Member Info for buried_treasure

THE_CHAIN

“BT, what do you make of that?”

My initial reaction is that this ceiling (which none of us, except presumably the regulator, had considered until today) puts the company further up **** creek.

To be clear what we are talking about here, under the Listing Rules a company can only issue shares to dilute by 20% in any 12 month period without the need for a prospectus. The first Atlas conversion was on 2 May 2024, so 3 May 2025 is the first date the company could issue more shares.

Firstly, consider why the company does not want to issue a prospectus. There is the cost and the distraction of producing it of course, but a prospectus would lay bare the difficult truth and put the individuals with their name to it on the hook for its contents. I suggest that nobody wants that at this stage of proceedings.

Atlas can continue to forward sell like billy-o, and can even continue to issue conversion notices to the company asking for shares, but the company cannot issue the shares.

I don’t think you should assume that Atlas will take this lying down. They effectively now have a short exposure they cannot cover until May at the earliest, and going into the summer for material future headroom. This will undoubtedly be a further event of default, this one not ‘waived for a year and a day’ as earlier ones were, and they could call in the loan notes and make the company insolvent at any moment. But I believe Atlas will let this ride for as long as they can reduce their exposure by selling shares, even below 0.1p, and only pull the plug when the buying liquidity dries up.

If a creditor takes control of Technology Minerals plc, they also control the fate of Recyclus. If they call in TM1’s loan to Recyclus which R has no hope of paying, they take control of that too. This just adds to the level of financial masochism of anyone investing in R in its current incarnation, with the TM1 loan hanging over it. New money for old as I’ve said before. It doesn’t even pass the most basic due diligence.

There is also the regulator to consider in all this. Their rules stopped today’s conversion, they could request suspension pending a prospectus or other clarification as to the company’s position. The chart and volumes tell you there has been a disorderly market since suspension was lifted (some might argue the market has been disorderly since CLG started selling the shares pledged by Century Cobalt in November 2023) and they could suspend again until this is resolved.

Operationally, the January overheads fall due for payment in 24 days, and counting. Where do they get that cash from?

This could well be the Last Days of Rome.

Newgrange has done his conkers on TM1 so as is his usual way he resorts to personal insults rather than reply to the points raised. Best ignored.

THE_CHAIN

The new Finance Director will need to work an illusion David Copperfield would be proud of.

I cannot see how Recyclus can get funding in its current state, owing so much to its parent. In investor parlance that is 'new money for old' and it is a dealbreaker after the most basic of due diligence.

Technology Minerals cannot waive the debt firstly because of the obvious related party conflicts, and secondly because wiping that off its assets would make Technology Minerals (even more) insolvent itself.

If anyone wants to invest in a currently 7 figure loss making battery crushing operation in the Midlands to try and turn it around, it must first go through an insolvency process to phoenix into a clean vehicle. It could be prepacked quickly to save the operational jobs, but the directors would probably need to exit, again because of the conflicts. The debt to the parent would be almost totally wiped out.

The directors might be able to convince the insolvency practitioner to write a mild report as to their conduct of Recyclus.

The report on Technology Minerals, when it inevitably comes, cannot be anything other than totally damning. I could see some personal repercussions coming out of that.

As I've previously pointed out, but the mugs aren't listening, the latest announcement from the company (the annual report) reveals that this sale has not even completed yet.

So talk of ANY proceeds from this sale is premature!

As I've previously pointed out, but the mugs aren't listening, theb

Any news on Leinster completion?

It was still conditional (i.e. not complete) a month ago when the accounts were signed.

And they would have said exactly the same on New Year's Day last year.

Look at the chart for how that went.

You seem fixated on whether commentators here are shareholders. Despite what you might like, it is not a qualification for posting.

Very disgruntled EX shareholder here. Sold out in 2021, can't believe Adams has still not delivered what he was promising even for the umpteenth time back then.

You have to take your hat off to the guy I guess. He has a whole load of disciples well and truly Stockholmed.

Did you notice the confirmation that the can has been kicked again?

"full funding package for the Tulu Kapi Gold Project to close this quarter."

During which time Adams will have trousered $$$ more for the retirement fund.

You've got to hand it to him, he's a world class grifter is old Harry.

Latino

"labelling this insolvent is simply baseless and shows gross lack of research!"

Really? It is you who needs to do some research.

Looking at the latest accounts (30/6/24), current assets were £1,352K and current liabilities £4,633K, a current ratio of 0.29 : 1. That is 29p of current assets for every £1.00 of current liabilities, making this to my (albeit failing) memory the most insolvent balance sheet I've seen in my 40 years in the public markets.

A current ratio of anything below 1 : 1 is technically insolvent. The accounts show that on a one year view the company will struggle to pay its debts as they fall due, spectacularly so in this case. Hence why there is a material uncertainty as to the company's ability to continue as a going concern expressed in the accounts by both the directors and the auditors. In fact I put it to you that had Atlas not agreed to waive enforcement of breaches on loan note covenants "for a year and a day", the auditors (PKF Littlejohn, probably the UK's most lax PIE auditor) would not have signed an opinion on the accounts at all.

On the basis of the latest accounts this company is technically insolvent. There is no other way to describe it.

Another year of non-delivery from the serial lifestyle grifter Adams.

No doubt Rob, Simms and the other mugs will all still be here next New Years Eve pumping out the same verbiage about how this is 'imminently' going to make everyone richer than Croesus.

And Adams will be another cool half mil nearer retirement at your expense. Once you see it, you can't unsee it.

Happy New Year suckers.

It is indeed, I stand corrected.

Shalamar

As disclosed in the accounts they are in default on the death spiral facility so likely cannot draw any more funds to increase Atlas exposure.

This appears to be why Century Cobalt raised £150K selling shares to lend back to the company to pay the December payroll and keep the lights on.

After withdrawing the resolutions to reduce the nominal share value funding the January payroll just became a whole lot more difficult.

Shortorlong

They haven't even published the AGM agenda!

No, this lot want as little governance and scrutiny as possible. Did you ever stop to ask yourself why that might be?

Surfi

"We know a institution has been buying!"

We know this "institutional investor" (no laughing at the back) mentioned in the Century Cobalt sale RNS has also been selling. My guess is they forward sold those shares into the spikes earlier that week.

We know they sold because there has been no TR-1 declaring a major holding.

They likely knew from proxies cast they were going to lose the votes on the capital reorganisation so withdrew the resolutions to save face. But in doing so they paint themselves further into the corner on funding.

The sands of time are running out for Batman and Robin.

Troajan

Do you understand the difference between

'drawdown' where the company gets cash and Atlas increases its exposure

And

'conversion' where the company issues new shares to Atlas (likely to cover forward sold shares at a premium), ordinary shareholders get diluted and Atlas reduces its exposure.

It is fundamental to what is going on here and I'm amazed such an experienced trader as you doesn't understand it.

The company can no longer draw down as Atlas doesn't want its exposure increased while the company cannot even pay the coupon on the loan notes.

Atlas can continue to forward sell and convert in chunks at a historic, known price to balance the short sell at (higher) market price.

Both events, drawdown and conversion, must be RNSd as they change the notifiable details of the financial position and shares in issue.

Troajan

You're just making things up to suit your position here.

Drawdowns must be RNS'd.

There haven't been any. Indeed the conversion RNS confirmed a total of £2.5M had been drawn under the £5.5M facility, the same as it was after the June drawdown.

As disclosed in the accounts, the company is in default on the facility, but with enforcement waived for a year and a day to satisfy going concern (no laughing at the back).

There will likely be provisions in the facility agreement that they cannot draw down while there is an ongoing default.

Troajan

I think you're mistaken.

Atlas converted, but there hasn't been a drawdown since June.

There will likely be no further drawdowns until the ongojng default is remedied.

Which needs cash.

Catch 22.

THE_CHAIN

So no TR-1 then. Looks like your "institutional investor" (no laughing at the back) didn't fancy the long term prospects.

I predict with Atlas providing all the sell side liquidity this will drift down towards 0.10 again, then sideways.

What last week's flurry of activity did create was mini-overhangs up to 0.50 where spiked traders want out. That creates a drag all the way back up (again no laughing at the back...)