Member Info for Blubay

Nearly a quarter converted now and £7.275m remaining

Operations due in Q4 (Oct-Dec), probably hear more after BNL’s shareholder vote (19 September).

There is no cap upside or downside. The debt funds will covert either way, as long as the broker can absorb and churn the shares. The plus side for the company is they end up with no debt.

Because they have no choice and that is what the brokers and investors offered.

Daily VWAP = 0.486p (and lowest day)

10-day VWAP (14–28 Aug) = 0.546p

92.5% of 10-day VWAP (B) = 0.505p

Available conversion price = 80% × 0.505p = 0.404p

Not too bothered about a lower entry. More a case of waiting until there is more certainty about operational delivery and less uncertainty about capital erosion. In the absence of any operational news or any attempt by the company to defend the share price, that makes the CLNs the most interesting topic for the moment.

Very well managed market today, maintaining order while heavy morning blocks pulled the VWAP down but price walked back up into the UT close at exactly 0.500p. A more cynical person might suggest the hallmarks of a classic CLN play, weakening the weighted average while making the daily price close appear stable. Calming the nerves of price sensitive shareholders while strengthening the CLN holders' hand.

Daily VWAP = 0.488p

Rolling 10-day VWAP = 0.552p

Implied CLN conversion price = ~0.409p

If tomorrow's daily VWAP closes at or below 0.51p (92.5% = 0.5p) then the conversion price reaches 0.4p on Friday. Will they, won't they? Not sure.

"20p+ year end"?

So that would be £1.2bn mcap by Christmas then? Sounds like more MREX interns needed on deck for second tranche CLN conversion.

I don't have a trading target as I don't trade this share. I'm mainly interested in preserving my capital. I may invest more on operational news but the current CLN distribution pattern is too risky for my appetite at this point.

After taking c.25m shares below 0.48p this morning I'm sure they'll be happy to distribute them above 0.5p this afternoon.

Looking at the trade prints, I think they've probably shifted around 25m shares in structured blocks this morning (a third of volume). If that corresponds to the implied 25m overhang remaining from last week's CLN distribution it might ease the sell pressure a bit this afternoon. Price looks to be recovering a bit now anyway.

I agree that the company has stronger longer term prospects as a result of the debt structure. I don’t agree the share is a buy, because of that structure. I may change my mind when there is more concrete news on development plans, depending on the overhang.

We agree. I hope and expect that the CLN debt structure will enable HE1 to continue it's operations while meeting it's outgoings and obligations. They have a £10m cash advance to pursue short term operations, towards the goal of first revenues in 2026, and they have approximately £9m of debt remaining to repay within in 11 months. Hopefully, the CLN structure allows that debt to be converted into shares so that the cash is not repayable with interest on the due date. Hopefully the revenue from Colorado is sufficient also to cover their general working capital going forward, and/or the added value in the company allows them to reschedule the debt from other sources.

The amount of dilution will depend on the conversion price. The lower the price the higher the dilution and vice versa. Overall, the anticipated dilution should be as you say in the region of 20-30% if the market can be managed in an orderly way by the broker/MM. The CLN mechanism does tend to have a greater impact on SP/mcap than on number of shares but the upside is that the company may emerge as a going concern with near zero debt, which would be great for the next phase of longer term commercial development.

What is very odd about the two big block trades is that they are reported with matching volume and trade values but at different prices. This is clearly wrong. The value of the reported trade does not match the number of shares multiplied by the trade price. The values should be £24,375 and £24,583

2025-08-27T10:07:35+01:00 GBp 0.472 5208333 24,479.17 Off-book AIMX

2025-08-27T10:07:04+01:00 GBp 0.468 5208333 24,479.17 Off-book AIMX

The formula is published in the RNS, the trade logs are published, you only have to do the maths. As of today (yesterday's close) the conversion price would be around 0.428p and today is currently trading lower than yesterday (around 0.47p compared to 0.5p), so that will likely bring the ten day VWAP closer to 0.56p, with a hypothetical conversion price tomorrow moving towards 0.41p, and so on. I'm not sure what is controversial about this. It's just a fact. Of course, when the CLN holders choose to convert their second tranche is an unknown. They'd be making a decent profit if they were selling at 0.47p today and converting 0.4p but they may of course choose to wait longer.

What would be your explanation of the trade pattern then? It could of course be a residual distribution of the remaining overhang from the 200m share first tranche conversion. We saw blocks transferred at premium for 175m shares, which might leave 25m shares to clear this week. But it would be surprising if they were having to clear those at a loss and below market price unless they miscalculated demand. Alternatively it could be an internal broker cross, but at the price point it might also suggest further forward selling (at 0.47p versus current conversion price at or below 0.42p). This is how CLN would often play, using rolling arbitrage to sell into market weakness while engineering a lower VWAP for the next batch.

I was just wondering why you flagged it as a lucky buy when it looks like two large blocks sold at discount to market price?

Surely this morning's trade pattern and that large trade looks more like CLN distribution than 'a buy'? It's also below the adjacent, preceding and following trade prices. Followed by a matching trade for another 5m share block at 0.472p

Both projects are due for significant development operations during Q4 (October-December). I think we would expect some news about Galactica after the BNL shareholder meeting on 19 September.