Member Info for MadChatter

In fairness, yes. I guess it depends where we are with the due diligence?

I'd say highly unlikely to place just to pay off debts , if the rto isn't confirmed.

If it is confirmed then the price here would rocket so you'd hope ideally they could raise at a premium. Even better to sell that % to lcmm!

If they don't complete the rto then immediately they would do a huge placing.

This one isn't for weak of heart!

For clarity I wrote the first reply before reading their financial results and writing my second post below.

I stand by that though, it looks like they have written off entirely the gas asset but are confident of raising any money through seven seas that they need.

Don't hold me to it, just my humble opinion but no equity placing to keep the lights on imo.

Directors are confident that the Group will be able to raise, as required, sufficient cash or reduce its commitments to enable it to continue its operations, and to continue to meet, as and when they fall due, its liabilities for at least the next twelve months from the date of approval of the Group financial statements.  

**The Group financial statements have, therefore, been prepared on the going concern basis.**

This is absolutely key here, and very positive.

They know as a loss making debt reliant company nobody would buy a placing!

So the way I read this no placing before rto!

Or at least no placing that will be sold to private investors.

His argument is that because the nominal has now dropped by a factor of 100, that it will result in massive dilution IF they are required to do a 'keep the lights on' style placing, or to pay off all outstanding debts prior to rto.

As an argument this is bringing in multiple issues that should be looked at individually. Because its unlikely to be a direct as he implied.

Firstly the ii shareholders (who are collectively over 50% here afaik) obviously voted *for* this to happen. They are not blind.

Secondly any cash we need to keep the lights on has been debt funded through a loan, so not placing for that. Which would be intracompany zero in an rto btw

Thirdly we may not need to clear all debts prior to rto. Because we are *not* a cash shell we have a pretty huge gas asset sitting on the books. To clear the debts for a clean cash shell (which no suggestion of afaik) we'd have to sell that, which could fund hopefully all of debt payment.

Fourthly, the one point he is correct on, is that a huge placing will happen here **at the same time as us rto assets**. Thus a huge dilution becomes irrelevant if the assets of the company combined make it overall go up hugely. We all benefit.

@Mally. Nope. Shares are always pre sold before they are officially issued.

What volume did we close at Eyeguy?

Sorry meant Friday volume, not yesterday

Yesterdays volume was probably 80 times the daily average here, and we hit that already around 12 today! Any large sellers looking to get out bring it on today!

Interesting... that article suggesting free float of 14%???

From these prices if the rto lands properly forget double/ triple bag I suspect higher.

They need to Rns their annual report though

Obviously lcmm won't be remotely close to the old established giant that is the London Metals Exchange, given it's a startup.

But this on LME really puts in perspective the volume of money moved around the world

Obviously ours will be much smaller deals but I found it interesting anyway

The London Metal Exchange is the world centre for the trading of industrial metals – the majority of all non-ferrous metal futures business is transacted on our platforms. In 2019, 176 million lots were traded at the LME equating to $13.5 trillion and 3.9 billion tonnes notional with a market open interest (MOI) high of 2 million lots.

It was registered in march. Presumably with it without our rto it will be actively hiring web developers etc.

What does it say, anyone?

The Rns to date the bod are very hopeful so I guess we should be as well? They would only Rns if the deal was definitely off, afaik we have already completed due diligence. They said approx a month from March, not April as I thought so 6 weeks in now.

If it were not for the fact they've made a debt loan to czn to help them along I'd say much riskier ground. But they know as well as we do, this not a cash shell, because it still has a sizeable asset, and if they sold that we should be cash positive after all debts settled imo.

So really our listing here is effectively free, which for most rto is very cheap.

We may not even need to settle the non-lcmm debt before rto, who knows!

Unless I see some reason to sell, I don't plan on going anywhere. But as I have always said I care little either way if people buy or sell. This isn't a ramp.

I wouldn't necessarily read too much into it being rgm btw. On face value the bod is obviously interlinked, but their mcap is £1m. So it may not have been by choice to sell when they did, cash call there maybe?? Who knows.

I'd say it was the huge delayed sell yesterday, which was probably worked over wed Thursday.

So it wouldn't change the price as it was already absorbed?

Why would ark settle so low as 3p? Even in situ should be worth at least 10m?

Edging closer by the day. At the current rate will hit it by mid next week imo.

Looking like trading range 0.8 to 1.2 maybe until news comes to change that?

The spread is so crazy here at times.

I'd say the next news will be the delayed annual report, with some guidance on funding situation/ loan refinancing and hopefully something moving the rto along a bit.

Have to agree. However with a tiny number of shares in play as we've seen today this can jump 10% on £100 trades!! I hope to see this consolidate up as we head into next week and pass the first due diligence date.

Keep an eye out for large trades later as I don't think the balance adds up to the list of trades