Newco & PREM Value going forward9 Nov 2018 08:58
Going to put this as simply as I can.
Currently, the value of PREM - its combined assets - is stifled and unable to be realised by way of market cap/share price.
Current market cap stands at £11.6 million, or about $15million.
The value of our Curcum shares right now is somewhere between $5million and $10million. At Circum IPO that will be more determinable, with values for our 5% stake more comparable to current PREM market cap (this disregarding all of the PREM assets, RHA, the monster that is Zulu, Katete etc.) and growing from there. Remembering that Circum have secured $500million debt finance and expect to raise $300million via equity at IPO. That's $800million and we have 5% of that behemoth.
Ring-fencing that in PREM keeps it out of the hands of Newco, leaving [original] holders able to benefit.
PREM holders, LTH/original and new, at the time of the creation of Newco and IPO, will receive free Newco shares. This is the ONLY time that Newco shares (remembering that that it contains the Monster that is Zulu, RHA, Katete and the means by which to drill of this) will be able to be gotten so cheap i.e. FREE. Once Newco is listed, folks be buying Newco shares anew will be doing so at whatever market value.
This while PREM, with its Circum stake, is allowed to grow and mature. Who knows what the ultimate value of that stake will be, but PREM on its own looks like it will in due course have recourse to reinvest from the capital to raises out of that stake.
To summarise as this in the most simplest terms, folks holding PREM shares at the moment of the demerger and Newco IPO will be getting shares in Newco for FREE because PREM's Circum stake will most inevitably grow in value to easily multiples of the current market cap. This is not over-simplify the story, especially suggesting those shares are 'free', because in a sense, they've been hard-earned. But those who can see through the haze can understand the potential we are about to unlock.
There are a few more key details we need, including how we raise the $6million (remembering government has also pledged its support to help us find funding). Once we have that, we can move forward rapidly.
Good luck to all the genuine folks here, old and new.
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