Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The BOD raised £2 mill with a price of 7p. Some people seem to focus on why no TR1 has been disclosed rather than the fact that the BOD could now buy back shares at less than half price. No doubt the same people would complain that it was not in shareholders interests to buy back shares and the money would be better spent on the roll out.
Maybe the market do not believe that the BOD can deliver on their strategy. I assume there will be another fund raise to keep the lights on.........
Kingralph82
There are 18.8mill warrants expiring today at 9p. They are most unlikely to be exercised. they are however not going to cause a flood of shares to come onto the market. I do not see why you thought this warrant expiration was a bad thin. If anything it reduces the warrants outstanding total which is surely a good thing?
It seems to me that certain posters here clearly do not understand financial statements and what the results of young tech companies look like. All the stupid talk of a potential fund raise in December or January is based on zero facts. The auditors have agreed that there is no going concern qualification required which shows that in their professional opinion, armed with actual information on the finances of the company, there is enough cash in the company for at least 12 months.
Cash loss!!! It has large amounts of non cash elements to it. Goodwill write off, valuation of warrants/options( IFRS nonsense), and write off of capitalised costs. There are also IPO costs which are one off. the normalised loss is £1.1mill, up from £0.9mill. If you consider the change of strategic direction the loss is understandable.
I also have been following for 6 months or so. It seems that they is no quick fix on the falling SP. The market sentiment seems poor and small sellers continue to depress the price. Which is more likely SP to be hit 4 or 10?
Seems to be little interest either way.
If JP Morgan were the institution they could have on sold to/transferred to 4 separate, legally remote, unconnected investment funds. That would avoid the need for TR1s.
Who was the broker to the placement? That may give us a clue to the buyers identity/identities.
Shorting 10% of the market cap may explain the massive SP drop post but that would be very risky strategy for an investor(s) putting £2million up front , especially if they have to mark to market their investments.
A company can only RNS when it receives a TR1. In theory the institutional investor should submit the TR1 to the company. In theory the buyer could have split the 10% into separate legal entities where they are all below the 3% disclosure threshold. Maybe the institutional investor has sold enough shares to be below the 3% reporting threshold.
It gapped down 10% on moderately bad news. There has been little trading today in market cap terms. Could spring back in a few days after next RNS.
Still moving in the right direction.