"What is the nominal issue price btw?"
Good question Seingred.
Orosur Mining Inc Com Shs Npv
I didn't know either, so I looked it up. NPV stands for No Par Value.
https://www.investopedia.com/terms/n/noparvalue.asp
Understanding No-Par Value Stock.
Companies may find it beneficial to issue no-par value stock because doing so gives them the flexibility to set higher prices for future public offerings. This reduces the downside risk for shareholders if the stock price sharply plummets. Because of the known fluctuations in pricing associated with the stock market, many investors typically do not deem par necessary prior to purchasing a particular investment. In addition, the production of stocks with a face value may result in legal liabilities regarding the difference between the current going rate and the par value assigned to the stocks, making them a less attractive option for issuers.
Sorry for posting out of date links.
The date on the first was very obscure, and I didn't pay much attention to the second.
I had tried to view the FT article, but like others could not access it, probably as I only have a basic account.
"The board/s of directors at AST decided not to perform and submit an EIA as requested"
That may well be the case Alwaysup, but it is not what they stated 3 years ago.
RNS 24th Sept 2020
" Following the Administrative Court of the Republic of Slovenia's recent confirmation of its decision to require an Environmental Impact Assessment ("EIA") in order to re-stimulate the PG-10 and PG-11A wells, a new technical team has been contracted to prepare a detailed stimulation plan and updated Field Development Plan. These plans will form the basis of an EIA application in due course. "
I don't recall any further updates to their EIA application, so looks like this was just more BS from the directors. This certainly will not help their case.
"Once reality is back in fashion, people might consider stricter emission controls as a viable way forwards."
We have seen what people think of stricter emission controls with the expansion of the ULEZ zone to cover all of outer London. The Labour party have lost by-election seats that they expected to win, people are damaging cameras, and poorer people have been forced off the road, as second hand car prices have shot up. Many cannot afford £12:50 every time they take the car out to go shopping.
It might be well and good if these measures would have any effect on global warming. But, as the UK is only responsible for 1% of worldwide emissions, our sacrifice will be next to worthless.
Well I have just read through effix03's posts for the last 3 years, and I cannot spot any favourable posts .Effix03 has been negative about the company consistently over that period.
"On 30 June 2023, the Company announced that its shares would be suspended from trading on AIM pending clarification of its financial position and, in light of this, that the Company would not be in a position to publish its 2022 Annual Report by 30 June 2023, as stipulated by Rule 19 of the AIM Rules for Companies ("AIM Rules").
The 2023 Interim Results are contingent on the finalisation and publication of the 2022 Annual Report which the Company will not be able to publish by 30 September 2023. Accordingly, the Company will not be able to publish its 2023 Interim Results by 30 September 2023, as stipulated by Rule 18 of the AIM Rules."
Would you lend money to a company that had still not submitted its annual accounts 9 months after the year end?
No, and neither would I, nor I suspect any bank or finance house. The company has offered no explanation why the 2022 year accounts have still not been published. This fact will have will have not gone unnoticed by potential lenders.
If you look at the share trades almost every sale up until 12:45 was an Automatic Execution, and almost every purchase was an Ordinary trade. So computers are selling and people are buying.
And of even more significance the profit margin increased to a healthy level.
Adjusted operating profit margin****
H1 2023 -- 5% -------- H1 2022 -- 1%
**** Adjusted operating profit as a percentage of revenue.
"Shares fell by 7% in early trading, as its order book came at the lower end of its outlook range of $530-$550 million."
Sales order book
H1 2023 529.7$m ----- H1 2022 325.9$m --- Diff = +63%
So they missed their target by a mere 0.3$m, but achieved a 63% increase on last year!
Operating profit
H1 2023 26.2$m ----- H1 2022 1.7$m --- Diff = +1,441%
The Operating profit increase wasn't bad either.
I too, thought that the results were quite good, and would have expected the sp to rise rather than fall this morning.
"I imagine AVO will only want to call one EGM on one matter"
They need to subdivide (multiply the number of shares) in order to issue new shares, and also wish to consolidate (divide the number of shares) as there are there are too many shares.
It will be interesting to see how they word the motions.
I still think that the main stumbling block is paying down the old debt with shares.
I suspect it is no coincidence that this is the first mentioned task in the plan, and the book build is placed third on the list.
"The prospective plan comprises three elements: (i) a debt to equity conversion (the "Debt to Equity Swap"); (ii) the Company receiving a new interest-bearing secured loan; and (iii) an equity fundraising (the "Equity Fundraising") (together the "Prospective Recapitalisation Plan")."
" I suspect the prospective lender would need more security than just some of the existing debt being swapped."
iWTO,
It is worth noting that the lender prepared to offer the £10m loan, is the same party who recently withdrew a proposed £8m loan offer. This led the cash shortfall, which resulted in the company's shares being suspended.
I suspect that they were unhappy for their £8m to be spent paying off old debt, so wanted most of this paid off before they would agree to lend the company any more.
IWTO,
You may be right about the timing of the loan coming after everything has been passed at the EGM. However, the Equity Raise cannot happen before the EGM, unless by some miracle the share price moved to above the Nominal share price. And as the shares are suspended from trading, that would probably be impossible.
Thinking about it, I am not even sure that the Debt for Equity swap can happen while the shares are suspended.
As for some suppliers and financial advisors being offered a haircut; if they pay at the rate of 2p per share, the dilution will be far, far higher. I am pretty sure that they are trying to squeeze the creditors, otherwise why use the term "Issue Price", and why fail to explain this term?
The other thing to consider is if it all happens at once, there is no time for the sp to recover, and consequently the subdivision required to issue new shares would not be to 5p as in my earlier post. It would be to 2p or less. Once again vastly increasing the number of shares in issue.
It will indeed be interesting Meldrew44.
While much of my post was speculative, the one thing I am certain of is that the £10m loan and equity fundraising are dependant on first securing a deal with their creditors to pay off a large portion of their debt. This will be at the mythical Issue Price, which is sure to be lower than 25p.
If they fail to reach an agreement on this, then the whole fundraising project collapses.
Sorry there was an arithmetical error in the last but one paragraph - mixed up my 25p and 5p shares. Corrected and rephrased below:
Following part (i) they have an additional 300m 25p shares = 842,573,869, and are likely to need at least a 5 for 1 subdivision, which would result in there being 4,212,869,345 issued 5p shares.
The part (iii) equity raise of c£70m in new 5p shares would result is issuing 70m x 20 = 1.4bn new shares. A grand total of c5.62bn 5p shares.
(Equivalent to 1.1bn 25p shares - or roughly double the current number.)
"Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, announces a prospective recapitalisation and funding plan to raise up to c.£110 million. The prospective plan comprises three elements:
(i) a debt to equity conversion (the "Debt to Equity Swap");
(ii) the Company receiving a new interest-bearing secured loan; and
(iii) an equity fundraising (the "Equity Fundraising")
(together the "Prospective Recapitalisation Plan").
Financing transactions - Target Amounts
(i) Debt to Equity Swap and debt repayment = £ 25.7-£37.4m
(ii) £10 million secured loan = £10.0m
(iii) Equity Fundraising = £61.7-£73.5m
TOTAL = c.£110m"
How it might work. Each step is dependant on the previous step being completed.
(i) Debt to Equity Swap and debt repayment = £ 25.7-£37.4m
Let's assume that a mid number of creditors accept this - and £30m of debt is agreed to be converted into shares. This will be repaid by issuing 25p shares, but suppliers and borrowers will be offered to settle the debt with new shares at the notional Issue Price of say 10p.
To repay £30m at the current 2p price would require issuing 30m x 50 = 1,500,000,000 new 25p shares.
To repay £30m at a notional Issue Price of 10p would require issuing 30m x 10 = 300,000,000 new 25p shares.
In real value the creditors will have received 20p in the £, or one fifth or what they were owed. An 80% haircut may seem harsh, but the company is threatening administration.
(ii) £10 million secured loan = £10.0m
This has been agreed with the lender subject to AVO clearing most of the old debt.
At this point the company's shares suspension could be lifted.
(iii) Equity Fundraising = £61.7-£73.5m
By completing (i) and (ii) by issuing 300m new shares, clearing most of the old debt, plus arranging a new £10m loan, the share price would be expected to rise, as the threat of insolvency abates. However, it is unlikely to rise to 25p. So the company will need a subdivision before they can do this. Assuming the sp rises above 5p:
They have an additional 300m shares = 842,573,869, and will need at least a 5 for 1 subdivision, which would result in there being 4,212,869,345 issued shares..
The equity raise of c£70m in new 5p shares would result is issuing 70m x 20 = 1.4bn new shares. A total of c1.82bn shares.
Now the visibly shocked directors will be able to perform their hoped for share consolidation. However, they would be wise to keep below the trading value of the shares, or they could soon again find themselves unable to issue any shares.
"My guess is that might be by the end of this month."
Not a chance of that happening by then Meldrew44.
To consolidate or subdivide the shares, they need to call a general meeting. They have to give at least two week notice to call an EGM.