focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
I think it will be them. They were issued 14m in late January and I think they have sold a fair whack to date. At the rate those chunks of 100k shares are going, if it is them then they will be out long before the 12 month period mentioned in the original RNS. Any volume restrictions will be linked to total volume traded and given the level of news/trades in recent times I think they've had the opportunity to unload plenty. Anyway another 50k top up for me on today's rather reassuring news.
We hadn't halved in value in just over a week on those occasions, nor was there anything relevant/material to actually update on, nor was the world or the market going through unprecedented turmoil. Hardly apples with apples...
Of course you have the right to interpret the updates in whichever way you want though I think you are being slightly disingenuous in reference to 'blow by blow updates'. These are extraordinary times, we are a business that operates in industries or makes sales that are linked to coronavirus (airport security and direct sales of testing kits) so with a fast evolving coronavirus situation we will get plenty of business updates, particularly in a market such as this. The Chancellor is giving daily updates, world leaders are giving daily updates, this is where we are right now. Unlike you I do think there is a valid reason for the updates, particularly the last one, as explained in my previous post. But I can agree to disagree.
Not sure I would say this RNS is unnecessary Foxy. Pretty important to give an update on the business when the share price is down around 50% despite coronavirus having a neutral if not positive effect on the business. Very different situation from other businesses where there is a large negative direct and indirect effect. It's important that he lets us know that we are not one of those companies and therefore the SP drop is overdone.
Obviously would have preferred 10-15 year contract rather than rolling 5 years with option for renewal (in my contracting experience you'll be renewed unless you f it up). But 5 years is still plenty long enough to underpin the share price, turn us materially ebitda positive and provide a great platform for growth, both in Tema itself and with other contracts. It's a great credential.
I get that most long terms holders are sick of being long term holders. I'm into my 8th year as a member of WSG shareholders anonymous. But I have topped up again this morning as the opportunity for a low buy in with an underpinned share price is clear and a little more patience may finally pay off. Frustration around the timing of the announcement yes, but also opportunity. There should be a confirmation of the Scanport/Westminster contract signing shortly which hopefully happens on a better day for good news!
Your maths is pretty much the same as mine earlier H&N. The CULNs are not being repaid in part from free cash flow as others are suggesting. They are being repaid by a combination of 1.5m mezz drawdown (Jan) and monthly proceeds from the equity raise which Riverfort pass on to us c. 150k a month (slightly lower at the moment). It's pretty clear if people read the RNS in detail. The news is non-news/not new as we knew this a month ago, they are just announcing the first repayment...
I think we went over this at the time the equity and mezz arrangements were announced. They need to repay £2.245m in CULNs by June, they have just announced the repayment of a quarter of that today.
Based on a SP of 12.5p they would receive just under £150k per month in equity raise proceeds from Riverfort (5 months equals roughly £750k). Add this to the £1.5m and you get £2.245m pretty much. They then have the remaining £1.5m of mezz (currently undrawn) to cover any shortfall if SP is under 12.5p or to fund new contracts and potentially also working capital (hopefully not much need). They said it would be a staged redemption programme for the CULNs so not sure why anyone is surprised.