issue will be telling for all the TR1's as to participation, or not.
gla
Agreed. Separately some Q&A published. Will be interesting to see answers.
I guess that technically, they do not need to answer the Q's this month as they were submitted after their preferred cut-off date.
I suspect though, that they will be keen to respond to all of those though by the 31st as a sign that all is well, and on track, and to prevent any further negativity.
Communication will be very important for the bod over the coming weeks now, as I am sure many shareholders (not just PI's) will have felt let down by the timing of this news
Mirasol, you may have a point there, makes sense. I suppose we will find out in a couple of weeks if/when the finance deal is closed. Not sure where that leaves the Forest Nominees through, they must have been aware of Angus intentions/plans to invest such a huge sum.
So what happed to the £1 project that investors were told by Lucan.....the debt is stacking up before they even try to flow the wells at Saltfleetby?
gkb47 - I've been too busy to keep up to date with the Angus roadshow.
I did see the lack of experience...again ...in employing somebody to go out and find £12 million. Isn't that George Lucan forte? Surely America 2030 would have lent them the money?
Angus do like to reinvent themselves and move onto the next show. But how much revenue have they generated since IPO day?
And I do wonder why folk say they have averaged down in order to recoup losses. Surely a more diversified portfolio should be the prudent way forward....otherwise thats a lot of broken eggs.
Be interesting to see if Forest fares any better than our billionaire invest did last year.
Forest appear to be buying. All those round million plus trades are probably them.
Should get a comprehensive update shortly. Will be interesting to see the new project.
I wonder what Forest's average SP is. They own 10% of the company, so it will be interesting to see what stance they will take if things don't go according to plan …. whatever that is today.
They will only own 10% till 2nd February, then it goes under 10.
Unless of course they have a bought a whole lot more for a 1p
Light at the end of this , long, .... long ........ very long tunnel. I think, at long last.
gla.
Scallywag, we’ll find out on or around 2 Feb when they will have to file a new TR-1. My guess is that they bought a lot more.
Yes, if they have been accumulating over time to reach an intended target, I am certain that they would have been part of the placing, especially at a price that is likely to have been lower than their most recent Buys were probably at.
Getting diluted after such a time would seem a silly act on their behalf, especially with the carrot of the attached warranrts.
TR1's for the other significant holders will be interesting too.
Not execting too much price movement over the next couple of days until the new shares are added, but the current SP holding above the placing price is promising after the previous few days of increases before the RNS.
WIll it hold above the placing price next week?
gla