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Well yesterday’s closing price was 0.84, current price is 0.67 which is 20% down.

So to be down £30k today, compared to yesterday’s closing price means that £30k = 20%

So if £30k = 20% then 100% = £150k

Unless you mean you’re down £30k today from your average share price?

You said you’re down £30k, its down 18% today, so 30/0.18 =£160k

Unless you bought much higher?

Down £30k? How much did you put in here £160k?

How do these latest grades compare to Greatland’s grades ?

I remember someone posted that the first two holes were much better grades than Greatland’s.

Curious to see how the latest grades compare

So how is this going to work? Are they going to place all the shares, then consolidate?

That explains it! 🤣

Try adding up the sell volume from the date the placing was announced to today. Then come back and let us know the figure you come to.

Also, who do you borrow 14 billion shares from when they don’t exist? That’s naked shorting not available on LSE. You can only borrow 1 billion.

I can see how forward selling works when the placing is 100% or under current float, but when its 15 times current float how do you forward sell more shares than exist?

Happy to learn :)

Only thing is, how do you forward sell 15 billion shares when there are only 1 billion shares to trade?

You would have to borrow them, ie sell short surely?

If it happened at that scale surely the share price would have been hammered to 0.001 lol?

What’s the deal with the 500 million cash warrants at 2p that expire on 31 July?

That’s an awful lot of dilution. Seem mad for the warrant owners to let them expire when they are x15 in profit.

But if they do they would decimate the share price.

Easy, 17b x 0.01p = £1.7m

Well they wont dump now, they paid 0.01 for the placing, they will need to pump it higher to make any money.

Kando

Fair enough good points. Personally I am happy to take the 35p offer and run, but still strongly feel it deeply undervalues the company.

Going back to your calculation I think you made a mistake swapping dollars for pounds. At 10p per new rights issue share ‘only’ 3.3b new shares would be required so the new share float would be 4b.

So a £1.4b mcap would be needed to reach 0.35p and £720m mcap to get back to current 18p

I still maintain that talking of a wipeout from these levels is a bit alarmist. We don’t know what level of dilution is required, it may be as ‘little’ as $200m which Sidara is proposing to pay up front.

With all the financial issues cleared the sp could recover quickly from an estimated 10p rights issue level. 18p would be easy to reach if the dilution wasn’t too bad.

Sorry misread your message. Even with 5.2b shares, with debts reduced and debt payments reduced, positive FCF in 2026 is very likely.

Wood already forecasts positive FCF in 2026.

Why would Wood, with positive FCF and debts much lower than Worley, be valued much less in 2026?

This just highlights the total disconnect from current mcap and Wood’s true value.

Kando

Your maths is wrong. With a float of 4.5b shares the mcap would need to be £1.575b for the share price to be £0.35.

Lets take your estimates as closer to reality.

With debts reduced and covenants resolved, the FCF itself would improve even this year (debt repayments are a massive chunk of the negative FCF)

This would likely mean a positive FCF in 2026.

Why do you estimate 5 to 10 years for the mcap to return to just £1b when conditions would be much better with a positive FCF?

Again I give the example of Worley, more debt than Wood currently, same EBITDA, but positive FCF. Mcap £3.3b

Why would Wood, with same figures and in the same market as Worley, be valued much less once it reaches similar positive FCF?

“Other less favourable forms of recapitalization include a rights issue (would all but wipe out shareholders from this level)”

Many people have said this so far, as a blanket statement without any qualification. And without examining their hidden assumptions.

- wipe out on what timescale? Forever, for the next 12 months?

- wipe out assuming market capitalisation remains the same?

- All this assuming the business is a failure essentially, and not going to recover at all (even with debt reduced, covenants resolved, FCF back to positive?)

Lets be more balanced. The current share price is 18p. Going by past recapitalisation of other big companies, a rights issue for example, would likely be at 10p.

Would this offer a better long term return to shareholders than accepting the current 35p offer?

Lets look at some levels of dilution and what it could mean for shareholders.

Lets also assume unlike the doomsayers that Wood group is a successful business once the covenants issue has been cleared and debt reduced by recapitalisation.

Lets assume that Wood would at least return to a market capitalisation of £1 billion as in 2024 before all the issues emerged, and not counting the offer inflated share price period.

At what level of dilution using the above assumptions would shareholders be worse off than a 35p buyout offer?

- 1b new share total, sp = £1

- 2b new share total, sp = £0.5

- 3b new share total, sp = £0.33

So only if the dilution is such that the new total shares in issue is 3b shares would current shareholders be worse off. Not quite “wiped out”

This level of dilution would raise £233m so perhaps is realistic.

If Wood recovers much mere however, lets say to a similar level to Worley, around £3b market cap, then current shareholders would be much better off even at this level of dilution, the share price would be at £1

So I have to disagree with the blanket unqualified statement that recapitalisation would “wipe out shareholders”

“Any company carrying debt to this magnitude is troubling”

Not really, its the ability to pay down debt and free cash flow that needs to be taken into account for a complete picture.

Worley for example has higher debt than Wood, about the same EBITDA, but has positive free cash flow. Its share price and mcap are flying, £3.3b mcap.

Wood’s problem is the negative free cash flow which they claim is temporary and due to historical issues.

And the broken covenants. Sort out these two items and Wood should be back up there with Worley.

B realistic. This company is as dead as a dodo. Wait till it drops to 0.01 or below then it may do a 100% bounce at which point the placees will take their profit. Then its sweet good night.

So sure, get ready to dump on a spike, but you better b_quick

Institutional shorts will be fine. They can close before the market opens in pre-market.

PI shorts will be toast.

Any talk of administration is utter bulls.hit

Most of WG debt is unsecured. They (the lenders) will be praying for any kind of deal to avoid admin.

Because if it goes to admin they lose. Even though they are senior unsecured lenders.

🔹 Impact on Wood Group’s Lenders

• Because Wood’s lenders are unsecured, they fall below any secured or preferential creditors.

• However, because the debt is senior, they rank above subordinated lenders and shareholders.

• Recovery rate depends on how much value can be recovered from the business/assets after higher-priority creditors are paid.

• In distressed companies, unsecured creditors often recover only a fraction (or nothing).

“no cash”

That’s false. WG has $472m of cash or cash equivalents.