The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Investor Warrants and Warrant Trigger Event
Conditional on shareholder approval at the General Meeting, the Company will grant one warrant per
two Placing Shares at an exercise price of 1.6 pence (“Warrants”) exercisable for a period of two years
from Admission of the Conditional Placing Shares.
The Company has elected that the Warrants will become exercisable if, during a two-year period
following the date of Admission, the on-market share closing price of the Ordinary Shares for five
consecutive days reaches or exceeds 2.4 pence (being a 50% premium on the Warrant exercise price)
(the "Warrant Trigger Event").
Thanks Rob for the transcript. I watched it as well. Couple of observations from me (and I'm long on this stock and my average is over 1p);
1) The comment about dollar market cap and 200 ounces. It was conveniently not corrected/clarified. Kefi do not own 100% of TK . Same with Saudi. This could be very misleading to a new investor.
2) The Financial close will not be until Year end. He talks about "Term Sheets" by mid November. As a banker I know that "Term Sheets" are as valuable as a bus ticket. This is a shift from previous promises about financial close and a further can kick down the road. And nobody works beyond the second week in December so don't expect anything after that.
Please correct me if I'm wrong (not on point 1 because that is fact!)
Tommo your question is spot on. We've always been given the "we have enough to see us through to the Financial Close" but that has now moved by two weeks.
In addition what does actually happen to the cash position on Financial Close? It looks like all investment so far is being capitalised at Kefi's stake in the project but do they also get some cash out? If not then can they shift any Kefi overhead onto project overhead - probably yes but not HAA's wages!
So - Yes Tommo - What is their cash position and what is the cash burn? That's a major concern and needs transparency
The warrant holders wont exercise as the price is unattractive.
Hi ElDave. The existing mine proposal has reg permission. It's ADDITIONAL exploration over and above that needs Reg permission. That really would be icing on the cake but the timing is not linked to the financing
Thank you TWG. I haven't looked into the detail ad will do but wondered whether debt repayment on the mine has been factored into the free cash flow. I wouldn't want people getting excited about dividends if the cash is already to be used for that.
Also if it is free cash flow I think we can be reasonably certain that HAA will have in mind spending it on further licences and exploration rather than returning to shareholders via divi.
Just IMHO
Chasf et al. The Warrants point mystifies me. Future ongoing funding - at some point - requires the warrants to be exercised. But at 1.6 strike nobody will exercise - so this is no comfort at all to those who are worried about a further dilution from another placing.
Now IF everything works as per HAA's plan and the share price rises strongly then 1.6 might be attractive and warrants get exercised and funding happens automatically. But it's a huge "IF".
So how long will the current cash last?
I've bought lots of these recently but still don't get why some people thing that the warrants will save the day.
Cant make head nor tail of your analysis Magic. How do you define "General Public". If I buy shares via my broker who holds them in a nominee account then am I "General Public" or "Institutional". Looking at your list there are well over 29 million in this form of ownership.