Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
As mentioned yesterday:
" The Company may elect to miss payments in accordance with the agreed repayment schedule. This would result in various rights being granted to the Lender including the right to subscribe for shares in the Company using a pre-determined calculation"
The calculation will be something like 90% of the previous 5 day average.
The 40% premium to today's price relates to the warrants, a further boost for the lender. 4 million or so. The lender can choose to subscribe to addition shares at a 40% premium and become a shareholder. I doubt they will exercise that, however, if HELD does take off then they will naturally choose to exercise and then sell for a profit
Whether the company is on AIM or not means nothing to the structure of the loan. CLN's are generally very damaging to a shareholder as often the company doesn't repay and thus the shareholder takes the hit via the dilution.
AIM companies more often than not use these financing structures as no lender in their right mind would lend to them otherwise (businesses are usually very early stage, and want to raise like £5m - try doing that with no turnover and little assets!)
Companies with main market listings dont usually use CLN's as they can usually raise money via more conventional routes. However, main market can still use CLN's much like an AIM company can
Anyone expecting multibagging from the recently announced MODE rto should look at this one as a prime example
I didn't read your post moninan. I reacted in the moment after reading the RNS yesterday afternoon.
The conversion price of the CLN (if that route is taken) will NOT be at a premium to the SP. It will be at a discount to it, allowing riverfort to dump shares into the market to recover their money.
CLN's are the bain of an AIM investor. So many companies SP crippled by them. The company can keep the lights on and "continue to trade", but the SP falls further and further, whilst the mcap stays in place.
Simply put, a £1m mcap company with 1m shares has an SP of £1. A £1m mcap company with 2m shares has an SP of 50p. Same company. Same value. But the shareholders are screwed.
And, the mcap never reflects the initial cash injection because MM aren't stupid. They know what will happen. If you see CLN, in my experience, run for the hills
Cash is king. An AIM company that doesn't have cash is a crap investment imo as the SP will be diluted into the ground. Investors only care about SP. The story, the mcap, the vision, it all takes a back seat
Riverfort loans (with previous companies i have been invested in) often result in dilution and SP drops in order to repay. Definitely the fault of the borrower, riverfort are just there to capitalise. If this share goes the way of the other times i have come across them, then this investment is toast. All imo
Cultivation - to prepare land
This suggests to me that nothing has been planted.
I thought we were expecting first harvest by the end of the summer?
We probably won't get a harvest this year, and so no sales until 2024
All imo
As i mentioned before, UKSPAC rto'd into hellenic dynamics. The suspended SP was like .23 and it came back at .18, and is now like .09
MODE/R8 is the vessel in which redwood will go public. Essentially mode/r8 have to buy out redwood, and then raise cash.
The mcap of mode/r8 may well return at £70m+, but, it will be at the expense of major dilution. The return for shareholders, imo, will be very underwhelming.
I am happy for examples of LTH 10-20 bagging from a shell performing an RTO (but i suspect you wont be able to find any)
I hope i am wrong, because i am down considerably from my mode investment, so i could do with a boost. But i dont think that the redwood rto is that boost
JR owns shares in redwood, surely, and therefore, that is "what is in it" for him. Not to realise a major return on his mode holding. Imo MODE is done, but for the shell that is now being exploited.
Again, i'd love to be wrong, and i'd love to be given examples of major successes from this position
UKSPAC RTO'd into Hellenic.
The share price returned at a lower price to when it was suspended.
Those of you who think MODE shares will be worth 50p need to look at other examples. The only way 50p is achieved here is via a share consolidation (which does not do anything for shareholder returns, it just means 1m shares become 10, same overall mcap)
I am happy to hear of any examples where shareholders in a dead and burried business all of a sudden 25 bag following an RTO, but i doubt there are any
Presumably this is the "putting cash pile to good use" (or words to those effect) when asked what would be done with the cash/would there be extra dividends. Certainly a good way of reinvesting the cash. Will help grow turnover and hopefully profits in the years ahead
Has anyone reported DVRG or anyone associated with it to the FCA? Is that even a worthy avenue? Is there even a case to answer?
If deception/falsifications can be proven then surely justice should prevail? What has happened here over the past 9 months is unbelievable. From a botched raise last November to the complete collapse of a company once considered to be in a strong place.
Companies dont go under over night. People will have known. BOD, auditors, broker? There has to be more protection for shareholders.
A Q&A with the new BOD would be welcome. A clear the table (and air) of the old and hear what's to come.
Clarification on all the GB pumping is needed. As people say, CR etc. If they are dead in the water it would at least be nice to get confirmation.
8 months ago we were on the cusp of making serious strides forward. Finance (and the leak of the raise) hit the SP, but what happened to all the business? STC, the various mictrotox devices, china resources, labskin et al.
The company has gone from being an open book (potential-wise) to being a complete closed book with shareholders in the dark.
DVRG had a £30-£50m mcap a few years back with like £2m turnover. It now has £10m turnover and a large pipeline (all that deferred revenue which prevented £18m being hit...) yet the mcap is £4m!
Https://www.bbc.co.uk/news/science-environment-65626241
"Near real-time updates" of sewerage spills. Surely that could only be achieved with a water monitoring device. Certainly not students down man holes...
https://www.bbc.co.uk/news/science-environment-65484552
So, presumably labskin has little foothold in the UK, or at least, the Gov are happy to allow a biological alternative. Disappointing, both from an animal welfare perspective, and from a DVRG share holder's perspective
I continue to hold but i dont even know what irons are even in the fire anymore. A raise seems imminent and the triple digit growth year on year went out the door with GB. What a sorry carcus seems to remain. STC on hold, labskin presumably going the same way, BT? PD?
We need an update from the BOD. The smoke and mirrors have cleared, but what are we left with? What business am i actually invested in, and what can turn it around?
At one point DVRG seemed to be able to help a not insignificant amount of the worlds problems. It felt like a true unicorn just waiting to gallop into the sunset. And now what?
Oh. And the WHO have confirmed that the pandemic is over. Another kick to the DVRG ****nal!
Do we know the ex-dividend date? And could this be prior to today? Or must it be in the future?
It would be quite the rug pull if the BOD announced that the dividend were to be paid to all shareholders on the register as of, say, 31/12/22
Does anyone know what the distributable reserves are as of the latest accounts? Retained profits essentially. I am sure the YE2022 accounts will contribute additional profits, but to keep it simple, dividends cannot exceed distributable profits.
So, cash of £28m and distributable profits of £1m, means a maximum dividend of £1m.
There are other mechanisms they can apply, such as capital reduction of the share premium reserve etc, but it is worth focusing on the available reserves over the balance of cash imo
They created disributable reserves for the POLB spin off, so i assume they will have surplus reserves from that
Where is the turnover documented, Mullins? Thanks
MCAP of £15m with an SP of around 2.5p is what we will see in a week or so.
So, pre-Ukraine MCAP of about £60m will give us an SP of around 10p, whereas is was about 30p before.
Once the current noise passes i expect the SP to rerate, but nowhere near where it once was. I also expect the SP to get stuck in the 3p-4p zone as the warrants are converted and sold.
If the company needs to raise cash again at these levels then we will see even more dilution.
The only saving grace is an STC sale/JV for like £50m+. That would get the SP moving and will also provide the funding needed for the business to grow. The silence from the firm from an operational perspective has me fearing that the business has effectively gone into hibernation whilst the funding issue is sorted. I hope i am wrong and the £18m turnover is well and truly nailed on plus more.
If the BOD have misled investors through official RNS then some investors may have invested under false pretense. Surely this leaves the company/BOD liable? Surely the FCA should be getting involved?
I never felt that the loan would be repaid, i always felt that the debt would be converted into shares. But GB claimed in the interview after the RNS that the conversion would be at 20p, a premium to the share price at the time (16/17p).
Many ran the rule over the agreement at the time and in general it was felt to be a sensible move as it guaranteed funds at a time of global uncertainties and it could be converted at 20p. There were others that noted that it could also be converted at the average 5 day price etc etc. But still, that was effectively the same as a small raise to pay off the loan, albeit a loan with high interest. GB stated in no uncertain terms that it wasnt a death spiral agreement.
As recently as early September i said that i expected the £4m loan to be converted into shares, but the SP was 10p at the time, and the dilution would not have been so significant.
LTH have been screwed as they chose to go for a £10m raise to repay the £4m, and have extra capital, but further to this, the fact that this information leaked, which crashed the SP. If it wasnt for the leak the £10m could have been raised at 8/9p.
Who is responsible for this leak? Surely DVRG can sue someone? Or did the leak come from within? Yes TW was the vocal spokesperson of the leak, but who told him? Was it someone at TP? Surely someone is liable for such leaks, especially with extremely sensitive information that can be very damaging in the wrong hands. Will DVRG and the BOD be demanding answers, followed by legal action?