Member Info for Hexam

Exactly danl90. I'd rather have this offer than, say, a 90p cash offer. Both looked to have good growth opportunities on their own, together they should be even better.

Pretty sure it will be Thursday morning as won't do it when still open in US.

No problem MarquessR,

The 'value' of the rights is not needed separately as it is the discount you received on the shares you bought i.e. you're using the 410p you actually paid after the discount/value of rights has been applied. Perhaps an easier way to think about it though is that the value of the rights is also what you would have got had you sold them - which you didn't.

@MarquessR

The simplest way to do this is just to add all your initial investments (in £s) together, including those purchased in the RI, and divide by your total number of shares (again including the new shares purchased in the RI). So just like working out a normal average price really.

For example suppose you have 4700 shares that were bought at an average price of £10 so you have invested £47,000 previously.

The RI meant you could buy 3100 more shares at £4.10, so costing £12,710

So the total you have now invested is £59,710 and your number of shares is now 7800.

So your average price is simply 59710/7800 i.e £7.66.

This is the key figure as it is what you need to get back to in order to break-even (ignoring costs). You are no longer aiming for £10 but only £7.66. Accordingly any previous target sell prices you had in mind also have to be similarly reduced.

Hope this makes sense and helps.

Might indeed get over £7 this week. Love your optimism but £12 by next summer seems a bit fanciful. That's equivalent to a pre-RI price of nearly £15. Would be ecstatic with this but also very surprised.

Luckily it seems to be playing out somewhat different to this and for a dead cat appears to be bouncing very vigorously.

At the time of writing the sp has now risen above the theoretical ex-rights price of 638p. This basically means that anybody who has taken up the rights is in a better position financially now than when the RI was announced. Quite unusual for an RI as sentiment usually goes the other way. The easing of travel restrictions has obviously helped and the rise may not be sustained but I for one am pleased that as it stands the RI has strengthened the balance sheet without reducing my investment. Very promising for the future.

"why would we want bitcoin to pump before IPO"

so that it hopefully drives the sp higher, which will drive the initial offer price higher, which means ARB raises more capital for the same number of new shares, which means it can buy more machines (or whatever good use it makes of the extra money), which means more profit which means a higher future sp for shareholders.

Great post lotto. There's a lot of interesting stuff in the filings and would urge anybody to read through the F1/Prospectus themselves if they have the time and patience as though it is a very long and at times tough read there are lots of interesting things in there and different things will be of different interest to different people. Even a quick glance through can be rewarding.

One thing though Lotto is that I feel we shouldn't get too hung up about ADR vs ADS. It is confusing as you say and technically you may be right (I'm not expert enough to know) but the document consistently refers to each ADS representing ten ordinary shares e.g. very near the start it says:

"Each ADS represents the right to receive ten ordinary shares and may be evidenced by American Depositary Receipts, or ADRs".

So if ARB frequently refer to ADSs as being worth 10 UK shares (as they did throughout their RNS announcing the launch) it will only cause confusion if we start referring to a 1:1 relationship.

The important thing is that whatever it is called they trade in units of 10 on NASDAQ compared to the UK.

Blubay - it was 12m but the latest filings changed it to 5m. Hard to keep up with all the changes!

Northfork - yes is the answer to the first question as they will be able to trade on OTC still (at least for now). In any event the ADS represent ordinary shares anyway (on 1 ADS for 10 ordinary shares basis).

No (mostly and probably) is the answer to your second question as only a few shares (5m or so in UK terms) are subject to a lock in (of 90 days) . I say probably as although this is what it says in the prospectus it still says a 180 day lock in applies on the ARB Nasdaq IPO page.

"Travel is still filled with restrictions, red tape and uncertainty" - True but a lot less now than 24 hours ago. The SP has already recovered to nearly the equivalent of its pre-RI share price (638p is the new 789p) and though some of the news will be priced in there should be enough that isn't to push the price up from here. But like any sp nothing is certain and anybody that says otherwise is not worth paying attention to.

Chuz - agree with your analysis. The only thing that really matters is that ARB manage to raise as much cash as possible in this IPO. If the share price wobbles after that then so be it but I suspect other positive news will shortly follow (e.g. new machines) that will help steady things anyway and we'll push on nicely from there.

It's a shame though that some on this board can't be more tolerant and respectful to new posters. It's hardly welcoming.
But I suppose there has been so little real trolling recently that those who get off so much on bashing them are a bit starved of late so will bite at anything.

Tip for any new posters though - make your first post a positive one :]

Agree Wolf - but as others have said below this doesn't affect the company, just us and probably only then only if we're looking to trade as any short term volatility will probably have no impact on longer term sp. For the company it is the initial offer price that is key and this will have a permanent impact on the business and hence the future sp as it dictates how much they raise and can make use of. So I would argue this affects us much more than any wild swings after the IPO next week and if this price is being driven up by the recent surge in sp then that is brilliant news.

If the IPO offer price does reflect the change in sp since the assumed $18.40 given in the latest prospectus then this is a really big deal. As it stands that would lead to an additional $35m approximately assuming all the shares are taken up .

To put this into context this would mean that most of the Galaxy Loan could be paid off by the extra funds from the IPO alone. Or would buy perhaps machines generating around 500PH?

Like Amanensia says though, I don't think it is as simple as that but hopefully at least some of the recent price rise will be reflected in the initial offer price and if it is then the share price next week when the IPO price is actually finalised/agreed really does matter.

Just a reminder what it says in the prospectus:

"We are developing a 200 MW mining facility on the newly acquired land. Phase 1 of this development is expected to be completed in the first half of 2022, and includes facilities that are expected to support 100 MW of power capacity at an estimated cost of $50 million. Phase 2 of this development is expected to be completed in the second half of 2022, is expected to support an additional 100 MW of power capacity, at an estimated cost of $30 million. These estimates do not include the cost of the mining machines"

...and possibly precisely because the markets are closed

PG - Sounds like HL just try harder to sell them than Fidelity to! Or Fidelity just covering their backs more. In any case it sounds like you have nothing to worry about with HL if you do nothing but I'm still taking no chances given Fidelity's wording - though I bought anyway so academic in my case.

PG - I'm with Fidelity and they say if you do nothing then "your nil paid rights will lapse and you may or may not receive a payment for them". I expect you are right but personally I wouldn't want to try it (i.e.do nothing) and then find out the hard way.

aardvark - sounds like it varies a bit by provider then as mine is definitely a day earlier.

Both options (and anything in between) should still be open to you. The deadline I was given was 22nd Sep for take up of rights or selling them - didn't give a time but presumably close of play. Probably best speak to your broker/provider if you are unsure what you need to do exactly to exercise the option you want to do, and to check the deadline.