Member Info for Chicmiller

Shorts are not a bad thing , they drive the price down so we can all buy cheap then they drive it back up to the £30’s for us to make a profit. If you look back at the cycles over the years you’ll see the pattern

Definitely. 7am - start trading again , giving everyone that needed to sell the opportunity to sell at a loss

08:45 - release jam tomorrow rns

Why not release both rns’s at the same time ?

You have to admit , ukog have pulled off a masterclass in raising money. The day after coming out of suspension and raising 3 million pounds with their latest jam tomorrow rns. Sanderson deserves a knighthood for his business acumen

Trying to offload the placing shares to naive investors.

Bought a sausage roll today from Greggs

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.