Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Wow up a couple of £k already, nice start to week.
& any comments by the company about Q4 trading volumes will be critical on company's near term valuation as markets are forward looking. If you recall they issued an RNS in early October stating they expect EBITDA to be in the £1.6-1.8m range and the bulk of annual revenue is expected in Q4 of their financial year ending 31st Dec 2015. Assuming the restricting is concluded satisfactorily; it is conceivable that: Net debt will be £9-9.5m as at 31st Dec 2015 Net cash after placing commission & professional fees in the range of £3.5-3.6m The key catalyst for a re-rate beyond Dec 2016 will be the outlook statement for 2016; forecast cash flow position in Q1 2017 & the pipeline of bookings in their business for H1 2016 IMHO. Nonetheless; if the EBITDA for this year is at say £1.7m before financing costs of new debt facility; a conservative 3 times EBITDA should be the bottom of the valuation range pending the outlook statement for 2016 IMHO.
thanks mate. can i ask how much warrant is being used and the remainder of placing was this held with private institutions?
More …… the reorganisation is to the nominal/par value of the shares in issue which was 2.5p, it will become .5p which gives them the room they needed to issue new shares at the price investors were happy with. They will now issue 400m new shares at 1p raising £3.75m after fees, which means the shares in issue rise from 75m to 475m
Can someone clarify on Capital Reorg? Will there be more shares after reorg or less?
Purchased 1 million shares today , profit on a ved short, expect to sell in 2-5yrs time, bottom drawed .
you were 100% right. Ill take this all on the chin as a learning experience
Flippers should not be flipping as the placing has NOT been voted through yet.
It was mine too …… looks like my weekend post was right after all (well apart from thinking the new nominal value would be 1p, I was only .5p out) I would think there is upside from here once the flippers have flipped
today at current levels this will be a recovery play. Nigel Wray now owning 26% of the company now and getting in at the same level as him is good enough for me. GLA
doesnt affect me in the slightest - ill just sit and wait
Some in the placing but already had a holding so have some recovery to make on that. Feel with NW's business nous he will bring the needed operational gearing to their sizeable and growing revenue
1.075-1.085p imagine the mm's have some of the stock to flip for 5-10% and yes it does hurt I held prior to this news and very disappointed with issue price ok for NW he always seems to get into these plays with size at rock bottom and makes a killing everybody else gets screwed over. Be nice if I had a call offering me stock at 1p but silence but I guess now 1.0875p is not a lot of difference to average down if I wish
With Nigel Wray now investing in here, the debt cleared and a invoice driven debt facility to help with growing the business oh and a new strategy into other geographies and products, I think R4E is very well-positioned to move forward now. That said, I must imagine this will definitely hurt for existing holders who have bout at a higher price and also to see significant shares in issue. But, a good quarter of the shares is with Nigel Wray and I suspect he isnt selling anytime soon. In fact his help and expertise especially the strategy devt into technology cannot be sniffed at imo. Remember AIB are replacing 5m debt with 1p warrants that can only be exercised at 5p - so they are confident. This looks a very interesting and attractive play now for any new shareholders to be interested in it. Will watch with great interest.
In other words their debt will be reflected on invoices being generated or put another way on revenue being made.
Its a 1m loan and the other 8m is a credit facility that is financed based on invoices they issue. So its not debt stratight away but should they have sufficient invoices being billed they can take out up to 8m more.
If you're a shareholder then this likely will hurt, but I am now interested in this share given they have managed to get rid fo most of their debt and now stand steady to get on with delivering growth. And remember AIB have warrants at 1p that can only exercised at 5p. They clearly have confidence. I'm ready to load up if this drops to 1p levels...
Finally to buy so time for this to start moving back upwards.
5p target long term
The Company is pleased to announce the conclusion of its deferred payment arrangements in respect of its acquisition of Spot and Company of Manhattan Inc. ("SpotCo"). The Company acquired SpotCo in 2008 and, as announced on 15 November 2012, a debt repayment agreement was entered into, which restructured outstanding debt owed to the vendor, Drew Hodges. Pursuant to that agreement, regular payments have been made to the vendor up to a total of $3.2 million, following which the Company had the option to pay the remaining balance of $1 million by the issue of new ordinary shares in the Company. It has now been agreed to waive this final payment of $1 million in full. Drew Hodges continues in his current role at SpotCo. This agreement with Drew Hodges represents a related party transaction pursuant to the AIM Rules for Companies. Accordingly, the Directors of r4e consider, having consulted with r4e's nominated adviser, Allenby Capital Limited, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.
The Company is pleased to announce the conclusion of its deferred payment arrangements in respect of its acquisition of Spot and Company of Manhattan Inc. ("SpotCo"). The Company acquired SpotCo in 2008 and, as announced on 15 November 2012, a debt repayment agreement was entered into, which restructured outstanding debt owed to the vendor, Drew Hodges. Pursuant to that agreement, regular payments have been made to the vendor up to a total of $3.2 million, following which the Company had the option to pay the remaining balance of $1 million by the issue of new ordinary shares in the Company. It has now been agreed to waive this final payment of $1 million in full. Drew Hodges continues in his current role at SpotCo. This agreement with Drew Hodges represents a related party transaction pursuant to the AIM Rules for Companies. Accordingly, the Directors of r4e consider, having consulted with r4e's nominated adviser, Allenby Capital Limited, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.
I disagree with you . Previous placings have been done well above 5p. I doubt stoller and co will dilute thmselves to beyond no return - I don't think the capital amount of 2.5p will change
we'll see - not worried anyway - ive got so many unrealised losses on XTR - don't think I can be worried ever again in my life generally lol
I think you'll see a GM called to restructure the capital of the group from the nominal 2.5p per share to somewhere under 2p (probably a penny) which will give them the room they need to issue new shares ...... you could be right that they issue at a premium, but I don't think it's likely so the dilution will probably be big. The AIB £5m into equity or as it is now warrants just shows that AIB had written off the £5m just to give R4E the chance to find another lender so they can get out while getting some money back (£9m), the 5p figure is just a rampy figure it doesn't mean much. I’m looking forward to seeing what happens because there is potential for a good return here but I’m waiting to see if that potential is going to be from a lower sp.
is 5p for the new Equity investors - clearly they exrtered some clout over AIB here to amend the terms - the warrants are at 5pence - speaks for itself