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MESH announcement 3-8-2020 - "MESH will compensate ASLR through the issue of 24 million new ordinary MESH shares as part of a full and final settlement. "
"as part of"
Mmmm...
So what is the rest of the full and final settlement if the 24M is just "part."
Or just sloppily worded?
No mention of anything other than the 24M shares in the ASLR RNS - when they stated " this arrangement will directly benefit Asimilar shareholders".
They seem to think it is a good deal - but I'm still well puzzled as to how all this is going to play out.
The proof will be in a return from suspension around 20th/21st August - will we start at 47p, or 70p? Up or down from there? Who knows, but the first few days could be mighty interesting.
What we are interested as ASLR holders is the upside and why we've opted out and given up our rights to acquire a big piece of Sentiance, in exchange for shares in Mesh.
ASLR presently have 105M shares in issue @ 47p, suspension price, giving it a market cap of £44M.
The most recent off market trades were @ 70p.
AAA have 1.2M of these shares and options for warrants over a little over 20M shares in ASLR.
These warrants are exercisable mainly @ 18p , but some @ 6p. The agreed price with the sellers of the options was 231M AAA shares at 1.5p.
Since these warrants were purchased the AAA share price has increased from 1.5p to 6p, or 400%. AAA seemingly hold almost no assets other than these shares and warrants.
Now a really extraordinary thing happened last week whereby the sellers (unknown) of the warrants agreed that due to the increase in the AAA share price instead of getting 231M AAA shares they will now get only 48M AAA shares - very roughly they are now getting their AAA shares at a price of around 7p, instead of 1.5p - they are voluntarily giving up around 400% profit.
What is more AAA with presently 781M shares in issue @ 6p is valued at £46M.
But their only real asset is the potential interest in around 22M ASLR shares, which if all the AAA options are exercised would be very roughly 18% of the ASLR share capital. There are some other ASLR options floating about so the % could be less.
So assuming the ASLR market cap stays the same 18% of £47M is £8.5M. So the present AAA shares are around 5x over valued.
OR ASLR is 5x+ undervalued and if the 6p price of AAA is correct ASLR shares should be around 235p - not allowing for any other options.
If the 235p valuation is correct then after AAA takes their stake, assuming no other options are exercised ASLR would be worth approx £300M.
But ASLR's seemingly main asset is to be around 9% in the issued share capital of MESH, which if no further MESH shares are issued, would value MESH @ around £3Bn.
So either the MESH/Sentiance deal is very, very valuable indeed and everyone is about to make oodles of cash here, or someone has got their sums wrong.
If anyone thinks it is me, I would be happy to be corrected.
All figures approximate, of course.
In reply to you last post - yes that appears to be the case.
But how is Sentiance actually to be paid for?
And AAA now has a market cap of £47M based upon presumably owning a relatively small proportion of ASLR.
So what does that make ASLR worth?
Baffling.
SG, I'm not really sure what is going on.
I did invest in ASLR as a bit of a punt, sold half prior to suspension after a good profit, so whatever happens here now I'm sitting relatively comfortably.
AAA, yes their main asset is shares/options in ASLR, I think they also own a legacy Far East resort, which presumably now only has a nominal value.
As for PIRI, TRAF, AAA even DEV I did think at one time they may all be involved in fundraising for supporting ASLR in acquiring Sentiance. Of course now it appears ASLR don't require cash for Sentiance, they're simply getting 24M shares in MESH for giving up their options and interests.
As for MCC I think holders got shares in MESH, which were then in turn suspended and delisted.
I was worried the same (suspension/delisting) could happen at ASLR but we appear to be safeish now, and will be readmitted to trading shortly.
Could be fireworks that day!
(Or not)
There also appear to be many cross holdings here - Chris Akers has shares in just about everything, but Mrs Bonnier it now seems not only has increased her holdings in MESH, but also has shares in ASLR. Same applies to most of the other big holders - they've mostly got fingers in each other's pies - no doubt all carefully worked out by themselves but unravelling it all and working out what is going on and why on the information pi's have could be quite tricky, if not impossible.
Then there are the options in ASLR at 135p and something like 250p......
MESH seems to be the vehicle they are moving ahead with now, as Mrs Bonnier has something like 14.8%, but the recent announcement means, as Mr Bonnier is resident abroad the normal M&A rules don't apply.
Why MESH, unlisted I'm not sure - maybe those non applicable M&A rules are important.
Quite where it all leads I'm not sure, but the AAA price is up something like 2000% since it became involved with Mr Akers and ASLR and 106% since the ASLR/MESH deal was announced.
I take that as a positive for ASLR, but as we are all "locked in", we have very little say in what is going on and just have to sit here.
And how is Sentiance to be paid for?
And have the FCA forgiven Mr Bonnier?
Interesting, if nothing else.
Thanks - the higher AAA goes the more "stressful" it becomes. As well as more intriguing.
AAA up again today - astonishing.
Up 18% to 6.0p (5.80p to 6.20p) reaching a high of 6.1p at one stage.
Are the people pushing up the price real investors or just punters jumping on a whizzy share?
It is now up 106% since the ASLR/MESH deal was announced, and as AAA's only real assets are shares/options in ASLR then one can only presume that the increase in value in AAA is based somehow on the implied value of ASLR.
In fact AAA is up around 20x since Chris Akers became involved.
And ASLR's main asset is shortly to be around 24 million shares in unlisted MESH which is aiming to take over Sentiance - the value of which is really unclear.
Either this is the modern day equivalent of the South Sea Bubble or a few well invested people are about to clean up.
And yet so little commentary anywhere.
No doubt all will be revealed, one way or the other, by the end of the month.
AAA up 11% today so far - 5.15p (5.1p - 5.2p), now up 77% since the MESH/Asimilar deal was announced.
I guess that is a thumbs up.
Hopefully ASLR will be trading again towards the end of the month and we should know a little more about the MESH/Sentiance deal then.
Out of suspension shortly after MESH agm!
that does sound very reassurring . I wonder if ALSR will relist immedately after, and what plans are next for ASLR.
Hi everyone, I just got this email through from MESH, looks like the cogs are finally turning..... fingers crossed for all parties!
3 August 2020
MESH Holdings PLC
(“MESH” or “the Company”)
Settlement Agreement with Asimilar Plc (“ASLR”)
regarding Sentiance N.V. (“Sentiance”)
MESH is pleased to confirm that, following the announcement on 14 July 2020, it has reached a definitive settlement agreement with ASLR regarding their Subscription and Acquisition Option rights in Sentiance.
In order to ensure the best long-term outcome for all stakeholders, including being able to effectively capitalise in the near term on the rapidly growing business momentum of Sentiance, the various parties have agreed that MESH will solely be implementing and executing the Sentiance transaction arrangements.
Under the Settlement Agreement, ASLR no longer holds any rights with regards to (i) 20,000 ordinary Sentiance Subscription Shares and or (ii) the Acquisition Option pertaining to 32,225 existing ordinary Sentiance shares. In return, MESH will compensate ASLR through the issue of 24 million new ordinary MESH shares as part of a full and final settlement. The Company will allot these shares to ASLR shortly after the completion of the MESH General Meeting on 20 August 2020.