Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
Okay Wakey. For what its worth, I don't generally post on here.
I have personally spoken to Craig via Microsoft Teams on behalf of UK shareholders since he took over Fortune and I have recently sold my c.5m shares because of recent developments at a 6 figure loss. Many LTH's will know who I am.
I'd love to see a better outcome for remaining shareholders here, but I just don't see it i'm afraid unless UK based investors are prepared to try and do something differently.
I will watch from the side line. Goodluck to you all.
In my view, the ONLY option for UK based shareholders is to vote against this deal and at the same time for a newco CEO. Someone who is prepared to try and get the best value for UK based shareholders by selling off both plants for c$200m.
The curtains are already closed. The only thing left to decide is how much is left for debt and equity holders.
Further, SPR's investment managers aren't likely to be clearing the 'hurdle' to get into carried interest until at least 8% annualised interest is returned on the capital deployed by the limited partners.
Some simply maths over a 5 year time horizon would suggest they see their $12.5m equity stake (at 3p), being worth at least $18.6m (i.e. around 4.5p) by the time they may crystallise value.
@TrevorBrooking SPR are structured as a private equity fund who will see their material investment in #BMN as at least a 4-5 year play.
To suggest BMN won't have the lights on in 6 months is, in my view, quite frankly, ridiculous.
Not quite right.
In a liquidation usually the assets are sold (or assets and the company's trade), cash then comes into the company which is then used to pay creditors. Anything left then gets distributed to shareholders (usually on a winding up).
Orion are only now shareholders, but they have secured loans against the company's assets (probably first charges). SPR are not shareholders at all (they own no shares as the SPA they entered into hasn't completed as they haven't paid the consideration).
Also, it is worth reiterating that SPR has already committed a significant amount of capital into BMN in one form or another and not having Vanchem operating at full capacity will be hurting them financially just as much as BMN (given they now hold 50% of the preference shares - for a cost in excess of $20m).
Regarding the €12.5 equity component via the Subscription Agreement between BMN and SPR, I would expect this to have a clause which will set out how much interest SPR will have to pay BMN (possibly in the region of 6%-8%+) where the consideration due for the BMN shares is not immediately paid.
Its quite clear from some of the comments below that some don't understand how fund structures operate.
Southern Point Resources - Fund 1 SA L.P is the feeder vehicle which (by definition) is a limited partnership. The Limited Partnership Agreement ('LPA') sets out the terms on which limited partners (alongside the investment/fund managers) will invest into the LP, usually ONLY once the LP calls for capital.
The LP will not sit on investors cash without a specific purpose. The reason for this is that the LPA will have a distribution (cash) waterfall, which will set out how investors (and the fund managers) returns are to be apportioned following a return of capital (in the future, after a liquidity event).
Generally speaking, the external LP investors will receive an 8% return on funds invested, therefore is it disadvantageous to the fund managers (who operate the LP via the General Partner) for cash to just be sitting around uninvested.
The Investment managers would also have 'skin in the game' (called co-invest). Therefore, if the fund fails they will lose all their capital invested. Therefore, they are incentivised to get this over the line as considerable sums of money have already been committed to the fund by other investors.
Another huge 1.8GWH VFB project announced in China earlier this week...
https://www.escn.com.cn/20231229/c46e945d2ece466a926341263a67cce3/c.html
10% (3GWH) of those projects are vanadium based.