We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
No Glib. The RNS is worded very carefully. There are two parts to the CEO incentive plan. The first part sounds all very impressive with its big numbers etc. the second part is not impressive at all. The important thing to realise is that Point 1 OR (not and) point 2 is all he needs to do, therefore the big numbers Point 1 are totally irrelevant. Frankly it's one of the biggest ****-takes of an incentive scheme I've ever seen. Why did they ignore Thani and insist on this incentive scheme-generating reverse takeover? I simply couldn't comment on that.
It is interesting that SP Angel's Wednesday 20th morning briefing which covered Stratex has been removed from the Proactive Investors website. It was exceptionally critical about the deal. Now I wonder who asked to have that removed?
I am still on the fence with this. The Crusader deal doesn't sound great but I can't see why they wouldn't have gone with the ThaniStratex deal if it was a better one. From what I understand from the RNS', (please correct me if I am wrong) the renumeration that Englebrecht will receive is when the average 6 month market cap is £80m. After the dilution from the merger then the 20 for 1consolidation, that would mean the current SP would need to double, wouldn't it? My problem right now is how they will get the financing for the mine. If they use Bergen or Bracknor then it is basically a race to the bottom. That would dilute the SP and increase the number of shares so fast that they would only be able to do 2 or 3 transactions. You just need to look at CRND or AVO to see the impact these deals have. Has anything been said about where the financing would come from? If post merger we had about 125m shares with SP of 25p even a 50% placing wouldn't be enough. For me they would need to answer that question before I could support them. We gave TS 300k in May to get us back up to just over 30% ownership in them but they will need significant investment in the coming years also. I am very aware that we were getting no information at all from them for quite some time - until they needed more money. Not a situation I would be happy to go back to. We need some form of sustained income generation but it does not look like this is high on the agenda of the Requisition shareholders.
I have lodged my shares with the requisition, I would rather have 470m shares in issue and a prudent approach than a ludicrous 2.5 billion, no sane CEO does an all paper deal with his company's share price sitting near bottom of a 5 year range. That 2.5b is BEFORE even more dilution, the merger document suggests a capital raise for the newly merged company is expected, then there is the matter of raising another $100m. Existing equity will be wiped out under the Englebrecht proposals, no wonder he and two other directors (out of 5) hold NO SHARES in Stratex. The deal is woeful in my considered opinion, no wonder the powerful AngloGold Ashanti are against it.
I'm afraid you are wrong about Blackrock and Orion. You appear to be supporting the kind of CEO who pushes ahead with a deal that has no sensible economic basis and without having first secured the support of the major shareholders. Englebrecht isn't competent to hold his position in my opinion and I look forward to his humiliating removal given that he has chosen to ignored shareholder requests for him to step down quietly. Perhaps you might care to explain why your support extends to the outrageous contract terms extended to two of Crusader directors. Or maybe your support for the outrageous incentive plan that was set for him. Or perhaps you might want to take a look at the recent SP Angel report raising a plethora of concerns and peculiarities around this deal to address why Stratex is being sold as a cash sell and why Crusader is being valued more than 65% over its 9c share price. Maybe you can explain how with all the costs and expensive management the proposed mine will never return any cash to shareholders, it won't be built for three years, won't be profitable for a further 5 years and even then that's just the mine build paid for, you've then got to cover salaries, bonuses, interest on loans etc. No. This deal reeks and it will be pig snouts in troughs all the way.
David Hall & Co simply want to raid stratex for its cash and blow it on greenfield exploration in Thani Stratex which don't even have a JORC compliant resource. http://www.proactiveinvestors.co.uk/companies/stocktube/8129/stratex-international-s-marcus-englebrecht-to-vigorously-defend-crusader-merger-8129.html Englebrecht must have people in the city backing him, nobody would attempt this on a whim! Odds are its Blackrock and Orion who are probably keen on this as they specialise in mine financing. So thats (13.62%) (I have no idea who G.P Jersey is???, seems like this vote will come down to the small holders) http://www.orionminefinance.com/transactions.html How long have we been hearing of an IPO happening on Thani Stratex? Too long! Hall is obviously Struggling... The investment world don't want to back exploration plays at the moment, we are at the wrong point in the mining cycle. Either way dilution will happen at some point! Ask your self; dilution to get a 2.4moz mine up and running in Brazil, or dilution to keep drilling in some hole in Africa. I for one believe this is the right decision to make and I am "For" the merger. Last thing we want to be is another exploration company on the Aim market.
Why should Stratex shareholders bear exorbitant cost of expensive Crusader acquisition? http://www.proactiveinvestors.co.uk/columns/sp-angel/28628/today-s-market-view-altus-strategies-phoenix-global-mining-ltd-savannah-resources-plc-stratex-international-plc-28628.html
Please check out the new website set up to inform shareholders in an open and transparent way what their objections are and their vision for the company. I have been a shareholder at STI for almost 9 years and can see that if this deal were to succeed then current shareholders would be diluted into oblivion in quick time as the top heavy management structure of the new company bled the finances dry of the current $7.7million in wages and admin in no time at all. Please view www.newstrat.co.uk for full information by shareholders for shareholders.
Due to the reaction of a lot of informed/uninformed shareholders the company should state the case why the takeover of crusader is in the shareholders interest. I must admit to being in the dark and would appreciate some clarity on the matter especially as the objectors were once on the board of directors. Do they have an axe to grind?
I have had an interesting e mail from David Hall Here is a link to a new website that has been set up. www.newstrat.co.uk
I was referring to one of the Crusader directors
So to my knowledge the latest is five of the top seven will vote against the deal, the other two have not yet declared intention either way. I haven't found a single private investor who supports the deal.
Thank you Glib.
There is an article today on pro active investor. It looks like some of our major shareholders have an interest in ThaniStratex and want us to retain our money instead of diluting the SP to invest in Brazil. You would need to crunch some numbers to find what Stratex is valued at for the Crusader deal, but many feel we are undervalued with nothing being accredited to our ThaniStratex or other holdings. I do not think the Crusader deal is a good one as we will need to find $100m to set up the mine while we have no income stream. I also do not know what to make of Hall and Frood - I can't see them as the white knight types. Maybe they are the lesser of 2 evils but we don't know their intentions for the company at all. Is there any more space on that fence?
I have a few million shares,I,am on the fence,I need persuading either way..
Who was the high profile investor in favour of the deal?
If you would like to join me as being represented on communications between the requisition shareholders and the current CEO of Stratex as opposing the deal I suggest you please urgently contact Paul Foord with your name and number of shares held. It could increase the chances of an earlier resolution if it becomes apparent that there is overwhelming reaction against the deal. I've also seen further details of the arguments against the deal and much of it mirrors what we have discussed so far. In particular the value destruction that will occur for current shareholders and the very expensive management and overheads the new company will need to support. I am happy to chat with people privately if you want to discuss in more detail. Originally I had been encouraged by the involvement of a high profile investor supporting the Crusader deal. But now I consider that high profile investors probably don't care about wiping out people like me in the process of getting richer.
Blackrock, Antofagasta are serious companies and will no doubt see through the Crusader nonsense as have Anglo Gold and Teck Resources who both have international reputations and hold shares in Stratex unlike Englebrecht.
If Bahar were so trusted, why were they not putting cash in our bank account? Sadly in this situation they had us over a barrel and they know that they were in the wrong and strong armed us, so they could steal this asset off us cheap. Who else would buy our 45% share knowing that they operator was not paying ball. Englebrecht has got a good track record and has made money for shareholders, look at what he did at Archipelago Resources plc Where he took the company from construction to production. With a turnover of US$200m and annualised gold production of 150 koz. The general meeting will be interesting to attend,I wonder what the other guys are thinking Blackrock, Orion Trust, GP Jersey, Antofagsta. I hope they all have representatives present.
Really ? Altintepe a producing mine was suddenly flogged off because 'it was said' that we no longer trusted our long term partners Bahar who had paid up front for all the mine costs over $39 million, with Stratex free carried - that demonstrated Bahar's trust but Englebrecht did the worst deal at the quickest lowest undervalued price Why ? why then : Then bought into a cashless Crusader hulk paying far to high a price to the detriment of Stratex shareholders. Teck Resources and Anglo Gold know what they are doing they are both fine major mining companies who know what they are doing. They are leading shareholders on the company and they are the ones scuppering this Crusader nonsense not Hall. Get real
Altintepe was flogged because the Turks couldn't be trusted and were holding back payments, so instead of a costly legal pursuit in a kangaroo court in Istanbul the decision was made to sell up. If the rebels had a clear alternative to the Crusader deal, such as sell off of the assets and return cash to shareholders, they would win hands down. However its plain to see they want to grab the cash for Thani... a pure exploration play without a JORC compliant resource. (A lifestyle company for David Hall) Agreed it is annoying how Englebrecht has not bought any shares.
Blow it on cashless hulk Crusader and dilute Stratex shareholders to extinction . Clearly not in our interests and clearly this will be stopped as Anglo Gold and Teck Resources and Thani are large reputable companies and shareholders who have had enough of this nonsense. Englebrecht can vote against oh I forgot he hasn't a single share in Stratex a striking fact for Stratex shareholders who have seen the so rot under him. Only now we see the possibility of change in favour of Stratex shareholders interests. Crusaders on the other hand deprived of Stratex cash will not be happy nor Englebrecht Altintepe was flogged cheap at all our costs for this Crusader nonsense.
Good Listen on Stratex, Tom seems to sum it up pretty easily to me. https://www.*************.com/views/31603/tom-winnifrith-bearcast-stratex-rebels-are-dreaming-1spatial-the-hookers-a-twitter-moron Englebrecht has his head screwed on, seems like David hall want Statex to spunk its cash in Thani Stratex instead....
Anglo Gold and Teck Resources are top mining companies their intervention to me means that the Crusader deal proposal is so bad that all of the shareholders should take note.
All I see now are red flags. Why would ThaniStratex be worried about Stratex investing its money elsewhere if they are intending to do an IPO? David Hall is CEO and Paul Foord is CFO of ThaniStratex. Are they wanting to make sure we only invest our money with them?