Sk it's come to this !7 Jul 2025 06:51
Morning everyone. Back home after a cracking week in Cornwall. Thanks to those who wondered if I was ok.
Saw a notification of the rns whilst having a fantastic pub lunch on Friday. I nearly choked on my triple cooked chips!
How Roland allowed Selan to manipulate the company into this fire sale is beyond me. How the hell was it possible that the jv deal allowed Selan to procrastinate until this sale became the only option? Totally screwed over.
My first reaction was, bang goes any chance I had of ever getting my investment back. Followed by, maybe anything is better than the next to nothing, that was seeming more and more likely until the rns. Followed by the realisation that given the drawn out time scale, how long before the sp gets close to the level indicated by the sale price?
So, what is this deal worth?
14 million usd is £10.22 million. Divide by 15.57 billion shares gives an sp of 0.0656 pence per share. All this assumes there is no tax to pay, given previous massive losses.
However, it looks like half the cash may be received after up to a year and the other half in up to 2 years. So maybe equivalent to say 12 million usd in present day value. That would give us about 0.056 pence per share which in my case with an average of 0.092,represents a loss of 40 %. Not great but better than the 80 % I was sitting on previously but utterly pathetic compared to what seemed possible a year ago.
Several questions arrive.
Why the heck is the current sp of 0.0285 only about half of what should be based on what we know? Is it he time scale of up to 2 years to receive all the cash ? Is it doubts that it will actually happen? Fears that the cash will simply go into the CCS money pit or be squandered in some other way?
Are Syn likely to receive any revenue up to the point where the sale is finalised and thereby increase the value of the deal?
How on earth can Roland claim that
" The agreed consideration represents approximately 6x the Company's current market capitalisation."
Prior to Friday's rns the sp was 0.019, so with 15.57 billion shares that's a market cap of £2.958 million or
4.052 million usd. Six times that is 24.3 million usd not 14 million. Or put the other way around the payment is 3.5 times the previous market cap. I have emailed Roland requesting that he clarifies, if not by email, perhaps on X. Not holding my breath.
Finally this bit.
" The Company is currently reviewing its ongoing cost base and forward strategy. Subject to completion, the Board expects to achieve meaningful cost savings and intends to return a proportion of the proceeds to shareholders." Even including the 0.5m usd from executing the heads of terms, how much can there be to distribute?
Very interested to hear peoples thoughts. Atb.
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