Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
So Bergen have option of circa £1.3 mm worth of shares at 92% of last 5 days weighted average ( today will impact) assume at £0.0028 they could receive 465million shares if they elect to convert
If they play clever buggers and try to forward sell some of these, to push the price down over the next 5 days prior to conversion to obtain more shares they run the risk of Vast buying the convertible back before they convert!! Would really love that! But feel all about unlikely
Will they hold off conversion in an effort to tempt VAst to take T2B? Don’t know
The RNS still says T2 expected but it is a bit of a miss by the BoD
Bergen May be happy to hold 464 shares at 28 especially if they feel positive news is pending
All bit sad that vast had put themselves in this position. Does feel like 20’s now the normal price for vast for some time. How long before slips into the teens
Arrrggh. Bloody AIM!
I guess like many others my strategy continues to hold and await the definitive news
I am not expecting T2 yet despite what AP says. Hours/days??? Weeks/months!! He says he doesn’t know and hitting timelines not the company forte.
I don’t believe in miracles and therefore T2 coming in hours befor le Bergen is possible to convert is not for me!!!
Next question therefore is will Bergen convert removing the option to buyback?
Dunno... a conversion dilutes.. drops the SP and then puts Bergen at a loss until good news received.
Issue is next news could be T2B drawn.... followed by placing for £1.6m utilities resolution 5&6 from EGM....
Company would have additional £3mm to move B.P. forward. But dilution would be nasty...
Is this plan B and Plan C???
Diamonds in my mind are discounted. They are a glittering distraction.
Zimbabwe don’t award to vast. 2bn shares available to progress B.P. and other projects
Plan D contingency?
Still the start up plan not completed by vast
Photos show what?
Uncomfortable
Yep... no way T2 is going to land at the last minute...
Still we have no rationale for the delay... just that vast have done what they can.. out of their hands...
latest request for 1bn shares is for work cap... sure fire sign next placement is coming early Feb
May use Bergen T2 and place or just place
Diamond news. Company has done all they can.. out of their hands...
Planning for debt facility via loan to move operations forward
Level of security requested suggests circa £4-£6mm
Production gets up underway utilising current facilities and T2 from Mercuria providing ability to service the debt and continue to progress other operations
Positive about T2 coming through
Positive in progressing Red Mercury to enable swift progress
Directors own decent holding in shares
What’s not to like...nothing changed today, progressing as previously announced
Moving on up... keeep it going AP
On diamonds......
Reference to consideration about future funding.... discussion of debt finance via a loan... under the sub S terms is this precluded?? Therefore do I assume SS facility is therefore expected to be cleared?
Having some collateral to secure a loan is always needed... just concern that expansion plans are stretching the company and revenue would be needed to make loan repayment to to ensure no default.
Is there any possibility that the right to issue the 2bn shares is limited to loan security ( prob not) I would feel happier knowing that once they have the rights they could change their mind and simply use for similar facilities to the current Bergen bridge
Bergen facility
We knew the request was coming.... speculation o. The impact of conversion has been topic for a few weeks now. Still we await confirmation as to whether T2 from Mercuria can be used to clear T1B or whether it is likely Bergen wil want to convert T1B at earliest point. I flip flop in my opinion and can see scenarios for both cases.
BP
Scratching my head a little as I am still no clearer in understanding what the delay is...
Right to mine given Oct 18.
A comprehensive start up and mining plan for Baita Plai is now near completion by the Company’s technical director..... is this what is holding things up? It is the only point mentioned that is outstanding and surely this is in the company’s control????
Further details of this plan will be released shortly. The successful implementation of the plan will transform the Company finances.... retain my necessary for any future loan ( point above) but continued delay in releasing any details.... October18 right to mine.... over £2m additional raised, request for substantial more head room and still no start up and production plN in place.... that concerns me
As at the date that this letter is printed Tranche B of funding from Mercuria, amounting to $5.5m, is expected very shortly. However, on account of the factors mentioned above caused by the delay in the right to mine and also because of increased development capital required by the accelerated move to full production, additional capital and hence additional authority will be required
I am not clear what the delay in T2M is... I understand money is needed because it has t arrived, I would like to be assured that when (if) it arrives it sub S will be cleared ( charge given to M as security) which will free up option to take loan and ideally whether the proceeds will be used to settle Bergen ( if not converted)
Listening to podcast AP explained his expectations for T2, closing documents around 7th with resolution by 20th...
Still all to play for and waiting still to see how the next few days pan out
Bought my average down £0.00023 today!
On the one hand great to see notification coming through of an award of 1 of the training 4..... perhaps news is close for Vast??? Assuming Alrosa are a replacement for DeBeers. On the other hand perhaps early suggestions that vast were one of the 4 were simply.... rubbish and the chimes are about the scoop a prize???
As we have seen and said so so many times.... until it is RNSd and the company confirm it don’t mean diddly...
Another little something to give to the debate! Nice find gkb
Good assets, debt repayment and long term structure being worked to with future revenues expected at current mcap. Cash and profit generation promised to maintain the company going forward. Multiples of current MCap suggested. Mid tier company with diverse operations. Promos of £5.5mm via T2 of offtake
On the other notified issues and continued historic debt restricting options. Cash flow very poor with requirements for general placing(£1mm) and conv notes ($3mm). Unconfirmed rumours of project updates continue (BB and diamonds). Unknown cash requirements... given recent fund raising activity will 5.5 be sufficient? Team not great credibility in hitting timescales
Can see why plenty waiting for definite news, even knowing that could miss first rise. Risk mitigation for the alternative which for current holders would mean dilution or worse.
I hold, now at an av of 39.8 and have 6.34mm shares. Not a huge amount but the paper loss looks ugly
GL all Kew
Certainly
A couple of observations on the podcast
1) Blueberry updated expected first week of 2019
2) ref to resolve T2. Mention of date as 7th being when “technical issues” resolved with closing documentation completed by 20th Jan
3) again clarification as to why Bergen required. Hamstrung by previous funding covenants. Also repeated confirmation of acting in shareholders interests.
Big statements these and all credibility put on the line.
Interesting and critical week for vast and AP. Multiple mentions of plan B and C to prevent conversion of the Bergan convertibles.
A good listen if you haven’t heard it before and a good reminder of what the CEO and board are looking to do if you have.
GL for the week
Kew
This week some may say it is about to get real serious.....
Fear can keep us up all night long, but faith makes one fine pillow......
I am fully expecting some turbulence this week.
We have £1.5mm Bergen loan which could be converted into shares at the end of the week coming
That is circa 500mm shares or approx 9% additional.
The chairman said “We have only undertaken this transaction as a short-term bridge of a limited size pending the receipt of the expected $5.5 million Tranche B pre-payment finance from Mercuria, which we are expecting to complete within the 30-day period prior to the conversion rights on the Convertible Securities becoming effective. ”
So what happens after the 30 days?zm
“Company may elect to repay each tranche in full within 90 days of execution date, subject to prior conversion rights which arise after an initial period of 30 days from the date of each advance.“
So what price and how much dilution?? Well given where we are this weeks SP will determine this.
Clause states....
b) 92% of the average of five daily volume-weighted average prices of the Shares on AIM during a specified period preceding the relevant conversion
Say nervousness gets hold of the SP and it drops back to mid 20s, given this week’s rise perhaps a sell of would push it back there? @92% if say 25p.....
$1.5m/1.2= £1.25mm
Assumes If Bergen convert they will own 9.5% of the company, but will be down $1.5mm ( less their fee $170k and pre sold 68mm shares say $230k)
Will conversion impact the SP? What return will Bergen want from their investment?
So VAST can repay upto 90 days unless converted.... is it likely Bergen convert at the earliest point?
That level of dilution of course is only half the story for this chapter as the loan has another tranch which can be called
The second Convertible Security will have the nominal value of US$1,575,000 and is expected to be issued within approximately a week of the date on which the Company obtains authority from its shareholders to allot Shares and to grant rights.....
But the company has not yet asked... curious as “such approval from the shareholders not later than 31 January 2019.”
Still time for that though.....
Let us not forget....
“The proceeds for the issue of the new 68,000,000 Shares and the Convertible Securities will be used by the Company for long term lead items on Baita Plai Mine, initial expenditure on the Heritage Concession for diamonds in Zimbabwe and general working capital.”
So if the company is going to ask shareholders surely an update on how this has progressed...?
My musings... faith makes a great pillow... maybe not the multi bagger returns immediately... maybe a few more painful days to come... but the company is working to progress our assets and are trying to get the cash to do so whichever way they can... whether this works out for us... I think this week will prove a good barometer
Kew
Hey Fantasy, hope all okay.
You just popped up and came out of nowhere
Bit like the guy with a premature ejaculation problem ...
It is nice to see the SP rising...
You talk about AP delivering as though this is a 1 man band.. odd that.
The company has some achievements over the last 12 months and some would say with a strong headwind
Ignoring the SP fluctuations, on balance I reserve judgement... like you until we see whether the company delivers as recently announced reference the bridging loan... certainly not all plain sailing... but I hope the risk / reward balance is favourable...
Let’s see what the next week brings!
So bridge jokes are out of the question
How about this to lighten the mood
https://m.youtube.com/watch?v=OdNQkTMcza8