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Page 9.
http://www.infrastrata.co.uk/images/stories/Presentations/infrastrata-agm-presentation-31-01-2018-v10.pdf
Feed costs are covered providing milestones hit.
Thanks EyeGuy.
But the last £1.4mn was not, at that time. "Seeking further £1.4m for the completion of the FEED and commercialisation process". Was there a placing to cover this element?
No worries. From placing rns
§ The majority of the net proceeds of the Placing will be utilised to provide the funding required to enable the Company to commence and complete the Front End Engineering Design ("FEED") for the Project, which the Board considers to be a key step towards obtaining funding for construction of the Project and its commercialisation.
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§ Taking into account the remaining net proceeds of the Placing and current cash reserves, the Company is satisfied that it has sufficient working capital until the end of 2018.
They placed £925k.
Currently imo in this range warrants are being done- which is fine by me as it provides more working capital.
Strike price 0.6p
Last point I’ll check tomorrow if strike is 0.48p or 0.6p.
.48 from that placing eyeguy
Thanks guys.
Are you satisfied that Infa has enough WC to get through 2019 H1 without another placing, after the FEED has been completed? Will warrant exercises be enough?
Seems to me this is one of the very few issues outstanding here.
Answering my own question, in the April placing the following was written:
"Placing Shares have a '1 for 2 warrant' attached to subscribe for further new ordinary shares at 0.48p per share exercisable within 3 years. Should all 192,708,333 warrants be exercised this would raise an additional £925,000 for the Company."
So, as half yearly SG&A was about £400k, warrant conversion should be enough to cover WC costs out to June 2019, even with additional costs associated with the hire of the new COO.
It's just a question of seeing these warrants getting converted in size now. I haven't seen any RNS yet, to indicate this process has begun.
Ask yourself this question. How much would it cost a company to start the entire process of developing storage at Islandmagee? The process being :
Formulation of the idea
Setting up a new company to develop the process from start through to pre-construction
Securing planning permission, permits, EU PCI status
Hiring staff
Securing funding
Securing the expertise and developing those important commercial, political (EU, UKG, NIREG, IREG) and financial relationships so important to developing a 'public' asset of this size
Developing inter-company relationships
Fixtures, fittings and premises
and all the other expenses required for such an enterprise
All the above takes TIME AND EXPENSE. Well, INFA has already been through this entire process.
I believe mgt is incurring minimal expenses to FEED and then maybe looking to sell to the highest bidder, assuming there is one of course
Over the long term LNG is going to become so important to the Irish economy (both Ire and N-Ire) and storage and security will become a priority. Islandmagee could become a US import LNG hub, transit,. trading and storage site into Europe and Ireland
I don't know what may happen though. We can only wait for news
Morning schlemiel,
Absolutely right there. There is so much hidden value in the current MC relative to what is the replacement cost of this venture so far. I'm just concerning myself with near-term funding needs, over and above FEED which is covered.
Aren't you surprised that no warrants have been exercised yet?
I'm assuming SI Capital have advised their clients they expect a higher share price.
It'snot stopping the COO adding at these prices
older,
No, I'm not surprised but then I'm not privy to company internals. We can only place our faith and trust in management to do the right thing for the shareholder. You can perform all the due diligence and research to exhaustion but without trustworthy and competent management it's all 'gonna' turn to dust.
I trust this management to do the right thing for the company and therefore for its owners ie the shareholder.
I am sure they know what they're doing. The EU believe in them though that's no recommendation!
It's a binary. Buy and hold the stock or don't hold the stock at all. That's investing for you
Thanks everyone for your replies.
You have the advantage over me in that you have all been here quite a while, whilst I am still building up a picture in my mind of where Infa is at, and going, from a standing start.
http://tradeinsight.co.uk/infrastrata-its-finally-happening/
A very well researched blog by David Marshall (a private investor )
In the relatively short time since it was published a lot has happened
O and W. I personally thought warrants were being done over last few weeks - maybe as part of a larger block list.
Not 100%. Wait and see
One last question,
In Infa's Jan 2018 presentation, they state:
"Due to the nature of the process, we expect the project to be viewed as a long-term investment. With that view, the expected yield is a
15% ROI. "
Now, my question to anyone is, is the 15% ROI based on an unleveraged capital investment in the project (at project level) or using the 65/35 debt/equity split?
Also, if another entity (or entities) acquire the project 100% by committing to the £308mn of capex, what's left in it for Infa? Will Infa get a small free carried %, or an annual royalty income for putting it all together, or simply be paid out a capital sum that recognises the work done , sunk costs and goodwill incurred up until the point of a deal?
Old
You're asking questions we can't answer fella.
Trust the management to do the right thing
Infrastrata plc own 100% of islandmagee storage ltd (the project) any entity wishing to acquire the project would (imo) have to make an offer to infa
Hi EyeGuy,
I think you're right. There's a seller about, as you can buy right on the bid yesterday and today.
So are the 0.6p trades buys? I always thought only DMA traders could buy off the bid? There must be surplus stock around if you're able to buy at bid!
I've bought 1mn at 0.6p yesterday afternoon and this morning.
That 426,129 is a buy by the way
Spud, my understanding is...
Islandmagee Storage Limited (“IMSL”), is owned 90% by a wholly owned subsidiary of InfraStrata plc and 10% by a wholly owned subsidiary of Mutual Energy Limited
not 100% as you suggest?
Older, I have two concerns, firstly the first stage of construction is estimated £100M then the remaining £200M is going to be debt which will need servicing.
Secondly If brexit ends in a no deal situation how does that affect funding from the EU.
Do some research and then come back on the thread. You'll find snippets on the net that will alleviate your concerns
Always dyor, always and then back it up with some BB discussion
put those pieces of the jigsaw together yourself - it's much more satisfying when you do your investigation