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.
Well well, can it get much worse. Another Broker resigns.
Saluc is everything still fine or have you retired to a dark room with a bottle of valium?
Be very careful in my view, I have a feel the new group and the previous broker see this company as a rinise and repeat Shishir done many thing wrong but you can’t cristise him from trying to not raise money via placing were feasible.
So Optiva finally resigns which is quite the blow for the business, as they've been working with TGR for some time and I believe arranged their IPO.
It's all a bit sad really and it's difficult to see a way out for the business. The capital markets will be closed until there is a resolution on the governance issues, and even if that gets sorted it will be some time before TGR's reputation can be rebuilt and fundraising opens up in a meaningful way again.
Overall, there's a few key factors which have got the company to this point:
1. Shishir's reluctant to dilute shareholders (including himself and the family) when the business desperately needed working capital.
2. Acquiring Mozambique when the Madagascar assets where not yet fully operational.
3. Paying for a large portion of the Mozambique acquisition in shares, to a cash strapped junior miner who promptly liquidated most of their holding and drove the share price into the ground (making it even harder to raise without massive dilution).
4. Consistantly overpromising and underdelivering, which over time has eroded investor confidence and the SP.
Fair to say, it's going to be an uphill battle to get the company back on it's feet and I personally think changes to BOD are required in order to do so. Carrying on with business as usual just isn't an option (IMO).
GLA.
I spent a bit of time looking at all the companies on the Optiva website that they did the ipo for, can’t see a single one which has delivered shareholders a positive return + a few are suspended / delisted. Is that how a risk here? Yes, but not a lot of data to suggest Optiva have a positive influence on the company
Battery Minerals (now Waratah) still hold their tranche 2 shares plus a few left over from tranche 1 as of their latest trading update (think late April)
After Isabel resigned and the share price made it's next move down to 6p and shareholders started panicking Shishir's response to many of us via email and other mediums was (paraphrasing) 'look at the photos online of us at Madagascar, Christian Dennis, Murat and I'
That was his attempt to say that the frustrated NEDs were outliers yet since Murat has resigned and so has Christan (Optiva ceo).
It's a total mess and it's looking like administration could come as soon as July if the CLN holders aren't paid.
They have also reduced their holdings, down 9.4%. Reported on 31st March 2024. So this obviously been in the pipeline for a while. Not very good of the companies broker to be selling off shares before resigning.
Seems like it made sense for Optiva to resign and that was the only option for two reasons
1. “During the period, the Company constantly engaged with its broker, Optiva Securities Limited, and sought to address the working capital gap by exploring multiple avenues to raise capital. Despite this, no fundraise could be achieved by its brokers until December 2023. In January 2024 the Company undertook an equity placing, using up the authority reinstated in December 2023.” They weren’t able to do a fundraise
2. Due to the ongoing FCA scrutiny at Optiva, they are unable to accept any new capital from investors. So they anyway can’t help with any fundraising activity. So if the broker can’t raise funds, what’s it got to do?
I’m it would have been a tough call given how long Optiva has been around. But also their reputation has been dodgy tbh.
The only way forward seems like board restructuring and capital raise. Hoping that these are top priorities, else it’s all gone.
Wait so is basically what people are saying that the broker Optiva left and is out for good or that they are connected to all of the proposed new people and their companies as others have pointed out they’re the brokers of too meaning they couldn’t stay on or something? Murky murky
Also just saw Isabel de Salis pr company St Brides works with VAST which did another rubbish placing today, don’t think she’s got any issues with that I’d ask her about what she actually brings to the table other than spin for rubbish placings tbh doesn’t matter to her or her friends in the new group, sure she’ll take her commish and be off to the next one! Ain’t voting for them lads