Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Last rns as at 30th June was indictive of having
Sufficient funds for 12 months to cover working capital....no raise should be necessary in the short term.
If I'm correct in the interpretation the statutory timescale for licence approval is 30 days from application so we would appear to be running late.
Last discounted placing was Oct 2021 for £620,000
So we can expect another one shortly ..especially in light of that spend vs income factor ...balance sheet will need strengthening best to wait until discounted placing in out of the way.
I seriously don't think that insolvency, administration needs to be on the agenda.
CC needs to buckle up and act as a CEO ...she is no longer a marketing director or department head and unfortunately she is to inclined to be a team player with lots of nice perks for the staff.
She either needs to address profit and loss net profit margins by increasing prices on better premium products as cost of sales has undoubtedly gone up with supplier costs increasing.alternatively she reduces labour costs from the existing 40 staff ...she maintains the 30% reduction in overheads will be visible in the 4th quarter ...if sales remain relatively flat going into the later stages of this year and she can tweak some additional costs off the bottom line then we could see a profitable come. The question is can she make the hard decisions?
Whilst naturally the negative focus has been on the rather dramatic fall off on cash reserves I read the position as more positive. The 30% reduction in overhead costings won't be realised until q4 and with sales showing some life in June and July breakeven or even profitability is possible.This could rerate very quickly as mcap is cash and stock.working capital is sufficient to see them through to completion of dd..and hopefully full takeover offer or significant investment.
I agree the bayer link changes the dynamic on this ..they would not be risking reputational damage by linking up without due extensive due diligence.
This could be hugh..
The company's cash position is OK for the next 12 months as previously reported so all working capital requirements are covered. No placing anticipated.monday could be interesting
Unless they salvage the company as a going concern as an unsecured creditor you will end up with nothing.
Best to take it as a total loss ...as painful as that is.
If we believe the prior rns in May we should not require additional working capital until next year.
Fingers crossed
CC is a marketing guru and a very good one ...for eve,Who has undoutably galvanisedthe team.
Unfortunately she is not AT THE LEVEL REQUIRED
FOR A CEO. I believe she finds its difficult to make the tough decisions and is probably too closely aligned with the her staff. Two of her key responsibilities...profitability and shareholders are sadly missing from her remit.
Interesting can sell but not buy...
There's plenty of value still in the business.
Re admission at a latter date either here on the main list or usa...distinct possibility.
We will get a bounce at some stage as soon as news drops ...any tie ups and this will multi bag from these lows.
Problem is the junior markets are being hammered..mainly because they rely upon lending and raising cash via placings..this will turn at some stage just need to hang in there
Unfortunately whilst CC is an excellent marketing
And all round product development director she has been promoted above her station.
A good team player who knows her product.
However as a CEO she needs to be tough and stand aside from the rest of her staff as she needs to make some difficult decisions.
Her number one priority has to be profitability and that just isn't going to happen in this retail environment.
MARGINS are being eroded through discounting,
Overheads are going up,working capital is being squeezed.
She has a decision to make go to the shareholders for additional funds or cut costs which means staff.
And I have shares in eve to...but managed to trade
Don't forget MODE started off at 50p....
But I'm sure this will be different
A change in sentiment with an industry acceptance of qbt processes could see this at multiples of today's mcap
Outside of the trading updates and regulatory requirements for half and full year reporting there is not enough engagement with investors.
As a result of this there is and always has been a lack of share trading liquidity which creates difficulty with momentum.
The other concern is cost of aim membership vs going private...placing at discounted prices with institutions that forward sell might help out the company with working capital / cash flow but of course this creates a downward spiral on top of a lack of investor interest.
Sales ...turnover is likely to be down...overheads
And margins are tight...making a squeeze on working capital ...cc is a marketing director promoted to ceo...who now needs to be somewhat ruthless on overheads.. has she got that in her...otherwise placings will be needed.
That's not the end of the world as buying into the inevitable dilution for a comeback ...make up your minds sell now ..buy back later or just hold.
Between now and the GM, the TR1s will be crucial in determining the direction of the business.
This business is viable and potentially very scalable and profitable going forward.
Will significant shareholders who offer resistance to the resolutions be preparing an alternative scenario over the next few weeks.
There was obviously a reluctance within the boardroom concerning the resolutions put forward hence the reason for the delay.
This may not be a forgone conclusion.