Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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So the ones they have to pay for ie 70% of 5% (ie 3.5% of diluted company shares) Options awarded to each recipient vest at a quoted share price of 31 pence.
Yes they would have to pay 31p a share for them if they took up their whole options, they have 3 years before they take up the options.
However, say in 3 years time the share price has reached 50p, they they could just see the options for around 19p an option ie share price in 3 years - option price =50p-31p = 19p.
Or they could sell sufficient of the options to pay fully for some shares without putting their hands in their pockets.
What I wasn't sure of is do they have to pay 31p a share?
The option is free but not too sure if the ones that vest at 31p are free.
Ian smiths replacement might get them, depends what gets agreed I guess
I understood it as :-
- up to 5% of fully diluted share capital of company in scheme ie very generous
- 30% of the 5% ie 1.5 % of company given to management simply for being there on the dates 1/10/21, 1/10/22, and 1/10/23 ie they get 0.5% of company shares on each of those dates.
- 70% of 5% ie 3.5% given Options awarded to each recipient vest at a quoted share price of 31 pence ie NTA as was. They can vest these shares up to 36 months from the date of award.
I would have though Ian Smith's replacement will get his options ?
I read this before but I was never 100% sure what it meant- Is it that as soon as the share price hits 31p they get the shares for free?
Ian smith has gone - so thats 1.235m of shares not being taken. The amount for James Roberts does seem on the high side- at 31p is nearly £400k (with his salary only being 150k)
I still haven't got my head around the process for issuing them now. if the price hits 31p and everyone wants the shares they are entitled to then the "Employee Benefit Trust" needs a lot more shares - it can buy them on the market like it did recently, but it needs way more than it has and the volume would likely materially bump up the share price in the short term. Alternatively it can just issue new ordinary shares.
It always looked likely that they would get a fair chunk of the bad debt provision back.
However, I am thinking all the bad debt provision was excluded from NTA used in setting management share option exercise price, that is for the ones they had to pay for rather than got free. :-
https://www.investegate.co.uk/1pm-plc--time-/rns/new-share-option-scheme/202010290700095472D/
This company seems on the overly generous side to the management.
Lloyds and Natwest both recently reported releasing some of their bad debt provisions. More lenders to follow suit. TIME will presumably do the same in due course.
New research note out making those points, along with analyst's audio summary - free access here :
https://www.equitydevelopment.co.uk/research/momentum-clearly-building
Huge improvement in forbearance etc. Provision hasn't been reduced so they still have 2m of provision to be released.
Reads v nicely and share price understandably up sharply with NTA at £28.5m and cash at £6m (4x level 10 mths ago). Forbearance 90% lower than June '20 peak + support from all key funding partners. Shares have done well this year and valuation gap is shrinking, but it was at a huge level in Jan :
https://www.equitydevelopment.co.uk/research/tag/time-finance
Grow the book first rather than pay a dividend, keep 1m for working capital, 5m to to loan out (i.e. 25-50m to loan out when the cash is leveraged)
The £6m mentioned is a lot more cash than they held pre-covid when dividend payments were made.. so it's looking good (IMO) for re-instatement with maybe a 'special' to cover last year.
Good update. Though no mention of dividend reinstatement. Could fall. Hope I'm wrong.
Was accredited to provide CBILS loans to SMEs during pandemic.
6 months to Nov 2020 recorded total equity 56.5mln. vs. 55mln.
Cash 2.6mln vs. 821,000
Price to Book = 62p < current price 27p therefore = cheap.
So why do you think it is not cheap?
This company re employed as CEO or equivalent someone they had let go less than 12 mos earlier with a large payoff. Hardly the actions of a board that's close to the business. My big issue is the leasing book , given where they were/are in the food chain I don't believe for one minute that they "they haven't been affected by the pandemic as badly as many other businesses " as stated by Someone. This will be reflected in results in due course.
On what basis do you think it is not cheap?
Well before the pandemic they traded between 50p and 60p.. they haven't been affected by the pandemic as badly as many other businesses and their dividend is deferred rather than cancelled... so all in all looking good value under 40p and looking cheap under 30p.
Everyone will have their own opinion though.
On what basis can this stock be "cheap" !
The RNS on the 9th advised that the Trust is buying shares to be able to award the the share options to the employees.
If the share prices hits 31pence then the Trust still requires another 1.3m shares to be able to satisfy the share options.
Given the volume of shares traded here is <50k on a normal day this is quite a lot of extra shares needed in a short period of time which i believe will put considerable upward pressure on the share price.
Still going up nicely today.
Somebody must love this stock other than me looks cheap
I like the new name better than the last haha
is making a move on this.
Good luck. Hope you don’t need it. I just don’t like a CVA majority investment..
support around 19-20p?
I have to agree sold out last holding above 24p, bought them back below 24p today.
Time seem to be moving forward and the Covid vaccine rollout appears to be going well.
Buy price below NTA so worth an investment.
BoE putting measure in place for -ve interest rates sounds crazy to me.
Each to their own. I;m still adding as and when