Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Remember folks if you're buying in today you're doing it all wrong! Agree though that 2p baseline supported more now with LJ on board paying market price. Ignore the rampers, you may well find yourself getting spiked. Lots in the pipeline so great opportunity, just be careful listening to baseless claims of higher SPs
New investor and director. The type of person Mac needs on board and he paid the market price or slightly above. 12 month lock in.
Quickly see this at 3p plus.
Well, it's excellent news and the shares will be in sticky hands. Also, at least now that gives some context to why the shares had 'coincidental' brakes applied with some, at the time, inexplicable sales, but the funds will be useful and no doubt Luke Johnson sees significant upside from here.
Well if anything it gives us a baseline of 2p, and adds some excellent experience.
Not showing on here yet:
https://www.londonstockexchange.com/news-article/MAC/subscription-and-issue-of-equity/15160801
Marechale Capital Plc (LON: MAC) is pleased to announce that it has conditionally raised the sum of £160,000 via subscription of 8,000,000 new ordinary shares of 0.8p each in the Company (“New Ordinary Shares”) at a price of 2.0p per share (“Subscription”).
Details of the Subscription
The Subscription has been made by Luke Johnson who, following admission of the New Ordinary Shares to trading on AIM (“Admission”) will have an interest in 8,000,000 ordinary shares representing 9.04 per cent. of the Company’s enlarged issued share capital. As part of the terms of the Subscription, Luke Johnson will have the right to join the board of the Company, subject to regulatory due process, and has entered into a 12 month orderly market agreement in respect of the disposal of any shares.
The New Ordinary Shares will rank pari passu with the existing ordinary shares. Admission of the New Ordinary Shares is expected to take place on, or around, 8 October 2021. Completion of the Subscription is conditional on Admission.
The proceeds of the Subscription will provide the Company with additional working capital and funding for investment and co-investment opportunities that are presented to Marechale in connection with its activity for corporate clients
Total Voting Rights
Following Admission, the Company’s enlarged share capital will comprise 88,461,247 ordinary shares. No shares are held in Treasury. Therefore, the total number of ordinary shares with voting rights will be 88,461,247. This figure may be used by shareholders as the denominator for calculations by which they will determine if they are required to notify their interest in, or a change of their interest in, the Company under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.
Patrick Booth-Clibborn, CEO of Marechale Capital, commented: “Luke Johnson is a successful entrepreneur and investor. Luke is a past Chairman of Channel 4 Television and PizzaExpress and his current directorships include Gail’s Artisan Bakery, which was recently valued at over £200 million. The directors of Marechale Capital are delighted he has become a major long term shareholder and we look forward to working with him particularly where he can help with deal flow and investments for our current and future pipeline of growth capital clients.”
I think we will see an Autumn IPO . Tennyson / Shard Capital are the brokers.
MAC is substantially under nav now with the WLL stake alone matching the MAC m/cap. Then there are warrants for a variety of holdings, stakes in the Burgh Hotel, Future Biogas (likely autumn IPO) , Fast2Fibre , 3 other IPO's / trade exits flagged up. I think the board could / should be more expansive and hopefully they will give more details on the lithium stake which underpins the m/cap by itself and is an exciting prospect that can cater for high demand in the area given the high tech battery / electric car plants coming to the north east.
I wonder who the seller is? Seems to have a decent supply. Not you is it Baz?
All about the IPO and what Future Biogas is looking to achieve.
https://twitter.com/Bazreynolds9707/status/1438980085969793024?s=19
https://www.proactiveinvestors.co.uk/companies/news/952292/future-biogas-is-preparing-to-launch-a-35mln-clean-energy-ipo-in-london-952292.html
Agreed bloodninja, there will be volatility and spikes but these should be more sustainable given the newsflow will have substance and a realisation that MAC is increasing its nav and focusing on the green energy sector. The last two spikes have been deflated by Chris Akers pulling out and the director sale. Two 'one-offs' so future significant uplifts should be more sustainable and, really will just be correcting the discount to nav and reflecting the new emphasis on the green energy sector..
Currently, the recent £1.5m + warrants / 8.7% lithium investment stake in Weardale Lithium ltd (WLL) acquired without cost or dilution nearly covers the market cap. Future Biogas plans to list with a £60m valuation with an up to £35m fund raise. Marechale are listed as having an advisory capacity with Cairn Financial taking the lead for the IPO. I assume MAC have prepared the way and are helping with the funding from their client list. I'm not sure what % stake plus warrants MAC will have in Future Biogas but, once listed, the value will be clear and it should be material.
Additionally there is the Fast2Fibre investment with 10% holder, Baz, highlighting they could go for an IPO on the back of a potentially lucrative German contract. That would be another of the four alluded to by MAC in the results for an IPO or trade exit.
On top of that there is the 4% stake plus warrants in the Burgh Hotel which could be worth £800,000 plus the value of the warrants based on a £20m hotel valuation that has had multi-million pound renovations. Best bet would be a trade exit for that one given the increasing emphasis on the green energy sector.
I suspect the strong pipeline MAC have referenced will focus on the green / renewables / net carbon sector. There seems to be a move away from pubs and hospitality and a trade exit for the Burgh Hotel will highlight that as a switch in focus. There should be an increasing number of clients in the renewable sector as well who will look towards MAC for their services and to tap into their high net worth list of investors.
So lots of news for patient holders to await and clearly a substantially higher nav than the market cap - a nav that is set to rise once the IPO's and exits materialise. MAC seem to like to operate under the radar and no doubt being discreet and cautious appeals to their network of high net worth investors.
I'd like to see them be a bit more expansive though. For example, there has been little detail of the potential resources WLL has acquired. For a £19m valuation they will certainly have good prospects. I believe WLL is about a year or two behind Cornish Lithium in its development and the latter is valued at £80m.
Not to forget the ones that jumped in at 6p not to long ago
Good post NickE, appreciated. Certainly makes for a more interesting board for everyone invested or considering investing here. The SP movements are painful at times here, if you're long and strong there's clearly a lot of future potential, however one cannot ignore the fact that this SP is volatile and spikes up and down. No doubt some purchasers from the recent spike to 3.5p+ are feeling some pain if they're still here, a position to reallocate as a longer term one now and consider how many of these you want to hold for potential future exits that could drive MAC value...
Still four IPO / exits to go ninja. WLL wouldn't have come under IPO or trade exit. Maybe in three years time though.
The funding document for Weardale Lithium Ltd suggests it is a year or so behind Cornish Lithium (probably 18 months to be realistic) who are valued at £80m. That suggest that WLL will be worth 7p plus a share excluding the warrants MAC hold over them.
MAC have other Weardale Lithium's on their books too. Future biogas - the biggest biogas producer in the UK and currently looking to raise around £35m and no doubt MAC are involved in that as advisors. How much will that be worth ... another initial £1.5m ?
Then there is fast2fibre which has patented technology for fire optics infrastructure that needs replacing on a large scale. Apparently they are in the frame for a large contract in Germany.
Then there is the 4% stake in the Burgh Hotel which has had multi million renovations. Perhaps a trade exit there unless they plan to list and, with low priced warrants exercised, perhaps another £800,000 to £1m to add to the balance sheet.
Over time I expect to see MAC trading in the 10p to 20p range. That's just based on the above and excludes the strong pipeline of investments they alluded to in the recent set of results. Early stage with the impending listing of Future Biogas then maybe 5p to 6p.
The market has yet to cotton on to the fact that MAC has been picking up stakes in the renewable / green energy sector for zero cost, zero dilution in exchange for its advisory services and will continue to repeat this business model with its pipeline..
This is not a blue cap....a tiny company with a mkt cap about as low as there is that places once every three years.
Strong showing today as buyers return and pick up at bargain price... back over 3 next week will be good to see
Totally agree mate. Just naive and impatient I guess.
Lesson is to sell on spikes not buy on them! If you're buying on spikes and selling at a loss shortly after you will find the share game a rather unpleasant one. There is one line in a recent RNS that makes this an interesting share to be in when the SP is dwindling:
"Four long standing clients looking for a trade exit or IPO in the next three to 18 months."
You've seen what happens when one of these clients proposes an exit that creates value, three more to go, make of that what you will.
Nice rise. However, I sold after getting spiked a couple weeks ago.
Won't be buying again.
Nice but that
15-Sep-21 14:28:13 2.15 500,000 Buy* 10.75k
Agreed..but when it moves...it moves!
Added today as I think demand will propel these above 3p this week. Already in profit. As always Mac is very volatile!
Rerate coming soon..load up @ this silly price imho
Amazing potential for renewable deals.
One to look at and wonder why MAC client and Investee company Future Biogas set up the Memorandum and Articles of Association last month and its Trading certificate for a public company the other month.
Both can be found link below.
Bullish is an understatement.
https://find-and-update.company-information.service.gov.uk/company/13386430/filing-history
The share pricd should be around 4p here, joke really how this is valued as the £1.8 million shares alone is more than the market cap before you add other things in
Correct. They also like to widen the spread when they are unsure which direction this is going.
Spread is getting bigger