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It seems the market are now pricing a rejection of the placing at £0.003. I guess the nominees can already see towards which direction the votes are heading. It’s game over for CG and ME. Unless they removed the placing and found an agreement with Align before the next GM.
22:10
And yes the directors were giving loan to the company and they should carry on to loan the money needed for running the company while they are waiting for Grosvenor like they have been doing. Otherwise, they should call off the deal with Grosvenor. But if they are acting in good faith believing Grosvenor will come with the money, and that it is a question of when rather than if, they know they will get back their money.
@Pedrobull
if you want to reject the horrendous placing at £0.003, you must vote AGAINST all resolutions at the 1/8 GM (first meeting).
If you want to have the directors to resign, you must vote FOR all the resolutions at the 12/8 GM (second meeting).
If the board would learned their lessons with the placing being rejected. I would have voted for them to remain as they could be best place to redo a placing at £0.01 or wait for grosvenor to come good.
However, because of their careless placing, they need to be ousted. So yes I voted FOR all the resolutions of the 12/8 GM to oust the directors
Align deal is not specifically great. But I believe we can reject the placing at £0.003 and get another one, possibly with the same people at at least £0.07.
In the worst case scenario, we just need to wait more for Grosvenor to come up with the monies and we don't need another raise nor Align.
The first thing is to reject the placing at £0.003, then perhaps we can keep GC and ME if they either do a placing at at least £0.007 or wait for grosvenor to put the monies on the table.
15:03
1/ I presume the Grosvenor deal is dead for the moment..they look like they didn't come up with the funding in time. They may return later on?
If the deal is dead, the board must inform us so, unless they are believe to be acting in bad faith, the deal is not dead.
If they are given another shot after this placing at £0.003, chance are that they will reduce the £0.01 offer to around £0.05 for 1B new shares, giving them 25% of the enlarged company for £5M investment, instead of 30% from the original deal. Then the company will have 4B shares instead of 1.8B shares.
2/ If this new funding is rejected (low probability IMHO) then they still have to raise the cash and they may lose the smelter that has been independently valued by Insurers of £30m .
Of course they need to raise the cash, but they believe Grovenor will come good. This issue of losing the smelter is not really an issue. They will only lose the first right if they don't come up with the money before late August. That doesn't mean the smelter will be sold to another company. How many companies is there to buy that smelter? Why was it not being targeted by others if it is worth £30m and for sale for under £1m?
This excuse from the board is just an excuse to issue new shares to dilute existing shareholders.
3/ With funding and board changes overhanging the SP why do you think people will want to invest at 1p given the recent share price?
For the same reason that grosvenor wanted to pay £0.01 per shares for their deal.
For the same reason that Align wanted to pay between £0.01 and £0.0125 per shares to support a new issue.
For the same reason that the SP went to 1.8p per shares since the deal with Grovenor was announced and every time it went above 1.5p when Grovenor was in news about deal still on and funds coming soon.
"With luck it climbs back to 0.65 area and then they do a discounted placing but it will still be at a relatively low level."
We do not need luck because this will be no more than a pump and dump by luck. We need to show fundamentals, values for shareholders in the assets, etc. It is not doing a placing at £0.003 that reassure investors. A placing at £0.01 would have already raise the SP to £0.01 and above.
Also, this placing bringing the same money than grosvenor is way inferior to the deal with Grovenor. Because Grovenor has lined to local population, which this broker doesn't bring. In fact they don't bring anything useful to the table. They are crippling the company and cutting its potential. Imagine Grosvenor deals dies because of this, the company loss will be very significant. To be true, if I was grosvenor, I would come back with £5m as before but with a placing at £0.0025 because they bring more added value than this placing at £0.003.
4/ The company is only worth £30/40m with funding in place. the smelter purchased and getting close to production. Otherwise it won't be. You seem like you are arguing for a hopeful 1p transaction.
Gr
10:54
If this placing at £0.003 is rejected by shareholders and the placing at £0.01 goes ahead as planned, then a 100m will give a SP of 5.6p way better for the shareholders than this placing at £0.003, which decrease shareholders value by 40% on the day then the loss is compound by the lack of grow of the SP.
If the placing goes ahead at £0.003 the Mcap will be £9m (sp £0.003). If grosvenor’s placing goes ahead instead of this placing. The Mcap would be £18m (sp £0.01)
So to reach a Mcap of £18m with the placing at £0.003, sp can only go up to 0.006p. Hence shareholders are loosing 40% of their values if the placing at 0.003p is successful.
9:35
If you think that the company has a value of £30m/£40m, why would you accept a placing that value the company at only £4m with a placing of £0.003 instead of supporting a placing at or above 1p.
Also if you believe that the valuation should be £30m/£40m, don’t you think investors will not see it as well and agree to a higher placing like grosvenor at £0.01. And if you don’t believe that there are investors willing to pay £0.01 for a placing then you cannot really argue that the valuation should currently be £30m/£40m.
This placing is killing grovenor’s deal at £0.01 if the placing goes ahead.
Don’t forget that this placing is oversubscribed. Get rid of it and people will pay £0.01 to have the chance to make a killing.
Morning Shareholders,
I voted this morning AGAINST ALL RESOLUTIONS to issue new shares with a placing at £0.003 at the GM on 1st August.
I urge more shareholders to join us in that decision.
A better deal awaits
12:56
The chance are getting higher as days come and going closer the vote. The percentage of shareholders voting against is now in 2 digits.
Many individuals won’t think they must vote either way but those who do vote will mainly vote against all the resolutions of the placing. I would still say its 50/50 at this stage.
Right now it is not align the issue it is the placing at 0.03p. First let's vote against all resolutions of the placing. Then if you want to keep ME and CG, then vote for them at the GM to keep them on. Then maybe they will offer another placing at 1p.
Plenty are voting against all the resolutions with regards to the placing as it is disgusting that a company with 1B worth of raw material is being valued at no more than £5m by the shareholders. Also, why would new shareholders interesting in the placing not make a take over bid at 0.3p if that is the value of the company. They will get 100% of the company for £5m.
The placing at 0.3p is oversubscribed. In other words, there is no reason it couldn’t be higher at, say 1p, especially that this is the deal negotiated with grosvenor and they were bringing to the company much more value than this placing at 0.3p.
The directors are clearly not acting for the interest of the company of they would never have accepted a placing under 1p to new subscribers that bring nothing more than the money grovenor would but without the added benefit of the local links. If anything anyone other than Grovenor would have needed to pay above 1p to get in. Now they are placing at 0.3p to protect their jobs as they could have raised the £5m at 1p easily. Oversubscribed placing - demand vs offer?
Unless we get a placing at least 0.7p being the value before it went sour with Align, the directors are diluting unnecessarily the shareholders, and we will vote them out.