Juggling....25 Jul 2019 12:56
I imagine PF had hoped that the TEMA deal would have been signed off as per the 30 day LoI...... we would have then seen the sp rise,..... and they would have then had a number of avenues that they could have explored in order to finance the Tech Contract.
i) raise the capital for the tech contract at a higher sp, reducing dilution.
ii) raise the capital via debt,.. secured by fees on TEMA
iii) wait out the finance process on the Tech contract and let it slip a few months
In the end they have been caught short and needed the cash. Their negotiating skills have again been found wanting,.. with 20M new shares diluting us AGAIN,....( 10m now and 10m warrants).
You have to wonder why the possible need for a placing to fund the Tech contract was not mentioned at the AGM? A placing for a new contract,.. ie another airport was brought up and discussed, ..... but surely they must have known that there wasn't enough existing working capital to actually execute even the contracts in hand? They reported having £500K cash at hand at the time,... yet they knew they needed £900K?
And why haven't they been able to get the purchaser to make an upfront 1st stage payment,.. ?... which we should then have been able to supplement ( if needs be) with some straight forward secured debt/loan backing to raise the needed £900K? The loan would have been short term,... given the timescale involved. Instead we have 20M shares worth of dilution,..what's that... about 15% of the company? Useless.
They have strengthened the BoD in the past,.. but we are seriously lacking in the strategic financial planning department.... which is disappointing as MH was reasonably impressive at the AGM. But this is a shocker of a move for the LTH's. He and PF must feel very embarrassed following those interviews.
I have to say,.. that whilst a placing was always possible,... I didn't see this coming,... and not on such poor terms.
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