Member Info for LOTM-13

Hi TrickyEFC,

Two points, there is at least 1 repayment still to be made on the TSP ( I'm guessing some time in January)

The share price going to 0.3p would undoubtedly by more lucrative to NTC than it going to 0.1p, but if it briefly went to 0.1p (or lower) along the way they wouldn't say No to that, that would just be icing on the cake to them.

The strange thing is no holding announcement since 13th November, which would have you assuming that NTC have therefore not reduced there holding by any more than 9M shares during that period otherwise a new holding announcement should have been issued ( but these Insto's seem to rarely get pulled up for it if they are late informing the company). So you could go on the public domain data & be totally wrong footed when news comes out.

So if we were to assume NTC hasn't actually sold any or very few shares in the last 12 days, then it would look like they might be holding on to there holding this time round, add in the other 170M shares there due & they would end up holding about 28.5% of ENET (assuming the share price doesn't break 0.1199p).

They also know more funding is required to cover the other TSP payment & working capital.

So what comes first good news or bad news ?

ENET need more cash inside 60 -75 days & who's going to give it to them & at what price ?

They also have less than 500M shares that they will be able to issue even if they could get that away at 0.1p that's only £500K enough to pay the TSP & working capital until what April.

As for NTC I'm not sure what there current strategy is! is it holding or hoping to sell on another pump or piece of good news knowing another raise (& chance to make even more money) is just around the corner.

All of the above sadly doesn't help the long suffering shareholders that's for sure.

LOTM

Morning 2phevs, hmm a lot of sports stuff with that imagen link.Something we're not mean to be interested in!

We'll just have to watch that space I guess

LOTM

Sorry there is a typo error in my post of 16:57

it read as

"Where the 0.1199p kicks in is, if the daily price average reaches that figure or lower, then 0.1p no longer becomes the conversion price, it drops to 0.09p & 170M shares becomes 193.3M shares instead. If the daily average share price drops to 0.1xp then the conversion price drops to 0.08p & they would get 222.5M shares ie 52.5M more than they would get now on conversion."

It is not 0.1xp, it should have been 0.10xp thus the corrected bit is

"Where the 0.1199p kicks in is, if the daily price average reaches that figure or lower, then 0.1p no longer becomes the conversion price, it drops to 0.09p & 170M shares becomes 193.3M shares instead. If the daily average share price drops to 0.10xp then the conversion price drops to 0.08p & they would get 222.5M shares ie 52.5M more than they would get now on conversion."

LOTM

Continuing .......

So I would strongly suggest that shareholders write to the company asking them to clarify if there are any limits as to NTC's potential holding in the company or not in the terms of the structured deed.

And if they are trying to extend the 8 month exercise life of the warrants or not, & if they have clearly thought through the consequences of it.

--------------------

No I'm not trying to scare people I'm trying to make them aware of the consequences that have come to pass from ENET entering into that "Structured Deed", so that they (shareholders) have the right information to make investment decisions on.

I wish it weren't so, for the long suffering shareholders

LOTM

Hi Ace24,

Your slightly misinterpreting my earlier comments around this 0.1199p daily average price.

NTC have £210,000 left from the Structured Deed (less the price of 40M shares at the exact same price).

They can convert that right now & would get 170M new shares issued to them at 0.1p (£210K -£40K) assuming there are not other terms to it (the deed) that preclude them from owning over 25% or 30% of ENET.

Where the 0.1199p kicks in is, if the daily price average reaches that figure or lower, then 0.1p no longer becomes the conversion price, it drops to 0.09p & 170M shares becomes 193.3M shares instead. If the daily average share price drops to 0.1xp then the conversion price drops to 0.08p & they would get 222.5M shares ie 52.5M more than they would get now on conversion.

And it keeps getting worse if the price went lower than that.

Unfortunately the "structured deed" has a exercise time limit on it & another clause I hadn't paid attention to until now, but I don't think is going to matter. Here is what the 17th May announcement said.

"The Warrant has an eight-month exercise period and can be exercised in full or in part with a maximum of five exercise notices being issued in total. The amount available to be exercised under the Warrant is £800,000, less the value of the 40,000,000 Subscription Shares, calculated by reference to the relevant exercise price, such that New Tech will be entitled to exercise the Warrant only for an amount exceeding the difference between the maximum amount of £800,000 (or a lower amount outstanding at the time following prior exercise of the Warrant) and the value of 40,000,000 Subscription Shares at the relevant exercise price."

So to-date they've used 2 of the 5 opportunities they are allowed to. But they only have until 17th January 2025 before time runs out.

This becomes a critical factor now, that people need to be aware of.

If they are limited by the terms of the structured deed as to how much of ENET they are allowed to own, then effectively they will have no choice but to sell more & more shares into the market so as to reduce there ownership % so they can then exercise what they have left! Unless ENET reaches an agreement with them to extend that deadline & at what cost for doing so.

Or if there is no limit to the % they can own, they will just exercise it when it suits them (up to 17th Jan). In which case they may or may not sell stock into the market.

LOTM

JustHereForHemo,

I'm sorry to have to disagree with you on this point specifically, which your not understanding

"however honestly I think I'm one of the only few who thinks FINALLY Vlad is doing the right thing."

He doesn't have a choice, because the company can't legally issue shares below the nominal share value, in this case £0.01

So if the company has already been sounding out potential institutional investors & the feed back is yes I'm potentially interested in investing in HEMO but at 0.8p currently (as an example) then the company can't legally facility that without altering (adjusting) the nominal value of each share.

The company could have just asked shareholders to split each share into £0.009 in a deferred share & £0.001 for the ones in issue. That would have allowed them to legally issue share in my example at £0.008 (0.8p) to that investor.

The company chose a different route & one that confused a lot of shareholders by putting the nominal value of the new shares in issue back to £0.01

LOTM

Seems to be a lot of companies called Basic Technologies out there - but I think this is the one that guy was referring to

https://basis.com/?utm_medium=pressrelease&utm_campaign=Q3integrations2024

LOTM

Dingodomingo,

The only problem with your thought's is that HEMO is not going to get a near 90% increase in market cap raise away at £4 per share.

If you go back & take the share price from thursday's close. Those long term shareholders & anyone else who didn't sell immediately are already down 20%. For them to suffer no dilution the placing would need to be at £6 which isn't going to happen.

I highly doubt they would get that sort of size of a raise away at £3 per share.

Lets say for arguments sake that they got that $20M (& I'm not in any way saying they will) & had 9 million shares in issue afterwards. That would mean existing shareholders are left owning only @ 39% of the company at that price, on Thursday's closing price its significantly more than that, they would still have had around 58% ( 3.5M of the 6M in issue [2.5M new x£6 = £15M ] ) . They have been greatly diluted & the worst affected are the long term shareholders. If they want to average down a bit it costs them more & more to do so each time.

That's one of the points your missing & if the issue price turned out to be £2.50 it just compounds the matter further.

I guess in due course we'll get to see what transpires.

LOTM

Hi Hulver,

I'm sorry but your wrong regarding the % of the company that actually changed hands today.

There are roughly 1.4 Billion shares in issue, traded volume was roughly 103M. You have to divide the traded volume in half to get the true number of shares that technically changed hands, you have to factor in Seller to MM then MM to Buyer hence why you half the number. So roughly 52/1400 = 4% of the company's shares changed hands today.

LOTM

I should have added DEC for example wanted a Nasdaq quote & took its share price to £10 to meet the requirements there.

LOTM

Company's are far more likely to make invest decisions based on the market cap of a company than its share price, that's for sure, but do probably want to see a £1.xx price rather than one in pence.

LOTM

Hi Popey62,

Yes I was using today's share price as an example to explain the issue Glenn97 was having & possibly others.

If you look at my earlier thread of "Share Consolidation" I provided not just an example, but what factually happened to SYNT, from the moment the consolidation announcement came out to its share price months later. The losses were simply horrifying, but HEMO is a different situation, in that it hasn't said how much cash its wanting to raise & I doubt it will be under written like SYNT.

The fact everyone now knows a cash raise is very likely to happen soon after (I should say if) the share consolidation gets approved, which will not help the share price in the least as markets hate uncertainty.

If it is approved its a near certainty the share price will fall further on the day the consolidation takes effect & drift's like these types of consolidations normally do until the terms of any placing & or rights issue takes place & no-one will want to buy in the meantime knowing its again highly likely that a placing & or a rights will be carried out at a discount to the current share price, nor how much dilution is going to occur.

The ones to suffer most through all of this are the long term shareholders who simply don't deserve it.

LOTM

Hi 2phevs,

Relax the message has been passed on :) it took 2 days to happen with ispot lets see what happens or doesn't happen next week!

Lets also see what other Linkedin feedback there is in the meantime.

LOTM

Hi Glenn97,

Ok I see what your doing & why you're getting kind of confused with this.

HEMO have chosen to return the nominal value of the share back to £0.01 purely because they wanted to, but didn't need to & with it caused confusion!

Here's what would normally happen from CNE with a consolidation, note the changes to the nominal share values

https://www.lse.co.uk/rns/CNE/further-re-return-of-cash-and-share-consolidation-ivhoebxe86e33g1.html

https://www.lse.co.uk/rns/CNE/exercise-of-option-and-total-voting-rights-oyer6009wkdu181.html

Please forget about the "nominal" value of the shares its really for accounting purposes regarding the share capital figures in the accounts ok.

What matters is the share price & the number of shares in issue, which gives the company its market cap. So if there are 400 times less shares in issue then to have the same market cap the share price needs to be 400 x higher than it was before.

That's the simple theory.

What happens in reality is that the share price never actually goes as high as it should do after a share consolidation.

HEMO closed today at 1.2p mid, so if the share consolidation was happening overnight you would expect the share price to show as 400 x 1.2p tomorrow ie £4.80

Sadly however you'd very unlikely to see it at that price it would likely open £4.50 tops & move lower & probably continue to drift lower in the following days.

LOTM

Hi 2phevs,

Could you post the actual comment please its not appearing on screen :( i only get to see a limited number of the comments :(

Thanks

LOTM

2phevs,

You're having a laugh aren't you !

Announced by Reach!

There not even on Diverse Marketplace list of partners yet!

They've not update that page on the website in like 4 months plus now https://info.mirriad.com/multicultural-advertising

Lets see if we get a blog post in the meantime ! oh maybe not, given my email to them after the ispot stuff.

Talking of emails I sent one in a couple of days ago about the trading update but not heard back from them yet surprise surprise.

LOTM

Glenn97,

Shares can have various nominal values, really its best not to be concerned by the nominal values.

The important bit's to concentrate on are the number of shares in issue & the share price.

On the day this occurs the number of shares in issue will decrease accordingly (ie in HERMO's case by divided by 400) if its approved you'll see an RNS a day or two ahead of the event issuing a few more nominal shares so that the total number of shares in issue at that moment in time is divisible by 400)

To retain the same market cap, the new shares should trade at 400 times the price they traded at on the previous days close, but sadly they never do.

If you want to see examples of share consolidations going through (changes in nominal values etc) then look at CNE they have carried out 3 since 2023 ( but they were in conjunction with the payment of a large dividend each time & hence a far more stable share price) HEMO's situation is completely different to that & will be much more like the SYNT example I posted on the "Share Consolidation" thread I started.

LOTM

Hi Glenn97,

In your trading account your 4 Million shares (assuming shareholders vote the measure through) will show up afterwards as 10,000 Deferred shares of no value & 10,000 new shares of HEMO.

The 10,000 new HEMO shares should in theory have a value of $40,000 (in your example) but in reality they will have a lower value because its highly likely that the new share price (on that day) will be less than the share price you just used in the 1st place to get to $40,000

I hope that helps.

LOTM

Let-It-Roll,

"Large dividend payments are regularly sent to the owners of deferred shares, although they are paid after other shareholders"

What a load of rubbish, not factually correct at all & at least 2 people have recommend the post OMG

They are creating deferred shares, because its illegal to issue shares below there nominal value.

The whole point of this exercise is to lower the nominal value of HEMO shares by creating deferred shares, which in the goodness of time will eventually be cancelled.

By then consolidating the shares they give themselves even more headroom at the same time, tidy up the share register a little etc.

LOTM

Hi Digittt,

First of all how do you know the institution from a couple of weeks ago dumped the shares ? you don't - you might think they did but you can't prove it.

Any Consolidation from the 1980's onwards has been an unmitigated disaster 99.5% of the time, whether they need to raise funds or not. They cause people to sell, rightly or wrongly, it doesn't matter that's what happens.

I can't comment about HEMO as I've not looked at it in any detail, I'm commenting on share Consolidations & there outcome that's all.

Hopefully you get answers to your questions.

I simply hate companies that are not transparent & informative with there shareholders.

LOTM