Update6 Jul 2019 13:02
I was at the AGM and along with a few other PI's the issue of raising funds was specifically discussed with PF afterwards.
MikeGP's post earlier was spot on and so I've copied this and commented on it below :
At the AGM a placing was discussed,... but purely to facilitate real contracts..e to facilitate the Iran contract ( which is not seen as happening in the short term)....PF said we would need circa £5m..... less for smaller contracts. Dependant upon the contract this might not be an equity raise,.. might involve more traditional loan/debt etc., ---
In addition to the £500K cash at time time of the AGM,.. we had income of circa £3M from the new tech contract due in one the next 5 months,.... and once the contract in Ghana is signed,.. we have immediate income from that.
Knowing how we have been diluted on the past,,... I doubt that they will go for a placing without an associated contract as a 'carrot'... and IF they did,.. given Ghana is likely to come on line soon,.. then I would imagine that it would be just enough to keep the lights on etc.,
I would add that PF stated he wanted to minimise dilution, as he's always wanted to as such a large shareholder, and so would not look to raise all the funds from the market i.e. he hoped that we'd be in a better position to get good terms from banks etc.
I heard it a bit stonger that he would only need to raise funds if an ADDITIONAL transformative managed service contract was signed on top of Tema....wow that would be happy days for us all. If this situation arose I suspect there will be a combinattion of bank lending and a small raise and he'll use the opportunity to pay off the CULN. He reitterated his desire to pay off the CULN early....I suspect this may be a home for the ealy returns from the Tema contract.
Just my take on things.
Happy days
HB
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