Member Info for EV_Bull

Not the first time either.....

Https://ukinvestormagazine.co.uk/three-undervalued-aim-listed-junior-miners-to-watch-this-summer/

The thing is, why pay Cadence to own EMH and EG1 when you can just buy them yourself in an ISA and save on the tax since Cadence would have to pay tax on the gains. Of course since it's hoped management are astute investors that know better than the individual, but it hasn't worked out that way, might as well go all in on Amapa now (& Sonora litigation) and instead of trusting KDNC to be diversified, do it yourself. Once those are concluded it would be better that the company is wound up because the listing fees and management salaries would not make it worthwhile to continue with especially considering the nav discount means it is ridiculously expensive to access the capital markets which we're all suffering now from that dilution and loan costs. I believe discontinuation vote would need to take place at the AGM or an EGM, now is probably not the time but if Amapa is sold outright I think the capital should be returned instead of reinvested.

I will KM obviously knew it was a terrible deal but doing a rights issue or such would have cost a fair bit in fees and may not have been subscribed to as shareholders tend to sell out on the announcement and then you can buy on the market at that price so nobody participates so it contains more risks, so I don’t think it would have necessarily been a better situation. I’m more keen to know how the value of Amapa can be realised so shareholders can see some returns without further dilution.

Get it to 67% ore PFS and fully licensed and then sell it on (some or all) and return the capital to shareholders.

At this point we appear to have funded Amapa to the point that it can be licensed and sold as a viable 'shovel ready' 67% mine project, with any luck we could still see a reasonable return from it.

Yes, there should absolutely have been a communication to explain this.

I suspect the right of first refusal would come in to play had we not contributed.

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 Fundraise was with a single institutional investor

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)

BTW our EMH holding has gone up by £500k since the placing... I'd love them to just have cancelled it and sold down EMH at this point but I highly doubt it.

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.

Disclosure is supposed to be as soon as possible and by midnight within 2 trading days so probably another late Friday one.

I don't hold out much hope as this formula in Google sheets shows the 197,637,704 Ordinary Shares figure.

=GOOGLEFINANCE("LON:KDNC","Shares")

It would be fortuitous if the rise in EMH had negated the need, I doubt it... but one can hope.

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).

@Bannor, Obs went dark all of a sudden and for all we know could well be ill or have passed away so may be best not to post disparaging remarks about them.