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Looks like a lot of people were waiting to jump out this morning fair play to them...but this gonna go to the moon now
unless you are world top10 day traders, can profit by trade in and out in this kind of spread, pretty much can see intraday future, I doubt it. otherwise it would be silly to sell your investment holding today.
AmBasteir Early days , GMS usually has a good afternoon. This has been priced to fail for months , time to let the traders leave and investors take positions.
14.90%
Can see a big re rate here .
"particularly in the MENA Region, where contract awards, delayed as a result of COVID, are expected to be awarded in 2021"
Be nice to get some new contracts announced in the near term and a revision of the EBITDA so Mr market isn't left guessing.
"This new agreement with the banks is on vastly improved terms to what was agreed in June last year. As a result, it creates a positive platform on which the future development and growth of the business can be based; allowing the Company to benefit from the pick-up across its core markets."
"As the numbers demonstrate, GMS is in a strong position. Underlying operations continue to see good progress, with a far better secured utilisation position than this time last year, combined with improved margins and efficiencies. The pipeline of work opportunities continues to strengthen, particularly in the MENA Region, where contract awards, delayed as a result of COVID, are expected to be awarded in 2021, in addition to further demand created as NOC clients look to increase production capabilities."
COV - Completely agree. "The company expects that this will lead to significant improvement in EBITDA going forward and the bottom line turning positive after years of continued losses."
Camkite right time , right place , right industry. This is now back to investment status .
Let’s kick past 12p first...
Not complaining Fig but I'll be happier once its at 30p. Will hold for the foreseeable. EBITDA is far to strong for a company not going bust.. imo this has been priced to fail for a long time and the raise which is expected to take place in the next 2 weeks will be at a minimum of 10p.
You must be happy Camkites!
Great news finally, market has been waiting a while for this..
Order book. Strong on the bid and ask has dried up.
This should re rate back into the 20's / 30's over the comping months... anyone taken the time to establish the revised EBITDA ?
NAV 55p & PAR value at 10p ... currently half price sale.
Now lets get back to work GMS. brilliant news IMO.
4 corners - Missunderstanding.
I thought you had written an impairment to the ebtida (how it was writen on your paragraph) not a one off impairment charge...
One off impairment effects the NAV not the ebtida ... $90m impairment will reduce the NAV to around 55p.
Par Value 10p no announcement of reducing Par Value so yes minimum 10p raise which will put the company on good footing moving forward.
@camkite - there is an impairment of their vessels to the tune of 80 - 90m
"As a result of that process, the Board is of the view that the carrying book value, across a number of the Company's barges, should be impaired, such impairment expected, once finalised with the Company's Auditors, to be in the range of $80m-$90m"
Additional time has been granted to the Company to raise equity and issue warrants. The previous PIK structure and vesting of warrants to the banks will be automatically cancelled once issued, providing the Company raises equity capital of $25m or more no later than 30 June 2021 (the "Equity Raise"), and raises further equity capital by 31 December 2022, taking the combined fund raising to at least $75m. Under the previous arrangement, the Company was required to have raised $75m by 31 December 2020.
This revised structure provides the time needed to seek to complete the $75m equity raise, as well as review alternatives options to optimise the capital structure, including a refinancing, by the end of 2022, should GMS be able to deleverage the balanced sheet and improve its Net Debt to EBITDA profile.
Two of the Company's key shareholders, Seafox International and Mazrui Investments (both under NDA till this announcement), have agreed to take their pro rata share in the Equity Raise, to facilitate the new agreement with the banks. In this context, the Board would like to thank the two shareholders for their extensive work and support to deliver this improved debt deal, which is a milestone for the business.
Documentation for the revised agreement is expected to be finalized over the coming weeks. Furthermore, the $15m advisor and bank fees reported in the first half of 2020, for the previously agreed June 2020 banking arrangements, have been deemed to have no value and will be written off.
bagger
raise at 10p min !
excellent. on wards and upwards
"Reduced interest to Libor +3%, retrospectively from 1 January 2021, to 31 December 2022, leading to a saving of c. $53m over 2021 and 2022, if compared to the prior deal and suggested PIK as approved and recommended by the previous Board."
Nav 60p and now fully secured moving forward... 4 corners write off of $9m not $90m. Fairly big difference :)
Wonder where the market is going to put us considering imv and based on the trading this was on the large part priced to fair anf now is strong and secured for the next 18 months with a strong order book, oil price recovery and slightly reduced ebitda
Oh you beauty.