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What sort of clowns are advising the BoD, and I thought we had a very experienced set of suits. Everyone knows that RF are a massive threat to the SP, why the the hell didn’t they just extend the WRAP, which was over subscribed, by another 8 million shares and get rid of these shysters (We have just given RF nearly 3 million anyway!) We have all seen what RF has done to the SP over last 6 months, and IMHO the same threat is still there. Do another WRAP at 10p and let genuine holders get involved. If the recent SP attack continues, the BoD’s judgement must be questioned.
I am no expert at all but can one say that RF was dumping approx 2,9 Mil shares over time and now delivers the lot and shall not being burnt? (No squeeze out)
Hi DrZ - section 5.1.2 of https://www.handbook.fca.org.uk/handbook/DTR/5/1.html says
"A person must notify the issuer of the percentage of its voting rights he holds as shareholder or holds or is deemed to hold through his direct or indirect holding of financial instruments falling within DTR 5.3.1R (1) (or a combination of such holdings) if the percentage of those voting rights:
(1)
reaches, exceeds or falls below 3%, 4%, 5%, 6%, 7%, 8%, 9%, 10% and each 1% threshold thereafter up to 100% (or in the case of a non-UK issuer on the basis of thresholds at 5%, 10%, 15%, 20%, 25%, 30%, 50% and 75%) as a result of an acquisition or disposal of shares or financial instruments falling within DTR 5.3.1 R; or
(2)
reaches, exceeds or falls below an applicable threshold in (1) as a result of events changing the breakdown of voting rights and on the basis of information disclosed by the issuer in accordance with DTR 5.6.1 Rand DTR 5.6.1A R;
and in the case of an issuer which is not incorporated in the United Kingdom a notification under (2) must be made on the basis of equivalent events and disclosed information."
If they don't issue a TR1 then at least we'll know they've got less than 3%.
Why is there so much whining we now know RF have 2.9m of shares every one just needs to sit tight and wait for news I hold 410k shares and an average of 56p so yes im down like a lot of us. why don't you all put your efforts in to the positives as if you can't just sell up and move on. RF will do wot ever they want let them stop working about them
Elcap if that were the case, then from the initial 2 million deposit we received off them, we would have only owed them 90 odd thousand. They were given 1.9 million shares at a price of £1.02 for the first deposit, roughly £1930000 value at issue price. The selling price is being recorded and I believe its the selling price that reduces the debt, otherwise we would not have to keep issuing new shares.
In my humble opinion of course.
RF don't care about upcoming news they will dump as fast as the volume traded allows, anyone else notice the MMs switched places before the close.
If they have been gifted/ given 2,900,000 shares doesn't this take them above the 3% disclosure level (or is it 5% for aim).
A TR1 would have to be issued confirming total shares held with further disclosures for every 1% change until such point they go under 3%.
I couldn't verify disclosure levels for aim.
Any confirmation from anyone regarding AIM disclosure levels would be appreciated.
KR
ZA
This is the problem with loan shark.
They just keep coming back for more.
RF is not going anywhere just yet.
Aber if they waited till £1 they could only sell £800k worth as that is all Sareum owe them. Any shares they have over that, they have to sell with Sareum guidance, and Sareum would receive 95% of the sale value of the extra shares.
Balance owed to RF is reduced by the price they get the shares at (10p for this lot), it is irrelevant what they sell them for.
If they sell them all and then the price drops to 7p, however many share they take at 7p will be how much what SAR owe them is reduced by.
It is irrelevant as to whether they sell then at 7p or 70p. It is only the monetary value equivalent for the no. of share issued to them at whatever price they are issued.
We need to pay them off asap in my opinion.
I think we would be beter off paying them in full in cash and having another WRAP.
Elcap
Looking at it from RF's perspective I think they have two options now :
1 - Hold onto the 2.9M shares + whatever remains + all of their warrants till a SP of £1 (say) ; Then sell and they get 2.9M+ Warrants value .. but not the £800K as this will be satisfied by the share sale at £1 ... so approx £4M on a £2.3M outlay
2 - Option 2 would be to keep selling to recoup their original stake ... BUT herein lies their dilemma ... If they sell the 2.9M at 10p (say) = 290K, SAR then owe them 800-290 = approx £1/2 Million ... so lets say SAR then use the extra money from the shareholder placing (800K) pay off RF ..... RF then have really only made probably 100K in admin charges etc
So do they take 100K or hope for 2M ?
If they keep selling then my mindset switches to the darker side and other ulterior reasons behind their actions !!! and unfortunately I do not feel confident about the BOD at the moment because their comms channels still appear closed
Hopefully we will find out tomorrow but its time for the BOD to show some support for the shareholders now who have helped them out of a dark place which they put us all into due to incompetent management of the situation
Hello Mathsprof but RF have to come back to Sareum and say we have sold that lot of shares you gave us at 10p. However we sold them at 13p so the 800k owed is actually less by 87k. So sareum may well say here's another lot at 10p but if things are going well RF will sell at the higher price and that will be shown to be reducing the balance by more than 10p a share.
I don't believe that there is no check on the sell price RF get.
Just to add I’ve added plenty of shares over the last week as even a crash test dummy couldn’t fail to make money by buying at 10p. 😀👍
''unless their intention is to drive the company into the ground which doesn’t make sense''.
maybe not for rf but can the same be said for 'real ****' also!? 🤔🤨
TraderMatt - not any more. The issue price is the lower of the placing price and whatever else.
Which means they may make a lot of money!
I presume if RF have 3% or more then they'll have to submit a TR1 to that effect.
Certainly some interesting scenarios, but don't RF get issued the the shares at the 5 day VWAP? Which is currently 11.49p?
£800K and the £330K issued Friday means we're probably only halfway through RF's selling debacle. But the upward trend recently does help, particularly as you mention Andy, some of the forward selling could be RF clearing the shares at a good price, because the demand is there.
Big question the next few days is how will this impact the SP? Interesting to see if this share issue to RF was timed for any particular reason.... i.e. they have 16 months to clear the debt, so why the rush? Do RF have the ability to demand the max issue each time they finish a tranche?
Yes, it's a pity we still have the chieving tunts with us. Take your pick as to whom I am referring.
It almost seems as if some people have a licence to print money while the rest of us supply the press, the ink and the paper in endless supply.
Hello all. Interesting that the late trade yesterday of 1.475M shares is roughly half of what was issued to RF 2.9M shares. If it was them selling half of the new shares issued it won’t take long to hack through the last 1.5M unless of course RF were party to the placing. ??!! In which case they may be sat on many millions more sad as it to say. One thing is for sure is our Bod made an almighty balls up when they took on RF rather than looking to faithful shareholders. Will they have learned a lesson?? Hopefully, but they seem to have a penchant for poor decision making and governance throughout history. It really needs a hard faced business person to see this through with TM given terrarium leave, as couldn’t see him having the skills for garden leave. !!
Hey ho, let’s hope for the best as even a blind squirrel can find the occasional nut. 🤣🤣. Gla. Andy.
David - there was a placing fee of 4.5%, and an implementation fee of £50k when the facility was set up.
The RNS didn't say who was getting these.
Can I check what other options were available to SAR to repay RF ?
Does anyone know whether the introduction of Sareum to Riverfort attracted a commission payment of any magnitude. If so, has it been disclosed and which party, if any, benefited from such an introduction. I accept that a commission may not have been paid but introducers, underwriters etc all receive some payment for their work. That’s how it usually works in finance
Still it is worth RF holding newly allocated shares at least until the next update unless their intention is to drive the company into the ground which doesn’t make sense.
Looks like RF get can request new shares as soon as they run out I was really hoping either Sar would clear the outstanding with additional WRAP raised or there was some timeframe breathing space between issuing shares but seems not....
Bluedreamer - it doesn't work like that.
Since the placing price was 10p, SAR will now never get more than 10p for any new sub shares issued. (RF can try to get as much or as little as they think fit.)
Aber's scenario could still happen. However 10p is the maximum that SAR will get: if the SP slumps under 10p they will get less and more than 8m extra shares will be needed.