Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Oh dear
Yup, last one out switch off the lights.
So it was a final Pump and Dump.......
It’s not over.. just need some patience here. Keep positive people!
What an absolute scam, look how much money has gone into the plant, look how much has been paid out to the board. Not sold a bean, hundreds of millions gone and it’ll be sold for buttons and the board will walk away with their pockets filled.
So so easy for them to do it without any legal repercussions.
Mug someone in the street for £50 and you’ll rightly do time mug thousands of people for millions of pounds through a business and you get to keep what you stole…
Tricky though, 'would' is past tense isn't it?
Surely 'is' or 'will' would be used if the talks were ongoing...?
"The Company has continued to work towards the finalisation of a fundraising that would be necessary to continue operations"
They're not openly saying it's liquidation or insolvency/doubtful solvency,
(just freezing to prevent speculation, but not sure how it's their business at all, unless they're planning equity raise via share sell and would prefer some reference point for sp)
don't lose hope just yet as it's not 100% certainty with the outcome.
for example EUA after removal of suspension went up in a very short time
but G3E never came back.
It was a gamble to begin with, it still is - just with less flexibility from now on.
for some leveraged traders such capital freezes are very painful.
p.s. considering current harsh covid-affected financial markets startup companies without cash-generating sustainable operations are vulnerable position for vulture-style predatory treatment - let it die and salvage approach.
If they manage to pull it off (very likely via expensive financing with other terms and cond.) - it might fly a bit,
if they don't - it's permanent capital write-off.
gl with your bet.
I ilke those positive waves Tradehobbs. The sun always rises each day and we hope the sun will shine on SO4 this week and forever more.
RE : McGurk ... look how much has been paid out to the board ...
Last report says 5 millions + (incl share options), peanuts, right?
also about plant: so far technology has failed to mass-yield production-grade output,
therefore it's rather recyclable scrap atm, let's hope they can fix this and those dry-runs were just inevitable steps to a fine sellable product (but question who will own it in the end: current shareholders or someone else - is still open).
They could’ve quite easily issued more shares and diluted share holders before now.. they haven’t. In my opinion they have been seeking alternative funding. I remain positive.
Yes Tradehobbs keep hitting this space with them positive waves so early in the morning.
@Yuri, the plant and Lake Way infrastructure were all put up as collateral to the 9% and 12% funding deals. Capital repayments due to start in March 22.
So not only do they need funds now, they need to get the plant working well enough to produce enough positive cashflow by the end of March, or renegotiate those loans as well.
They need to pull a multicoloured rabbit out of the hat! If they don't, there will be no plant nor Lake Way assets for shareholders. We get to divi up the sale of the Chairman's company car!
@Tradehobbs, if only it would be that easy.
To get a placement (with consequent dilution) off the ground, you need one or more institution to step up to the plate with a guarantee. If not you are in all sorts of trouble if the placement fails and falls short.
They should be looking at all options, so this means that there isn't anyone ready to step up, nor is there a ready appetite for further loans (precious little collateral left to offer, if any).
The only route is persuading the existing lenders to put in more and reschedule the existing deals in exchange for..... what exactly?
Just wondering was it because of last Friday abnormal trades?
Were they waiting for those transaction to complete allowing someone out (or in) before shutting it off?
Or was it a final trigger to prevent unfair disadvantage AIM investors had vs Australian market?
@WelshFalcon - thanks for your valuable contribution, at least someone keeps the fair balance.