Member Info for cenzo

Interestingly, if you click on 'HE1 Fundamentals', this LSE site claims there are 6.7 billion shares in circulation, whereas Hargreaves Lansdowne quotes 7.72 billion shares. However, both agree that there are presently not 9.32 billion shares in circulation, which there will be shortly. So, those are my facts Toffers and the evidence you requested.

Did you read yesterday's RNSs - both of them? One RNS tells us there will be 9,322, 158,881 shares in circulation after the final issue which was expected to be today. Look up how many shares are currently in issue. It is not 9.322 billion. It is 7.72 billion. Hence, dilution has not yet occurred.

I'm not a shorter Toffers. I've been invested here since 2023. I've been reading a lot of posts since then. A lot of ramping and de-ramping going on. I like to be as factual as I can be on these things. I see this share price flying upwards once the last round of dilution occurs but anyone buying now is risking losing money. I recommend that anyone reading my post simply looks on the Internet to look up facts about the SP and dilution. Don't accept my words at first glance. Simply do some research folks.

There are approximately 1.6 billion shares about to be issued and yet people are still buying HE1. The time to buy is after the dilution and not before. The share price will fall by 17.15% when the new shares are issued. The RNS suggested that the share issue would be today. That hasn't happened yet. Could even be tomorrow or another day but it's coming.

I read someone suggesting that the present SP had this dilution factored in. That is nonsense. There is only one pie and only x number of pieces of that pie carved up at present. When it gets further carved up, those other pieces come from the pieces previously cut. It's that simple.

The sensible people sell before the dilution and buy back in at the new price. That stops their piece of the pie being cut up and given away. They don't make any more money but they don't lose any.

The gross profit cautiously estimated at £2m per annum, which will cover HE1's overheads moving forward to seek a JV in Tanzania.

When a company isn't bringing in any revenue and can only offer an investor potential, which let's face it is what most AIM companies offer, the investor sets their own terms and gives the company Hobson's Choice. I don't think HE1 has done anything that any other company in their position wouldn't do. They need cash to keep moving ahead. This should be a short term in fall in SP. Once revenue starts to come in from Colorado, this level of SP will be far behind us.

Interestingly, HE1 has inadvertently invited a hostile takeover from its own investor. By the time the £10m has been converted, the investor will be the major shareholder in HE1. On the face of it that sounds bad but is not so bad for us other investors. It gives the major investor control of the business and should prevent further dilution. It also puts money people in charge of a business, with making as much as possible as quickly as possible the driving factor. Watering down was always inevitable but with a lot of 'skin in the game' and a 'dog in the fight', protection of the investor becomes paramount.

I missed a 'however' from the last post. The 'however' is that at the present SP, HE1 is undervalued. It should be back up around 1-2p IMHO.

It will not be sustainable or rise steadily and consistently until HE1 moves from exploration to a revenue producing company. Until then, the company raises revenue by issuing shares or borrowing. Shortly, revenue will be coming in from Colorado. That will be enough to cover HE1's operating costs. It needs an offtake partner for the major project and the fact that a feasibility study is being carried out that will show the actual potential of the reserve, using submerged/submersed pumps gives me an indication that such a partner is in talks. No company will invest the sums needed without knowing the true capacity and concentrations. That is where we are now I believe.

That's a fair and valid point CrustyPete. I was being too general with my 'every time' statement. I was trying to assure inverstors that it is not an uncommon occurence that the share price has fallen but to have faith that it will rise out of it and get back to normal. Good times are very much ahead of us.

When a share issue is made at discounted prices, the share price always falls to that discounted price for a period of time. The market finds its level. This has happened to HE1 at every dilution. Over time, it will rise again. Why people are selling at such a low value at this pivotal time in HE1's growth is beyond me. If the housing market crashed tomorrow, we wouldn't all be selling our houses and moving into rented accommodation for the rest of our lives. Yet, people panic sell regularly and live to regret it when the share price rises.

Yeah, if the water can be utilised then it will make the whole process more cost-effective. It could be used for irrigation perhaps, or if potable or can be made potable, as bottled drinking water (sounds a long shot but fresh low cost water is very scarce in Tanzania). Of course it would need an offtake partner but I guess all these possibilities are being examined by HE1.

I have a read a lot of messages about extracting helium from water being difficult. I don't understand why it should be difficult. Helium is a gas with an incredibly low temperature at which it become a liquid. It's approaching absolute zero. Gases can be mixed with liquids and the simplest example is CO2 in soft drinks. In the case of helium, it is much lighter than air. Vibrating a soft drink causes the CO2 to leave the liquid. The heavy water molecules fall to the bottom of the mix and CO2 rises out of the mix. The same will occur with helium. Am I missing something? What is so difficult about separating helium from water? It has never been done before because apparently it's never been found in this state before and I think people may be jumping to the conclusion that it is difficult to extract. Separating from CO2 is another matter but there is equipment out there that is commonly used for that purpose. The excess water could be used for other purposes as well. It does mean that a lot of electrical work is done on the water gas mix to pump it out which of course has a cost to it and the water has to be sent somewhere after separation which adds to cost. Then of course there is a time factor and a scale factor of plant to remove x amount of helium in x hours. That will have all be subject to analysis in the feasibility study. That's the purpose of the study.

Yes, I believe that is a very good assessment - 'too much information too soon'. It allows investors to know in advance where the share price will likely head.

Exactly right Blubay. I'm here for the long term but believe I know what's going to happen in the short term and intend to capitalise on that. Ultimately, I want the share price to climb through the roof. I would much rather this share exponentially rose some time ago but in the short term it's an oscillator. It goes up and down. Never getting through the 1p barrier for long. At the moment it's heading down but it will come back up again and keep rising once the JV is sorted.

'not being carried out' that should read. Should have proof read!

I am new to posting on here. I have done so to pass on my present thoughts and strategy. I believe this share will fly once fully funded. That needs to be via a JV. A JV partner needs surety, which is why this further feasibility study based on pumped fluids is being carried out (in my opinion). The raise is necessary for this. Of course HE1 is talking with possible partners and maybe this has come out of those negotions and may be the final hurddle before this share moves.

This is my strategy moving forward, which hopefully will increase the value of my holding at this very opportune time. It’s not often that you get advance warning of dilution and this is how I intend to capitalise on it.

Market cap is £45.31m at time of writing, with a share price of 0.765 pence and 5.92bn shares in issue. To raise £10m, this presently represents just under a quarter of the company’s present value. A further issue of £1m worth of shares to existing share holders brings us close to that quarter or 25 percent dilution.

I suspect but obviously don’t know, that the issue to existing shareholders will be on a one for one basis, so for each share held, you may purchase another at a 20 percent discount.

Each time dilution occurs, the share price is adjusted which, ignoring any other factors occurring on the day, is achieved by dividing the market cap by shares in circulation. So, assuming the vote is carried in favour of dilution then upon issue there will be 7.22bn shares in circulation with each share valued at 0.628 pence (based on today’s price).

For these reasons I have sold just under two thirds of my holding which at 0.74 pence came to just over £28,000. I believe the share issue will be oversubscribed and so I may only get half a share or less for each share held. That doesn’t worry me, as any outstanding cash in my ISA will be used to buy back in on the day of the share issue at the much-reduced price. Either way, in my opinion it doesn’t make sense to hold all shares when at least half may be sold and bought back at a reduced level to the selling price.

Why anyone is buying more shares to top up right now at a theoretically inflated price of 20 percent is beyond me. Maybe it relies on the vote to dilute not been carried but that in my opinion would cause the share price to drop further as the company cannot move forward.

Worst-case for me is if the share price moved back towards 1p but because an average is being used over the previous 10 days, then unless the share price blasts through 1p which it has absolutely no reason to do in my opinion, then the very worst my strategy can achieve is getting my shares back at the price I sold them at. If that happens then I lose nothing and I win nothing but at present, if the share price drops further moving towards the voting day, I could make a killing.

That of course is my opinion and thoughts only and is not financial advice. It is what I am doing and does not recommen

Did you get my email CS?

Totally agree HOLEEFOOK - every RNS bought more good news and all was heading up and up, until of course it suddenly went sour with no get out for anyone. That comment wasn't a jibe at you or MattTheBrave by the way. It was just a general observation as some people are stating that it was all obviously going to come to this but if that was the case no one would have put a penny in.

Fair points MattTheBrave and HOLEEFOOK. I'm being over-optimistic I'm sure and of course nothing is certain at all. PRG may not have raised a cent in finance. But of course whilst they continue as a company then all hope is not lost. I find that the ones with the least amount of shares in PRG are the ones keenest to throw the towel in and spread negativity. Let's hope all comes good for all our sakes as no one can really afford to lose out.