RE: DYOR17 Jul 2022 00:50
I am almost certain this placing comes as a consequence of Baber’s idiotic terms of the Riverport loan, expecting the SP to rise and be able to convert the loan payment to equity at the reference price plus 15% . But the further deferral of Deeside and the lack of any other major move forward, plus obvious wider market conditions has meant the SP has crashed, Riverport refused the equity payment, so the need for a traditional placing in order to pay in cash.
I also think the amount was such as being enough to cover the immediate needs, DP will obviously state that they decided to offer their valued shareholders the discount, but that will just be more DP spin, they needed £500k per month to make the repayment so took the 6 months worth.
Make no mistake this dilution was basically certain from the day they took the Riverport loan, the difference being we have had in all in one hit rather than the monthly conversions that they originally planned.
The big issue appears to be that the placing may have spooked some larger holders into offloading, i suspect Amati will now be dumping anything they can above 0.45p if not below that.
So if you didn’t panic in March when you saw the Riverport loan you shouldn’t really be overly concerned with this fund raise now, the concern will now come for me if in any of the first six months they do actually issue more equity to settle the payment, that will be the worst of both worlds for the shareholders as we will have been hit twice.
The wider issue for me is when are they actually going to deliver on their promises to actually close something out, the three Uk projects now look to be no where on the near term Calendar, North Fork is we think from social media post (not from Eqt mind you) expecting to fire up in August, the two MDCs we are told are expected by year end but does anyone now trust that these will come online in time, and even if they do will they make us any worthwhile revenue?
For me nothing really has changed, very disappointed in the way they have handled the issue, their credibility with shareholders has taken a massive dent, you don’t state one minute that some good news is coming then a week later hit the shareholders with a surprise placing, and if the “good news’ was the black and veach partnership (which isn’t a partnership, it’s just the appointment of a supplier we have to pay) was the good news, then their relationship with the shareholders is actually trashed as they are clearly out of touch with what the shareholders need to here with regards news. We really now have had enough of the “pipeline’ bullsh*t
I suppose we will hear next week if they do a proactive interview only not sure that will be enough to placate investors, i think they really need to do and interactive session with investor meet and be prepared to answer some tough questions.
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