Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Yes it would have been preferable but my take is the mezz was always secured against EMH and the value declined to the point that they didn't have enough left to pledge to borrow any more.
I'd expect at this point all of the other holdings Charger etc were sold off first and the raise was the only option left.
I think the shareholder register on the website is updated twice a year so it may appear there or maybe the annual report
He has 1,573,240 reasons to care though, I think it's obvious they ran out of money due to EMH decline and KDNC are obligated to continue to fund Dev until we can sell it or get a JV partner so it was the only option in a hurry, hence the massive discount, bad planning yes, on purpose? I doubt it. Many of us have been caught out by the decline across the board in junior miners. I'd expect he's pretty disappointed and frustrated by the situation.
See also slide 2..
https://www.cadenceminerals.com/wp-content/uploads/2023/11/Cadence_PPT_V.1_2023_11.pdf
"it is hoped" is a forward looking statement of course.
You mean apart from the caution at the bottom of every RNS?
Cautionary and Forward-Looking Statements
Certain statements in this announcement are or may be considered forward-looking. Forward-looking statements are identified by their use of terms and phrases such as "believe", "could", "should", "envisage", "estimate", "intend", "may", "plan", "will", or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the company's future growth results of operations performance, future capital, and other expenditures (including the amount, nature, and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes actions by governmental authorities, the availability of capital markets reliance on crucial personnel uninsured and underinsured losses and other factors many of which are beyond the control of the company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The company cannot assure investors that results will be consistent with such forward-looking statements.
The rationale is that instead of selling EMH, management did a placing in Feb 2022 and then took out a loan in May 2023, expecting EMH to go up and it went down, so they gambled and lost essentially.
Back in 2021 the EMH stake was worth £12.57m. (05/10/21)
Shorts have to be reported at 0.1% so it's not that. It's down to the holder to disclose, not the company. Given we are reporting the new share count one can assume they have been admitted but not disclosed at this stage. There has not been enough volume for them to be disposed of.
We had direct contact and it stopped abruptly and none of the accounts have posted so that is my conclusion.
Lets see what happens if the placee hangs on to them 8% + warrants is a significant chunk of the company to have influence over the future of it to appoint directors etc so hopefully they bring something to the table and hold management to account so we can all salvage something out of this. We are buying in at a $110m valuation which suggests our holding is worth on the books £30m and surely more else why be investing. So that would be a starting point of realising some value.
29,642,800 shares were voted at the last AGM so with warrants that would be 50% of the vote if warrants get exercised (assuming no other holdings).
Sure, but get the licenses in place and sell the project to someone with the cash to pursue it, the strategy has to change as there is no more money to put in, we can't keep raising like this.
Because it's a refurb of a known process there is less risk so the potential investors are happy to go straight to the construction phase once it's licensed so the work done to plan for construction is essentially the same as the DFS would require, so the funders are going to come in pre-DFS. I think at this point they'd look to get it licensed, see what we can get for it then give shareholders a return.
Believe me, no rose tinted glasses about this, not wishful thinking, I fully accept the need for the placing is a disaster and a strategic failure.
Management took a gamble that EMH would go up and it went down 50%.
Management need to be clear with shareholders on this as they've essentially bet the company on the EMH share price by taking the loan. They had the opportunity to sell EMH instead of doing the 20p placing previously and clearly with hindsight that would have been the right thing to do. I can see there were financial incentives not to sell which are of concern.
I am not going to sell out at 3p because I believe Amapa can still be sold for somewhere in the region of 25p a share, or more when fully licensed, the Sonora litigation may yet hold substantial value, the Evergreen project may come good and I hope that the new shareholder will push for realisation of value and significant return of capital to shareholders. Maybe this becomes a Sonora litigation play and Amapa is sold with cash is paid out to shareholders.
I don't want us to take the construction risk and end up like HZM so better to sell obviously above the $110m valuation we have been buying in at.
Clearly buying 1% for $1.1m and then selling 8% of Cadence for £500k is a ridiculous situation and I can only assume we were obligated to put the money in to Amapa, management need to explain this also.