Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
A cash box in shares, also known as a cash box placing, is a complex financial technique used by companies to raise capital quickly and efficiently. It's not a physical cash box, but rather a structured process involving the issuance of new shares in exchange for non-cash consideration, typically the transfer of preference shares in a special purpose vehicle (SPV).
Here's how it works:
1. SPV Creation: The company establishes a subsidiary SPV, essentially a shell company with no operations.
2. Investment Bank Involvement: An investment bank subscribes for preference shares in the SPV, providing it with cash. This cash comes from the proceeds of a placing of equity securities of the company (the "placing" pay the offer price into an account set up for the bank).
3. Share Issuance: The company then issues new shares to these placing in exchange for the transfer of the preference shares in the SPV from the investment bank. The SPV's only asset is the cash from the placing.
4. Company Control: Once the company acquires all the SPV's shares, it gains access to the cash raised through the placing.
Benefits of a cash box placing:
• Speed: This method allows companies to raise capital quickly without convening shareholder meetings or seeking their consent.
• Flexibility: Companies can issue a larger amount of shares compared to traditional disapplication of pre-emption rights.
• Cost-effective: It can be cheaper than other fundraising methods, as it avoids additional regulatory requirements and fees.
However, there are also some drawbacks:
• Complexity: The structure can be complex and difficult to understand for investors.
• Dilution: Existing shareholders may face dilution of their ownership as new shares are issued.
• Potential for Manipulation: There is a risk that the process could be used to manipulate share prices.
Here's an analogy to help understand the concept:
Imagine the SPV as a box filled with cash. The investment bank buys the "keys" to the box (preference shares) using money from investors (placing). The company then buys the keys back from the bank, gaining access to the cash in the box (proceeds from the placing).
Overall, a cash box placing is a powerful tool for companies to raise capital quickly, but it's important to carefully consider the benefits and drawbacks before using it.
@Rooky, keep up the good work matey!
Has anyone give there feed back after the AGM? I have.
The board's avoidance of direct answers to shareholder questions raised concerns regarding their commitment to transparency and accountability. This lack of transparency fosters an atmosphere of mistrust and doubt among investors. The absence of clear explanations for key decision-making processes suggests a deficiency in forward planning and strategic foresight. While certain restrictions may apply under AIM rules, resorting to these restrictions as a blanket excuse highlights areas that were not adequately addressed prior to prior fundraising. This raises serious concerns about the board's capacity for contingency planning and risk management, potentially deterring serious investors from committing funds to the company.
A loss so far of 97.303% on my investment, I cannot see this turning around, just waiting for the axe to fall.
Its a very slow start but |I am sure it will pick as soon as the details of the business become known better
Always potential nothing fixed! How can a company with a patented idea in a pandemic screw up so much!
My biggest loss to date 55% down. Don't want to say the figure, it is to depressing!
Cut my losses and moved on, This has to the worse share I ever had the miss fortune to buy, A board who seam content to sit back and "lets see what happens" what a joke!
It looks like a lot of people got the wrong idea of what days meeting was going to result in. I think we will see a drop off in the SP tomorrow as shareholder were expecting something different!
The phrase dead duck springs to mind!
Looking at a sea of sell, sell, sells! All you need now is an iceberg and this share would be considered the Titanic!
The longer the BOD take to issue a positive rns the shares will continue to slid as it suggests that after the reported actions of last week there is no plan in the short term to stabilise the sp. This makes investors twitchy and more likely to take a hit and move on. Fingers crossed they issue an rns later today confirming current production levels and a time scale for increasing over the coming weeks, this should stop the slide and raise investor confidence.
HeresHopin you learn some manners! what goes around comes around.
It was a simple joke, why be so offensive? I didn't insult you?
I was being Ironic!
What else could go wrong today!
Why but in today and push the price up? wait until tomorrow so the price stay low and the granted options have lower value!
Am I missing something here? a sea of red, sell, sell, sell!
Is there negative news on the way?
Why jump ship now if the masks are ready to manufacture?
I have my shares thru X-O (Jarvis Investment Management) any they want £20+vat to put my vote through.