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Having planned to raise £13.5m in the 2 tranche placing, the company should really explain how the £8.5m raised will sit with their plans. Is the shortfall a big problem? I guess the share price suggests this question needs to be answered.
Lottie123 I agree. However given their record of openness towards retail investors I do not expect we will hear anything soon. They possibly feel they’ve done their bit after the Investor Roadshow.
Buying up all these yards is a massive dice rolling exercise by JW in my opinion. One yard was bold but they’ve now created a big problem needing to service the running costs of four sites.
Recruitment continues at pace and it’s a real chicken and egg situation staffing and tooling up to win business to be able to credibly bid all whilst burning cash at a rate of knots ; hence the numerous placings.
Where will it end?
Very valid concern. Overheads increase month on month and the level of work does not currently support it.
So yes, a big gamble!! Do need to see a big win of some sort by July/ August or I think we'll be in a precarious position.
The Building Dock has not been in use for months now .. speaks volumes and we are storing a lot of expensive sea water !!
Agree Nobby31. Life, as we know, is all about timing. I read daily about massive investment plans in shipping and green technology. The UK is becoming a hotbed of wind generated investment. INFA are placed nicely but as you say, chicken and egg. They bought the assets at knockdown prices. With a fair wind, excuse the pun, they will survive on the crumbs from ship repairs and push onto the sunlit uplands of major, long term contracts. As shareholders, we should expect ebbs and flows in a companies fortunes (and SP). I still believe the company has a good strategy, its just in the lap of the gods, if I and the other shareholders, see a return.
Agree Lottie (and Nobby) but think your figures are short a bit? 9.6 mill raised after expenses with institutions, then 1.7 mill before expenses via open offer. So maybe we got 11 mill in total or thereabouts?
To add:
Accordingly the net proceeds of the Placing, expected to be a minimum of approximately £8.3 million will be used as follows:
• £4.0 million to satisfy performance bond required for phase I of Saipem contract;
• up to £2.0 million for necessary capital expenditure to ensure Saipem contract can be carried out; and
• £2.3 million for additional working capital to support enlarged business.
So the 2.7 mill received above the 8.3 mill outlined above hopefully stands us in good sted for a bit.
Not that we would know that given we have just hit a 52 week low in share price as I type. FML lol
Absolutely..!
As a sideline, anyone on LinkedIn I would recommend following Hydrogen East. Not surprisingly, they are focused on the East, especially the Bacton Gas Terminal in Norfolk, but they do post and link to some interesting stuff generally about Hydrogen.
It Baffles me that given the positivity of the BOD, NONE of them have increased their holdings.
Tango1
It may well be because one or more of them has inside (market price sensitive) information that prevents them from doing so
The last time the directors bought shares in the company was in May 2020...so for that to be the case they would have to have been sitting on price sensitive information for over a year. Seems unlikely to me.
I have raised this with them on multiple occasions and they have told me each time they are in a closed period. The reality is they can effectively nominate to the broker some of the time if they wish to be closed. It is and would have been entirely possible on multiple occasions for the BOD to acquire shares since May 2020; but they have chosen not to for their own reasons.
If anyone can find a copy of the Investor Roadshow video please could they kindly send me a link as it is now pretty clear the BOD will not be posting it ; for reasons that are unclear but also concerning in terms of what was said
Nobby31- Closed Period! well they are certainly bleeding us dry.
Guys,
with the Saipem contract due to commence on 01 July 2021....are they supposed to have the done the site upgrade by then ???
" up to £2.0 million for necessary capital expenditure to ensure Saipem contract can be carried out "