Member Info for Hexam

Thanks for the update Mike. Good news and very useful as always. Cheers.

That's ok - maybe I should have spelt it the same as the Northumbrian town after all as most seem to use that anyway :(

@Rr101 - The shares traded on OTC are the same as those on LSE - it's just a different place to trade the same shares.

The shares on NASDAQ are actually represented by something called American Depositary Shares and these ARE different to UK shares. However, the price of these 'shares' and UK shares will move in line with each other as any small gaps that open up will quickly close.

So we will move in line with NASDAQ pricing (or they with us) so all will benefit or lose the same depending on how the market reacts. Although this is a dilution, it is funding for (likely very profitable) growth and gaining better and wider access to US investors and funds. So personally I see this as a good thing and expect the sp to be positively impacted both short term and particularly in the long run - though we haven't seen the terms of the fund raise yet and each should make their own call obviously when we do. Hope that helps.

@Chaebol - I'm not too bothered about it actually. It's a lot of shares/money but to put it into context one of the MARA chiefs got a tasty $50m stock bonus in Q1 and I think (as PW said) that generous stock compensation is par for the course in the US to attract top talent.

The $50m was related to mcap and I would have thought the 76m will be (largely) related to performance - though admittedly the wording I read was vague and hard to decipher - so more clarity would be welcome. Assuming it will be performance related then I don't have a problem with employees being paid very well if the company and shareholders are doing well. After all the company has already made millionaires of some shareholders - sadly I'm not one of them and still underwater - though a lot less than I was yesterday!

Chuz - I’ve done a bit of that kind of work. Not always the most popular of roles is it?! Still, as far as I’m concerned keep the doubts coming and good luck with your all-in position - though the optimist in me doesn’t think you’ll need it :-)

Chuz - I think if you're 'all-in' it must be a bit like being a die-hard football fan. You're either the sort that defends them whatever they do or the sort that's always complaining about the team and in particular the manager. And like here the two groups don't tend to get on.

As a 'diversified neutral' as far as shares go I must admit it's good to hear optimism but I'd rather listen to the moans as they are more likely to challenge my outlook and if I can answer those challenges in my own mind I can feel more confident. The good news merchants are just saying what I want to hear, not what I need to hear. Out and out de-rampers (the 50p mob) though are just best ignored. Just my take though.

AB - As K3 says I gave an example earlier i.e. Abcam as it was very comparable - took 3 weeks through to results of offer. Just one example though.

The link below seems to give dates of IPOs (not just NASDAQ though) and the couple I matched up suggested a short term frame but haven't looked closely so not sure whether dates are appropriate or situations are similar at all to ARB.

https://stockanalysis.com/ipos/2021/

Excellent point Blubay although your typo on the amount may alarm (or excite) some people! It's $75m folks.

The announcement today is the same as the one Abcam (ABC) announced on October 5th 2020 as they took exactly the same route to dual listing on NASDAQ (through ADS and an IPO).

Two weeks later they formally announced the offer and within a further week they announced both the pricing and the subsequent result of the offer.

Obviously this is just one example (haven't managed to find others directly comparable to ARB) and so no guarantee that ARB will follow same timeline but at least it indicates that things can move very fast from here and that Q3 is still very much on.

K3,

Agree with what you say but the first note to the $75m says:

"Includes the aggregate offering price of additional ordinary shares, represented by American depositary shares (“ADSs”), that the underwriters have the option to purchase."

This suggests to me that the number already includes any shares the underwriters have discretion over but as others have pointed out the $75m itself is a draft (maximum) number though personally would not expect it to change.

Eddie - these are new shares (in the form of ADS) to raise new capital (up to $75m according to the draft filing).

The OTC shares are actually just the same Ordinary shares as are traded on LSE.

Possibly, I saw the caveats too but I would have thought they would have a pretty good handle on how much capital they were looking for, especially as it is a maximum. Besides, why put a number on at all if unsure. By necessity the price per share can't go on until they make the actual offer so why not just wait until then (unless of course they had to). Either way, we'll find out both the amount and price soon enough.

Chuz, no problem. The info is definitely there but the RNS was very long and so not easy to find anything. The format is easier to read on the argo website if you are interested but tbh most of it is now in the F1 form anyway and looks to have better notes (though haven't looked in detail) so probably better sticking with that.

That makes sense Blubay, it just leaves more uncertainty about how the rest is going to be funded. As mentioned before I would expect them to use a mix of all the options depending on what they feel is best at the time but was just hoping the IPO would make a bigger dent - but you point explains why, thanks.

I'm not sure but there's an easy way around this. If for example if they make each ADS the equivalent of 3 UK shares then that would do the trick.

chuz - I understand and agree with your desire for better info but to be fair most what you have been referring to WAS released in an RNS (on the interim results) - including the 254 ETH held, £35m paid for machines not received etc.

The only two significant bits of new information on first skim through that I could see are:

1) The $50m cost of facilities for Phase 1 of Texas plus $30m for the second phase but this is not to kit out Texas as you said as it does NOT include the cost of any mining rigs - these will cost much more to utilise all 200mW.

2) The maximum value of shares to be issued in the IPO of $75m if I am reading it right. It seems very clear (at the front of the document) but am uncertain this is right as this seems very low considering total cost of Texas including machines. So would appreciate if anybody has any views on whether the $75m is correct. If it is then clearly they will use other sources to fund (e.g. the £100m loan facility, other loans, more share issues, sell BTC, future profits etc.).

Overall this all seems positive to me though I was hoping more would be raised from the IPO (if the $75m max is correct).

Golf - I agree the price should be a similar price to the SP but the question is what will that SP be? Like Blubay I think the price will be higher than it is now as would expect ARB to try to get the price as high as possible (by releasing good news on machines etc.) as their aim is to raise as much money as possible.

It does matter to current investors what this price is as the fewer shares that ARB need to issue to get the capital they want then the less the dilution for existing shareholders. Also if the sp falls too much then the IPO probably won't happen at all.

Just in case the anti-FUD brigade pick up on the word 'dilution' I expect the share price to increase after the IPO because of the strength of the Texas case (i.e. that it leads to an increase in earnings per share) but obviously the more shares they need to issue the lower this increase in earnings per share will be.

ah I see, sorry for misunderstanding you - in which case I agree :-)

Blubay - Surely the IPO price is largely determined by ARB and I wouldn't expect them to deviate too much (either way) from the existing SP other than making the US price a multiple of the UK one to give a high dollar value (so each ADS may the equivalent of, say, 3 UK shares so the offer price may be around three times that of a current UK share).

If the IPO (without multiple) is 195p when the UK one is around 120p then I can't see many people buying it? Unless I've got this all wrong?

Good early test of the charter :-)