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"If it proceeds on that basis, the s.p. could still potentially reach 2p by the"
The end of the last sentence in my last post was cut off: it should say:
"If it proceeds on that basis, the s.p. could still potentially reach 2p by the end of the year."
Megasteel's post tax profits of £5.34 million last year suggest pre tax profits of c. £6.6M. on a 19% corporation tax rate, i.e. well over double the previous years.
The post-RTO market cap. at 1p, on a 1p shell valuation for TMOR, would be just £32.125M., with c. £10M. cash.
I.e. a enterprise value pre-tax profit multiple of barely three, for a cash rich company growing like Topsy!
Clearly you would expect the s.p. to move ahead very strongly, and in due course be a very good multibagger.
That said, I think there's a good chance that TMOR can extract better RTO terms, once it becomes apparent that shareholders won't back the deal as it currently stands.
They need 75% of the votes cast to get the deal through, which is quite a high threshold.
Just to clarify: Megasteel haven't done a runner, and the Megasteel RTO hasn't been aborted (yet): the terms have been changed, which is very different.
Well done to both sides for 'thinking laterally', in being willing to proceed without raising more funds.
That said, my view is that Megasteel is a good RTO for TMOR, but at the wrong shell price, and I'll explain why.
Megasteel looks like a very impressive and exciting growth company:-
23rd Sep 2022 7:45 am RNS Acquisition - Megasteel and Suspension of Trading
" ... In its financial year ended 31 October 2021, Megasteel made audited pre-tax profits of £3m on turnover of £19.7m. ..."
https://www.lse.co.uk/rns/TMOR/acquisition-megasteel-and-suspension-of-trading-ccsbb9s9yt991oi.html
22nd May 2023 3:30 pm RNS Update on Proposed Acquisition of Megasteel
" ... Megasteel is a cash flow positive , profitable, business, which reported audited post tax profits of £5.34 million, on revenue of £30 million, in its financial year ended 31 October 2022. As at that date, Megasteel had cash of approximately £10 million and therefore has no requirement to raise any additional funds. ..."
https://www.lse.co.uk/rns/TMOR/update-on-proposed-acquisition-of-megasteel-pwaoo4yy004oj3o.html
And its CEO Nigel Roberts has shown himself to be a negotiator of brillance, to extract such a lowly shell value from TMOR. That bodes very well for him cutting good deals for his business - in both buying and selling.
Moreover, the value being attributed the Megasteel is comparatively modest.
The problem is that the value being attributed to TMOR isn't just comparatively modest, it is clearly way below even its minimum current fair value for a RTO.
That I believe would be c. 1p/share: which is still a 55.5% price reduction from the previous level of 2.25p, which would still be more that the % price reduction in Megasteel's valuation.
And I think that TMOR shareholders are entitled to it in view of this statement from yesterday's RNS, which would otherwise be completely false:-
"The Directors believe that this material reduction in valuations retains the relative post-completion ownership of the Enlarged Group ..."
A further changed in the terms to 1p, from 0.5p, would provide a 100% benefit to TMOR shareholders compared to the latest proposals, but at a cost of only c. 2% to Megasteel.
I don't believe that Megasteel would be able to get a better RTO deal that that elsewhere, especially as other shells would be wary of dealing with them if they've been seen to reject fair value from another shell.
That would leave the IPO route, which might not fully recover for years, and would still be comparatively risky and uncertain, and require Megasteel to give away a far bigger share of its equity.
So I'm afraid I'm going to have to vote a 'sad no' to a 0.5p Megasteel RTO, but would willing support a 1p deal.
If it proceeds on that basis, the s.p. could still potentially reach 2p by the
So the deals is off which is good news, let's sort the board out and there are apparently better deals out there...onwards and upwards.
How many of you guys bought this dog because of the twitter brigade?
If you didn’t learn with VRS hopefully you’ve got the idea now. If it’s being pumped on twitter, run a mile !!!
So megasteel have done a megarunner.
Odear time for the board to go.
Anyone supporting a change of board needs disclose holdings and support for change
Then hopefully we can secure a decent deal and benefit us retail holders
How the actual F do they think us losing 80% of our investment is a 'good deal' this is blatant corruption by the board, retail getting shafted yet again, goodluck getting us to vote this through.
Lately unless you get lucky all the market seems to do is sh*t on you constantly, more than I have ever known it to.
So we go from being suspended at 0.95..do a great deal with Megasteel to relist Q2 at 2.2p..to relist Q3 at 0.5p..something stinks.
A shafting of the highest order me thinks..I've only got this and one other position running and I'm done with the markets absolute joke for retail investors.
Doc Holiday I think put about £70k in here..
It would be hard to vote this out given the % the biggest shareholders hold
Let’s see what spin they will use to promo this incoming car crash. Wonder when the RNS will drop. Bet it is panic stations as the market are aware of the spunk they are about to shoot
"Landmark listing to send London Spac to the future"
From its twitter feed. Might be a Landmark but not in the way intended!
So existing shareholders are about to get smashed with a 70% to closing share price. Absolute shocker, appalling behaviour. Time to take action to effect their pockets and block the deal. Screw them!
Megasteel and Sweetnam & Bradley had a stand on 18th May.
https://www.precastexpo.co.uk/
The floatation of CHSS two days after OHT further demonstrates that there can still be a good investor appetite for an interesting new issue, even in the current challenging market conditions.
CHSS floated at 6.25p/share, and has already moved up to 9.5p: a premium of 52% to its IPO price.
6th Apr 2023 7:00 am RNS Admission and First Day of Dealings
"Admission to trading on the Main Market of the London Stock Exchange
World Chess Plc (LSE: CHSS) is pleased to announce that its entire ordinary share capital will be admitted to the Official List (by way of Standard Listing under Chapter 14 of the Listing Rules) and to trading on the London Stock Exchange's Main Market for listed securities ("Admission") today at 08:00 AM under the ticker "CHSS".
As part of the Admission, the Company has completed a subscription and retail offer (together the "Fundraise") of new ordinary shares, raising gross proceeds of £3.04 million. On Admission, the Company will have a market capitalisation of approximately £41.7 million.
Advisers to the Company include Novum Securities (financial adviser), Marriott Harrison (UK lawyers) and PKF Littlejohn (reporting accountants), whilst the offer of new Ordinary Shares to retail investors was supported by the PrimaryBid platform.
Statistics
Subscription Price (per Share) 6.25 pence
Market capitalisation on Admission £41.7m
Gross proceeds of the Fundraise £3.04m
Total number of shares in issue 666,905,501
LSE Ticker CHSS
ISIN GB00BN70RC41
Highlights
• World Chess owns the exclusive rights to the official online chess gaming platform, FIDE Online Arena. The Company has taken chess into the mass market through its new commercial approach to chess competitions, with an innovative approach introducing new products and concepts into the sport.
• With its experienced management team with extensive experience working in the chess industry, the Company has developed a blend of revenue streams, with 44% of revenues generated through its online playing platform, 28% through events and 28% through its chess clubs and merchandise.
• Audited full-year 2021 revenue grew by 28% to €3.22 million while unaudited revenue for the half-year 2022 grew by 120% to €1.98 million. ..."
https://www.lse.co.uk/rns/CHSS/admission-and-first-day-of-dealings-cqqq6dnmcy5f4jv.html
The floatation of OHT a couple of weeks ago shows that there can still be a good investor appetite for an interesting new issue, even in the current challenging market conditions.
OHT floated at 16p/share, and has already moved up to 25.5p: a premium of 59.375% to its IPO price.
4th Apr 2023 7:00 am RNS Admission to Trading on AIM
"Admission to Trading on AIM and First Day of Dealings
Ocean Harvest Technology Group plc, a leading global producer of animal feed additives from multispecies seaweed blends, is pleased to announce the admission of its entire issued ordinary share capital to trading on AIM ("AIM"), a market operated by the London Stock Exchange plc ("Admission"). Admission will take place and dealings will commence at 8.00 am GMT today under the ticker OHT. The Company's Admission Document is available to view on the Company's website at www.oceanharvesttechnology.com.
OHT delivered product revenue of €2.5million in 2022, a 67% increase on the prior year, and continues to see strong demand for its products. The Company has a market leading position in a multi billion dollar market with substantial barriers to entry. The Directors remain confident in achieving further significant revenue growth in 2023 and look forward to driving further commercial progress across the Group.
finnCap Ltd is acting as Nominated Adviser and sole broker in relation to the Admission.
Key Highlights:
• Based on the placing price of 16p, the market capitalisation of the Company will be approximately £20 million at Admission
• Placing raised gross proceeds of £6 million
• The Company's ISIN is GB00BQKR6R17 and the SEDOL is BQKR6R1
• Following Admission the Company will have 125,855,697 Shares in issue ..."
https://www.lse.co.uk/rns/OHT/admission-to-trading-on-aim-ybqfq6trf1cthjl.html
17th Apr 2023 7:00 am RNS Update on Proposed RTO
Further to the announcement on 23 September 2022 regarding the proposed acquisition by More of Megasteel Limited ("Megasteel") (the "RTO" or the "Proposed Acquisition"), the Company is pleased to confirm that preparations for the publication of a prospectus and admission of the enlarged group to trading on the London Stock Exchange are now well advanced.
The Directors of More are also pleased to confirm that the Company and Megasteel are currently undertaking an investor roadshow as part of the Proposed Acquisition.
Rod McIllree, Executive Director of More Acquisitions plc, said:
"We are pleased to report that the RTO is progressing well. We are particularly encouraged by the strong level of interest that has been being shown in Megasteel by the UK investment community to date. We are increasingly confident that shareholders can expect completion of the RTO within this quarter, subject to FCA and other relevant approvals."
Nigel Roberts, CEO of Megasteel Limited, said:
"We are very pleased that we are are now in the final stages of the proposed RTO of Megasteel Ltd by More Acquisitions PLC. I have met with several existing shareholders of More and also potential shareholders and I look forward to concluding the process speedily and successfully."
https://www.lse.co.uk/rns/TMOR/update-on-proposed-rto-54ucf4fr63oezdz.html
Great news and looks like we could all be on a winner here. Should all go through by end June as "preparations are well advanced"
Within this quarter? So this month or within the next three months? Any thoughts
Any news from the lunch yesterday?
It is usual for a basic Prospectus to be drafted for approval by FCA. After that there would be a General Meeting called, all approved before the company's shares can trade. Details of dates etc.will be in that RNS.
I look forward to it in the near future.
Scroll down to the bottom of their website it’s all in the news section. Terrible website mind you! Needs a refresh!
Shame the Megasteel website doesn't say anything about this or the RTO though. Why is it low key? I want to start getting excited about this again and am looking forward to holding shares in a steel supplier - quite a bit different to my other holdings.
#TMOR The company is conducting a lunch on the 13th April in London ????
"We are now at the final stages of the RTO process and would like to invite you to hear more about the Company, its business, and intentions post-listing, from Megasteel CEO Nigel Roberts.
Tweeted earlier today by Doc Holliday.
"Siemens Mobility and Sweetnam & Bradley Synergy
As an essential and long standing supplier to Siemens Mobility, Sweetnam & Bradley Ltd were asked to take part in a video showcasing our processes, talents and how we support their supply chain from start to finish."
From a few weeks ago:
https://m.youtube.com/watch?v=hJ_VdK_8MA8
https://www.mobility.siemens.com/global/en.html