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Where's threeput? He asked a few days ago why anyone would buy because of upcoming fund raise. Price up 80% since then! Good call buddy! Nice one!
There has been an awful lot of shares bought since 10 o clock this morning, millions of shares bought.
Possibly a lot of speculators coming in at 4p but heavy buying nonetheless.
LongerGuy - The difference is that the shares bought on the open market are secondary shares and any monies raised does not go to the company.
An equity raise is like a mini IPO and investors cash is directly going to the business for operational purposes. So investors committing cash buy buying shares in an equity raise are investing and agreeing to support the business.
The same investors could be buying more shares today in the open market if they want to increase their holding.
I know there is a finite amount available, but right now why would companies buy this at 5p per share when it’s available now for 4p? Surely they should suck up the lower priced ones first and then when those have gone, top up for the extra
In slightly more positive news the Atrai CEO has this to day on todays announcement……
‘Wade Rosen, Chairman and CEO of Atari commented: “tinyBuild is an amazing company, with industry leading games and benefiting from an expansive fan base. Atari is excited to participate in the current capital transaction as tinyBuild’s approach to the indie games market is in line with Atari’s long-term approach.”
“We are pleased to welcome Atari as a strategic investor of tinyBuild. Atari is a timeless brand and its support validates the current strategic plan for tinyBuild,” said Alex Nichiporchik, CEO of tinyBuild.’
AlwaysInvest - I agree.
Ideally Alex won’t need to mop up too many of the newly issued shares keeping his holding under 50% but at the moment it’s all a bit pie in the sky.
There’s been plenty of large buys and sells over the last few days so I think the market is still wrestling with the news. What I would say is that Tinybuild would be a speculative buy at best at present. A lot of uncertainty.
I agree Atari on paper is a good bit of news, but if the assets/IP are decent but struggling for cash and at depressed pps, when Atari owns what like 7% or something, and CEO stake may increase depending on takeup, they together could see 50%+ and could vote through a takeover deal at prices not ideal for many Tinybuild shreholders.
I am just making guesses.
The only positive that I can see as LongerGuy stated earlier is the small investment made by Atari……but it’s only a $2m investment mind.
They made significant cost cuts moving forward so if the equity raise goes through the business will manage I think. It will be interesting to see if it’s voted through the special meeting…..I suspect it will but some may rather see the company liquidated than get diluted into oblivion.
If it allows the company to realise its potential then I view it as good news. Better to have a smaller part of a more valuable business than a big part of one that goes bankrupt . I feel quite optimistic about some of their upcoming releases and I’m less underwater than I was this time yesterday so that’s a good start. We’ve just got to hope they have learned from their mistakes and some of the institutions opting into this fundraise will be able to make positive changes (still think Atari is an interesting new dynamic)
Yep, I am neither but I follow the story of it as I did research into it but figured not for me due to cash burn, so my only question would be can management do anything meaningful with this $14m? Hope so for all involved but could be a plaster rather than a cure.
AlwaysInvest - Yes, you are correct, I think it is me that needs the coffee.
Looks like a significant dilution then. I think this equity raise is positive news for new shareholders, horrible news for existing shareholders.
They say $14m no? Which is about £11m at 5p a share is 220m no? Sorry I may need some coffee
AlwaysInvest - There are only 203m in circulation at present. Another 220m would be more than the IPO.
How have you made this calculation?
Am I right this will essentially add another 220m shares? or has my maths/RNS reading failed me this morning?
LongerGuy - It’s a very convoluted equity raise with many elements and having read through it a few times it’s difficult to fully digest the implications for existing shareholders……..
Yes, a solution does bring stability but its difficult to gage what the market thinks of this announcement until I read some analyst break down.
Surely the 5p placement price with a guarantee they will be purchased is a good thing.
Interesting to see Atari being name dropped too.
This company is so leaky. As I suggested , the volume goes up before the RNS lands. The question now is whether the market will take this as a positive (because there’s some stability and the future is secured) or negative (because of the dilution).
I think they may have already explored the option of selling assets/IP already…… from what I can gather I think the price of any potential sales would be a significant discount to their intrinsic value, given the state the company is in. I don’t think it would be a good idea to offload essential company assets at a severely reduced price as that would create a new problem all together…..
I don’t know if secured loans is an option either because the interest rates the company will be offered could be 20-30%, if not higher.
There are other routes. Whichever route they take I think they seem pretty keen on keep the business debt free if possible.
They could also look to licence/sell some of the assets now to keep it solvent. Gamepass or PS+ could potentially also licence upcoming games/back catalogue. There are means to raise capital without an equity raise. A secured loan is also very viable given that this can be backed by guarantees and the company is presently debt free. It did seem strange the RNS didn’t mention these potential routes, but there’s a chance those options will have presented themselves by now.
LongerGuy - Yes, the value of the IP’s and assets would be worth significantly more than the current value of the business……which is why some shareholders might be prepared to risk liquidation than have their shares diluted into oblivion.
If an equity raise is going to happen then there should be at least a cap on the minimum price that can be paid to make it more palatable to existing shareholders……if not then Alex and Co might have difficulty getting the equity raise through the shareholders.
Crazy to think this was £1.12 per share exactly one year ago. What I find interesting here is that they own the IPs, whereas FDev for example has produced a lot of licensed games.
There must be some value in those IPs, but it’s whether the value is seen in them now and this sees a recovery or by vultures picking it apart at liquidation is the question.
Neil777 - Yes, there will be a significant spread. The company has a market cap of £5m, its standard to have large spreads on high risk companies.
Yes but they then move she spread up 9% so no one can sell for more than they paid... its been like this since the crash
From one extreme to the other…..
Some big buys going through this morning.
LongerGuy - I think many of us are in the same boat, most remaining shareholders will have bought in at a higher level.
We will just have to see how this pans out. Hopefully the balance sheet will be stabilised and some of the more exciting titles scheduled for 2024 will improve cash flows and bring in higher revenue next year.