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The RNS may influence a bidder to increase their offer, but otherwise the FSP is effectively over - the BoD is seeking investment funds to mine assets directly (which returns better shareholder value, over a longer period).
So, very broadly, it's a 1:10 rights offer, with an offer price possibly around 20p. Call current SP 25p, conservatively, and assuming the nil-paid rights are tradeable, then shareholders who do not wish to take up the offer, may be able to sell their rights around 3-6p/share.
A small dividend to offset the slight dilution.
Why so? The BoD is seeking permission to allot " equity securities in connection with an offer by way of a rights issue to the holders of ordinary shares in proportion (as nearly as may be practicable) to their respective holdings". Which is kind of them - but I'm guessing they want to spread the new shares around existing investors, rather than seek a placing with a new major investor.
The SP on Monday will provide a clue as to what the market thinks the offer SP will be priced at - I'm guessing 20p. If you sell on the drop you may not be eligible for the RI. Swings & roundabouts.
The BoD is signalling the end of the FSP (although the announcement might stimulate a potential bidder to go firm). Clearly it feels that best value for shareholders can be achieved by direct mining.
The rights issue will be pitched at a discount to the current SP - enough to encourage people to invest. So likely drop in SP on Monday. However hopefully it will reverse after the new shares have been issued. Short term pain, long-term gain.
For those unable to participate in the RI, I would guess that the options can be traded - so cash to be made, perhaps.
Trev never pays full market value for any of his shares, or CGT(Swiss resident). He's a one-trick pump&dump merchant who makes his money off the back of decent PI's.
What bothered me about the last RNS was that he seems to have involved Carl in his activities - I trusted him!
The SP is, for me, at break-even point, & as usual I am paralysed by indecision! £70K invested, it seems., adding accounts. Stupid, really. But the experts say that the virus is here to stay, so mask-wearing, however unpopular in Western countries, is here to stay also.
Will those who can afford it, buy Pharma masks rather than cheap Chinese knock-offs ? My son is handicapped, so for me it's an obvious choice. The news will take time to diffuse out there, but eventually it will find its niche, within an enormous market. Particularly in Eastern countries, where Copper is credited with curative properties - as in Ayurvedic medicine.
Doubtless Cave & Co are working the phones, so eventually we will receive news of contracts/licensing - which should positively affect SP.
Think I'll hold, but my decisions usually turn out to be wrong!
The decision to shave 25% off the auction value of the additional 104MOz must have been taken at a senior level within RosGeo, and for me indicates that the Russian State is beneficially disposed to EUA. Rather a snub to NN, and a possible sign that the oligarchs on its BoD are in bad odour with the Kremlin. They did not do themselves any favours following the pollution incident.,and the recent flooding may also have been viewed as management incompetence.
Although we do not know if EUA is being prettied up for some quite ulterior purpose, many may still regard this sign of Russian State support for EUA as being most encouraging.
The SP on the Frankfurter Börse shaded down slightly when the RNS arrived at 18.00 CET, having shown gains earlier. But now that people have had a chance to view the bigger picture, hopefully we will see at least a modest rise.
No real benefit in this for RosGeo - they have just relinquished 25% of the auction value of a valuable asset (104 MOz ) for a small fraction of its value (£0.5 Million). Only in Russia!
Strings being pulled, IMO, and not by our BoD.
Business, Russian-style. The transfer of state-owned assets into private hands at a knock-down price. Good deal for Eurasia - or rather, those who will ultimately control its assets. The EUA BoD IMO lack the necessary clout to have achieved this on their own - more to come, doubtless.
Ethical members of a BoD generally leave their investment in the Company untouched, and even add to it, as an indication of their support for the Co, and to support PI's.
TB is a greedy soB, & trades his shares - mostly free shares or options that he has awarded to himself. He has a much better appreciation of the Company's position at any time, & can use this knowledge to his advantage. Basically he makes his money off our backs.
BRH was good for me, & I multi-bagged, but sold most when he pumped up the price, & the rest when he exercised his options. He is basically a one-trick pony.Easy to predict. Toxic for the Company, unfortunately.
Not sure the machine is capable of 5 ply - can't see it in the specs..
https://www.nonwovens-industry.com/contents/view_breaking-news/2021-01-21/lemu-group-engineers-mask-making-machine/
Another 300K top-up for me - beyond this point news should all be positive, now that TB's snout is out of the trough.
I agree with you - the market response to the RNS was rather over-exaggerated, given the potential of the product. I topped up by 1m on the dip, and will look to do so again if /when the SP falls further.
Reading the RNS, my initial impression was of total incompetence on the part of the BoD. But on reflection, there are a number of positives here. TB gone, in a final flurry of free shares, & GC comes on, subject to University agreement.r. And they finally seem to be getting their act together.
Bought into Motif around 0.4, pre-suspension, hoping for 1p equivalent after RTO..........
...........Still hoping!.............
I'm with HX - no notification. Have written to them by post, using the pro forma Egremont draft letter.