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That tells you the qualifying period for establishing the warrant price.
It doesn't tell you when the loan is available (and drawn).
Think about it : SYME is issuing warrants as a 'reward' for getting the cash, it'll want to know it's got the cash first.
A cynic might observe that it's in the family office interest to see the reference price lower....
The 10 days you refer to is linked to the reference period for pricing the warrants.
The RNS dated 2 Sept about the ARC-arranged loan said that a term sheet had been agreed and that the loan was subject to the execution of the definitive agreement.
Maybe the loan HAS been provided, maybe not.
If the current weather patterns continue to winter - and the current outage of French supply is genuinely technical (and not linked to the Aussie subs 'snub') - there's a good chance we'll be firing up our coal stations later this year, IMO.
Coming just after Glasgow COP and the current 'push to green' that'll put HMG in an 'interesting' position...
Quite an informative Q and A :
(1) 1AF2 loans for pledged shares : stated several times that they understood 'from public information available' that 'offset mechanism' will apply. That, IMO, means security returned will be in cash, not shares, as has been (gradually) acknowledged in relevant RNS's.
See also this gem :
Q57: The Lenders: Why did 1AF2 need the "loans"?
A58: The Company does not have this information since the loans were arranged by 1AF2 srl
Errrm.. your CEO AZ gave a Proactive interview 14 months ago on 30 July 2020 stating exactly why it wanted the funds : as 'first security for an imminent IM transaction'...
(2) No cast-iron assurance that first IM will take place in 2021.See Q40, Q87, Q140 and Q155 for example.
(3) Captive Bank is in the long grass, from multiple Q's : 20, 28, 29, 145...
(and Quadrivio itself isn't available as an interim solution , see Q162 and Q164)
(4) Fate of 5 new investors ? Ditto, see Q97.
(5) S Harbour ? Ditto , see 130,132,134, 147...
(5) Very defensive re Negma CLN's and appearance/disappearance of the mooted 'amortising loan' facility. See 120, 125, 126, 127, 128, 161...
(6) True sale ? Q 25 'non-answer'
(7) Acknowledges in Q 53 the fundamental conundrum (irreconcilable (IMO) trade-off between credit, security and price), says GIMF will be the answer...
(8) DW abrupt exit as Chair ? Misleading re extent of his prior involvement
Three ' really ?' points :
Q50: What is the current value of the total AUM of Tradeflow Capital?
A50: In accordance with the asset management industry BEST PRACTICE , unfortunately we are not able to disclose this number.
Q23: Who is the independent analyst that is doing a new research note on SYME + TFC and when can we expect to see this?
A23: The Company is very aware of the value of INDEPENDENT equity research and is reviewing potential SPONSORED research and the appointment of a Corporate broker/ adviser. i.e. 'Yes , repeat 'No' ...... See also Q84.
Q78: Does the departure of Dominic White mean his stock has been sold or is
going to be sold? And if it is transferred, to which entity?
A78: Mr White is no longer a director nor is he bound by any “Lock-in” arrangements
regarding his shareholding. He is therefore at liberty to trade his shares. On the other hand, the recent subscription by Eight Capital Partners (a Company controlled by Mr White) for 1AF2 Limited’ bonds provides CLEAR PROOF of how Mr White believes in SYME.
Note : This is essentially a 'risk-free' subscription, funded 100% by a Vendor Loan, with a 1% positive net carry, that facilitates a transaction with a 33% ('face') Exit Fee...
Well, on the offchance they might reply, I thought it was worth dropping a line to Larsen and Toubro, the Indian MozMal transmission contracts winners.
I congratulated them on the award and asked who they expected would be generating in 4 years' time the electricity that their connections are intended to deliver...and to whom ?
'Fragen kostet nichts' as the Germans have it : it costs nothing to ask.
From past communications, I believe this message - posted on a d v f n - to be genuine.
".....SRTCEO15 Sep '21 - 09:05 - 11020 of 11020
0 5 0
As you will be aware, I do not partake in this discussion on SRT.
The reason for this post is to clarify some concerns that have been raised in the last 24hrs in regards to our AGM and Investor open day. To save another clarification RNS I concluded this was the most effective method.
1) Anyone and everyone is invited to the investor open day: 9:00am to 11:00am at our MSN offices. Attending on SRT side will be all senior managers to discuss and answer all and any questions. There will also be a live GeoVS system with an SRT operator to show anyone interested all the various functionalities. This is an opportunity to speak to everyone and anyone in the company and ask what you want.
2) The AGM and shareholder update presentation which starts from 11am, will be filmed and streamed live to a web portal where those not attending can watch and text in questions - as we have stated in the RNS the identities of those watching are not public and only me and the board will see the questions sent in on a tablet. For the avoidance of doubt the earlier investor open day bit will NOT be filmed and is held in a separate room to the AGM.
3) Nobody but me and SRT board members will be filmed and the micro-phones are directional and localised next to us and thus will not pick up the voices of people there asking questions. When a question is asked, I will repeat it for the benefit of those viewing remotely. As such anyone attending is completely assured of their privacy.
I hope that the above clarifies these concerns. We at SRT are looking forward to meeting everyone again and discussing our business, the progress its made, the challenges we have and of course the status of the long awaited nearest contracts in Middle East and SE Asia, as well as all the real opportunities that define our VSP. For me I hope its an opportunity for anyone to ask blunt and frank questions to the entire team and hopefully come away much more positive than when arriving with a deeper understanding of the business. And, of course, irrespective of this opportunity anyone is always welcome to telephone the office or email me or any of the directors directly with questions.
I will take this opportunity to thank you all for your robust debate on our prospects within the global maritime domain awareness market - even though at times, as you would expect, I feel some of the conclusions are not right.
HTH, NAI, DYOR etc etc
In the interest of balance, it looks as though there may be alternatives further down the road :
- from Moz's gas resources (when these become available), although the grid would need to be reworked; and
although Financial Close isn't expected until 2025 and construction would take another 5 years or so - if CB is any guide.
.."Mphanda Nkuwa will be about 60 kilometres (37 miles) downstream the Zambezi River from the Cahora Bassa hydropower dam that has the capacity to generate 2,075 megawatts of power. Mozambique sells most of the electricity from that dam to neighbouring South Africa, where there have been shortages for more than a decade..."
Point taken. However,
- my understanding was that most CB hydro went to S Africa, which has increasing supply problems of its own;
- CB reliability/availability was variable, as - ironically - climate change is blamed for rainfall shortfall and water levels;
- use of the new transmission lines to increase demand for CB downstream to the East (Mozambique) and new market (Malawi) would be 'doubling down' and seems counter-intuitive, to say the least...especially for Mozambique, with its own power supply ambitions;
- the graphic suggests strongly - "But it would ... wouldn't it ?" ;-> - that a power station at Tete addresses a number of these issues.
The example apunter2 gives is of the exercise of a certain number of warrants (out of a known total) at an agreed (and also known) price. Xtract has previously informed the market of the number of warrants, the price they can be exercised at and over what period, so that people are aware of what the dilution potential is...and what the cash inflow to the Company's coffers is.
In the case of ARC's warrants, so far we only know that their value will be £ 1.4 million and that the warrants will be exercisable over a 3 year period. We don't yet know how many shares the warrants will cover, because that depends on a VWAP-linked calculation, we've been told the formula but not the outcome of the calculation (or even if it's been done).
apunter2 is barking up the wrong tree.
"That’s if they decide to exercise/ exchange the warrants for shares"
Pls tell me how you can buy or sell shares (that appear on your day's reported activity) unless you've exercised the warrants that give you them ?
Call me old-fashioned, but...
.."They can exercise the warrants at any time within three years, at” lowest closing VWAP over the ten days immediately preceding the issue of the loan“
Preceding means 'before'.
And then you post
.."It will always be 30% above the VWAP, from ten days after the loan was completed.."
So , for all this to be related to your O/P - 32 m shares @ 0.27p - on what day, recently, was the VWAP 0.208p (approx) ?
Look at the extract you just quoted :
For that to work, ARC will have exercised its right to buy (some) shares - and bought £86K worth out of its £ 1.4m entitlement .
It would have been able to do so because at some point in the 10 days prior to loan signature (only RNS'd 2 Sept as being in process : term sheet signed/definitive agreement pending) there was a day when the VWAP was 0.27p/130 ie around 0.208p.
(1) I don't remember the Volume Weighted Average Price ever being at that level...and if it was, (2) why exercise only £86 K worth and not fill their boots ? So I'm pretty certain it's not ARC.
It's more likely to be something to do with closing out on 2 Sept Negma 's residual CLN's, where conversion to shares is over a 6 business day ( not 10) period - taking you to Friday - and at 100 % (not 130%) of VWAP , a benchmark that may indeed have been satisfied @ 0.27p.....
Bloomberg says of BENC that " This is employed when the price of the trade is determined by a benchmark - for example, Volume Weighted Average Price (VWAP) or the price is determined over multiple time instances according to a given benchmark "
VWAP is /was a reference point in the conversion rate of Negma's CLN's into SYME Ordinary shares (see 16 June RNS) - but they should now be out.
It's also a reference point for the £ 1.4 million of warrants under the new ARC facility - but the trade price doesn't seem to fit the requirements.
As folk keep telling me, maybe better to ask SYME rather than the board.