Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Vis a vie I’d take same investment value after RTO than now as obviously more potential to increase.
We need £4.70 for me to breakeven, a £330 million company overall! Always possible
so we are dropping down to 70,070,080 on a 51 to 1 ratio so beforehand, at the moment that means we are now sitting at 3,573,573,080 shares before consolidation meaning that's a hell of an increase and dilution for us original guys but obviously those shares are funding the new business.
going to 3,573,573,080 from 417,000,000 is an increase, 8.5 x more shares
I'll drop to 15,029 and at a cost of 55p per share that is £8265 which is £200 more than they are currently worth today so no change but a better company?
against todays price and going forward this is a better solution than suspended or carrying on as we are. based on original investment this is a disaster and massive right down on investment, not surprisingly an 8.5 x right down but appreciate its better than nothing. we have been normalized to expect nothing.
an unexpected win would be the trial case, anything won gets given to the original share holders which might compensate us a little for the other loss.
I'm happy with the progress, the change hasn't certainly come for free at a massive dilution.
This morning’s RNS makes the deal so much clearer - not sure why it couldn’t have been included last Friday. It’s good to see it back in trading and the initial contracts look almost too good to be true - as quoted by Brill.
So if it opens late May at above 55p then I’ll be very happy.
I have to admit, at this point, the biggest risk here seems to be that this almost seems to good to be true. Let's hope the new management team can deliver on even half of what we're reading here, because it will not only help make the post-RTO valuation look very cheap indeed, but as I wrote about a year ago, will also offer institutional investors a genuinely fresh, niche growth opportunity in a broader sector they tend to favour but where the traditional builders face a tough couple of years.
Note that already, in addition to the royalty arrangement with a UK builder (if this one comes off, this would be an even lower risk profile than more traditional contracts) which was discussed in Friday's RNS, they are already hinting about further contracts beyond the Balkans AND further capital access through a debt facility (?!?). This proposition is already improving on the potential quantum of business, diversification of clients, AND leveraging the balance sheet. No wonder its absorbing - so far - the natural sellers after such a long suspension.
and the sp's just gone blue
The proposals contained in the resolutions to be put before the General Meeting scheduled for the 26 May 2023 include a Share Reorganisation whereby 51 existing ordinary shares will be consolidated into 1 new share in the Enlarged Group. On re-admission to AIM the share capital of the enlarged Group will comprise 70,070,080 ordinary shares of 1p per ordinary share, with a market capitalisation of approximately £38.5 million.
Wasnt this guy at Eco Homes involved in Fox back in the day?
We have waited for the rto and now we have it so what’s not to like?
Eco have decent contracts and are in a sweet spot going forward
Interesting this is coming back - at the very least it's not a zero or unlisted which I'm sure was a concern held by many.
More interesting is that the CURRENT shareholders keep their litigation rights, which are NOT diluted by the RTO.
If FOX succeeds at its tribunals we could all do very well indeed. I mention this as a Rockhopper shareholder, which nailed Italy for 190m euros. Hopefully FOX can delete Italy and add Kosovo. I think they sued for roughly 200m. In reality I doubt they'll get anything like that, but then the market cap here is a paltry £5m so they don't need to.
I'm (very) happily holding here.
It’s a completely new bod too
As I explained already unvrkw, there's no free lunch. Whether and by how much the share price can and will rally from Tuesday, is to what extent the market decides that the £30m price tag for the new business is good/great value. As I mentioned, it will all ultimately come down to the new management executing on production and delivery, etc, but on the raw numbers we have so far, just on the 2 signed contracts (though I have to believe that new business will inevitably continue to come in as the modular housing industry is kind of booming), the Newco, on very conservative margin assumptions, can be said to be trading on a low single-digit PE. Not a bad start
I got the 50 to 1 from the change in director shares outlined in the rns before to after.
Definitely same as price and shares next week, after resolution passed sp change, number shares so instant so no actual gain at that moment to anyone. Overall hopeful a positive outcome, couldn’t have been much worse
Definitely old price, needs resolutions passing end of month
The shares will start trading next week based on the OLD price as the share consolidation etc will be the subject of a resolution at the EGM along with the other matters to be approved. I can assure you is the case based on my legal knowledge.
Thanks steve. So as I said, the main issue is whether we re-quote at the new or old price, which hopefully will be resolved in a pre-market Tuesday RNS
130,000 shares for me bought at circa 2p so I'll have 2564 shares on Tuesday
I bought for the litigation lottery so good to see they will be trading again
Hi guys- the consolidation is in two stages- first a 13 for 1 share increase then a 1 for 659 decrease, hence the overall effect is that our current holdings are divided by 659/13, or 50.7. So 500k share now would turn into approx 9862 new shares.
I'm not sure it's in Friday's release explicitly, but we suspended at 1.09p and are re-quoting at 55p, so its a standard assumption that the consolidation is 55/1.09, or right around 50:1, as unvkrw also mentions in his post. I also believe there was reference to the 50:1 consolidation in the half-year report last September, but I've not checked officially. Finally, I have spoken to someone who invested in this raise and that ratio is also laid out in the marketing materials. Having thought about it further, what I am LESS certain of however, is whether we will open around the new price of 55p or resume trading around the suspended price of 1.09p since I believe the consolidation technically may need shareholder approval, which of course can't be done officially until the EGM. I think we have a reasonable hope that we will get a further RNS before the open on Tuesday that clears up this and any other niggly issues shareholders may have before trading resumes.
Where in the rns does it state 50 to 1 consolidation?
No mate, the 50:1 consolidation means you have 1/50th as many shares vs the share price which is now 50x what it was. So no free lunch. I thought that was obvious.
So for example I have a 500k shares at 1p=£5k. Trading starts at 55p I sell for 5000%+ profit.
We need clarity as to consolidation now.
Trading will resume at the de-facto new price of 55p I believe, but more importantly - again - why such limp responses? 'People should be happy the company hasn't gone bust.....?' Well yeah, sure that's true - and I did call out the not insubstantial group here who snarked this potential deal was a spoof and we were dead - but damn, is that all you're taking away from this announcement? No matter how we trade from Tuesday and in the weeks to follow (and sure, we may well trade down for a while.e as small shareholders, frustrated by the long suspension, vote with their feet), but there is real potential for significant upside here now. And that, I believe, should be cause for a much higher level of enthusiasm than just relief that we didn't die.