The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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"each time it gets progressively worse" what was expectation?
Where did I say that?
LOL seriously were you really expecting that ELEP would get better before the IPO?
I've finally had a little bit of time to look at the latest filing, each time it gets progressively worse.
The latest file has acknowledged that some of the pitiful $6m net has to be used to repay loan notes
"approximately $0.9 million for repayment of the Dragon Note and the December 2022 Note"
The Dragon Note has been attracting an interest rate of 20%(!) since August due to failing to get the IPO away before the maturity date. Thus "the balance of the note payable was $364,087 with interest expense of $124,852" and increasing all the time.
So the rest of the use of proceeds have been revised to accommodate this repayment such that now:
"the remainder for business costs, working capital and selling, general and administrative purposes."
That remainder is budgeted as $100k. To cover business costs, working capital and the management's insane wages.
So what are the lucky new investors getting for their money? They will be putting up 67% of the total consideration and only be getting 13% control of the business. That's because the existing scumbag shareholders only paid on avg $0.33 per share. The management is trying to sucker in new idiots at $4.65.
After the fundraise, the net tangible book value rises to a whopping $0.4 hence the warning in the prospectus that:
"DILUTION
If you invest in our Common Stock or Warrants in this offering, your ownership interest will be immediately diluted to the extent of the difference between the assumed initial public offering price of $4.65 per Unit (the midpoint of the range appearing on the front cover of this prospectus) and the as adjusted net tangible book value per Unit immediately upon the consummation of this offering."
Awful prospectus, awful management. The whole thing stinks and the stock will be worth close to nothing by the time the lock-in lapses. You would have to be a total melon to even consider investing in this ****. RRR may as well write the whole lot down to zero already.
I can support that timeline even if it takes 12 months to complete the list.
Best of luck for 2023 to all LTHs - let’s hope we all surpass our break even figures…… as a minimum
1-Jan Congo arbitration signed and paid
2- Jan- ELEP IPO
3-Jan positive Australia drill results
4-Feb Bilbale-drilling program announced
5-Feb/March- Lithium in production making money
6- March/ April- lawsuit filed for larger money
7-April/May JV partner for Mid Migori
8-April./ May-more properties in Congo
9-May/June IPO for Australia
10 june positive dril results for Bilbae
Brianspark-if arbitration is signed the next step is to begin litigation on even larger money. Do you really think the board should have AB step down. if anything a big cash bonus and more stock options
Brianspark-if arbitration is signed the next step is to begin litigation on even larger money. Do you really think the board should have AB step down. if anything a big cash bonus and more stock options
Lets work it through.....
Hey AB thanks for getting in the $7.5mil in but we are going to bin you. Here is your 2 years' severance pay. And BTW will you still help us out with our claim against Big G and be a witness? What? Now that you have been binned you want a profit share on the claim and a very large consultancy fee to work on it for the next 2/3 years?
He can say "do one" in more than one language.
DYOR
https://www.jxscmachine.com/new/lithium-ore-flotation-technology/
BSpark - There is currently no replacement for AB and no one in their right mind would join RRR on £150,000 when there’s £60,000 in the bank to do a job that involves weeks away in hostile countries and constantly raising invisible money for countless projects.
So we wind up or AB continues with his one man show.
Come on everyone (especially Chatty) What do you want to happen and in what order?.
Once he signs, AB will be offered fantastic opportunities for Copper, Cobalt and Lithium in the DRC.
Once AB gets the arbitration signed then the board should make him step down
Can’t say I disagree with most of what you say! Its mostly factually correct.
Could I ask you to list the 10 actions that you would like to see from RRR and shareholders, then the many many many words you’ve used might appear more than a long winding whine.
In short, what do you want to happen ……l and in what order?
until a company (any company) develops a cash flow an investor should ALWAYS anticipate the company will issue more shares.
Even if directors worked for free (most if not wont), even if employees worked for free (they wont) running a company even if nothing is done costs money (think attorneys, CPA firm, stock transfer agents, website, putting out news releases all of that takes money. Every single exploration property RRR has costs money every single year
When AB travels by air does he travel 1st class? great question I have worked at companies larger than RRR and we had a policy of NO first travel-ever. A traveler could upgrade at their cost
From todays RNS ;-It is the prime responsibility of the Board to ensure the Company and the Group remains a going concern. At 30 June 2022, the Group had cash and cash equivalents of £0.066 million and £1.864 million of borrowings and, as at 22 December 2022, the cash balance was c£400,000. The Directors anticipate having to raise additional funding over the course of the financial year.
The above statement uses the word 'Anticipate' which is indicative that despite the stated expectations of payment to be received RRR will be raising funds. So more dilution to be expected and expensive because of Mr Bells consistent track record over an astonishing period of time, at least 20 years zero returns to shareholders has created a serious amount of push back negativity
Full of optimism and unrealised expectations, also risky in operation otherwise how come the amount of litigation in progress
Recently Bell even stated RRR shares were basically not worth buying.
2021 AB income was £144.000 out of total directors costs £312,000;-Note the staff costs recorded as £436,000 for total including directors of 6 staff.
2022 AB income was £164,000 out of total directors cost of £302,000;-Note staff costs £657,000 for total including directors of 14 staff
Bell recently boasted he had visited 30 countries presumably first class all the way?
Investments in unsafe jurisdictions, that is where the home office advise against travel. Those investments have created legal arguments where RRR has been apparently been cheated .The question is how was that allowed to happen?
He has been there too long and his presence is now a hindrance and a liability to the company and shareholders. The board must take action and remove him or at the very least reduce his salary by at least 60% and base any bonus on actual returns to shareholders.
As to investments, RRR should focus on investing in assts in companies that have a proven track record and are in stable jurisdictions. That way the company can reduce their risk and ensure a return for shareholders.
The company should also focus on cost control and efficiency improvements to ensure that their profits are maximised. The board should ensure that all investments are scrutinised thoroughly and that the company is not taking undue risks.
Finally, the board should be transparent and accountable to shareholders by providing regular updates on the progress of the company and its investments.
Basic premise is any investment is high risk of zero returns and loss especially as the BOD anticipates raising additional funding over the year . Take it as before April just 3 months away.
true- admin is high, much higher than before. IMO the cause is projects in too many countries. 8 weeks in Congo would have been expensive just by itself. I am optimistic but 2023 is shaping up to be a make or break year
No. My link was purely to point towards a simple explanation of what a draft award is. Instead of putting that English article on here i should've probably found an article from the DRC.
Glancing at todays RNS the £1,225,000 adminstative expensive are very high. It is also important to get this DRC arbitration sorted out quickly because no shareholder would want Red Rock to lend the full $1.5 million from the recent death spiral lenders because they could absolutely decimate this share price. Lastly i was surprised to see in todays RNS that Red Rock still owe former Kenyan partners Kansai mining $1 million. Todays RNS said:
"As at the reporting date, the amount of US$1,000,000 remains payable, with agreement having been arrived at between the parties that payment shall be deferred until receipt by the Company of any funds awarded by the court of the DRC".
Zumore -Do you think Congo's legal system and/or arbitration system has its roots in English law & rules. I would have thought French IMO the whole concept of rules, laws & regulation is pretty loosely applied in the Congo,
But I remain hopeful that the passage of time (now significant) means it is closer to getting a signed award
with the recent fund raise RRR is no longer broke and can show VUP they have the staying power to wait.
It is interesting that Bell commented about prudent information release to investors for fear of upsetting certain foes but now has delivered a very open statement, does this mean he is more confident of an imminent conclusion and receipt of up-to $10m ?
Whilst caution is always the watch word when Bell is concerned it seems strange he would reveal all now and it does make you wonder if the end game approaches.
It also appears he is about pursue the Major Mining Company for compensation, Big G have recently been fined significant sums for misconduct in Africa - Bell has a strong case and needs to strike whilst the iron is hot, it would involve sums of money that Red Rock shareholders could only dream about, the legals on a Pro Bono basis (no cost to RRR)
Maybe just maybe the upside wheel is about to turn.
why not wait until the mediation decision has been finalized? Keep in mind RRR is entitled to 50% of the $20 million.
They already have a court decision for the $2.5 million plus damages
just keep going the legal route
VUP have offered $2.5m to RRR. Wouldn't be surprised if a compromise of $5m is achieved early next year
Message from AB on telegram group ref "DRC signing "
"Bell's comments have to be definitive. Study his travels the next few days if you want to anticipate them "
Looks like it could be coming home very soon !