Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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All very well but no consolidation o any of my shares has ever led to SP recovery but can always hope that it will happen in this case. Especially if or when the 'institutional' buyers see that their 'surefire secure' investments are nothing of the sort. Perhaps their appetite for risk might increase but as long as they can continue growing their cash mountains with minimal risk its unlikely to happen.
The SP consolidation hasn’t happened yet. It makes absolutely zero difference to the overall value of the company. I can only think it is retail investors not understanding and dumping their shares, although 22 trades is hardly a lot.
This is just like me having a company say valued at £1m and issuing 100 million shares at 1p. Now I’m saying I’ll only issue 1 million shares which will be worth £1 each.
I can't see Rick rule being too happy if this is the open sp after consolidation. They should be more clear in this
Correct...although this announcement HAS negatively impacted the value of the company. It may of course be short-term.
From investopedia:
“Par value, also known as nominal or original value, is the face value of a bond or the value of a stock certificate, as stated in the corporate charter. The face value of the stock stated in the corporate charter is often unrelated to the actual value of its shares trading on the open market.”
Maybe the value of the company hasn't changed but how does it affect the existing shareholders. Your answer isn't clear? 20 shares existing is equal to 1 share in consolidation. So If someone has 10mil shares that would reduce to 500k of shares 10mil÷20
If the current sp 0.85. 0.0085×10mil is £85k. If the new sp is 2p. 0.02x500k of shares = £10k
Sol - this is simply a share consolidation, 1 for 20 old. The SP will increase 20x on the day to offset the then reduced number of shares in issue. The 2p is the nominal value or description of the shares. It is nothing to do with the actual value of the shares.
The value of the company hasn't changed.
If its 1 for 20 the SP will rise x20. No difference.
The worry is if the SP slides it can fall further
But if it rises no difference
I take it by the drop in the sp today, this is not good news for existing shareholders? Someone correct me if I'm wrong as my maths isn't the best. So if someone has 10mil shares they then would have 500k shares after consolidation and what is the sp of the new shares 2p? Is that 0.02? This is an example. So currently 10mil shares at 0.85 is 85k. With the new consolidation that's 10k? A drop in earnings of 75k? Excuse my maths
I can't help thinking this move may be as a result of pressure from US investor(s). They don't like sitting on 'penny' stocks, almost an EGO thing.
But this is AIM...
Right now could represent an excellent buying opp, but I'd rather wait now.
A single company I have owned which has consolidated and not ended up with me sitting on losses.
Well I will consider buying in post consolidation but this is irksome to say the least!
Deal announced not a done deal, seems to good to be true, and they say if it looks too good, it probable is!!!
Why come to Power for this money? Well not money Shares and more shares to value of £150,000 to get to second stage. It could be that Powers contacts will make the business, then it makes more sense.
Holding and think that at some point Power will come good, not in a hurry so hey ho here we go!!!!
Am directly invested in GMET and was looking at POW as liquidity is better (if I was looking for more exposure to GMET). But now they've announced a share consolidation I reckon I'll hold off to see what impact on the SP post consolidation. Gut tells me, barring bullish news (which of course could come any day - but haven't we been saying that for years with POW) the SP may drift slightly lower.
GSAe TiO2 technology has a massive potential. This looks like a very smart move by POW and with it's global contacts could be a real winner 🏆. Very low cost investment with massive leverage
Sounds all well on paper and bringing in more revenue into the business, but didn't really mention how this will impact the share price and bring actual revenue to shareholders. The news didn't excite the market, but let's see what happens from this in the near future and hopefully we see share price rises like GMET
Today's rns ,fat fingers sorry
New stockbox interview on utube re today's results. Sounds interesting.
Reading what it says in the RNS they’ll pay the 75g in shares, so more dilution. SP still not moving. Let’s hope it works out.
Terms of the deal with GSA (Environmental) Limited appear to be as follows:
- £75,000 upfront (equity issued at circa 0.85p)
- £75,000 paid (in equity at the 5 day VWAP before the deal) if commercial agreement is signed above £160,000
- £250,000 (in equity or cash) paid out in year 1 if £450,000 PROFIT is made (POW £450,000 x 75% stake in business = £337,500). So POW have be making £337,500 before £250,000 is paid out
- £250,000 (in equity or cash) paid in year 2 if £650,000 PROFIT is made (POW £650,000 x 75% = £487,500). So POW have be making £487,500 before £250,000 is paid out
- £250,000 (in equity or cash) paid in year 3 if £1,000,000 PROFIT is made (POW £1,000,000 x 75% = £750,000). So POW have be making £750,000 before £350,000 is paid out
So apart from the £75k initial outlay in equity, POW only have to cough up when they are winning. Seems a solid deal and a possible gateway into better deals in Saudi, Tati tailings projects etc.
Brilliant move, income generating for years to come, reduces need for discounted placings (AVCT!!).
Bigger step in to Saudi, great decision, well done Sean
What an update !!
They now have a cash generating opportunity.
“Moreover, the Directors believe the acquisition will also create a substantial revenue opportunity for Power Metal shareholders, which if successful, will allow us to fund our activities with less recourse to dilutive equity financing.”
With 20days of drilling completed would it not be possible to get an update includIng depth and a few photos of cores
The transaction is showing on the other POW
That's happened to me once before as well. It's strange. It may show up later at market close
I bought 211,290 shares at 11.59 this morning for .895p which isn't showing on here, usually they appear within 10 minutes. Strange! I know sometimes buys show as sells on LSE but I've not had them not show at all before!