Member Info for Medjed

That was a shocker!

I think Sidara knew or suspected this was coming, in light of this their 35p offer makes sense. I still think Wood is worth a lot more but to be realistic any company trying to sell itself whilst under FCA investigation is going to have to accept it can't expect top dollar.

MAJ you got it slightly wrong. There were 250m pre-paid warrants (ie free conversion now) and 500m cash warrants converable at 2p.

I haven't kept a tally but around 150m of both have been converted so far so yes 600m mix of pre-paid and 2p warrants still to go.

I don't see how they can exercise all these by 31 July so I expect they will ask for an extension.

Thanks Stocktotrot. Shame they didn't explain it better in the RNS or supply a fuller AGM document on their website as other companies do.

Hopefully its inconsequential, although it does allude to them wanting to be able to do placings under 1p which is a shame.

Where is the full AGM document explaining the subdivision?

On IG the explanatory note for resolution 1 says “all existing ordinary shares”

So the wording seems to indicate everyone will be affected not just the new placing shares.

I voted against

“ so much lower that the company would likely have to 15x afterwards just to break even on the current 35p offer.”

15x eh?

So you think recapitalisation would be at a share price of around 2p?

That is very unrealistic, usually the discount is around 50% to current sp. Lets even say 60%

How do you get 2p?

Its a game now between Sidara, lenders and institutions. They will decide what happens next we are all just along for the ride.

Their actions will tell us how bad/good things are.

35p deal on table & accepted then things are bad

35p deal on table & rejected then not so bad

higher deal on table & accepted then thinks are/were a lot better than we were lead to believe

Only a few days to go to find out.

Inthe dark this is AIM highly volatile highly risky micro caps.

If you don’t know anything about this best stick to funds.

Or simply ask ChatGPT “what are the biggest safest lithium and gold mining stocks?”

ChatGPT seems to think the value of all the projects could be $600m to $1.3b but I guess they will still need further financing to get all of them going?

Seems like a decent potential upside but with lots of ups and downs in the share price to come?

Longtimeinvestor why only £15m mcap? aren't MET1s acquisitions and projects worth anything?

I add up the warrants at 78.6m, but could have missed an RNS. I didn't bother to split them by cash vs prepaid warrants.

So roughly 660m more to go.

The thing about the 500m cash warrants is that they bring in £10m in cash to the company so should set some floor to the MCAP.

Total shares will be around 800 million if all the warrants get exercised and don't expire.

So for argument's sake at 5p per share the MCAP would be £40m

Just checked on ChatGPT, looks like pre-paid warrants are more like bonds so can be legally forward-sold without short selling in the usual way.

So could well be warrant holders forward selling.

The only tricky thing to figure out, if they can only convert 3% of the float at a time, and 500m is multiples of current float, how long will it take them to exercise all of them? Can they only do 3% per day (per RNS?)

Also in the 31 Jan RNS they had 6 months for the 500m cash warrants, but someone posted a later RNS which gives a revised date in the autumn?

From 31 Jan 500m cash warrants and 250m prepaid warrants. We would have to read all the following RNSs to see how many of these have been exercised.

We don’t know if they can forward sell them and they can certainly short sell them in the normal way like you and me. They may well have been doing so from 50p

It would make sense for them to let the share price recover a bit before they resume, after all they are hurting their own profit if they drive it back down to 2p

Also it is a bit unclear, they can only exercise up to 2.99% of the total share float at a time, but also only up to 29.99% so as not to trigger the AIM offer rule. So its going to take them time to exercise all their warrants, and they have a deadline.

So if they are forward selling or short selling them we should see some warrant RNS soon.

How many of the 500 million warrants have been exercised. Add up the RNS’s very few in the 10s of millions.

How many have been short slod or forward sold and are yet to be exercised?

That’s the million dollar question ;)

Now lets see in the coming days if we start seeing those cash warrants being exercised en masse

Me too I am confused why they didn’t convert the max allowable cash warrants at 50p and on the way down.

They could have of course short sold at those prices knowing they can cover themselves in the future at only 2p. But if there was such a crazy amount of short selling surely it would have to be reported?

I wonder what the big institutional holders averages (sp) are. I am guessing in the £1+ range, there wasn’t a frenzy of buying when the sp was rock bottom

so they can’t have averaged down much?

Hopefully they will push for at least a break even offer.

Can buy for 0.0092p now

Oops!

Here comes positive FCF!

The 35p offer is toast

Well said Monty!

Thanks for digging out his past now we know why he is the way he is. He decided to join the haters after being burnt himself. He failed the test.

Nice one! I am just surprised how much you have in here. Shows a lot of confidence in the company 👍