RE: Rig contract!!2 Sep 2021 20:27
@NoEasy.. Couldn't have put it better myself..
Everyone, (including myself), begins to wonder why these entities don't keep a hold of their shares till spud or production, and the answer to that is simple, that's simply isn't their business mandate...example being, say they've loaned circa £10 million for shares worth/bought/placed @ 2.6p and sell at fixed price, (or within a small range in the 3.10-3.20 band), through their broker, they aim to gain a return around £2 Mil, and then they'll move to invest or loan cash to a next starter company.... By the time we're producing they may have gone through 15+ other companies, which is circa £30mil profit for them.. and they still may carry a small free run in any one company they've invested in!
Also a point to note is that the said 'Entity'(ies)', will have done their due diligence before securing the loan, looking at company business trend/sector/BoD and BoD experience/JV Partner, (and their DD), Net Asset value, thru CPR...as well as other criteria they deem necessary, to validate value of loaned cash. (in laymans terms, as naturally it's a lil more technical).
Now sit back and realise that the company has secured nearly £22 Million...over a small period, it's no joke!