Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
The company is not about to go bust. There is £1.5m available for drawdown under the Mezzanine loan which is convertible at a much higher share price (10p if I am correct). The CLN debt remains in place too, all confirmed by PF. The difference now is if you vote for the resolutions PF will have the green light to dilute is into oblivion. The nominal will go from 10p to 0.1p. The gravity of this in the mid-long term needs to be fully digested. This vote is time for shareholders to come out in numbers and make their sentiments felt. This is a family business, PF will have to buckle up and listen if he wants to carry on milking it for the forseeable
PF is simply lining his own pocket. Unless he stumps up money and takes a larger stake in the company he is not aligned with shareholders, simple as that. This vote gives us the chance to send a message to him, a kick where it most hurts. He will have access to capital for H1 and will need to start thinking about taking us seriously or walk the plank. Firmly voting against
This is what I got back from Peter today:
"If the resolutions do not go through and the placing does not happen the mezzanine loan is still in place however that will become costly and the CLN debt remains in place with repayment due in 2021 and we have to pay the costs of the transaction even if aborted. We would also no longer have the institutional shareholders we have just secured - so it would not be sensible for shareholders to vote it down."
He didn't mention that this will create a squeeze where placees will scurry to close their positions thus pushing the price up well above 7p imo. That will give an exit to all those who averaged down in the 4s, either at a break even, a tidy profit or minimal loss. I will be voting it down.
Forward selling placees: Do I take their shares now or vote down the resolution and then sell mine to them for much higher. The latter sounds more attractive and will certainly pave an exit. If the vote is a no, short time SP spike will grant an exit and if it's a yes then funding secured and debt cleared gives a foundation to build on in 2021. In both cases it's a win-win.
The company won't go bust. They have cash and access to a decent chunk of the Mezzanine loan. Today's raise at 4p is simply baffling. They were H1 cash generative, had £1.3m in bank and over £1.4m available from an existing facility which was much less dilutory than today's raise. They have advanced negotiations for multi million £ deals and this is what the produce for finance, shocker. I'm in from 6.2p and therefore less affected than LTHs but nevertheless it's a shambolic mismanagement of shareholder trust
This new finance arrangement is much worse than any they had in the past. People blame the CLNs but they were being converted at much higher and nothing like the quantity of shares announced today. We also had the nominal buffer of 10p to fall back on but that's gone.
One must also bear in mind that this vote gives the company the right to raise at anything above 0.1p! The nominal goes from 10p to 0.1p. I will not be voting yes to this knowing full well that they have access to capital. The Mezzanine loan did not damage the price this hard and is still available for drawdown.
They had £1.3m end of H1 and over £1.4m credit facility still available from the CLNs which were less dilutory by a country mile. The company is not about to go bust. Today's fund raise is a total mismanagement and disregard of existing shareholders. I will obtain vote by proxy form when published on the website later and vote against the resolutions. Should the raise get voted down, there will inevitably a price squeeze. The company has access to capital and will have to start taking shareholders seriously before proposing such a ludicrous price. Let's see how this plays out.
Lot's of forward selling going on today by investors who are hoping to cover with placement stock. Imagine if the resolutions get voted down at the GM. 90%+ of voting in retail hands. Could see an almighty squeeze. I am considering as voting against as I find it hard to believe they couldn't come up with better financing terms, 4p is farcical. If we get majority vote against, BoD would need to reconsider terms and probably consider coughing up some funds from their own pockets too.
I have revised my new target down to 8p. This will take a few months in my opinion unless news lands sooner than anticipated. The churn will continue in the fours as existing holders average down and new investors come aboard awaiting the inevitable ramp. Think we are down here for 2 months. Company will provide a H2 trading update which I expect to be poor given the wording in today's RNS. All bad news will have been priced in and 2021 will be underway with cash in the coffers, no debt/CLNs and a plethora of opportunities. With the vaccine roll out trading should resume to a level of normalcy. It's a buy down here imv
How many holders are planning to vote down the capital reorganisation? They cannot issue stock at the 4p placement unless it is voted through by shareholders. The Company currently has received irrevocable commitments to vote in favour of the Resolutions in respect of 9.2% of the equity base only. That's 90% of voting pending.
Excellent RNS with funding terms secured on favourable terms. 7.5p warrants to pay back loan is 41% premium to current price. Board are starting to move this forward. With multiple work streams and now cashed up to fund, think next 4-6 weeks will be massive
Selling down here is akin to a mugging. This is a strong buy imv. There is a possibility our seller could drag us down to the 5s and if so I intend to carry on buying. One rarely catches the bottom although there seems to be a decent support here. I hope LTHs get to their targets but I would put a ceiling at 20p for now and discount any pie in the sky valuations. Market mechanics will do its thing and the SP will remain 6-20p range bound until something big pops up. Until then trade the ranges is the way to go
I hear you buddy. Downside 6p, sell at 12p. This is the easiest bag you'll get. Happens every year, sometimes twice. I've been in and out of WSG and very happy with the 100% returns. Back again and hopefully not long to wait
The way I see it, downside takes us to low 5s, upside 20p+. Risk reward ratios skewed to the upside in my view. When the share price turns so will the sentiment on these boards. It always does and I this time the case for it is even stronger than previously.
I see some very upset LTHs here and rightfully so. It is frustrating when a share price cannot hold a level but in my view this has always been a traders stock up until such a time they nail a MSC backed with significant revs. However, what is clear is that the price has fallen back even though the fundamentals are the strongest for years. The market is not pricing this correctly or fairly. The valuation will come in line and sentiment will shift when the market wants. In the meantime savvy investors will recognise the cheap stock on offer, position accordingly and patiently wait for pay day. Think Q1 2021 we will be trading much higher and I am happy to keep buying at this level until the purse is empty. Good luck folks
New Align article published today outlining the near term valuation catalysts
http://www.alignresearch.co.uk/ascent-resources/ascent-resources-bit-claim-slovenia-seems-keen-settle-cases/