Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Fair point - although would very much depend on the critical issue of whether there is actually enough cash left after any winding up and the costs associated with that. Or more subtly, whether the loan note holder thinks there is enough. It's £400 for certain now, versus [in the mind of the CLN holder] an unsure amount at some unspecified time in the future. Bird in the hand etc etc.
My take is this is a company that has raised over £300k over the past 4 months by way of placings, therefore my point is that the company does have cash and assets. I see this as a positive today, I think they will announce the new NOMAD shortly and Cairn have resigned due this being the case. The shares are suspended pending an announcement due to the volatility of the stock.
I beg to disagree, if you think that a company is going under then you would rather hold debt as it gives you a better claim on the assets of the firm. Following recent conversions there is a small amount of debt outstanding and following the Windsor subscription more than enough cash to cover the £25k should the company cease to trade. http://uk.practicallaw.com/9-518-5211?q=&qp=&qo=&qe= Converting would indicate that the holder needed money and was forced to liquidate or thought that having the equity upside was preferable, albeit they could have converted at any point so this would suggest the former given the SP at the time..
"However today they have just resigned. On the positive side it could be a replacement has been found and about to swap over earlier. Wait and see." Extremely bad form by Cairn if that is the case. They said they'd stay until 1st May. Let's assume for argument that a new NOMAD will start next week. Why in that case bring the resignation forward, trigger a reputation-damaging suspension, and harm the company? I suspect that what in fact has happened here is that Cairn have uncovered more information that has made their position as NOMAN untenable and have resigned with immediate effect. I'm sorry, but I find it hard to find a positive to today's event (but would be happy for those still here for me to be proven wrong - I took a hit on this and I wouldn't wish any further losses on anyone still here)
I have to say I thought it was weird to convert loan notes at a premium to the current SP. Think it through. Example: I give the company £1000 and get a pile of loan note with a face value of 0.1p. Until I convert, I can ask for the £1000 back. It's a loan. If the SP increases above 0.1p I might convert the notes to shares and then flog them into the market, making a profit. But I can wait until that happens, there's no point in converting earlier as I lose my £1000 minimum return and instead am fully exposed to the SP. The only reason I'd convert is if I wanted the voting rights. So why on earth would I convert when the SP is 0.04p? I've converted a £1000 loan to a £400 equity stake. Absolutely bizarre. Except there is one possibility ... if I think the company is going completely pear-shaped, then I want anything I can get. I can't get my £1000 back at the moment (it's not due to be repaid yet), but I can convert the loan notes and then sell the shares. That gets me £400 in cash, as opposed to a £1000 loan note that I am worried they will default on and be worth £0. I was puzzling this state of affairs all yesterday and then today the NOMAD brings forward their resignation to be effective immediately (triggering an immediate suspension) despite having said they would leave it until May 1st. Clearly Cairn are so unhappy with INC that they want out immediately, even if that means INC get suspended and take a massive repetitional hit. As I said at the time, I bailed when the first notice of resignation came out and there's nothing that has happened since then (no "response to press speculation" RNS for example) that has made me change my mind. Today's immediate-effect resignation looks like a major nail in this coffin.
they'll anounce a wrn style come back possibly with an international hotel chain, a movie studio, an airline, & a high street bank. On a more serious note I genuinely hope it is just temporary, . . . very temporary.
The nomad did state they would leave on 1 May 2015 'The Company advises that Cairn Financial Advisers LLP ("Cairn"), the Company's Nominated Adviser and Broker, has resigned with effect from 1 May 2015'. However today they have just resigned. On the positive side it could be a replacement has been found and about to swap over earlier. Wait and see.
What does this all mean now? From a bagger to bugger?
They definitely stabilised the price... with suspension :D
Thanks goodness I got out of this just in the nick of time. Broker gone and now suspended.
gee
Only 1 trade showing today so far - sell £4k 10 million share. Only an announcement can stabilise the price
A positive indeed - nomad appointment and first contract confirmation by the end of the month??? :)
Someone has paid a 100% premium to buy 1.5% of the company and at the sane time reduces the running costs of the firm giving to service the debt. All positive. When taken with the 210k subscription by an asset manager we seem to have some confident and well connected supporters.
INSETCO ORD 0.001P 16 Apr 2015 15:10:42 Insetco PLC RNS Number : 4756K Insetco PLC 16 April 2015 16 April 2015 Insetco plc ("Insetco" or the "Company") Loan Note Conversions and Issue of Equity The Company advises that it has received the following requests to convert loans into shares: Amount Conversion Price New Ordinary Shares New Shares as a Percentage of Issued Share Capital following Admission £25,000 0.1p 25,000,000 1.46% Following the requests for conversion, the Company will have a total of £10,000 of convertible loans outstanding, all of which can convert at 0.025p per resulting in a maximum issue of new equity of 40,000,000 new ordinary shares. In addition to the amounts stated above, as advised on 4 March 2015, the Company is still in discussions with a holder of unsecured loan notes totalling £40,000 to vary the terms of this loan. Issue of Equity Application will be made for admission of 25,000,000 new ordinary shares in the Company to the London Stock Exchange which is expected to occur on or around 22 April 2015. The new ordinary shares will rank pari passu with the existing ordinary shares. Total Voting Rights Following the issue of equity described above, the so enlarged issued share capital of the Company will comprise 1,715,449,762 ordinary shares of 0.001p each. Each ordinary share carries the right to one vote at general meetings of the Company. The Company does not have any ordinary shares in treasury. This may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules. Insetco plc Barry Heath 07788 376480 Ivan Couchman 07970 377669 Cairn Financial Advisers LLP Jo Turner / Liam Murray 020 7148 7900
Dilution but they prefer shares.
No one here just us chickens
But nothing worth staying for,going on for 3.5 months of waiting and still nothing!
Anyone here?
If they get the contract and the cash do they have anyone to provide the services i.e. employees, or is this farmed out?
Add to this the 37.50% spread, about as inviting as a punch in the face.
Until la NOMAD is appointed this is a massive risk for anyone. I sold out at break even of 0.06p having held some freebies from last spike to 0.4p It seems strange to announce the contract and value without the client completing any DD. The fact that there is not name for the client also smells a bit fishy. Tom Winnifrith recently doubted the validity of the 300k ever materialising, whether you believe him or not (pinch of salt required from me) it highlights the life and sould of AIM. With no rebuff from the company regarding this news from TW, it has only heightened the drop in SP. Good Luck to holders, i genuinely hope it turns around, just a bit too risky for me for now. Still on my wathlist though.
The investment case, as far as I see it is as follows: An AIM shell seems to be worth about 750k, the market cap here isn't much more and when you factor in the cash on the BS the downside is limited. This is assuming that a new nomad is found, if so the SP will likely go back to 0.08 - 0.09 to reflect the value of the shell. As an ongoing business the cash on the BS gives the firm at least a year of operations in which to make a sale. Ivan gas been with the business for 6 months and has secured a contract already. The DD on the contract is in the bonds that INC will monitor, it is no reflection on the firm. The 300k will give at least another year of operations on top so the upside, assuming you believe in Ivan is huge. I agree that talk of 1p looks overly ambitious but I think that seeing 0.2 again in the next few months us more than achievable, which would represent a good return at these depressed levels.
It's a basket case. Been we siting for that £300k since November. Cannot see that £300k would make a lot of difference now
I'd like to think that this will go well above the the 0.40p it got to off the back of the announcement back in November seeing how that was just an announcement of the agreement and not the payment being completed.Clearly there have been issues with getting this first order to arrive but once it has done then is it not logical to think the company has then ironed out whatever its prolonged due dil issues were/are and that further contracts will be a lot smoother running? I'm in this for the long haul and hope the first contract confirmation is just the start of this for Insetco.