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Hi Potnak -- why do you say 106 Million shares once this is done ... If RF sell all now and drop the price to 9p say and then take more and sell at 5p say and so on until the 800K is paid off, we could well find the SP at 2p and total shares > 120 Million if I am not wrong .. For example
Selling the 2.9 Million now drops the price to 10p say
They take their next installment at 10p and sell them all dropping the price to 7p (say)
Then the next installment at 7p all sold dropping the price to 5P
Each time the number of shares given out grows and the price per share drops ...
That is how I read it as the 800K shares are not fixed at 10p as far as I am aware
aber i think this allocation of shares leaves sareum still owing them £800k after the allocation.
no need to pay them back till aug 25, and paying in shares hopefully at a price a lot further on than 10p.
say at £2 a share total shares given to rf to finish their 800k, 400000.
hopefully rf go bust before then, ******s.
parker really should go and the bod hang their heads in shame.
Seems to me they've taken sh offer wrap & now no consideration, back to what we were B4
FFS guys! Cross the bridge when we get to it in 2025. Why are you all hand-wringing as if it is an imminent repayment with a massive shortfall due to us hitting 1p? Let time eat into the problem and understand that cash could still be used. Jeez! Like all here I really want to see RF out or neutralised. This seems to neutralise them after Friday and I would not be surprised if some have been forward sold.
You are quite correct, Aber.
What I was saying is that the rules are now different for shares issued after the placing.
Instead of making a guaranteed approx 10% gain on anything they sell at any price, they can now (as an alternative) make any profit they can get over 10p. So with the SP at 13.75p and a healthy demand, they should be able to sell gradually for 35% profit instead.
It may well be that by committing to issuing shares by the maturity date in August 2025 it just sits as a deferred liability. To commit to cash repayment when we have so little may well require the cash to be accrued and not used. A lot should have changed by Aug 2025 including any future cash position so a cash payment could still be made under the said Terms.
Math Prof is correct, we will just keep giving RF shares until the £800k is paid. It's a sh*t show. Just chucking more dillution on top of dillution. We'll be at 106 million shares when all this is done. We were under 70 million before RF came along. As well as the 90% loss in value, That £2.5 million they lent us will have cost 40 million shares. You can't spin this any other way but appalling.
I've said before - there is a serious appetite for share at this level. Almost 12 million bought through the WRAP (with many unable to purchase through their broker). RF are no longer the threat they were. Even if they go into full 'fire-sale' mode, I don't see a problem.
(for the avoidance of doubt - I don't think the current share price is anything but a disaster. Just that the spectre of RF / lack of funding driving the company into administration has gone)
Mathsprof - I believe you are wrong here -- They can sell at any value .. even 1p ;
In a nutshell they now have 2.9M shares granted and are still owed £800K ; If they sell all 2.9M at 5p say = £145K then they will still be owed 800-145 = £655K ... they then take the next 2 mllion (say) @5p = £100K and so are then owed £555K .. etc
If they sell that 2M @1p = £20K then SAR still owe them £535K
So in a nutshell they could simply collapse the SAR share price but holding would probably be far more profitable unless the tactic is to reduce the SP for a mega hostile takeover !!!!
I am now asking myself why JR never participated in the placing at 10p and just did the salary to shares £22K option
Is he of the opinion this is going very much lower than 10p ????
If so the shareholders and HNWI have been well and truly shafted
Fingers crossed that is not the case
Interesting that RF have been rationed to just 2.9m at present. Anything they get over 10p is all profit!
Expect another 8m shares to follow in due course. I don't think the BOD see any advantage in paying off RF when it can issue copious 10p shares to do so.
It's only 2.9m, and they should be cleared quickly. RF wont want to lower the SP now since its to their advantage to sell at 13.5p or more.
Thoughts why cash has has been removed from todays RNS?
Today’s RNS: The Company expects to settle all balances by the issuance of Subscription Shares prior to the Maturity Date. No further drawdown are expected to be made under the Facility.
March 28th RNS: The Company expects to settle all balances by the issuance of shares or cash payment prior to the Maturity Date. No further drawdown are expected to be made under the Facility.
Also a little bit sad to see this. However, on the positive side, the company is intent on keeping its £2m + cash pile for the advancement of trials / strengthening is hand in any upcoming negotiations. Short term pain for long term gain. Also, As maths Prof showed earlier, big sells are not the problem that they have been.
They would be mad selling these now ; Hold on and await news and they could be worth 10-fold+
But if they do decide to sell then this aint going up for some time to come !!!
RF now back in play - Arghhhhhhhhhhh!!!!!!