Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Ebioss will still be a major shareholder even with no further investment. The board is likely to change by the addition of 1 or 2 nominees rather than be replaced. I would not be completely suprised if there was not a further delay until after the Ebioss meeting to review finance options on Wed 8th.
Ebioss price has dropped 28% in a week. Presumably BTC due diligence revealed to many holes in Ebioss and it’s 2 main subsidiaries. BTC did not withdraw because they didn’t have the cash. Ebioss desperately need cash and latest years accounts show the auditor concerned whether they could continue as going concern. EQT funding should be independent to all this but in worst case if Ebioss goes bust their share holding in EQT could be sold cheap. Understandable whilst many want to wait for RNS
TopAimer - fully aware of the 5 July RNS as I was of the EBIOSS RNS confirming the investment of BTC and earlier EQT RNS promising no dilution. I am still a holder although this has been substantially reduced through profit taking recently to mitigate my loses caused by the earlier round of fundraising. . I want EQT to succeed and would want to see the composition of the new board and funding in place before I invest further, even if this means I miss out on a few pence.<br /><br />Hopefully if they can get finance in place and a contract signed rather than the a MOU then the share can really motor.<br /><br />Perhaps the sells are BTC selling down as I believe you thought they were building up a holding . I try and see through the ramping and deramping.
Black Toro would have been aware of the proposed finance deal for EQT as would those lending the money be aware of BTC’s planned investment in EBIOSS. It maybe EQTs funding was dependant upon BTC’s involvement in EBIOSS seeing as EQT and a EBIOSS are so interlinked. Therefore Fridays RNS could also be bad news.
Top Aimer a week ago you said
This is game changing news for Ebioss and subsequently EQT.
BTC have signed with Ebioss (and thus EQT)
all those who doubted this BTC deal could occur now you realise this is a massive massive step for EQT and legitimises the company for the long term.
Now with BTC in and Ebioss investment to EQT happening , contracts, management changes all due.
Targets of 8p and 2 year highs can be even more confidently set
Summary:
BTC have signed with Ebioss
They’ve got first tranche 4m of many from BTC meaning financing sorted for the long term
Restructure of liabilities and debt meaning they want EBIOSS/EQT to have few or no roadblocks on their liquidity for future
You are right icepick, EBIOSS seeking further funds as per their RNS and are seeking further equity investment in EQT. So more shares in issue from the lenders and potentially issued to EBIOSS. What matters is how they are held and the indications are that all parties are looking for growth in the share price.
EQT have funding sorted providing that they propose an acceptable board structure and business plan and issue the required shares. Hopefully they can do this. There must have been a reason for the standstill agreement - logic would say it was linked to the proposed BTC investment in EBIOSS some of which was expected to flow down to EQT in working capital and share purchases.
A lot depends on Friday . If the loan is cancelled by paying the 5% premium, the cheap shares will not be issued and the SP should continue its rapid upward movement IMHO. If shares are issued then it will talks longer to move back up to its former level.
Because of the boards previous financial decisions and previous RNS saying no dilution followed by dilution. People are unsurprisingly nervous and I’m not suprised the price has dropped. Hopefully BTC are talking to EBIOSS about an injection of money into EQT which will replace the existing loan (at 5% cost) and result in EBIOSS being majority owner and BTC/EBIOSS bolstering EQT board. If this happens happy days if not I believe the price will just hover around 1.3 to 2 Level.
The balance of the UCLN will be redeemed once final negotiations are completed between the Company and a new debt provider and a drawdown is made on the new facility. The facility under negotiation is a straight debt only facility which is expected to be drawn down in two tranches. The facility has been structured as straight debt to eliminate any dilutive effect for shareholders at the current share price.
What do we get instead massive dilution. I assume the deal fell through after due diligence, yet more promises of contracts to be signed . Prospects may be good but I have no faith in the BoD time to cut my losses I think.
Tend to agree with Streetfighter, it’s in the balance as of now there are no signed contracts, no loan agreed to pay off the last dodgy deal. Once Bercheva is clear and there is a contract in place then there is a good chance of some decent momentum. You have to think that Black Toro are looking at EQT and the opportunity before completing their investment in Ebioss so my glass remains half full just.
Revenue of just eu20,000 and a loss of eu6M is what people are reacting to , or perhaps a loss of eu2M if the 4M equipment sale is to be believed. It’s the same BOD that shot the share price recently who are negotiating the new loan which just fills the gap between in the figures. The price will no doubt stay low until a contract is signed and finance is available for working capital. BTC need to take control.
Ebioss didn’t spend any cash to increase their share back to over 50%. They just forgave an inter company invoice of £8ok in return for shares. They are also short of cash if any of the £2M was available to EQT surely the CLN fiasco would have been sorted by now.
Ebioss and eqt at the moment have no money and no signed contracts, if the due diligence no doubt going on means that Ebioss gets the funding if desperate needs then 3xpect it to flow down to EQT. This should see the share price stabilise higher than now but I doubt we will see it back around 5p until there is a signed contract and some cash flow coming in. If the funding is not forthcoming shortly then expect to see it back to 0.3 or lower again. Hang on in there for news.
No contract has been signed yet and no finance in place, if the parent had the money they would use it to protect their investment. It’s still the same BOD that over saw the shares plunging which makes me nervous. That said I’ve bought back in to average down and am holding for news.