Member Info for Poppyseed

Horses Mouth, the thread from around 15 Feb titled "The gift horse has nice tonsils" has content that should help to enlighten. Seems connected to a Key Information Document which some brokers appear to think is both necessary and missing but see my earlier link which suggests some brokers are not up to speed.

I think it's probably also true that those same brokers are misinterpreting the market requirements for RGO and incorrectly treating it as some sort of investment trust rather than the listed plc that it is.

Clearly, RGO plc meets market requirements and has published all that is necessary or even beyond what is actually necessary or no broker would be able to trade it.

Good luck Mark, pretty impossible task I'd say! I mostly satisfy myself with the happy knowledge that what is out there and obvious about RGO is already undervalued so the additional unfathomable depths of RGO only serve to add substantial hidden value here.

Expect more to be added shortly!

Thanks Nick, you're right of course, clearly got my eyes and thinking in a twist at that late/early hour!

I think I know what I did though - RGO had earlier announced on 24 Apr 20 that it would be subscribing "...for 10,750,000 new ordinary shares in a placing to raise £1,060,000, bringing its aggregate holding in the company to 26,899,993..." following which my blurry eyes mistakenly saw this as being the figure in the 2 Jun RNS rather than the 20,371,818 stated, as you say, relating to their holding after Tranche 2. Note to self - don't drink, go to bed!

In the event, the RGO Finals in Jun 20 revealed what must have been a scaling down from the 24 Apr announcement - "...In April 2020, Pires carried out a further fund raising such that once this is completed by the end of June 2020, the Company's holding in Pires will amount to 26,149,993 shares and 10,000,000 warrants...", which, as you say, is the same holding of ordinaries announced yesterday so not a single share sold. My apologies for my confusion in stating otherwise.

I agree with you on the warrants too - there is no evidence at all that any have been exercised and I was trying to say that, while accepting the possibility. I too am accumulating for the same reason.

As others have indicated, the TR1 was necessary only because of the increased share capital and therefore the RGO holding representing a reduced %, not because of any major selling by RGO, although it is evident that they have reduced their holding by 750k since the last notification.

As for the warrants, it has to be seen that 53m were issued in connection with the PIRI placing last Apr of which RGO got 10.75m so it is clear that many of the warrants exercised so far will not relate only to RGO conversion. In fact, I know they do not, albeit that RGO may well be behind some of the Exercise notifications.

The warrants, of course, are not included in any % of the RGO holding in PIRI unless and until they are exercised. Even then, if sold straight into the market upon exercise, a TR1 would not be required since the new stock would not increase the reportable holding.

In short, the TR1 shows that RGO has reduced its holding by 750k since the last formal notification on 2 Jun 20 at which time RGO's holding was given as 22.8% and share issues by PIRI since that time, along with the 750k RGO sales, have reduced the % value to the current 18.2% stated in the RNS.

Ah yes, the evening sofa will be very comfortable tonight!

Yes, IES another spectacular introduction by the overarching big boys to listed RGO. Re "...they don't mention YA II in the RNS's But assume the split is still 84/16 ish" Yes, because the overall deal is known as "The Riverfort Facility", that's only what they refer to, not the various parties to it. So, yes, about 16% of it all attributable to listed RGO, including the warrant exercising so as to make it count on the balance sheet, unlike the warrants.

On which subject, any newcomers could do worse than see RGO's RNS of last August re the scale of the potential warrant value hidden in RGO, not included in NAV unless and until exercised.

BTW, check out this morning's Bulletin Board Heroes on Share Talk by Zak Mir. Covers the chart and expectations for RGO. Chart apparently sees potential for a further 50% here by Apr even after today.

Lol, I did know straightaway to be honest but thought it best to make it clear for any onlookers.

No re 215p! See my para below the link - subsequent consolidation was 50-1 so 2.15p x 50 = £1.075p by my reckoning! Looking very good to add to everything else!

If so Markjenn, this may help you. It's an adjusted version of what I posted on another board in response to some chat about putting some numbers and value to the RGO stake in IES:

As you probably know, Invinity was previously Red T and "Big Daddy" Riverfort, participated in a £3m convertible loan of which "Listed Riverfort" (RGO) took £500k's worth:

https://www.lse.co.uk/rns/RGO/investment-update-7g0tn7ka0cd0neg.html

Things to note before reading the terms - Red T/Invinity's shares were consolidated at the time of RTO by 50 to 1 so e.g. 2.15p then = £1.075p now. Also note the several "Issue of Shares" and "Exercise of Warrants" in IES RNSs dating back to 1 Jul 20. Divide shares issued and warrants exercised by one sixth and you'll be in the zone for how much of it is attributable to listed RGO

Riverfort Investment Agreement

An Investment Agreement between (1) the Company, (2) YA II PN, Ltd, and (3) Riverfort Global Opportunities PCC Limited dated 13 March 2020 pursuant to which YA 11 PN, Ltd and Riverfort Global Opportunities PCC Limited agree to lend £3.0 million (the “Principal Amount”) to the Company (the “Riverfort Facility”).

The Riverfort Facility incurs interest at a rate of 12 per cent. per annum and is subject to a 2.5 per cent. commitment fee on the Principal Amount and a drawdown fee of 5 per cent. in respect of each advance. The commitment fee can be satisfied by the issue of Ordinary Shares. The Principal Amount is advanced in tranches over the 18 month period following Admission.

The Principal Amount and all interest accrued is convertible into Ordinary Shares in the Company at the lower of (i) 90 per cent. of the volume weighted average price in the ten days immediately preceding the date of the relevant conversion notice; and (ii) 130 per cent. of the volume weighted average price for the five days immediately prior to the relevant advance.

In addition the Company has agreed to issue, at drawdown, warrants over Ordinary Shares equal to 50 per cent. of the Principal Amount, exercisable over a period of four years at a price of 2.15 pence per Ordinary Share.

The Riverfort Facility shall, at drawdown, be secured by the Company granting a fixed and floating charge over its assets.

Markjenn, it's not clear but from your content, I take it we're talking IES, yes?

Flashgem, just for the record, RGO also got 10.75m warrants in PIRI last Apr, exercisable @ 4p by Apr 22.

As you suggest, NL perfectly placed to know the full picture. In this regard, also worth noting the hierarchy at Pluto Digital where Brian Kinane is on the team. Brian is at the head of Riverfort Global Capital which in turn introduces listed RGO to big boy opportunities.

Happily, I don't have the problem with my broker but if I did, I'd be referring them to this and asking why they and their systems were behind the curve:

https://riverfortglobalopportunities.com/key-information-document/

Interim divi was .02p, paid in Dec as Markjenn says, final already broadcast to be at least .04p. Might not sound much but represented 7.5% at the time of announcement and still stacks up as near 5% even at current mid of 1.3p. Way better than High St, substantially better than most main market dividend paying companies and solidly underpinned, unlike many of the latter in these troubled economic times.

Interestingly, I think there's scope in what they said at the time for them to maintain 7.5% as a target declaration going forward, always subject to performance of course.

Dividend declaration targeting a 7.5% gross yield

Background to dividend policy

On 22 September 2020, RGO published its interim results for the six months to 30 June 2020. For this six month period, the Company generated total income of £770,380 and a net profit of £569,165. This was the Company's third consecutive set of full year/interim results delivering an attractive level of income and profitability thereby clearly validating the Company's investment strategy adopted in 2018 which has enabled the Company to generate income, trade profitability and grow its net asset value. In addition, we believe that Q3 2020 will be another profitable quarter.

We have also consistently said that we are very much focused on creating value for our shareholders whether that be through capital growth and/or the payment of dividends. As a result, against this background of sustained profitability, the Board has decided to commence the payment of dividends.

We have considered this step carefully and we believe that the Company is now well-positioned to improve the return for its shareholders, whilst still maintaining significant capacity to deploy capital in its investment strategy.

Dividend declaration

We are targeting a 7.5% gross yield for the financial year ending 31 December 2020, based on the Company's current market capitalisation, commencing with the payment of a gross interim dividend of 0.02 pence per share. Any final dividend and any potential dividend in future financial years will clearly be subject to the Company's financial performance going forward, however, we envisage that the total dividend would be split approximately one third interim and two thirds final. Furthermore, the expected total dividend for 2020, is already covered by the Company's earnings for the first six months of 2020.

Full deal still to be finalised but RGO's next winner?

hTTps://www.brrmedia.co.uk/broadcasts/6026603313605530a66076c3/kodal-minerals-dabakala-sampling-extends-high-grade-gold-anomaly/

Yes, the apparently slow dawning of RGO's many attributes is not totally surprising to me. It takes time to turn a rather ugly duckling into a swan and then for it to spread its wings and take flight. Moreover, the nature of the 3-year rebuild has not been founded in a typical AIM fashion complete with bells, hooters and whistles.

Rather, RGO has been steadily loaded with quality foundations the type of which are not necessarily easy to understand the value of, be that either present or future, and so I think any such news has tended to have low impact among investors looking for regular action. I also mentioned the other day that it seems a few e-brokers do not allow trades in RGO for some reason which may also have a bearing. This situation should probably be investigated by RGO's broker because it really can't be helpful to the company's standing.

Anyway, we may well be on the cusp of change. A few catalysts have appeared over the last few months that are pretty certain to begin to get RGO noticed and it may even be that some of them will create a tidy bit of heat in the engine room.
RGO even got included in one of the Top lists for 2021 at the turn of the year so that must be a signal of some sort!

One underlying catalyst, mostly emerging over H2 2020, and bound to continue, is RGO’s coming of age and demonstrable metamorphosis into a class act. The early planting phase is now blossoming, bearing fruit and the solid evidence of this is starting to show on the bottom line and in NAV terms. The introduction of meaningful and solid-looking future dividends of around 7.5% pa at the time of announcement is also bound to have raised eyebrows when returns on the High St are so dire.

Another major catalyst is RGO’s 22% holding in PIRI, not to mention the 10m warrants at 4p. After a surge in YOP over the last couple of days, I note some are now calling PIRI to 33p in relatively short order. I couldn’t possibly comment but who knows with crypto? What I do know is that it’s already a multi bagger for RGO and I prefer the knowledge that such value will out here in due course and is much easier to live with than riding the likely PIRI gyrations as a direct investor.

Off the top of my head, further likely near-term major catalysts are the stakes in soon-to-be-listed Plutus; direct investment in a gold JV with Kodal with a probable Q4 2021 outcome; proof of exciting progress/lumpy increases to NAV via results statements; likely increasing dividends; and, all the while, underpinning and growing the company with a range of other investments and opportunities, some of which, like IES, are already substantially on their way.

It's been a bit steady as she goes round here for obvious reasons during the rebuild but now with a solid base in gold and other instruments, coupled with major stakes and warrants in exciting, cutting-edge, disruptive tech companies, we could well be in for a vintage year or two! DYO

Kodal getting on with it and looking good:

http://irs.nbtrader.co.uk/ir/KodalMinerals/newsArticle.php?id=31142821901221000

Pedro, you're right, covid-delayed under the rules, as previously notified, is an accurate way to understand the situation.

Pedro, they're late because the full year results to 30 Jun 20 would have been due to be published by 31 Dec 20 under normal conditions. However, the matter was covered in the RNS of 21 Dec 20:

"Extension to Financial Reporting Deadline

Further to guidance provided by AIM Regulation in "Inside AIM" on 26 March 2020, the Company has been granted an extension of up to three months for the reporting and filing of its financial results for the year ended 30 June 2020 such that it will publish these results as soon as possible, but by no later than 31 March 2021.

Due to the current restrictions on travel imposed in both Namibia and the UK as a result of the Covid-19 pandemic, the Company's auditors are unable to complete their audits within the normal timeframe."

The Alliance News piece you've brought forward is very badly written and gives the impression of year end results but is, in fact, referring to the last Interims for the period to 31 Dec 19.

As it happens this time around, because of the delay to the Finals (due by 31 Mar at the latest but could actually come any day beforehand), we could very well see the Interims to 31 Dec 20 (normally due by 31 Mar 21) published either at the same time or very shortly after the publications of the delayed Finals.

With negative interest rates in early prospect on the High St, I would not be surprised to see continuing interest here from High Net Worth players for the security of a 5% dividend and likely capital appreciation that looks set to well exceed that % each year. Looking more like a safe haven with secure and significant benefits every passing day.

What an ideal combination of assets RGO has going forward during what will surely be troubled economic times as the world struggles to recover from the effects of covid. £3m in the bank at the last count and getting deeper into gold and interest-bearing convertible loan stock for long-term security/underpinning while also having or about to secure the exciting growth prospects of very meaningful stakes in leading-edge disruptive technology stocks, not to mention the prospective value of the warrants in tens of companies, some already in-the-money e.g. 10m PIRI @ 4p but currently held at "no value" until conversion.

Interesting also to note some comments around the boards that some of the smaller retail investor brokers do not allow buys/sells in RGO for some reason. Perversely, I actually like the sound of this if it helps keep hot-money wild gyrations to a minimum. RGO does have that steady-as-she-goes feel about it so maybe this is the reason but I do also have a feeling that the "renewal phase" since Paternoster is now firmly over and a class act has been born built on solid foundations security but with a nimbleness that has also gathered plenty of future potential for periods of significant value accretion!

As they say of themselves:

http://www.alignresearch.co.uk/about-us/

As JBTs suggests, the other poster couldn't be more wrong and highlights the danger of copying stuff without research. Align actually stand out from other brokers in that they do take a real money stake and a real interest in the future of what they recommend, hence their name!

Of course it then lays them open to claims of "well, they would say that wouldn't they" but I see this as being infinitely more preferable than the alternative of scribbling stuff for a fee and dumping any stock/warrants taken as payment. What's clear is that they share near 30% of either the joy or pain on this one and have no way of offloading any meaningful amount except through success and yet they have only ever added more.