Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Doesn't look good, they've just raised £250K but likely need £2m a year to keep going (had about £500K at Y/E IMO)
No real new major sponsors have landed in the last 12 months, the Bitstamp partnership has now completely finished and have not yet been replaced
Only being able to raise £250K and no sign of 00Nation taking a further £500K / Commercial agreement
Could all change on a partnership / sponsor , but at this market cap Becks is taking the entire company in commission (£1.75m last year)
Content fees and Marketing + Ambassador fees were £3.2m last year
The balance sheet vs market and operations are completely unsustainable, 12 months ago you had the hope that they might land more sponsors and they had 12 months to replace the Bitstamp deal, then there was promise of CS2 sponsors and ME sponsors , not to mention a great partnership with Sky.
This really is make or break, by my estimates they dont have enough cash to continue past Sep 30th 2024 so will need to raise at minimum an extra £1m (equity or partnership) before Sep 30th. They need to likely find another £2-3m in sponsors on top of what they have to make this a viable business. I wonder if at minimum they will close down operations and simply become a content creation business "Guild Studios" or will 00Nation come in and take over? Who knows but at this stage it truly is a casino esc gamble, nothing is certain do you own research and a whiff of good news this can fly but just be very careful, make sure you have fully read the balance sheet and know the story here. GLA to anyone still invested may good fortune come your way.
Next month's results are been priced in already
It's possible the 3million ambassador fees have been significantly reduced, it will probably be mentioned the actual figures in the next month's results,
Only yesterday an employee announced on LinkedIn that they'd been promoted to Midweight Designer - that'll be a Guild Studios appointment and so looks like there could be more in the pipeline from them...
One can hope so or this will be going down the cbx route if the Bod don't sort them self's out,
Last time I was in a drop like this it didn't end well for share holders,
We will soon find out if there's been any talks regards large offtake with named brands in pipeline
RNS must be due soon,
Good news and we may find the bottoms now in or bad news and we all know we're bad news takes us,
Gamesquare and genedrive on the rise,
While gild sliding into the abiss,
What's going on in the house of gild??????
MMs playing stupid. Even the smallest sells are seeing SP down while buys have no effect. All about that commission, which will soon be unachievable due to the way it’s been played
Just to go back to the £250k raised by way of the CLN, I've been mulling why they'd only seek to raise that amount. If they were really in trouble, would they not seek to raise more? I guess there's a few options:
1) they really are in trouble and it's all they could raise, but surely that would have to have been accompanied by an update to the market to this effect.
2) It's some sort of bridge in the knowledge something's in the pipeline.
3) It's simply a token foot in the door into the MENA region.
4) Given it's come from the MENA region, could it be part of building something bigger out there? "Working Capital Requirements" might not necessarily just mean keeping the lights on... Jasmine Skee, in an interview with Proactive on the 31st January, said that they'd already booked £5m for the year vs £5.53m for the last full year (to September 2023).
Grateful for any thoughts!
Am more interested where the constant stream of sells are coming from. Was suggested at a much higher price that selling was at a loss. Given new all time lows, who is it continually dumping away where between 1-1m shares on the daily and what’s the end goal.
Pretty mad to think this floated around 8p, has gained support since and yet the SP is consistently hitting new lows. If Sky backed out tomorrow for instance, how could this not already be priced in. Until the games stop, this share is becoming untouchable.
Nothing is ‘priced in’ because if Sky backed out this would go to zero, so at least you can still sell which obv isn’t great price but the Dutch fund put in a good amount at 0.6p (5%) think it was like £300K so although it may feel like selling here is pointless they’d still rather have £100K in the bank (66% loss) than nothing
The main points to note is this is a loss making company, like many on AIM/LSE at this end, the market cap is what it is because of this and loss making companies eventually go insolvent if they cannot find funding.
GILD IMO currently has a hole of about £2-3m per annum (last year losses were over £4m but I suspect they’ve cut more costs) Bitstamp is gone and has not yet been replaced, sponsors can eat into this hole and they’ve raised £750K but they still need probably another £1.5-£2m to be safe for the 24/25 FY. Whether that comes from a high margin sponsor or an equity raise… or some form of JV who knows but without that occurring then the outcome is likely zero so it’s probably one of the funds dropping X amount because as above they would rather have £100K in the bank than zero.
GILD need to sign some big deals and provide a solid update on progress, until then the sentiment here will be that insolvency is the most likely outcome, which is a massive shame as I am a fan of GILD and it’s a super tough market for marketing, let’s hope the WC helps them out big time to get some major deals. They’ve had an advanced pipeline for about 2 years.
If Sky were to back out = 0 , why did it not IPO at 0.
Feel the MM are taking the biscuit. Lots of PI moving funds abroad and when you look at the way our markets operate, you can’t really blame them. The only thing guaranteed with UK share prices is lower values day in day out regardless of company operations. We see spikes everywhere on no news then stagnant or minimal gains on good news. This was around 2p when Sky last reaffirmed their involvement with GILD. So 10x reduced value now on what ?
Think the main take away is the LSE is going down the pan. More and more companies/investors will/are moving abroad and then the LSE can take its rightful place as a haven for day traders and delinquents.
Here’s hoping GILD find gold nuggets hidden in their monitors or something off the sort. That would see a good spike and make room for some great discussion.
If you had your own company, would you list it in the UK ? That’s the real death spiral right there.
It did cross my mind, given their intention to expand into MENA, whether they may look to dual-list onto the Saudi exchange, for example...
Probably a worthwhile move. List elsewhere, reverse all holdings into new listing and do away with the UK one. Save money on LSE fee’s and add value to the company in one swift swoop. Far greater room for growth.
If shell are looking to potentially back out of LSE, thats all you need to know. its days are done unless the gov really sorts something out, its not going anywhere.
Meanwhile, in other news:
Shareholders revolt at Plans to double the pay of the chief executive of the London Stock Exchange Group are dividing big shareholders in what is seen as a key test for City boardrooms and their intent to offer US-style remuneration deals to British bosses.
The UK is such a joke. Shell leaving will be the start of the end and we only have ourselves to blame. Well done guys, Let's just take a day. Have you ever tried shawarma? There's a shawarma joint about two blocks from here. I don't know what it is, but I wanna try it.
All the UK boards talk about is raising funds whilst the market obliterates SPs making the cost of such raises beyond expensive. Death spiral, game over. Shell won’t be staying.
Its like a donor kebab, but chicken and more flavoursome with spices, really delicious.
Because inclusivity is a real money spinner? No one watches women's sports, so why the hell is women's esports going to be any different.
Sports are generally viewed by adults whilst esports target a younger audience. The younger audience doesn’t interact the same way we do may be your best answer.
Savvy Gaming Group is on the expansion path. The Saudi Arabian company has made some big moves, acquiring both esports tournament firms ESL and Face It in a $1.5 billion deal in January
https://venturebeat.com/games/why-saudi-arabias-savvy-gaming-group-is-diving-into-esports-and-games/
1.5billion deal
How much do you think they would pay for guild?
Even if its a buyout at 5mil, our sponsors cover 3mil a year of that? plus revenues from gild design, whatever it is. still be 5x where we are now. a measley 10-15mil offer is nothing for a saudi prince, and could massively extend their scope.
sticking point i assume would be Sky's involvment.