Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Resolution 8 was approved by 194 million votes to 79 million votes but someone asked for a poll of hands and it was approved. I guess the directors and broker came up with this scheme to avoid following shareholder instructions. Disgraceful. Directors should resign as the shareholders do not want them or the brokers.
Thanks JMK. Why would Peterhouse want to be paid a year in advance for their brokerage services? Is 3 months more appropriate? Are they ripping off the company? Do the amount of warrants to be issues relate to the amount raised by Peterhouse? They have raised £50k or so already but another £35k may be raised if investors approve it. If the £35k is not approved are the amount of warrants scaled back? It seems like too many warrants for too little an equity raise. Is it legal for the directors to linked separate resolutions which are voted on individually? I have never heard of that before in other companies. If most of the resolutions are voted against then the directors and broker/nomad should take it as a vote of no confidence and resign. What happens then?
There is much confusion on what happens after the EGM vote depending on whether or not resolutions are approved by investors or not. Your thoughts on what happens would be interesting to hear.
Why would Peterhouse buy shares back now if they know all the resolutions will be voted against? Surely they will wait until the brown stuff has hit the fan and buy shares at much lower prices or get the Company to issue new shares at 0.01p or lower? Are you certain that Peterhouse are short of stock or is this an urban myth with no substance?
Peterhouse will look like mugs if this happens. Any idea how the voting is looking?
What happens if shareholders vote against the resolutions? If Peterhouse fees, JMK fees, etc voted against then will the Company have enough funds to pay these fees in cash? If the increase in equity issuance head room is voted against then the Company can't issue any shares to raise cash. If these happen then the BOD may walk away; who then will step up or will delisting and liquidation be the only route left?
The consolidation is neutral in terms of share ownership. Every shareholder post consolidation owns the same percentage of the company as they held pre consolidation. In theory the price should move in the opposite way to the consolidation. Thus the theoretical post consolidation market cap is the same as pre consolidation market cap. A consolidation is normally good for a pennystock as the share price rises and that may attract new investors.
Jarv55 Thank you for the information. It is odd to put out an RNS that the broker is acquiring the loan then the broker misses the performance deadline.
Why did Peterhouse not buy the loan? Was there a legal issue with the loan?
If Peterhouse have closed their short position then the SP will drop until new news appears. This may be after the EGM on 3 July.
Peterhouse will try to get the £37k , 2nd tranche of shares, plus warrants which look excessive as well as their annual brokerage fees of £20k paid in shares. The brokerage fees amount of £20k looks appropriate for a Company like Nyota but to have them paid in shares in advance is very unusual and looks like greed. It is odd that the BOD agreed to this. Thus if Peterhouse have sold all these shares in the expectation of getting all of these amount paid in shares at £0.0002 all shareholders need to do is vote against the issuance of shares and warrants. Does anyone know if JMK has sold his shares as well?
Who was the Nomad?
The website does not yet appear to have details of the agenda of the general meeting. Where is it?
It should never have listed. Surprised as the Board looks decent but it has been one disaster after another. CEO should resign, Management salaries cut, delist and hope the bank is feeling generous enough to allow someone sensible to try to sort out the mess.
There are no assets and no business to manage. I can see no unique situation that needs his specialist minerals company expertise. The RTO may require his talents. Is he the new chairman? If so that may give a clue on the future direction.
If he is Peterhouse appointed director does it suggest a mining RTO?
Pathfinder was a mess so the new director should be right at home. Is he the Peterhouse appointed director?
The tick up in price on the back of small volumes is normal for PRS. There has been no new news on strategy, no new investments, same old board and the price goes up! A good opportunity for long term holders to sell out and move onto better companies? Until the board or the new investor, and advisors, make their positions and strategy clear PRS will still be in the same old muddle. Nick may get yet another paid NED position out of it of course so he will be alright.
Looks like someone acquired all the shares in one go as no TR1s were made to the market. Charterhouse are the likely arrangers of this stake. There is very little information on the acquirer so investors are not yet informed of their likely intentions. Will the acquirer look to change the board and strategy? If so at what cost? Beginning of the end or end of the beginning?
Investment research.