Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The management must be thinking a placing at this level would be a smart move, even if it was just a £1m. It would take a lot of pressure off working capital, if its expansion plans take off. 6.5p at 7th April now 17.5p - 169%wow . Not bad for a company still burning £0.65m per year.
Mr bond if it went to 7p I may get in again, but I can have no influence over the outcome, so pointless speculating. I have just watched it spike and a relook at my past research to see if I have missed anything and it really hasn't moved on that much since it was 4p. Ok it made a small profit, but it has done in the past. Needs to sell large volumes on a consistent basis, but as it about a teaspoon per ton, it may take a while. Best of luck
Profitbear, there are hundreds of manufacturers and additive suppliers, so a correction. Just additive suppliers, which is a couple of years out of date, worldwide 75-100 all of different sizes, from the US to India. Here in the UK Wells Plastic is most probably the biggest. I have followed SYM over the years (you should read past annual reports to get a better sense of the business as a lot of what they say now is a re run of old news, especially the middle east stuff). A lot of people got hit on the French report into oxo bio a few years ago, which the industry said was nonsense, but still doubt linger. As some else mentioned, you need a very small quality of powder per ton of plastic used, so SYM needs to sell a lot. My argument the science is well understood and barriers to entry low. Competition, esp from India and China are likely to suppress profitability. SYM has been around for years, just look at its trading history and you will see the wild swings in bottom line performance. Also look at past material printed on UAE by the company to get the spike in share price into context. Not negative of tech, just way ahead of reality imho
Watched the proactive interview, but there hundreds of suppliers of oxo-biodegradable additives, all offering virtually the same solutions. Michael Laurier seemed to imply it's all going SYM way, but that's just not true, as others conform to the same spec as SYM and can sell into Saudi.
See Mike Sinclair and Enrico Vanni have bought shares. As Mike paid himself £435,000 in 2015, before pension, car allowance etc not really a big deal and would be more impressed if he and the board cut its salaries by 2/3rds. As for Vanni he got £53,000 in the same period, so at least he is trying. Of course all of this is designed to create more volume, so it can knock on Bracknor's door again
personally I think TW is a total w, but AVO does needs a huge amount of capex to get this project across the line (£50m+) and the cash has to come from somewhere and the likelihood is it will just eventually run out of places to acquire it. In this respect TW is correct. The Blackfinch deal is desperation and AVO has signed away its rights to Harley Street - at least the Bracknor deal was just dilution.
Avobeliever - I saw this and was thinking perhaps we have all got Bracknor wrong, but did a check on all it's other so called investments and it has never taken a notifiable holding in any of them. It's one of two things. Either, It has done a conversion and we haven't been told yet or they have bought a few to generate some interest. - I have seen this with other CLN finance deals, Bracknor and others, buy shares to try and generate interest and in a few weeks time you will find it will have no interest at all and then it will do it all over again.
kenji, the old and new reference was my interpretation of resolution 2. I stand corrected and and yes it looks as through the £6,055,975 worth of new shares will go pro rata at nil cost to directors or related parties. It also looks like they are going for the max allowed under the companies act. With regards to resolution 3 this will give them another £1,816,975 worth of shares, but these are not for free. I didn't know what their game plan is, but if it is a way of getting around the eventual dilution effect of Bracknor conversions, its puts two fingers up to existing ordinary sharesholders IMHO
kenji, I think the CEO does the financial bit as well - not ideal. Reading through the circular, can anyone explain what resolution 2 is about. It reads old and new share holders can be given £6m in nil cost shares in equal proportion to existing holding, but its at the directors discretion. Will this directors powers to issue themselves shares instead of bonuses and shortfall in salaries? Is this some anti-dilution ploy?
See an RNS this morning re research out by Hardman & Co (paid for by AVO) really states nothing new, but has forgotten basic things like projected CAPEX costs, which I would have though is quite important when thinking about making an investment. AVO has to get this GM across the line!!
Adjshares I got involved with Michael Sinclair and co back in April 2014 when it did a placing to raise £6m. Before I go on, virtually every company I have ever met has told porkies and have crack a few eggs. Whether these are lies depends on ones definition. At that fund raise we were told LIGHT was expected to be developed by the end of 2015 and treating patient during 2016 - this in retrospect was miles out. Then Harley Street RNS Jan 2015 Howard De Walden would redevelop site for £6-7m (led to believe AVO would bear no cost, which has changed) and would be treating patients start of 2017 (again miles out). There has been loads of related party stuff which you can work out, but the big one was Sinoph, which on the back of it raise £10m and a number of new investors (inc the Jap one) got involved. I don't know whether it was miscommunication, but it was assumed Metric Capital would invest along side-this didn't happen -plus Sinoph pulling out was IHMO the last straw. This is why it is now having to go to Bracknor for finance. Unless Bracknor have now adopted a charitable status, it will have to sell millions of shares and with delays AVO's end in bringing the product to market, buyers of the shares are not going to be falling over themselves. I'm sure Matric Capital may invest, but at this stage of the game its too risky and why not wait until the Bracknor cash has got LIGHT and Harley St more established and then it can do asset backed finance to get AVO over the line. Your call, but I see a lot of pain in the share price, before we see the first patient being treated
Most probably did fall too quickly and BOD didn't want to see the share price fall below its nominal value before the GM, as this would have cause huge problems for them. Someone mentioned share holder have been let down, I agree and although I don't agree with some things ************* say, we have been lie to on many occasions. That's not the real issue as most Aim companies do so, its the Bracknor deal. Unless they have changed their spots and become serious long term investors, it has a formula (it may change the terms to make it look more attractive) which is to forward sells (yes they can, read the conditions in the GM circular) and do the conversion at a lower price. I suspect Bracknor will do very little until the GM is passed, but after this it will have to get more aggressive, otherwise it will won't be able to make a return on its capital outlay. Remember this is a zero coupon CLN and its not a charity. If you can come up with a bull case for the stock in the short to medium term I'm happy to have a change of heart.
Bit cheap that the BOD have had to use Metric to convince shareholders to go with the GM. Obviously, Metric's sees the whole venture much to risky, but may come back with a loan if AVO get it working and Harley St built with death spiral money. Spin and more spin, but if you are a shareholder u have no option to go along with the GM otherwise its BUST. Still loads of dilution on the way
Very risky. Bracknor ultimately needs to get its £1.2m, or thereabouts, cash investment back, but not only that it wants to make money out of the whole £13m financial agreement. It will play all sorts of games to do this, as it is in for quite a long journey. Its like fishing. It needs buyers to make the game work and create a few bear squeezes along the way to create liquidity. I suspect today it switched from a seller to a buyer, squeezing the bears and reeled in some buyers. These guys do this for a living and have done it 100's of times before. BUT, with each one of these finance deals the outcome is the same. It has to sell the sales to get its initial cash outlay back with a profit. Forget the nonsense about it can't short sell , the moment AVO draws down a tranche it has the stock to cover a forward sell. Once these sharks get their teeth in to the bid and buy side it has control. The shear weight of stock hitting the market has to send the stock price down. Anyone who has been caught up in one of these deals will testify - go to the Cloudtag BB's, although the 'F' word was a factor. So you may be able to trade if you are very nimble, but the trend has to be down, by default. DYOR
What a roller coaster. I assume Bracknor will be doing another conversion soon. Looks like the MM are driving this one up from lows and a few shorts have been stopped out. Interesting stuff, but Bracknor has a long way to go
Zjtobo - truth hurts. See a delayed trade of 200k from most probably JO Hambro sell yesterday. I'm sure it sees the writing on the wall and I think the MM are keeping the share price up to do more business, but eventually it will adjust to more normal RSI levels.
Mr BB - with regards placings in small caps with small caps like this, it is very common to generate interest before a placing. Letts and Co do not want to be diluted excessively and the higher the placing price the better - thus the RNS. Say if it got it done a 10p its still better then 7.5p or more like 5p, if it hadn't made this, in itself, meaningless RNS. The quick turn City investors love these sort of stocks, as for more serious players like Hambro, who I'm sure would have declined to be made insiders, want out. If there is a placing, which i have no doubt, it may do an Open offer, so you can take part. Best of luck
No one is going to give them a loan, unless they go down the Darwin, L1 etc route. With regards Rogers skin in the game, I'm sure Hambro will be more than happy to sell him its entire holding.
Massively overbought - caution!!!!!