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Surely the 888 portfolio must be worth a lot more than the current mc
Remember when this was 10p. What a dog this turned out to be
Anyone buying yesterday was not entitled to the offer. Record date deadline was Monday after trading finished
Maybe that’s why the share price has been stuck under 105 for the last few weeks , to let schroders buy more on the cheap. That’s given me some confidence to hold on to my 21000 shares.
Snapper - 48 posts and every one of them about Pfc , what a loser
Even if you believe the alchemy involved here, that still suggests that – knocking off the deficit on net current assets, even if unchanged from a year ago – that URU boasts perhaps £3.8 million worth of assets with no cash to develop them. Yet at the current 405p the market capitalisation is lofty £7 million with an 85p death spiral hanging over it, and the murky CV of CEO and John Zorbas to contend with.
And another way of looking at it is that the combined entity will still have more-or-less no cash, no revenue and more mouths to feed…..and still that pesky death spiral.
This, I suggest, is utter madness. This is a total bargepole stock: SELL.
AIM-listed John Zorbas outfit URU Metals (URU) had a good day in the market yesterday as its shares shot up by 8% to 405p on news of developments regarding its “disposal” of the Zebediela nickel project in South Africa to Toronto Venture Exchange listed Blue Rhino (RHNO). Except as far as I can see it is not really a disposal as one might normally understand the word.
The deal, first announced back in January, is that the “sale” of Zebediela will be settled in a majority c.80% stake in Blue Rhino being issued to URU (now a little less due to increased funding at Blue Rhino as discussed below), who also get board representation. URU presents this as a disposal, but some may prefer to think of URU gaining a subsidiary as the result of a takeover at a cost of 20% of the Zebediela project and given that Blue Rhino (currently suspended) is currently a cash-shell with questionable cash and URU is technically insolvent, Tom Winnifrith’s description of it being a case of two drunks propping each other up until they both fall over seems rather closer to the mark.
The news is that Blue Rhino has received conditional clearance for the deal, and the attached financing round of C$2 million has been raised to C$2.8 million (around £1.6 million). Bearing in mind that at the last count (Interims to September 2020, released just before Christmas) URU had net current assets of MINUS $1.25 million and we have had almost another full year of Nomad, director, LSE, audit, PR and other fees since then. In the meantime, the convertible funding package – convertible at just 85p per share, as opposed to the share price now sitting at 405p – has been increased (but still gets nowhere near the shortfall in net current assets) and the favourable conversion terms at 85p have been extended and extended to no obvious benefit of URU’s shareholders.
The whole thing stinks as far as I am concerned: URU won’t be able to sell down its Blue Rhino stake as it is far too illiquid – and if it tries the result will be to crush the share price. URU remains technically insolvent and has a death spiral at 85p hanging over it – and Blue Rhino will have just £1.6 million in cash – less any potential current deficit – to spend. Yet somehow this deal apparently values Zebediela at around £6 million, of which URU will retain (via its shares in Blue Rhino) around £4.8 million worth which it then cannot realise because liquidity in Blue Rhino is too thin, and in any case if an 80% shareholder with a seat at the boardroom table starts dumping its holding, what might the other shareholders do?
Is this a real share
Will start buying in small tranches from £1.10 downwards
Sub £ 1 this week
Think this old dogs at death door
Who is this guy, almost 800 posts all on uru starting from February 2018
I had £10k worth at an average of 1.67. If I hadn’t have sold the value now would be around £500. Who knows maybe gwmo will have another placing next week, they have done that before
The company is getting as bad as ukog. Winter will soon come and nothing will get done until next spring like what happens every year followed by another placing .
We are offered a table of how many new bits of confetti are to be issued – but of course the big lie is how many worthless bits of paper will go to the loan shark, for the table is constructed assuming all the new shares are issued at 85p. There is surely no way the shares will not collapse in the wake of last night’s drive-by shooting and therefore I put it to you that the death spiral shares will be handed out not at 85p but at a 35% discount to the market price in 90 days’ time.
With £200,000 worth of subscription shares at 85p all lined up for 8.00 this morning, the subscriber will surely offload as many as he/she can which will drop the share price heavily – not to mention anyone who actually owns this stock who has realised they’ve been sold a patsy.
But the biggest point is that URU, even after shafting its shareholders in this 24% discounted deal which is in fact at least a 57.5% discount, is STILL technically insolvent.
Remember: at the interim period it was under water in terms of net current assets by $1 million, will have racked up more admin costs of around $300,000 and has committed to £250,000 worth of expenditure. I make that around £1.3 million under water.
Last night’s pillaging has brought in £200,000 from the subscription, up to $500,000 from the death spiral and seen off £400,000 in outstanding director fees due to John Zorbas. I make that a total of around £1 million. Do the maths, folks, URU is STILL technically insolvent to the tune of £0.3 million!
Of course, there are all those warrants at 85p. If converted, that would see URU bring in a further £1 million, which would leave it with around £0.7 million to **** away over the next year or so in director’s fees and associated crony capitalists’ costs (Nomad, Broker, PR, Auditor etc etc).
But if the shares drop below 85p then there is a problem. And with a £200,000 subscriber keen to cash in on the 57.5% discount and the loan shark keen to cash in on the 35% discount if the shares are below 85p, there is absolutely no reason the shares will remain above 85p.
But the directors get paid, the Nomad gets paid, the Broker gets paid, the PR gets paid, the Auditor gets paid……..and the shareholders get shafted.
Another fine day on the AIM Casino.
As fro those who ignored our advice.....well, you've been had.
n the event that Boothbay is issued with any new Ordinary Shares pursuant to a conversion of the Loan Note, it will be issued with one warrant attaching to each new Ordinary Share issued, with an exercise period of 18 months from the date of grant and exercisable at 85 pence per new Ordinary Share ("Conversion Loan Warrants").
Right, so the loan shark can convert at 85p for 90 days (a 57.5% discount) if the shares do not utterly collapse in the interim, or a 35% discount to the 5-day VWAP thereafter. But don’t worry folks – we’ve been told the discount is just 24%......no wonder the loan shark took the option of repeating the trick to raise the loan up to $500,000 if it wants to.
And finally, we are told:
The Company has also agreed to issue 470,588 new Ordinary Shares at a price of 85 pence per Ordinary Share (the "Director Fee Shares") for a notional value of GBP400,000 to Alegana Enterprises Limited (a company beneficially owned by John Zorbas) in lieu of unpaid directors fees and salary that were due for payment in cash. Each Director Fee Share will have one warrant attached, with an exercise period of 18 months and exercisable at 85 pence per new Ordinary Share ("Director Warrant"). The unpaid fees and salary have been accrued over several years and have been disclosed in the Company's audited financial report and accounts. Following the issue of the Director Fee Shares the remaining amount owed to Alegana Enterprises Limited is GBP263,111.
That’s all very well, but all those director fees are for head honcho John Zorbas – and the discount is, again, 57.5%, not the advertised 24%, and he too gets warrants at 85p on a one-for-one basis. Goodness me, it is tough at the top.
And despite this generosity to Mr Zorbas, there will be £263,111 of director fees still outstanding so this deal doesn’t even clear the books.
I note that these director fee shares will, on admission, push John Zorbas’ holding up to 41.89% of the share capital. Is there a small issue with the Takeover Code here, for surely that holding should trigger a mandatory bid from Mr Zorbas, at 85p?
Not so fast: this POS is a BVI company which is not subject to the UK’s takeover code. On its website we are told:
The company is not subject to the UK City Code on Takeovers and Mergers ("the Takeover Code") nor is it subject to any similare legislation or code in it's country of incorporation (British Virgin Islands). The company has adopted some similar provisions to the Takeover Code in it's Articles of Association…..
But yesterday’s deal was waived through by the other directors so Mr Zorbas is off the hook. Lucky him.
What a complete and total POS. As I pointed out (yet again) yesterday, AIM-listed URU Metals (URU) was technically insolvent and for no apparent reason the shares had marched up to 200p, overvaluing this outfit by…..er….200p. Needless to say, the directors had a duty to raise money and at no-one-is-watching o’clock last night (4.56pm) we learnt that they had. But the company misleads over the massive 57.5% discount – and that is a best case scenario – and the company is STILL technically insolvent.
There were three parts to last night’s announcement, all of which involved new shares and attached warrants.
Firstly, £200,000 worth of subscription shares at just 85p – with warrants attached, also at 85p, on a one-for-one basis will hit the market. 85p as against a closing price of 200p yesterday is a 57.5% discount. But rather than ‘fess up to the drive-by shooting of its shareholders in the dead of night, the company tells us:
The Subscription Price represents a discount of approximately 24% to the Volume Weighted Average Price ("VWAP") of 111.5 pence between the period of 1 April 2020 and 5 May 2020.
So that’s alright, then – the 57.5% discount is only 24%. No doubt head honcho John Zorbas thinks he’s done punters who paid 220p yesterday (and yes, there were some) a favour!
But it gets worse, for there is also a death spiral – and it is a death spiral on steroids:
Additionally, the Company has today issued a US$250,000 Convertible Loan Note (the "Loan Note") to Boothbay Absolute Return Strategies LP ("Boothbay") , a USA based financial institution. Boothbay has the option to increase the size of the Loan Note to US$500,000 prior to the maturity of the Loan Note. The Loan Note is unsecured, matures on 31 May 2021 (or such later date as the Company may in its sole discretion determine), carries no interest and is convertible at the lower of:
(i) a voluntary conversion price triggered on serving a conversion notice (being 85 pence per share for a period of 90 days from the date of the Loan Note; and following expiry of the 90 day period, a 35 per cent. discount to the Volume Weighted Average Price ("VWAP") per share in the 5 trading days prior to the noteholder serving a conversion notice);
(ii) on an equity fund raising of not less than US$5 million (excluding a Loan Note conversion), a 35 per cent. discount to the price per share paid by investors on such a fund raising;
(iii) on a share sale (meaning a sale of Ordinary Shares giving control of the Company, whether for cash and/or by way of exchange for shares in another company and/or for other consideration, and whether or not control of the Company changes as a result of such transaction), a 35 per cent. discount to the price per share paid on the share sale; or
(iv) if there is no conversion notice served, fund raising or share sale prior to the maturity date, at a 35 per cent. discount to the VWAP per share in the 5 trading days prior to the maturity date.
5 mins until the share price crash
That’s one h eck of a death spiral loan
So what about m1 m2 m3 m4 m5 m6 etc etc etc , have we just to forget they ever existed and all the millions wasted on them.