Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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We did expect it, correct. The projects are brilliant and it’s exciting value adding stuff in the current workstreams. The dilution for shareholders is terrible however.
Got it now....the shock of seeing it in Swedish has made it seem not so bad. Lol. We've expected it, it's inevitable.
Where is the RNS...I can't see it in my emails or on here?
Yes hahaha
Thanks again for clarification
...it's just smoke & mirrors Wot .... RNS's are generally full of it IMO
Looks like they held off as long as they could too hence the short term loan to get us to the fundraise.
......if they knew they were going to raise @ 1p they wouldn't really need the cushion of reducing the Nominal by performing a share split .... the fact they are discussing the possibility of a share split indicates to me they are preparing for the possibility of a raise at below 1p at least ..... not guaranteed I suppose but dependent on what happens to the SP between now & the final decisions on discount & value of the SP at the time ...
Thanks Bannor, still confused how they talked about no dilution except due to the fundraise. That is the dilution and appears that the number of shares will double.
But.........the bright side is that we do have the assets.
So, if we raise at or just below 1p we are going to have close to 2 billion shares in issue. This fundraise and the last one have been very painful. It’s a shame the SP is where it is. We need that strategic investor..
.....when you do a share split they create a single share that carries 'all' the value and then a number of shares that have no value ..... so the value of the share remaining carries exactly the same value as it did on the exchange & in your account ... the 'deferred' shares have no value ....therefore the value of your holding remains the same as it would have done prior to the split but the Nominal value of the share is less .....
for example you have 1 share trading at 1p with a nominal value of 1p & they want to raise at a discount ....they're not permitted to raise below the Nominal share value (currently 1p) but want to raise at a discount of 20% (i.e. 0.8p) ... the only way to do this is create a share split so that the Nominal value is below 1p .... they could do a 2/1 split making the Nominal 0.5p or a 10/1 split making the Nominal 0.1p .... the single remaining trading share takes all the value of the raise price i.e. 0.8p so doesn't reduce the value of your monetary holding except by virtue of the raise itself .... which is why the fluff about the 're-oganisation' not affecting the value of your holding .... the deferred 'A' shares (9 of them in a 10/1) are the result of the split & carry no value & you can't use them to vote etc & are effectively irrelevant.....
Thanks Bannor, yes, I get the reason regarding the fundraise, but the first paragraph below says that it wont affect the value of shares held by existing holders. The last Paragraph says that the Deferred A Shares will have no value...I think this means that the new shares (which will be 10% of our existing shares) will carry the value and voting rights. It sounds like a 10/1 consolidation without the price rise....It also sounds like the new shares will have 10 times more value than the old shares.....Im sure I have this wrong, but would appreciate anybodys input.
"Does anybody understand this. There seem to be conflicting statements.
The Capital Reorganisation will not of itself affect the value of the shares held by Shareholders. After the Capital Reorganisation there will be the same number of New Ordinary Shares in issue as there are existing Ordinary Shares and therefore Shareholders will not be diluted (other than as a result of the Capital Raise)."
Yep ... they're doing a share split to accommodate the raise .... which means that with the 'discount' to the closing price that they'd have to offer they believe the raise might well be below the current 'Nominal' share price (1p) so a sub division is being proposed reducing the Nominal value of traded shares 0.1p thus permitting a raise at below 1p per share if necessary to provide a discount to the closing price on the last effective trading day prior to the raise being rubber stamped & effective.... it says it is still to be finally announced with a lot of fluff about the why's, how's etc ....
Just going to have to buy more and then wait. Some more.
The fundraise was inevitable because of the court delays, or even without the court delays, but clearly the share price would have been better. But this is a big one
Yep. Down 25% here as well. Looks like the sub price will be around 1p, so another heaving great dilution.
Does anybody understand this. There seem to be conflicting statements.
The Capital Reorganisation will not of itself affect the value of the shares held by Shareholders. After the Capital Reorganisation there will be the same number of New Ordinary Shares in issue as there are existing Ordinary Shares and therefore Shareholders will not be diluted (other than as a result of the Capital Raise).
The New Ordinary Shares will have the same rights as those currently accruing to the existing Ordinary Shares in issue, including those relating to voting and entitlement to dividends. New share certificates for New Ordinary Shares will not be issued and the existing certificates will remain valid.
The Deferred A Shares will have no significant rights attached to them and will carry no right to vote or participate in distribution of surplus assets and will not be admitted to trading on the AIM market of the London Stock Exchange. The Deferred A Shares will effectively carry no value.
If it was reporting properly it'd be close to showing 25% down on yesterday here too .... what a s**t show AIM is ... gutted for you Eric/Suzy 2 😖
Not well received in Sweden, currently down 25%. The waiting game gets longer.
Well done to those that sold on the spike just prior to the fundraise.. who'd of thought 🤔 lol
I mean the projects are great and it is getting them to a great stage, PFS completed, enviro permit complete etc it will just be painful and investors here will have to take part really or buy more when it's lower to enjoy some future gains when the current work comes to fruition.
It's the language in the RNS that tells me it's going to be heftily low. No point kidding ourselves.
We're doomed now..
RNS out.. :(
Lol