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Tango,
Yes it did state in the RNS that discussions were ongoing with debt partners but equity would also be considered. My opinion is that most of it will be funded by debt.
The fact of the matter is, we will own an asset worth £11M costing £6M, with no existing debt on the Balance Sheet. So if Infa intends to start utilising this asset in November as stated, I assume it has contracts lined up in readiness, as no existing contracts were in place with the deal.
Interesting times indeed.
Mr T
I see. I will sleep on it.
All depends if JW was able to secure a loan on the asset value, I would have thought £3-4 million would be achievable.
Almost bought in but I suspect a massive placing about to land. Guessing this will be around 0.3p.
Setanta, I wish you well with your averaging down, I really do. But I presume you are prepared to face further add ons at lower prices during this coming period. I say this, simply by observing that Infa needs to pay over £3.3mn by next Thursday, as the first payment to acquire H&W. As well, Infa needs to settle another £600k working capital loan by way of share issuance and forward sales to Riverfort. These are going to require several hundred million new shares to be created and sold forward, or else a new equity placing. I just can't see how Infa can finance itself and H&W otherwise.
I think we will know tomorrow,or at 16:30+ whats going on.
Setanta,
Jesus, no pressure then!!!
Mr T
And I meant that, but when it got so close to the .4p I felt it represented a special bargain. Now I have to hope that your optimism is superior to my pessimism. Go well.
3plus 2 million you done well getting quoted 051
It looked like it was finding some support around .46, now its finding support around .41 as it did in September. I guess its testing the balance of supply/demand to confirm a bottom. Of course, positive news flow will send it higher. Just a case of holding if your research shows you the potential this company holds. IMO
Setanta,
I like the cut of your jib sir, you did say you had already too much invested here earlier today, what changed your opinion?
Good luck to you, you deserve it.
Wasn't expecting such a drop today, although another 16M plus shares have been dumped into the market added to a large chunk yesterday, I think we all know what is occurring here! hopefully soon be over and up she goes.
Mr T
Do what I just did. I bought 5million, (3+2), @.4165.
buy target was 0.4 now its 041,8 what do i do
I care not for a retrospective RNS.
Appointment of a new chairman was stated at the time of departure of the previous encumbent as before the end of Q3.
During his interview in July, JW stated that EU funds were expected imminently, more likely September than August when pressed. I cannot imagine that he is sitting awaiting an EU cheque through the letter-box, like a kid a Christmas. One would hope that he is in constant dialogue with the relevant EU authority, doing his best Bob Geldof impression. There is clearly a reason for the non-arrival of these funds, is it unreasonable to request an explanation, when he was so bullishly vocal about the timing in a widely broadcast interview, the primary purpose of which was to drum up investor interest?
There has also been much obfuscation as to the genuine status of the marine licence.
Tango,
Correct there have not been any milestones set by JW that have slipped thus far. We have in the RNS 2 October the milestones set for Q4, we are still in Q4 and whilst none of the important milestones have been met as of today, nothing has slipped!!!
As for Riverfort, I do agree, however this finance is for H & W and not Infastrata as such, H & W will be run under a different banner to Infa, and therefore it is not a do or die funding excercise in the normal aim market conditions? ie the funding is not to financially save Infa as such. I wouldn't like to see further draw downs either. I think the current fall is attributable to this loan conversion.
Mr T
Thank you Tango. Your attitude is admirable. But like you I woldn't like to see more of such borrowing.
Setanta1, I can not dissagree with you regarding heads of terms as these could be released even if a caveat on the marine licience (so concern their shared), Riverfort I also agree is an Aim loan shark where few have survived, but given the low value of draw down I can tolerate this for a while but any further draw down would not be seen as positive. IMHO
Blair- What Milestones have slipped??? none is the answer, FSRU DD was stated as 09/10/19 as a minimum not a factual point in time of execution, Me for one applaud the DD going on to 08/01/2020 as it gives time for the IM project construction to actually start (which will not require the minute to minute monitoring of the board). I have absolutely no idea why the sp has gone down the last few days (other than Riverfort selling before buying which is noted as their modus operandi) but I do understand it will go up twice as quick when the news flows shortly.
Mt T, thank you foryour response. I understand about the debt / equity situation but the debt still has to come from somewhere, and given that it has been discussed for almost a year one would imagine that heads of proposals and a proposed time line,(among other things), would have been divulged by now. But nothing!. Infa has shareholders and presenting them with nothing except further expansion plans on the back of nothing is not good enough. THIS IS AIM. Yesterday is a long time ago on AIM. Never mind the passage of a year or two! What disturbed me more than any other event was the Riverfort deal. Most AiM companies I have seen who were obliged to accept such loan facilities subsequently went to the wall. Go well.
I am with Setanta.
A year ago, we were invested in a potential salt cavern gas storage facility, decent research indicated that this was a decent opportunity. Then followed the blatant share price manipulation and the bailing out by certain "stalwart" shareholders, as well as the sudden, unexplained, departure of the chairman and the dismissal of the broker whose name shall not be spoken.
Today, we are invested in an entity with three, very different, potential irons in the fire, each pf which requires massive funding, wrapped around a market capitalisation of six million quid. Whilst H & W may yet prove to be a masterstroke of PR and political leverage, I am beginning to wonder whether it is a fall-back for the imminent failure of the original project.
It is all well and good setting out a series of milestones, but allowing them casually to slip, with not a word of explanation, is disingenuous to investors, at best. Hence the continued battering of the share price.
We all need to understand we are on the verge of greatness and being at this point was obviously going to be the hardest time for investers as this is when the deals are done, We have no reason to doubt JW at this juncture (given his adhearance to the milestones) but a far greater reason to back him and have confidence the deals will soon be done.
Setanta,
I accept your "reality", none of which I can disagree with I'm afraid.
However, one piece of good news is that JW laid out the proposals and timetable for "Feed" and met the milestones. He has now done the same with "Fid" so let's see if he achieves his goals.
As for raising finance, my understanding of the IM set up is that the finance will come in at project level, debt/equity and Infastrata will then keep a proportion of project, more than the estimated £16M currently invested and will manage the project going forward. They will then concentrate on the FRSU project and will also have H & W to manage albeit in a separate company. It's a big task made all the more so by the aquisition of H & W, that is why the Chairman needs sorting asap and the EU funds need to arrive, like today!!
Mr T
I still have far too much invested here for my liking and I have certainly arrived at a very questioning stage in relation to what is going on here.
The SP today is where it was about 18 months ago when PW was CEO and he was telling us that INFA was "in touch with potential financial providers for construction of the project, (ie IM ). JW has continued to repeat the same mantra for the past year. Nothing has happened.
INFA made a pigs ear of executing the Marine Licence and in real terms we have no idea whether we are really close to achieving that, or the selfsame finance , or equity provision, or anything else really important to the the project.
Instead a few million Mcap companyy has just put down a deposit,(raised at punitive rates), to buy a bankrupy shipbuilding and engineering company with the intention of taking on hundreds of new employees when it can hardly pay the handful it currently employs, and when it hasn't been able recruit a new chairman during the past seven months. And, by the way this same outfit is proposing to raise half a billion pounds in finance. It doesn't sound very credible, does it ?
Look JW tell us about the debt and equity provider(s). You've kept it all under your cap for long enough. Tell us about the real relationship with Vitol. Tell us why the last chairman went and why the broker was given notice. Lel's have some solid good news which will stimulate the SP rather than depress it.
My confidence in INFA is at an all time low. And that is really saying something!!
Setanta,
Thanks for the clarification, I agree they could have, but also if they had wanted H & W they could have bought it outwright themselves? I think that Vitol are only interested in the gas side of Infa's business, they are not in the business of providing finance for other projects.
Anyway good to discuss, another 6M plus sales printed so far today, get them gone asap. Remarkably the sp is holding up quite well, now are these all sells? or are they buy's?
Mr T
thanks but you misunderstood my reference to Vitol. I opined that Vitol could have "facilitated" the H&W finance. And so they could. Certainly the finance INFA took smacks of desperation. Go well.