Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
From RNS 'approximately US$13.86 million, inclusive of accrued interest and associated fees. The Company is not able to make that immediate repayment from its existing cash resources'.
From existing cash resources. No mention of how much cash remains?
The company could hold an EGM:
With a resolution to carryout an equity raise to the tune of 200% of the equity currently in issue. This could be done at 20p. 360m shares would raise £60 ($72m). New Shares in issue would be 540m. With approx £50m in cash and an asset value returned to normal - No Risk - Low =£75m initially. £125m/540m shares = 23p per share. New holders in at the bottom, old holders allowed to take part.
It's major dilution, but, preferable to total loss and no reason why the milestones could not be hit to achieve $500m-$1b+ market cap.
Is this what they are thinking, a combined effort by the board and OF to twist shareholders arms - I give in!!
BB
'For the avoidance of doubt, the following wholly owned subsidiaries of the Company have not been placed into administration: 4D Pharma Research Limited, 4D Pharma Cork Limited, 4D Pharma León S.L.U. and 4D Pharma Delaware Incorporated. '
Is just one part of this company responsible for the repayment and there's hope?
BB
Crusty Pete.
RoxburyHouse's buying in Weds makes no difference.
You still stand to lose the lot - Be that £1k or £100k.
He/Him/Her/She just hasn't suffered the up's & down's of the downhill spiral over the last 15 months.
BB
Could this be anything to do with the suspension?
Pg 28: Availability of finance.
On 29 July 2021, certain members of the Group entered into a loan and security agreement with Oxford Finance Luxembourg S.À R.L. and the loan is secured by substantially all of the assets of those members of the Group (including shares of certain subsidiaries in 4D pharma plc). The loan and security agreement and related security documentation contain customary representations and warranties and affirmative
covenants and also contain certain restrictive covenants. The loan and security agreement also includes a financial covenant that requires
the Company to maintain a minimum amount of cash in bank accounts that are subject to a control agreement in favor of the lender if the
Company does not achieve a certain equity raise threshold. The loan and security agreement also contains customary events of default. If we fail to comply with all such covenants, payments or other terms of the agreement, our lender could declare an event of default, which would give it the right to cancel any undrawn commitments and declare all borrowings outstanding, together with accrued and unpaid interest and fees, to be immediately due and payable. In addition, our lender would have the right to proceed against the assets we provided as collateral pursuant to the loan and security agreement. If the debt under the loan and security agreement were accelerated, we may not have sufficient cash or be able to sell sufficient assets to repay this debt, which would harm our business and financial condition.
I Hope Not
BB
Following on:
The loan facility includes restrictive covenants that limit the Group’s ability to undertake certain functions that may affect recoverability and include a clause that requires the Group to always maintain a cash balance of $7.5 million if it does not generate at least $45 million of income through the issue of shares and partnering arrangements before 1 April 2022. These transactions are not included in the financial statements as they did not include a constructive obligation on 31 December 2021.
The restrictive covenants may have a significant effect on our current and future business by limiting the availability of cash provided by the loan, or by limiting our ability to perform certain transactions. It is not unreasonable that this could have a short or longer-term effect on our financial condition, changes in financial condition, expenses, results of operations, liquidity, capital expenditures or capital resources in a manner that is material to investors.
BB
pg 22:
To reduce reliance on the issue of equity and fund the Company through a number of clinical milestones, on 29 July 2021, the Company
established a loan agreement for up to $30 million USD with Oxford Finance S.A.R.L. On the date of the agreement, the Company drew
down the first tranche for $12.5 million USD or £9.0 million GBP, creating a cash inflow and associated liability. The agreement includes a
second tranche for $7.5 million, based on certain milestones which need to be achieved by 31 June 2022, and a third tranche for $10 million,
subject to mutual agreement. At 31 December 2021 the Company had either not qualified for nor requested drawdown of the second or third
tranche. Interest is charged on the loan balance at a rate of 8.15% plus the greater of 0.1% and the 30-day US LIBOR rate throughout the
term such that the Company has recorded an interest expense of £0.3 million in the year to 31 December 2021. The facility also includes
a provision for the issue of 2% of amounts drawn down in warrants and 0.2 million warrants were issued on a 1:1 basis for ordinary shares
and an exercise price of $1.18 per warrant. No warrants had been exercised at the year end. The loan agreement also includes various
customary restrictive covenants which prevent the Company from performing certain functions that could affect the recovery of the loan and
which require the Company to maintain a cash balance of at least $7.5 million should certain combinations of equity issue and partnering
transactions fail to produce receipts of at least $45.0 million before 1 April 2022.
BB
CP
I think SJ1 mentioned the requirement for a $45m raise by April 22 to allow the release of the $7.5m held on account from the Oxford Finance loan initial $12.5m tranche.
Could be wrong.
BB
Glengarth: 'From the IPO document each 18,000tpa plant had a CAPEX cost of between £4-5.2m.'
Does this include the machinery to feed the plant, or is there slack in the current timetable. Do they work a 24hr operation or a two shift pattern?
Appreciate and help here. It seems the market, if it is forward looking, is pricing in failure.
There is a fine line between success and failure for start ups, but with the new plant and the Hydro-electric power sorted shortly, this could be the difference. Then onwards and upwards.
BB
SJ1 'Phil if they do a 100% fundraise like you mention then you would have to cut your 300-600m future valuation in half, wouldn't you?'
The market cap doesn't change due to dilution!
You mean half the profit multiples - 10-20x, to 5-10x
BB
HeresHopin 'Give it a rest bluebottle - what is the point of your posts?
STFU'
I could ask you the same thing - I was giving out the live prices, you just lost it! I'm a holder, I don't short. So you STFU and have a good day!
BB
NM
BB
Sub 20p
BB
NM
BB
No RNS - No new information
The way ahead - he confirms what can happen, but, no actual plan for 4D, probably funds dependent.
Capital markets in about 3 months - quiet summer!!
BB
I'm thinking placing too!
If it means they're funded for progression, then ok.
With success it could return to previous levels, even after dilution.
Not great for those holding around £1.
I'll hold until more is known, rather than topping up (having bought today @t 46p)
BB
Acut - 110% up today (Caveat - at this moment)
It was 45% down yesterday.
A steady climb would be fine!!
BB
Accustem is a bit of a dead duck, unless the shares we hold become tradeable (UK holders).
BB
Hopefully, a change of direction, once that is hit!
BB
SJ1 'Resolution 3 is binding and that relates to authorising a bonus of 100% of salary and 200% of salary in stock awards.'
This may be the reason why the SP is so low, they will receive twice as many stock awards at 25p, as they would at 50p.
May be all the news will flow after the AGM?
BB
https://scr.zacks.com/news/news-details/2022/TLSA-Clinical-Improvements-for-2nd-SPMS-Patient/default.aspx
FDA appear keener on this MAB - (Foralumab)
The proactive interview also mentioned an interesting fact around 5mins. Safety trials on animals cannot be carried out due to it being a Fully Human MAB, was this an issue? The safety data from the SPMS trial is excellent though!! Has this paved the way for an accelerated approval, of a fashion?
BB