Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
I must stress it is spelled out in no uncertain terms Atlas are funding the diamonds. It is totally wrong to suggest Vast will only draw down issue 1. To do so they would breach the terms of the deed contract
Sorry Bezzy you’re wrong the 5% is fixed. The calculation in relation to 0.24 is variable.
The deal is very good for Atlas whichever way you look at it.
A higher SP is of course great for shareholders.
A higher SP next April is actually bad news for Vast because the higher the SP the more the repayment costs to avoid conversion
Decisions your post from 09:20 is fundamentally incorrect if you read the Chairman’s letter which explains the finance deed much more clearly than the RNS.
#1. They only plan to re-finance issue 1. There is no intention to look for anyone else to finance the Katanga project& there is a clear belief that within the 12 months of issue there will be sufficient revenue to repay the $16 million
#2. I fear that some conversion is going to be inevitable & so clearly does the market which has studied the finance deed. Please let me explain why I’ve come to this conclusion.
Issue 1 for $7.1 million equates to 2,465,937,500 shares based upon the calculation in the Chairman’s letter. We only have 6 months before this issue becomes convertible. Now if the SP doesn’t respond to the diamonds RNS & were to stick at 0.24p (highly unlikely but bear with me), Vast only have to find $7.1 million plus 350K interest to avoid conversion.
However let’s assume the diamond deal is good & the SP responds as we hope & settles at 0.7p for example the Vast have got to find £17,261,563 which converts to roughly $22million using the rate of exchange in the Chairman’s letter, plus the $350K interest.
There’s no way Swiss Tony is going to loan anything like that sum, so the higher the SP the more inevitable there will be conversion. After all Atlas don’t really mind conversion because they still benefit from the SP increase. But they’ll be diluting so they wouldn’t get the full potential of repayment because another 2.5 billion shares would depress the SP.
fahp please check the company presentation for BP, read previous RNAs & especially yesterday’s.
Diamonds are unlikely to be in production by the end of the 6 month period associated with issue 1. BP fcf will be a fraction of what’s needed to repay Atlas to avoid conversion, especially if as we all hope the SP is way higher than its current level.
So the key is finding the alternative finance
Agree with your post krazy. However you might want to polish it this finance deed is a tu rd, but it does allow Vast to bring BP on line & was clearly a necessity to gain confirmation of the diamonds deal
Sorry Pepco sadly you're only partially correct.
The minimum dilution is going to be 1.2 billion shares which are attached to the warrants.
If Vast aren't able to make repayments & Atlas convert the worst case scenario would be another 5.2 billion shares.
Excellent post gkb47.
Clearly the Zimbabwe government aren't going to sign until they know Vast can afford to mine. Hence the comments that I amongst others dismissed regarding the timing for the diamond deal being signed. Not now going to be until week commencing 11th November at the earliest, so predictions of a big SP bounce tomorrow are IMO very unlikely to happen, in fact we're likely to see 2 weeks of drift until the General Meeting is out the way
Asif your statement regarding the warrants is totally incorrect. As soon as Vast exercises one of the bond issues, then the corresponding warrants will be issued.
We know for certain that issue 1 will take place & that will presumably be immediately after the meeting on 8th November, so at that point Atlas will receive 601 million warrants.
The RNS states that they only plan to cover issue 1 with alternative finance, that situation may change but at the moment we can only go with what is forecast in the chairman's letter which means the additional 601 million warrants will be issued in 3 tranches
Read my posts oversight, I’ve made it clear I’ve not been a trader, I’ve been invested since 2014, as for when to buy done so over the years to get my average down from above 1.5p.
Why have I stuck it out, because despite poor management I always believed in the assets, & thought that one day Vast could become a mid-tier dividend paying miner. Also for a long time work meant I wasn’t able to closely watch the SP & I guess I gullibly believed promises/claims made by RP & AP, so let things ride even when the SP was on the slide from 0.6 last year
donotpanic my next purchase if I can get in quickly enough will be a big buy when the diamonds RNA lands, & out with a profit.
Today’s finance RNA makes my decision making process easier, because this is now out the way, & no expectation of a good finance deal boosting the SP on the back of the diamonds. So simple in and out to hopefully see a decent intraday profit.
Well oversight that just goes to prove you don’t know the first thing about me.
Being retired I have to consider income & I do want to leave an inheritance for my daughter. Which is why it’s just as well that I have a large sum invested in low risk income paying funds & bonds
Thanks oversight we’ll take your advice & not listen to what you say. Even with charts you have no more clue than the rest of us what the maximum SP will be. Especially without knowing the details of the diamond deal, how much dilution might arise from the Atlas arrangement etc.