RE: Range bound20 May 2025 15:44
JEBR,
If I were Navitas, I would get the costs in, put feelers out for the bond issue, and if after all that, lets say RKH were on the hook for $55k, I would say. "Either raise the cash or give us X percent."
I know it seems a little harsh, but Navitas have been in charge of sorting funding, if they can sort it, then surely RKH, by hook or by crook can sort the agreed share of costs to first oil, if not, they have to give up something! I can almost imagine (this is in IMHO), Navitas offered to fund RKH all the way to first oil, 8% on pre-FID and 0% post-FID with RKH keeping 25%, but Sam was adamant to keep 35%. So why would Navitas be charitable at the 11th hour? I cannot imagine Gideon saying, "Ok Sam, don't worry about it, we will just loan you a bit more on the same terms because you can't be bothered to raise yourself! No problem at all, I'm happy to do it!"
Of course it won't come to that as RKH could issue 100m shares tomorrow that should cover our share with cash in hand, even after fees. With a promise of FID upon taking up the shares, the II's could easily offload into, it would be easy money for them. Who wouldn't want to buy shares for 50p that they could offload a few weeks later for possibly 75p. 50% return in days, not months! I know we would be diluted a little, but a quick and dirty 25m to 4 institutions would do it and could no doubt be turned around pretty quickly so Navitas aren't waiting.
Still IF OM comes in, it will be a moot point, but as I say, it's prudent to hope for the best and plan for the worst. Like Sam did with his raise and warrants issue, that was a good call which many of us have benefited from, either taking us into profit or lowering our averages greatly.
LTT
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