Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Demolition123 I'm not sure what you call as a stitch up? People's comments on here bare no relation to the likely reality, fair will be that we get 2.25 on the open and anything above that would be a bonus. All the people saying this will be a multi bagger will be disappointed as the value of Redwood is probably only that which is being offered up as equity swap.
I think people need to remember getting out with 2.25 isn't a bad result as Mode had absolutely no liquidity, the RTO is the only thing which has stopped them from administration.
The updates don't mean a thing if you can't buy or sell the share.
Given the market cap of R8 of circa £2.5m and the price of £50m suggested in the RNS.
The RNS also says the purchase will be a share capital swap I'd say it is impossible that we get between 10-20%, likely outcome is 5% after dilution.
A 20p re-entry would then value redwood at circa £450m, so no chance. I think if we're very luck we might see 5p but could even drop.
I'd assume that they get absolutely no benefit whatsoever by relisting early, so doubt that they will.
No guarantee of what Crypto looks like when this re-opens. Last bull run people were talking about £100k, £500k and £1m bitcoin within 12 months and then it dropped.
Also IF the crypto licence is used and that is a big IF, does it add value to redwood bank or does it deter investors that fear the unknown.
As Jonathon Rowland has his finger in both pies I think they are using Mode to bring Redwood on the market with less costs than doing its own IPO. The added bonus for Rowland is he may get a bit of a bump on his Mode stock as well as his Redwood, perhaps he pans to offload them which he couldn't do if Redwood was not listed.
If the main intention was to use the crypto license Redwood would have been buying mode rather than a reverse take over.
I'm not saying they won't find a use for the crypto licence, but it may not be of the value people anticipate and it may not be an immediate use. If this was their intention I'm sure they would have included it as part of the initial RNS.
What's interesting is that Warrington Council value the whole business at less than £20m but it is being sold for at least £50m. I'm sure the council didn't pick their valuation out of thin air and was value professionally no doubt by an auditor at one of the big accountancy firms.
This does not look good for a dilution and then rebound in my opinion.
I don't know if you've ever looked at this
https://www.r8plc.com/investors/significant-shareholders
All of the significant shareholders are listed on the website.
JR Spac 1 is owned by Jonathon Rowland
I'd assume the 16% with Hargreaves Lansdowne are retail investors.
HSDL Nominees is Halifax share dealing which I'd assume are retail investors @ 13%
I don't know who Aurora Nominees are who hold 9%
Interactive Investor are retail investors @ 8%
Lawshare Nominees are AJ Bell which I'd assume are retail investors @ 4%
J P Morgan Securities are retail investors @ 3%
I don't know who Tulham LLC are @ 3%
Goldman Sachs are retail investors at 3%
I'd think at least 47% of the investors are retail based on the information out there.
The majority of investors are large backers already and the minority traders.
So what are the objectives:
1. Business want's to raise capital, this happens regardless of offering shares at a premium or discount.
2. Jonathon Rowland and his friends which have their foot in both camps want to retain their wealth.
If it is offered at a premium, the moment the price increases the majority of retail investors sell up and the share price dives so on paper objective 2 is not filled.
If they offer the shares at a discount the majority of retail investors won't have the balls to put their money where their mouth is and then Jonathon Rowland and his mates hoover up the slack which maintains the share price. Creates them wealth (on paper) and the majority of retail investors see less growth even possible reduced growth from where they are now.
I think he will want the backing of the existing investors as he knows they are good for it and it will therefore be offered to everyone at the same deal.
The big corporate backers won't lose loads as they will hoover up whatever is offered to them for share placements. It will be the retail investors that cannot afford to take up share placements that lose out.
If you bought at 2p I'd predict a single or double bagger. Which some would consider good but I don't personally for the stress and risk that there was with this one.
But if you get given the option to buy more in a placement you could get a good return on buying more.
I first entered at 70p and averaged down to 1.3p for a grand total of £3k.
When the suspension was lifted I sold at 2.4p and bought back at 1.6p and repeated this cycle until I had £11,200 worth of shares.
I bought back in for 2.6p so feel pretty comfortable.
This isn't going to be easy money, the new share holders will do better than the old shareholder, so we'll have to put our money where our mouth is.
This is what I see happening and you can play around with these numbers as much as you like to get different outcomes.
Current Market Cap is £2.32m and current share price is 2.2pence which means there is circa 105million shares already in existence.
RNS says purchase will be at least £50m that to means more than £50m and less than £100m so lets take the average at £75m.
Yes they could just issue more shares and give them to Redwood but then Redwood would be in no better position than now so I think they'll do a placing for a value identical to the purchase price. So they may issue say circa 3.5billion ne shares at 2.2p.
Quite common with placings they off the shares at a discount of say 20% so it may be more like 4.5billion new shares.
You'd like to think the placing shares are offered to the share holders, so if you had £1k worth of shares you'd be given the opportunity to buy circa £30k to £35k of new shares.
Then once the purchase goes through redwood bank would have another £75m cash on their balance sheet and the million dollar question is what would they be worth. Lets say for arguments sake £200m this would see a share price of less than 6p due to all the new shares in existence , so I think the share price could go up 100% to 200% max.
To get the maximum benefit of this we'd have to take them up on the placing.
I've got over 400,000 of these shares so could never fully take up a placing of the levels above as I'd need to stick in £350k but I'd happily stick in £100k if the above scenario was offered.
Which one are you interested in challenger or mandrake?
I've already got a decent position in GGP and SOLG in the UK.
Have just sold HOC and FRES and am looking for something else, not wanting all my eggs in one basket.
If anyone was interested in the article search street wise reports Zonte Metals the Eye of the Storm. LSE removed the link to it.
Does anyone have any thoughts on a canadian explorer called Zonte?
A good article https://www.streetwisereports.com/pub/na/17686 sums them up. Just wondered what other peoples thoughts were before I stick a bit in.