Member Info for Bebeto

Apron, clearly not all investors are not as good as you and discussing things about the company is what this BB is all about isn't it?

It's a good refresher on structures of companies though.

People buy shares in the parent company (GCAT plc) and they think the shareholders own the assets but they don't own any in the assets as they are contained within a subsidiary company owned by the parent.

When the subsidiaries does well or bad it's reflected in the parent companies share price.

It also protects the assets from things like going into administration along with the parent company.

They moved quick had two months to sort it.

Would have been an awful oversight to lose an asset that way.

It's all laid out in the 9th November RNS Audited results.

Note 5 and Note 13 specifically.

GCAT plc is the parent company (which we own shares in and not the subsidiaries)

GCAT plc 100% owns 4 subsidiaries

KPGL is the subsidiary that owns Kilimapesa mine in Kenya

MGIL (England & Wales) is the subsidiary that owns KPGL

16th August 2022 MGIL name changed to Caracal Holdings Ltd.

https://www.morningstar.co.uk/uk/news/AN_1619432191407683000/in-brief-goldplat-completes-kilimapesa-mine-sale-to-mayflower-gold.aspx

Sw10000, it's the two most recent posts from Legalwolf is actually my concern.

If the mine is actually owned by the subsidiary and there's a secured loan on it.

If the subsidiary does get stuck off the creditors can claim the assets.

So it's a question of who owns what I cba to look tonight.

The parent company would usually get loaded with debt and the subsidiary not.

If the parent company defaulted on debt and went into administration, the subsidiary companies can still operate as they would not be in administration.

Basically a subsidiary is a separate legal entity owned by the parent company not shareholders.

You would have to look at the prospectus for clarification but generally GCAT plc would be the parent company (which we hold shares in) and the parent company would own subsidiary companies ie 'Caracal Holdings Ltd' and the subsidiary would own the assets etc (ie Kilimapesa mine)

Caracal Holdings ltd is to be struck off. First gazette was yesterday.

https://find-and-update.company-information.service.gov.uk/company/13072031/filing-history

Zan, The failure to publish accounts in a timely and accurate manner is a significant breach of regulatory obligations.

FCA will want accounts published before any approval.

No I won't listen to him, I'll wait and see what happens instead.

I know how these things could turn out and it's possible they'd restructure the asset holding company at the detriment to GCAT shareholders or it could all work out fine for everyone.

Legal wolf, I don't know about the other creditors but Mill End could put GCAT into administration, I believe.

GCAT is already in a DFA with them and there's no way the FCA would approve the prospectus whilst the company is in suspension, so GCAT is unable to issue Mill End shares, due to regulatory or compliance issues, it could be considered a default on the terms of the agreement.

Glad to be corrected but it's a possibility.

Astonished, I haven't increased or decreased my holding since December last year and the SP is virtually the same and so is the risk factor.

I don't think a distraction is the same as a blatant lie. As it just makes you look elsewhere.

Enough on the subject..

Let's hope they get this funding over the line.

All the best

"and the Company's own cash constraints,"

Make no mistake, without funding they're in financial difficulty.

I'm invested here, I've accepted the risks and understand the possible outcomes.

IOG plc shareholders have a really good barrister for their case against their company, if it all goes wrong here they'll be a investigation into several people....

Legal wolf extract from TW.

'At the interim stage Caracal was technically insolvent to the tune of £5 million. A source close to the company says that net current assets now are MINUS £1.5 million. That is despite a placing raising a paltry £92,750 on 29 September'

I'm just sticking with the facts contained within the RNS releases.

I'm certainly not paying attention to JC & Co as they're just massively over exposed investors who are totally reliant on the word of RM and therefore blind to the actual risk factors here.

There's not been a RNS with a MoU or HoT let alone a binding contract for funding, there's no guarantee of any funding getting across the line.

There is however, in a recent RNS a loan from RM to the company, US $40k . This is not conducive of a profitable company.

The company is going to suspend tomorrow, due to a delay in publishing the Annual report and accounts. There's no guarantee of the company coming back on the market.

I do have a holding here but I also have the risk factor of knowing there's a potential 100% loss in mind.

ID78 he has made an effort this year granted and there's an improvement on clarity in RNS releases giving a heads up on suspension is very honest too.

Apro I'm not choosing to not understand anything, there should be a Q3 update soon and you can then add your figures to that. I was simply going on the latest independent figures, I've also noted their AISC is $200 less than Q2 RNS.

Probably better to congratulate someone when we come out of suspension and not before we go in.

Anything is possible in this financial climate. IMO

When a company is in a financial difficulty are they asking Investors or Creditors for more money?

Let's see what they come up with but nothing is ever guaranteed.