Member Info for Hexam

As I said I don't want to waste more time trying to convince you. If you really believe the EZJ sp has effectively only fallen 10% since Covid then so be it - I doubt anybody looking at their actual value of shares if they have held since then will agree with you.

I am not confusing mcap with enterprise value. I suppose if they raised another £10bn tomorrow you would ignore that too and say ooh look at their mcap, its multiple times higher than it was pre-covid so they are really overvalued. If you are not a troll you are laughable but as I said I'm pretty sure you are one. Just hope nobody falls for your games.

btw - your chosen title for this thread also rather gives it away that you're a troll.

PantherPat - I've come to the conclusion nobody can be so wrong and be so stubborn about it. So I can only assume that you are simply a troll who is trying to make others believe that achieving their sp targets is much harder than they thought and thereby encouraging them to sell (or not to invest).

I've pointed out the obvious flaw in your logic. The placing and RIs together have added over £1.6bn to the mcap without which it would currently stand at around £3.5bn - far lower than before the placing in 2020 (and much more than the 10% you claim) and absolutely no surprise given Covid. I have also provided corroborative evidence from the RI RNS to support my numbers (they essentially did the same calculation and got the same answer). You've provided no such thing and have simply repeated the same flawed argument.

Now that I believe you are a troll (a la Smithy) I will not waste any more time trying to convince you of something you probably know is true anyway. In the meantime I just hope no-one else is duped by your misleading calculations and statements.

Sparrow - agree with a lot of what you say. We’re not close enough or expert enough to know what an appropriate discount was but IF it was 3x oversubscribed then that suggests 20% perhaps wasn’t.

As to investing some of the raise in BTC I would hope that all the money could be utilised pretty soon given the timetable and for me putting into BTC for such a short time would just be gambling with money that has already caused enough upset - plus they will have to sell to use it which also never goes down well!

Think that’s a bit unfair SkyMonkey - quite a few people, across the spectrum, have expressed consistent views throughout the process - the actual events have just focused those views more keenly.

I agree Sparrow, just because the price spiked after announcement that shouldn't be expected to translate fully into into the IPO price - or even at all. Problem was the offer price was a 20% discount to that price (using £1.33 as the starting point and the reference price given in the prospectus). If indeed the offer was 3x oversubscribed (not sure it was) then this does seem too cheap and in any event has caused a lot of bad feeling.

It should be time to move on though and focus on what this buys - though if he does put any of it into BTC rather than Texas, new machines etc. then that in my view would be alarming.

I'm in two minds about it too as on the one hand he may have exerted a useful control but on the other hand he may have applied an unhelpful brake. On balance I think it is a good thing due to the greater freedom it gives the board but only time will tell whether they use it wisely.

Apologies Lolades. His original post was correct that the initial prospectus (Aug 19th) said $75m but you are right his later posts said it only changed on the 23rd - but it did so on the 14th as you have shown. Agree. Move on.

See my post Lolades - Chaebol is referring to the filings BEFORE the 14th Sep.

*Sep 17th not 19th

In a probably vain attempt to close off this increasingly pointless debate (and apologies for being part of it earlier) here is the timeline of proposed raises and the link to the evidence for it:

Aug 19th filing - $75m
Sep 10th filing - $75m
Sep 14th filing - 75m shares + optional 11.25m
Sep 19th filing - 75m shares + optional 11.25m
Sep 23rd filing - 75m shares + optional 11.25m

https://www.nasdaq.com/market-activity/ipos/financial-filings?dealId=1144401-98970

I can't think there will be more than what they've given below (and elsewhere where they fleshed out the Texas build a bit more). But any more info would be good so hope you're right.

Partial repayment of the New Galaxy Term Loan £18,108,069

Development of Texas facility £60,000,000

General working capital working capital and general corporate purposes (including for the purchase of new machines), possible acquisitions that may be identified following the date of this prospectus and other incremental growth, including investments in DeFi projects and other initiatives - £6,161,225

They've already said how they are going to spend the IPO money so not sure what more detail can be disclosed as early as next week?

He said he even had a Boro shirt - but lost it. Hope that's not an omen.

He said he supported Boro in a recent Q&A (one of the things he could talk about).

As I said this is history but the original prospectus clearly states on the front page the "proposed maximum offering price" is $75m.

The IPO has given ARB the funding to complete Texas but not the machines to fill it.

I'm glad the IPO happened, just not the way it did or the price. I'm also not concerned that more funding will be required to purchase the machines as that was always the case and the returns should be huge. But to say everything has gone smoothly would be stretching it.

Unfortunately Lolades what the troll has said about the initial prospectus is correct - the passage you gave is from the final version only released the day of the IPO itself - and in between it went through various iterations.

The IPO has left a lot of investors unhappy and given trolls plenty of better ammunition compared to the usual nonsense they come up with. But the IPO is now history that can't be changed so maybe better to focus on the future and I agree the company is undervalued, even more so with the recent drop in price. This assumes though that the machines can start rolling in and hopefully we'll hear good news on them soon (notwithstanding the debatable impact of the 'quiet period').

Actually PantherPet you don't have to believe me - believe EasyJet. This is from the RI RNS:

"The Rights Issue price of 410 pence per New Share represents a discount of 35.8% to the theoretical ex-rights price of 638 pence per Existing Share by reference to the closing price on 8 September 2021 (the last Business Day prior to the date of this announcement)."

So this is saying 638p is the theoretical equivalent to the closing price on 8 Sep which was 789p.

So £9 is equivalent to £11.13. Same can be done with the earlier placing but that was only a 5% discount for a much smaller raise so hardly makes any difference.

Sorry PantherPat but I do believe I am correct and certainly don't need any tutorials or need to do any further reading to understand the maths. It's fairly straightforward stuff and my background is in this sort of thing.

If a company's shares are worth £18 and it doubles its number of shares without raising capital then its value (mcap) is obviously unchanged and so its new share price will be £9 - all else being equal and exactly as you say i.e. £9 today is equivalent to £18 then.

If a company's shares are worth £18 and it doubles its number of shares but raises £18 from each new share then its value (mcap) will also double and the sp remains £18. So £9 now is equivalent to £9 then.

EasyJet have done something in between so the answer is between £9 and £18 (I make it that £9 today is equivalent to £11.25 then).

I can't think of any simpler way to put it. If you still think you are right though, just forget the maths, stand back and look at your conclusion. You are not only saying that to get back to £9 that this is the equivalent of £18 in 2020 but that at today's sp of £6.86 that it is already the equivalent of £13.72 in Jan 2020. Do you really think that given all the issues you listed and that I largely agree with? I agree its value has fallen significantly but your numbers are saying that it is currently worth the equivalent of £13.72 in Jan 2020 and so it is actually pretty close to its peak now??

*your