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Placing at 6p and here we are at 4p.. just topped up owing to my belief that the company will have a good first quarter now that challenges have been overcome.. we are currently processing high grade ore. Gl
Is this drop a surprise after the placing earlier this month at 6p?
I think it’s just profit takers, no harm. I’m not expecting bad results so hopefully this will continue upwards from here as we wait for results. Bought first tranche at 7.5 a few months ago and doubled up at 6.4 couple of weeks ago on a whim. The reason I like this share is because it is only a matter of time it returns a good return, business is definitely heading in the right direction. Gla
1. 920k has been raised since the company envisaged RTO opportunity.
2. I agree with the debt.
3. I agree with insolvency.
Thanks
I am no expert but I suspect such agreements, regarding value returned to existing shareholders, would be made before expending any time/effort and be based on share price at the time. If any prospective RTO candidate does not sign up to this agreement then they will be rejected... a fully controlled process must be in place otherwise existing shareholders will see next to zero return and our share price would be zero by now.
Why would any company opt to consider RTO and expend time/money in this activity if it results in undervaluing the company with reference to its cash value (£920k raised to support RTO)? Surely it would be better to shut the company and return cash to shareholders?
Bottom line your argument is flawed and make no business sense.
Board members raised cash in recent placement for sole purpose of securing RTO and unlocking value... highly unlikely that they would do that if the cash position following the raise was close to our MC today. Why bother raising the cash if that was the case? And in what way would that move have been in shareholders interest? We will see what comes out but I suspect we will be rewarded for our patience
Not in shareholders interest nor in the interest of the company to devalue
RTO is to create value for shareholders so I fully expect that, if successful, we will see a good return on our investment. A raise can only follow after the new company has reversed in and value unlocked - otherwise it is not in shareholders interest and would be stupid!
As far as I understand, loan is interest free for 5 years so paid nothing. Option of converting to shares limited to 29.9% value of mcap therefore so must be higher than 0.5p to recover full loan value. If I am mistaken please correct.
I expect 0.1p will be a tough but to crack but when it pushes through, we should see this climb fast imo. Gl
Regarding James parsons what is his relation to nuog?
Maybe a cash shell with £0.5M + 5yr interest free loan is a good proposition. How much cash will we actually have.. we are proposing to sell MFdev but from the sounds of it we won’t get any cash.. only “release of all outstanding debts due to RMRI Limited and Alan Minty”. So am I correct with £0.5M? Possibly more to come from other aspects of the business.. “Board is actively conducting a review of all aspects of the Company’s business and further announcements will be made in due course”.
Who is parsons? And could all this buying be shorts closing - if not then maybe someone knows something - I think I’m going to hold for a bit longer.
Last sentence should read “if the placing was at 0.6p do you?”
Warrant Watcher
I agree with 11mins of reiterating what we already know.
The destruction of share price is due to combination of OO and lack of progress. More so from the placing at 0.3p which is the best they could get given the terms of oo. This is fact. I don’t think the share price would have taken such a dive if the open offer was at 0.6p do you?
Good update and things sound like they are falling into place for a deal!! Certainly highlights that key objectives of the business are being met in orderly fashion. Unfortunate that the share price bears no reflection on recent successes but hopefully that will change in good time. My advice for lth would be to hold on to your shares a top up if possible for a good year ahead. My break even is at 0.6p and I’m hoping to lower over next month. Gl
Agree Royscott. Or as I have mentioned previously by myself this weekend, they may have tied recent placees (Novum) into extending their holdings by utilising the extended application facility
Winchpete you obviously have a low opinion of the company for not thinking this through and you have a low opinion of shareholder for suggesting the impact of shunning the oo... as it stands the oo is not an option in the table so we should not be careful for what we wish for... it’s simply stupid to think anyone will take up the offer as long as the sp is below 0.3p. Please give the company a chance to show their hand but rest assured it is unlikely that they have not planned and thought things through.
That’s utter BS there will be no further find raise and the company will have thought this through. They either didn’t need the funds at the moment and are not counting on take up of oo or They have some news this week and we take up the oo.