Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
I will vote NO if nothing changes or will sell all if it miraculously moves to 10p before the deal date.
Have they ever explained why they are rather willing to sell Hur than takeover another compant themselves or take a new project?
Yes, that's why the BoD should have been replaced & change strategy to a proactive one, buy some asset, licence, spend some money to get 91p back from every £1 and continue as Hurricane. Tines are no better for that
Thanks for yoir time explaining.
In this case the equivalent of 2p will be held as a contingency and transferred to Prax.
Then there is also USD60m restricted. Is that 60m not enough?
No deal - 3.32p paid to us by Hurricane in 2023.
Deal - 5.19p paid by Hurricane in 2023.
There is an additional offload so where will go the difference of 2p on a sale day?
Kooba, in my email I wrote :
Please re-calculate and amend OR explain how each value is delivered: 3.32p in 2023. Future Years (0.83p, 2.07p, 1.94p, 0.00p).
Have not received any reply.
My concern is that unrestricted cash currently in 2023 is way exceeding 3.32p. I just need to know what is going to happen with the remaining money on a sale day. Prax should not get them but us, shareholders. Would you not be happier with extra 2p from Hur and some extra from Prax for on the top of their generous 0.87p?
Thanks for the advise. I will send them another email in a few days again. Correct, received notification that my chaser has been classified as a spam.
Still no reply from anyone I have included in my email.
Ant opinions about that? Why there is a cap and why at this not a higher level? Surely this can be amended up to please shareholders.
Why capped at this level, anyone knows?
If Prax does not want to pay 3-4p for all the package, do they have money for future developments? Their offer us under 1p. See my email posted here 9hrs ago
Little we are giving them 300m GBP in tax losses, dont forget
If we manage too vote this deal NO we can vote BoD out too
Glad I included CA and Kerogen in my email yesterday
Part 2/2.
To remind you, it is not a forced sale, not a bankruptcy assets sale, hence you and we MUST expect more.
A. Prax must offer more cash (3-4p) now OR increase 17.50% to a fair level with a cap around 10p (they only pay 0.83p for this deal to happen)
B. Prax should advise us on how the tax losses can and when will be utilised after the takeover (they do cover themselves on all fronts with this very complicated "deal" so they definitely have signed agreements with another parties and have a proper plan)
C. Hurricane must return all unrestricted funds to shareholders (recalculation will be required from you as there should be over 10m GBP available around the sale date)
HUR is planing to return in total £103.4 million which is less than unrestricted cash as at 28th of February (114m) and this difference will be only greater on a sale date.
D. Please add a condition about restricted funds transfer back to shareholders if not used in full (US$60.7 million).
If Hurricane is not sold now, then we will keep all today's unrestricted cash plus Future Years offloads (0.83p, 2.07p, 1.94p, 0.00p) which will be more than 10p and still keep door open to any new takeover offer. Not a big difference to be honest.
Please feel free to comment, reply, acknowledge this email at least. Thank you for reading.
Emailed HUR, CA and Kerogen.
Part 1/2
Dear Hurricane Board, Richard Bernstein (Crystal Amber), team Kerogen,
I am urgently writing to you as I am concerned about the terms of the proposed and recommended acquisition.
I am a shareholder in the Hurricane Energy.
The below is to prove that the offer is below the current value and should be revisited asap.
"As at 28 February 2023, Hurricane had Net Free Cash of US$140.1 million (around 114m GBP), as well as US$60.7 million (around 49.5m GBP) of cash and liquid investments within restricted funds, relating to decommissioning security arrangements and amounts set aside to cover potential early termination fees on the FPSO lease."
With next offload cash level will increase.
Hurricane accrued tax losses carry an approximate value of up to US$370 million (around 301m GBP).
Hurricane is debt free.
We all know that PRAX needs Hurricane's producing well and huge tax losses. You do not ask for any upfront cash for this item? They have a plan to instantly use the c.301m GBP of tax losses. It is a massive amount which can deliver instant savings to them. Their accounting team is only waiting to bank this amount. You cannot just give that away for nothing back today. Trust me, they want it and they will pay for it 3-4p extra. You are not forced to sell it, but the way it is all presented it looks like you are unfortunately.
Note that the presentation has some error in calculation under 5.6 "Comparison of Potential Returns to Hurricane Shareholders" as it it missing around 3p in the row "Returns via Hurricane Standalone". Please re-calculate and amend OR explain how each value is delivered: 3.32p in 2023. Future Years (0.83p, 2.07p, 1.94p, 0.00p).
The transfer of ownership in 85% covered by Hurricane (5.19p to be paid to shareholders from Hurricane's own funds).
Prax will pay ONLY 0.83p and promises 17.50% of future net revenues capped at 6.48p (also ONLY). Prax will get their 0.83p back from Hurricane's current accounts if you do not return ALL unrestricted funds to shareholders or simply they will get it back from the next offload. The future payments are not guaranteed to us, shareholders, it is all IF.
Prax will earn 82.50% of future net revenues (100%-17.50%), will keep the license, all Hurricane's documents, expertise, contacts, tax losses, operating well, rights to a listed company. All for 0.83p paid by Prax now.
Private investors do not support transfer of Hurricane's ownership under the proposed terms, please be aware of that.
To remind you, it is not a forced sale, not a bankruptcy assets sale, hence you and we MUST expect more.
PRAX needs Hurricane's producing well and access to huge tax losses (301m GBP instant savings). The transfer of ownership is constructed for Prax and in 85% sponsored by Hurricane (5.19p).
Prax will pay 0.83p and promises 17.50% of future net revenues capped at 6.48p.
Prax will get their 0.83p back from Hurricane's current accounts (IF BoD will not recalculate the unrestricted funds) or simply from the next offload.
If Hur is not sold, then we have all cash plus Future Years (0.83p, 2.07p, 1.94p, 0.00p) which is more than 10p.
It is not a forced sale, not a bankruptcy assets sale, hence we MUST expect more from PRAX and proper calculations from Hur.
A. Prax must offer more cash now OR increase 17.50% to a fair level with a cap around 10p (they only pay 0.83p for this deal to happen)
B. Prax should advise us on how the tax losses can and will be utilised shortly after the takeover
C. Hur must return all unrestricted funds
D. Hur has to add a condition about restricted funds transfer back if not used in full.
A. Prax must offer more cash now OR increase 17.50% to a fair level with a cap around 10p (they only pay 0.83p for this deal to happen)
B. Prax should advise us on how the tax losses can and will be utilised shortly after the takeover
C. Hur must return all unrestricted funds (recalculation required as there will be missing approx 10-15m before the sale date)
D. Hur has to add a condition about restricted funds transfer back to shareholders if not used in full.
Recommended Acquisition of Hurricane Energy plc
Thu, 16th Mar 2023 07:41
5.6 Comparison of Potential Returns to Hurricane Shareholders
Illustrative Lancaster returns to Hurricane Shareholders as a standalone independent business compared to the outcome pursuant to the Acquisition under the same production assumptions are presented below:
Returns via Acquisition (through Special Dividends and DCUs): Year 2023 is 6.29p. Should be 6.02p (0.83p paid by Prax). Future Years (1.21p, 1.13p, 0.35p, 0.00p). Total of 8.98p (only).
Returns via Hurricane Standalone put only 3.32p in 2023. Future Years (0.83p, 2.07p, 1.94p, 0.00p) giving a total of 8.16p (small difference vs above). BUT we are MISSING approx 3p which is held on the accounts already TODAY.
Are we playing with numbers?
Please check this with the lse.co.uk
There would be no issue if we got all cash now