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Mbe will be a monster.
Mbe just keeps getting bigger and bigger! Well done Claire.
Should see blue today, i say should.
Kelly. Yes, we are saying the same thing.
I’m looking at it from an accounting / P&L / tax perspective (i.e. if it were a different company providing the Sharing Agreement).
You’re looking at it from a settlement perspective.
Either way, it doesn’t affect ORR and so I’ll stop the discussion and await the next RNS.
The £1,767,000 was a paper transaction only, no cash actually changed hands.
ORR issued Lanstead the 930M shares so that they have to ability to sell them to fund the payments to ORR for the period of the contract and the actual monthly payment is dependent on the SP calculation in the agreement. Of course Lanstead could be keeping hold of the shares and using their own cash to make the monthly payment due if they are confident of the SP increasing but it is unlikely.
The Lanstead agreement served a purpose when ORR needed the cash last year so we are stuck with it, like it or not. For the record I do not like it one bit but we need to move on and concentrate on the many positives we now have in our investment in ORR.
My understanding, and correct me if I'm wrong, is that the £1,767,000 that Lanstead paid to ORR in the placing of 930,000,000 new shares (Lanstead Subscription) was then used as the equity for the Sharing Agreement with Lanstead?
If ORR had that kind of money they would never have taken a deal with Lanstead. I suggest you read the deal again.
Cekim - maybe I'm being flippant.
But I doubt Lanstead would just leave the £1,767,000 sat in a bank account for 24 months to solely pay its ORR liabilities?
Surely as an institutional equity investor, they would look to deploy any equity in a high growth venture?
"Also, ORR gave them £1,767,000 in August as a lump sum which they can use for investing elsewhere.."
Don't think so
Exactly Kutzz.
Also, ORR gave them £1,767,000 in August as a lump sum which they can use for investing elsewhere...
I'm sure they have made a solid return and will continue to make profit on this agreement.
Regardless. Were stuck with it for another 15 months.
All we can hope is that the drill results are exceptional , the share price heads into the pennies.
Hi folks,
Again i reiterate the point, Lanstead must adhere to rules.
Failure to notify the market of TR-1’s adjustments is breaking the law!
I’m just thankful every share they sell, its one less these loan sharks have.
Warm regards to all
If there was nothing to hide, Lanstead would just provide updates on their holding.
Remember they shifted 200m+ in December alone , in just a few weeks.
They’re a business they obviously want to make a profit. If they shift vast sums of shares on big news and the share price spikes then falls lower , the daily average of the VWAP period is still lower then they’ve sold for.
They sell x amount of shares at 0.4. The average over the month is 0.30. They pay oriole for the average and they keep the profit.
Hunniford - I read the Sharing Agreement slightly differently, in the mechanics.
Or maybe I've misunderstood your thinking...
1st Aug 2023: Lanstead pay ORR £1,767,000 and receive 930,000,000 shares
Lanstead can sell these shares in open market at any time.
1st Aug 2023: ORR enter into a Sharing Agreement whereby ORR give Lanstead £1,767,000
13th Sep 2023: Lanstead start paying ORR 24 monthly payments that are linked to share price.
The monthly payment is the cash equivalent value of selling 29,066,324 shares at the VWAP.
No shares are actually sold - Lanstead are just paying ORR directly in £.
ORR get a 'good' deal if VWAP is over 0.2533p benchmark share price.
ORR get a 'bad' deal if VWAP is under.
1st Aug 2023: Lanstead receive 83,700,000 Value Payment Shares as a 'bonus' for entering the Sharing Agreement.
Lanstead can sell these shares in open market at any time.
This is a great negotiation by Lanstead. They have based their worst case scenario on a share price of 0.2533p. BUT, can hedge their position by simply selling monthly tranches of shares at the same time as making the monthly payment to ORR... They also mitigate exposure through the Value Payment Shares (c.9% premium).
Essentially, Lanstead have a risk-free position - unless ORR go bankrupt.
my musings...
Lanstead would have known about the BCM negotiations and would have factored this into their calculation of the benchmark share price.
I think the share price will have a constant pull towards the 0.2533p benchmark until the Lanstead Sharing Agreement ends (in mid-Sep 2025) or we get more transformational news on resources, JV partnerships, etc...
Hawaii
If we go by your understanding, my view on why they would have sold a number of shares early on is because they are probably balancing their books and the risk. If I was them I would be selling more shares if the share price was higher than at the start, to ensure there is money available to pay Oriole. AIM is so wild in its ups and downs I'd be making sure I stayed the right side of the share price to meet my obligations and make a profit. So selling as much as possible when you're in a good price range seems sensible from a profit and balance sheet perspective because they are managing their exposure to risk of it going down. So, all the while it's higher, and staying higher, I'd be expecting them to cut the losses in an emotionless way. If it goes up further, I'd probably ramp up selling even more. This is all on the assumption that they are trading to make a profit on the share price.
Saying all this, the counter process (which is how I thought it worked) is that they don't care what the price is and they just sell the same each month and it is what it is. If it's low, Oriole and Lansted get less, if its high they both get more. Otherwise at what price would Landsted be paying them an amount each month???
PI's buying now! Won't be long before we enter a rich news flow period...
Lanstead at it again?
No PI’s will be selling right now.
@ H5O - I hope they are teaching them how to dig and run a wash plant!!!
Cekim
these credit type facilities are everywhere,
like on tm1,after todays rns,you could buy and buy all day,but the sp wouldnt budge an inch past 0.70p......no doubt,atlas offloading
We await next news RNS. I don't think long term PIs would be selling so have to assume Lanstead kicking a few more out.
Interesting thing from the Lanstead RNS is the company will be receiving monthly payments. So... the insiders in the company will roughly know how much is being sold based on the payments they receive and a quick calc of the average SP in the month. Text from the RNS.............
"The £1,767,000 gross proceeds of the Lanstead Subscription will be pledged to Lanstead by the Company pursuant to a Sharing Agreement with Lanstead. The Sharing Agreement, details of which are set out below, entitles the Company to receive back those proceeds on a pro rata monthly basis over a period of 24 months, subject to adjustment upwards or downwards each month depending on the Company's share price at the time relative to the Benchmark Price of 0.2533 pence per share. The monthly settlement amounts for the Sharing Agreement are structured to commence approximately six weeks following Admission.
This is where we will see how corrupt this is . There is only 4k diff with sells and buys. A lot of buying after the 6% drop but still no change .
Snapped up some more. Can't see it going any lower than 0.3399...
Increase in shareprice benefits all parties holding shares including Landstead as far as I can tell with the deal structure.