Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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20k value, 18k Loss , shall I sell or wait!?! :/
Read the RNS
In addition, the Directors have further concluded that the Company will need to carry out a share reorganisation in order for it to be able to issue new Ordinary Shares in the future to enable the Company to raise additional funding for its ongoing operations and trading. The nominal value of the Ordinary Shares is currently £0.01 per share and the market value of the Ordinary Shares is below that nominal value (and has been consistently below the nominal value since late 2019). As a matter of English law, the Company is unable to issue new Ordinary Shares at an issue price which is below the nominal value of the Ordinary Shares. It is therefore proposed to sub-divide each existing Ordinary Share into one Ordinary Share of £0.0001 nominal value and one deferred share of £0.0099 nominal value ("Deferred Shares") (the "Share Reorganisation"), thus enabling the Company lawfully to issue new Ordinary Shares.
For those even contemplating buying do not. As soon as this leaves AIM at a worthless valuation someone waiting in the wings will dilute PIs to kingdom come, if it does not go bankrupt properly. Existing PIs might end up down to 1% total in the newly funded. The company will never list again and the shares will never possibly be able to be sold. I hope people look at the RNS carefully as it is not pretty. fortunately i am not invested but did watch on the sides whether something might come of this.
Are they able to dilute PIs without diluting the four larger investors who, as I understand it, currently hold 90% of the company?
I would say that the way the Directors reported to RNS today was done in away that they must have known yesterday that there would be condition to delist if financial help was to remain. This sort of threatened behaviour does not come in the last RNS. It must have been tabled, It’s the same with a lot of AIM shares. They see a future but create a delisting and or a dilution. Them at the top of the shareholding don’t really care or give a dam, they are in a good position of near monopoly, There’s more to this then meets the eye.