Member Info for Hexam

"the quiet period is an SEC-mandated embargo on promotional publicity. This prohibits management teams or their marketing agents from making forecasts or expressing any opinions about the value of their company"

So presumably the company can still release operational updates and news of new machines so long as they don't accompany such statements with forecasts and other comments as to the impact on the value of the company. So in short they are able (and maybe have to) to release information on factual things that impact the company but not speculate as to what these imply for the future?

Chuz,

And these are the RNS for the ePIC machines:

22nd Feb:

Argo Blockchain, the leading cryptocurrency miner based in the UK (LSE: ARB), is pleased to announce it has signed a commercial agreement with ePIC Blockchain Technologies (ePIC), a supplier of industry-leading ASIC mining machines which will allow Argo priority access to state-of-the-art ASIC mining rigs. The companies will also work together throughout the development process to build machines specifically to Argo's specifications.

As part of the agreement, Argo has committed to an initial purchase of US$8 million of ePIC's mining rigs and will have priority on all future production runs of ePIC machines globally for 2021 and 2022. Expected delivery of the machines will begin in early Q4, 2021. Larger scale delivery of ePIC machines will commence in 2022.

9th Aug:

The Company announces an update to its 22 February 2021 announcement relating to the expansion of the Company's mining capacity in Q4 2021 and 2022. As previously announced, Argo committed to an initial purchase of US$8 million of mining rigs from ePIC Blockchain Technologies ("ePIC"), with delivery expected to begin in Q4 2021. However, based on limitations of technology, Argo and ePIC have agreed to amend the agreement. Under the amended agreement, the initial purchase order was cancelled and, at Argo's option, $5 million deposited with ePIC, in whole or in part, can be applied to the purchase of ePIC mining machines or ePIC common stock or repaid in full.

Just a shame his argument was full of holes, lies and an object lesson in how to misinterpret statistics.

Wolf - yes, that's the Celsius one I mentioned. All the rest though go through as normal depreciation though as they were purchased outright - and think the ones we are currently waiting for are too. So not sure if this is the intended way forward but it would make a lot of sense depending on the terms and of course ARB will be in a much better position than us to judge that.

*reduce upfront cash required

Pretty sure only one previous 'purchase' was done on lease (the 4,500 earlier this year from Celsius)? If this is the model going forward though then excellent point. Not only will this reduce upfront costs it gives more opportunity to fund from other possible income (e.g. hosting).

"It’s the short term horizon and lack of understanding that the shiny IPO meant issuing more shares, that is ‘shafting’ PIs"

Wolf - I don't think many would not understand that the IPO meant more shares - it is just the size of the discount that has annoyed some (and the impact this has had on sp). Agree with the short-termism though as ultimately I think the benefits from the money raised and the greater access to US investors/funds will more than offset the dilution - even with the discount.

Only concern for me is that this raise is not buying more machines (or very few) - just the building to put them in (and pay off some of the Galaxy Loan). So really providing a stepping stone to much better things - albeit a vital one.

HH - Get what you're saying but I feel 1.33 was underpriced to start with and why would all the rise since (and more) be wiped out just because the pricing was lower than expected? No matter, seems I did call it right - for once :)

If it opens around 120ish then I agree this is a really good price though wouldn't go so far as to say it's the 'last chance at these sort of prices' as there seems to have been a lot of those!

My simple logic is that 120 is a 25% drop since the pricing was announced. Why? Have the fundamentals really got that much worse, was the stock that overpriced? Yes, there is a dilution impact from the disappointingly large discount but that is less than 10%.

I feel it is a bit of the 'tail wagging the dog' at the moment. NASDAQ didn't open yesterday at the LSE closing price but at the offer price of $15 so this 'artificial price' was the base for trading. When the market opens I feel there is a reasonable chance this will reverse and we'll quickly get back to the sort of LSE levels seen yesterday. If not then I'll be buying as however badly the IPO has been priced/handled the company is now on NASDAQ and is financially much stronger so a 25% drop would seem well overdone.

Chuz - I think the lock in only applies to company ‘insiders’ i.e. directors etc. which seems reasonable.

Over 90% can be sold straightaway

Flower - that’s what they ‘expect’ on the RNS. Some are locked in but only 5m or so out of 75m (or more accurately 0.5m out of 7.5m).

You and me both Chuz :)

Chuz - No idea, making short term SP predictions is just a wild stab in the dark. As you say the sp has held up really well so far but I think the real test will come this afternoon and could (obviously) go either way. So maybe flip a coin to decide ;)

Except the vast majority of new shares are not locked in (according to the NASDAQ filing). So opening in US this afternoon will be interesting with some perhaps cashing in big profits whilst others look to get on board.

"The prospectus provided an indication of what the share had been traded at and the brokers then negotiated with potential buyers to see what they were interested in paying"

It's just disappointing they were interested in paying so little. I don't think that can be dressed up as a positive.

The RNS will be tomorrow morning, the day of the IPO and when the stock starts trading (as was with the case when Abcam went through the same process - see their RNS below). They can't announce the price with either market open so it won't be after UK COB today. Of course there may be some reason why it's not going ahead but there is nothing that has happened (or not happened) to suggest otherwise. In fact I suspect we would have heard something by now if there was any problem.

https://www.lse.co.uk/rns/ABC/pricing-of-offering-on-nasdaq-y6e0szgqs1lrxdl.html

But the offer isn't 80p. It's now 86p and will keep changing as the NEX sp changes. If they negotiate it is the 0.36 that will need to change (or the structure of the deal).

I think the key thing is to not think about this deal being worth 80p. It's not, it was just the value based on the NEX sp when the proposal was announced. With NEX at time of writing 242p the deal is currently worth 87p - and it will keeping changing before any merger takes place and afterwards (assuming it happens).

What it boils down to is do you think the combined company will prosper so that this 87p's worth will go up enough to make it worth holding or is it better to take the money on offer now - i.e. the current SGC sp (84p at time of writing).

For me it's straightforward as I hold both and feel the combined company will do better than each would on its own but everybody must make their own choice - just try not to fixate on the 80p.

In the meantime because the deal is expressed as a percentage of NEX shares the SPs of each company should continue to move broadly in line with eachother - so long as the deal looks likely to go ahead.

Pretty sure it will be the actual initial offer price (i.e. that dictates what capital the company raises). What it actually opens up at later that day is another matter depending on demand.