Adrian Hargrave, CEO of SEEEN, explains how the Company is now funded through to profitability. Watch the video here.
There are two big headline questions in play here:
1) Does he need equity to replace the full $138m debt or is it less?
2) At what price is he going to give it? This all looks rather last minute, which is rarely good at the negotiating table. Especially when it's likely to be for a lot of money. Is the discount going to be based on the frozen ASX market or are the financiers going to notice that the AIM market listing has tanked 10% and thereby drop the offer by a further 10%?
Two huge, surprise questions and shareholders have been left in a vaccum while it is resolved.
The issue is 2 fold. Firstly, as Balanced66 mentioned, JW is only too happy to ramp a share to high heaven when he has taken his position. i.e. very happy to announce a BUY (because he wants others to follow him and pump the price up). However, discussion about his sells are very much a cloak and dagger, after the fact occurence - why? Because it doesn't benefit him to announce it. He knows very well that he has plenty of followers, and he's more than happy to have them on board so he can get a good price for his shares - doesn't treat them so well after he's sold though!
And secondly, either he's clearly not that well researched, or he deliberately did not let his viewers know, otherwise he would have mentioned his concerns about the debt finance closure - not a peep.
I ask again, where has he got the money from to fund this new purchase of his that he announced yesterday? Was it from a timely sale of SO4?
Balanced66 - there is plenty of "evidence" that JW sells/top slices. He has mentioned that he top-sliced GFIN, obviously he heavily top-sliced and then sold out of BIDS after ramping it to high heaven, all on the quiet. It is most certainly part of his tactic to top-slice as he's mentioned it numerous times. And it's ALWAYS long after the fact in shares that he still has an interest, or might once again have an interest. He makes no bones about stating when he has sold shares that he is no longer interested in (e.g. C4XD, FDBK) - highly laudable I'm sure.
Spencer, yes perhaps JW is in a bit of a bind wrt to Escape H! Although, what's the reporting requirement for TR1s? I often see them appear up to a week after the fact...
Clearly, JW is not that well researched if he didn't see the risk here (or maybe he did and offloaded beforehand, which is why he's chirpily quoting Sylvestor Stalone on twonker)...maybe he should have spoken to Tobin, as apparently it was all very obvious!
Changed my mind - I am now OUT completely. I will re-invest some (or none) depending on the outcome of this fiasco.
Shareholders have been well and truly shafted by this. Tony is doing ok though with a healthy salary and absolutely tons of free shares as part of his "annual" incentive.
It seems that you are right mytton. Where there's smoke, there's fire. I like my investments smoke free.
I've taken a hit on the majority of my position this morning, and it's been painful. The last 1/6th I will leave to ride now. I will re-assess when the dust clears.
Tobin, you're having a laugh right? This is 100% because of the debt. They'd be mad to be thinking of expansion at this stage, as they've enough on their plate.
Sieveco, care to answer my question then?
"From where is he getting a good wad of cash to put into the new unnamed share, when he was already fully invested?"
TBTT, ever the opportunist. They have EPA approval to start producing but need final sign offs to ramp up to nameplate capacity. That is my understanding anyway.
Sieveco, I see what you are saying, but you are being naive if you think JW isn't heavily topslicing his winners, and the punters who buy it off him pay for it.
Answer me this then - from where is he getting a good wad of cash to put into the new unnamed share, when he was already fully invested? He's as fickle as the wind.
NB, I will continue to listen to his podcasts and apply an even bigger dose of salt than I did previously. It pays to understand why a stock is moving and a micro-cap stock can move because JW is ramping it, so I want to know what stocks he is ramping and why.
Newboy, shares freely! LOL - JW is all about money and attention. He knows full well that he can ramp a penny share to the max, after he's locked and loaded, and his "following" will do the work for him. It only works with small caps for obvious reasons.
The latest from Justin, yesterday, was that he's looking into buying another unnamed share (unnamed until he has bought his position, then he'll ramp it up to the max, and use his following to get a good rise into which he will heavily "top-slice")...so where's he got the cash from for that new purchase? He said himself that he was fully invested. Had a heads-up on SO4? "Top-slicing" punters down the river on Escape Hunt? Sold down Gfin on the quiet?
Was Justin buying the dip? Surely he should have been raving about it on his weekend podcasts etc. But it was noticably relegated to a brief mention in the last month or so, while he ramped Escape Hunt to the max. Gone a bit quiet on GFIN too...make no mistake he's a slippery customer that one when it comes to the sharp end of the sword.
Additionally, given the dip prior to this and the lack of buying of said dip, I would suggest that some shareholders were privy to information that the rest of us were not and they acted on it.
This is me showing restraint - I will unleash or retract when we know the full picture.
It appears that we were lied to.
If WI was really confident of his answer there, on such a key issue, he would welcome questions about it...he certainly wouldn't just give a terse one sentance answer and refer future questions to the CEO! LOL. It's utterly transparent that he and all the rest of them have gambled on a takeover before DFS and if that doesn't happen then they're finished.