Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Certainly pleased to see this concluded - now onwards to the conclusion of the FSP.
I note the following snippet: "He (Lord Drayson) has proposed and the Company has agreed that he will reduce his base salary to GBP1 per annum while the Loan Notes are outstanding and he has committed to vote for any bid for the Company that results from the Formal Sale Process that is consistent with the Company's mission and maximises value for shareholders...". A small consolation but it's something.
Unfortunately, yes, you are seeing things. On a positive note, it's NT to buy 5k GBP - looks like the recent downward pressure was mainly attributed to Invesco.
AW - it's a catch-22: pay good salaries and get the best, plus recruit heavily to scale quickly, versus slowly but surely, where cash burn is reduced but you potentially lose your market advantage.
That said, I definitely wouldn't mind cutting some of the fat from the top!
I don't think the cash burn is suspiciously high - to quote Sir Andy Richards from the Telegraph article: "Most of the companies in this space have more money going in than revenue coming out. It’s typical of tech companies....It’s clear that the UK public market has not understood this".
The issue, for me at least, is how it has been handled. Funds should have been raised at much higher levels - this was not done and the blame should rest with Lord Drayson. After all, soured relationships with IIs (existing and potential) has led us to the position we are in now.
That said, I am of the opinion - some might say naïvely - that there is a lot of value here. I have put a significant amount of capital in here - it is, without a doubt, a risky move but I think the market is valuing this as already failed. If the funding comes through then, you never know, we might see a scuffle between MBO and non-MBO offerors.
Clearly the huge drag on the SP over the past week. Now they are almost out it will be interesting to see where we head - other IIs still in and seemingly set to stay. Those are (minus the trusts/NHS/Oxford etc.):
Jeffries: 1.273%
abrdn plc: 2.25%
Baillie Gifford & Co: 7.7%
Lansdowne Partners (UK) LLP: 8.15%
Gatemore: 6%
Schroders plc: 1.399%
St. Petri Capital A/S: 1.27%
Sand Grove: 6.69%
I had the same thoughts - I came to the conclusion they are likely one of the institutional investors providing the proposed loan to the company. The warrants they are set to be issued should keep them happy for now.
It will be interesting to see how this plays out. IIs still hold 45% (those who have declared above 1%) - most remain despite the recent update. Now is not the time for them to remove management since a number of existing IIs will be receiving warrants if and when the proposed financing goes ahead.
Well said.
The major caveat (for me at least) being that if they do somehow deliver an exceptional result (offer/investment/US listing), then I guess I can't complain given that I've had the chance to invest at historic lows.
The irony being that the reason for the FSP, and I quote, was "The Board believes that the current market value of the Company does not reflect the fair value of the electronic patient record ("EPR") health data". On November 2nd (date of the FSP RNS), the company was valued at 100p.
Trying to maximise shareholder value is all good and well, if you actually follow through. If an MBO offer does come to fruition, that would mean 100p+ would have to be achieved for the FSP to have made sense. Answers on a postcard as to whether folks think this is still possible.
"...meetings were held on a non-confidential basis with both corporates and financial sponsors and progress was made on both management buy-out ("MBO") and non-MBO options".
This isn't just about an MBO - there are other options at play here. My preference would be for a strategic investment from a large player rather than a buyout - get that secondary US listing and the sky is the limit.
I came across this: https://www.ukas.com/wp-content/uploads/schedule_uploads/970466/22213-Medical-Single.pdf
Issued 24th August. Could anyone clarify whether this means MHC have reached full accreditation?
Looks to be on the move.
I understand the reference to Friday (11th), but remember it was stated the Technical Review would be released on or before 11th September. It could be as early as tomorrow. Perhaps not, but it's possible - I believe it was Slift the other day who mentioned the ideal scenario as separating the two news releases (TR and Interims) - this is certainly my preference and I do hope it can be done so at least one day apart to allow for full digestion.
Slift - you are one of the better posters on here in terms of what you bring to the board (rational, researched comments). However, I can't agree with this: 'But how about someone new to this board? They may be mislead and manipulated to invest based on the majority of the posts here'.
We are all over the age of 18 - in the same way that you (hopefully) wouldn't listen to a random stranger in the street selling magic beans, why on earth would someone invest based on the advice/prompting of someone here? If they choose to, then that's their prerogative, but full responsibility should be on their shoulders.
'There will be a webcast for analysts and investors at 9:00am BST on 11 September 2020. The webcast will be available to view live through the Company's website at www.hurricaneenergy.com'
Open to all investors.
It's not going to be HUR - I believe Ithaca (Delek) have in the order of a few $ billion in assets after purchasing Chevron's North Sea operations in 2019 for $2 billion, so given the terms described (Ithaca 50% of enlarged entity plus a cash payment from the other party) that would put it beyond our level.
Good to see some potential M&A in the space though.
@Pisces21 - your information is appreciated, however, you will not persuade those who have an agenda not to believe it.
Sure, but that doesn't fit the rhetoric for those who want in lower or are shorting. Let them stick to the 'it's not pumping' story.
'Roll on 11/9'
It wouldn't surprise me to see the Technical Review released earlier that week (Monday 7th/Tuesday 8th) , but only time will tell.
As Beverley is acting CEO, the incoming CEO is described as 'CEO designate' until such time as Beverley steps down.