Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Unfortunately, SH need to go through further pain before it gets better IMO.
Firstly, nothing will happen with THX and 201, Suzy won’t ask the questions to avoid telling the market it’s that simple. What is more likely to occur is EUDA will either be delisted or if pushed will confirm the talks didn’t continue after the Due Diligence evaluation period. By end of March either way you will have the answer confirmed that 201 is a dead duck. The SP will tank to about 1.75 to 2p by my calculation. A Mcap of £2.25m.
Secondly, yes agree with Nick she needs to go but let’s be realistic, would you give up a job in this climate on an £180k package with benefits - be real who would! At end of March on news on 201 being a write off the SH TG group might have a second go at removing her. By the time we get the vote, allow three months redundancy period you are talking end of June anyhow with two to three months cash left.
So in conclusion, the best you can hope for is a discounted raise in a few weeks to back a new BOD which would be possibly worth backing or worst case she digs in, it remains uninvestable business as usual, and she goes for discounted raise to keep the payroll going or even worse takes death spiral finance via a CLN from Sanderson or equivalent.
Sorry I can’t be more positive but I’m being realistic, the sooner the BOD go the better until then it remains a pure traders play and the SP just drifts. There is nothing left here of any value imo apart from CLX which is 18mths to 2 yrs off being positioned.
@Paperprofits
Sorry, i don't remember appointing you as my company accountant, what would you know about my "overall record" you haven't got a bloody clue.
When the BOD get replaced it might be worth considering.
@PJ666
To effectively "Ramp" something there needs to be some substance behind it or at least a good story that "punters" will buy into. As it stands with VAL there is nothing to get excited about.
@PaperProfits
"......no investment or don't plan to invest.." you say, hmmmm
I don't rush into positions, i watch the SP movements over period and how the BOD perform and i invest where i believe I will see a financial return. Its calculated. I don't get it right all the time, just hope to win more than i lose on especially with high risk penny shares like this one.
As at today, i consider this stock to be totally uninvestable, you are right i won't be investing at this point, i consider the way this business is run and the poor decisions made to date not least the shambles concerning the handling of 201 to be nothing short of a utter disgrace. The ONLY thing this BOD is good at IMO is raising ever increasing amounts of cash, paying themselves fat salaries and bonuses and wasting your hard earned cash. I see the SP going to 1.75 to 2p a mcap of £2.25m in relative short time as that's where i value this at this point and i see a further raise based on that valuation later this year in September.
However, should the BOD get replaced and a recovery plan put in place, a direction shift led by people with Business Acumen then my position could well change. I actually consider that will happen here it just needs to run its course. In the meantime i will continue to monitor until that day arrives.
To be crystal clear, until the BOD is replaced i see absolutely zero chance of the Share Price recovering. The time to buy here is during its recovery phase NOT now at this time trying to catch a slow falling knife. Sorry but its how i see it.
@MAJWandCo
Your analysis here has been spot on, got to hand it to you.
The admin expenses on this one are absolutely obscene, I find it totally staggering the number of boards enjoying champagne lifestyles at shareholders expense.
A few here assume they will place at small discount, my view is much darker, the way markets are currently raises just for WC get absolutely hammered if supported at all.This will either go into administration and assets sold off or get lucky with a raise at a discount so high it will practically wipe SH investors out. How much more cash? 35m for just 12 months extended runway to then raise again? Sorry but can’t see it
AGL at the recent pro active pitching event looking for new investor support
The next placing can't be that far off now?
I'm just waiting to see what price this one comes in at or if its worth opening an account with Berenberg to get in on the placing? Berenberg have not been appointed as the sole broker in December just for the fun of it, they will have a job to do IMO they will want fees.
Company state cashflow runway for another 12 mths doesn't mean they won't bolster cash reserves earlier
For now remains on my watch list
@PM2022 (or whatever staff member you are)
You are taking comments of mine from PRE the giving away of our crown jewels, namely our best 201 asset which was our best shot at getting licensed, she gave to a two bit start up. The outlook now has materially changed for the worse and that p poor decision has cost everyone, patients, shareholders, everyone massively.
Back then we thought it would go to AZN or a major with cash, not a bloody potless start up and since then the handling has been nothing short of a shambles. Lost time we cant get back and lost revenue. Boat now sailed IMO.
I hated the decision she made to give 201 to this outfit the day she announced it, i sold 1m shares of my holding that same day as a result. My only regret was not selling my remaining 750k holding that same day. Absolute joke.
So don't quote posts that are now two and half years old because the outlook is nothing like it.
Pork's
Utterly convinced based on your recent posts you do work there - i don't believe ANY shareholder anywhere would remain so pro Suzy and the board with the amount of business blunders being made here. It has to change
@Livinhope
I had thought about that but seriously, the mcap is way way to high at this level. As at today its £ 6.42 million yet the Business is not worth anything remotely close to that. Its a sub £2m value at best. Once the 201 deal falls apart the value will come crashing down just a matter of time. Anyone that still thinks THX will deliver is seriously deluded.
There is actually nothing of value here left now just a cash eating start up lab that will take years to establish and more cash and CLX its only decent remaining asset which needs more work and is at least 18 mths off going anywhere. Plus you have a totally incompetent board draining the cash out the business in the meantime.
I can only assume those mug enough to be buying a few today are trying to support numbers to get the vote numbers up but they will lose money for sure. We now know the resolution had nothing to do with Adam. If Suzy stays you are looking at a further 2p raise later and if she goes you are looking at similar as new team would need to pay off liabilities and need to raise to drive it forward on the right basis.
BUT we must go through that pain barrier and have a new BOD to get the required change for a stronger future. That's how i see it.
FAO Andy
In a funny way this will work to your advantage, IMO the resolution was too early whilst you have idiots like @PM2022 still holding out for her. Push the resolution forward in a few weeks time, first week of March so that the 21 days will result in the EGM meeting end of March.
You can pretty much guarantee that THX will not complete in that time line, even @PM2022 will realise it’s a dead duck and you will have more chance of these floating voters backing change.
Good luck to you. It’s totally the right call.
Ok so the Coup has failed at first attempt on Validity
The requisition notice has to have confirmed shareholders equal or more than 5%. So we now know this was NOT Adam but a separate investor group.
This is tragic on the one hand, the BOD without exception need to be replaced however on the other hand I think the timing was just off. I believe a few more weeks wait would be beneficial on this. THX is dead IMO but it needs closing off and Suzy won’t be in a hurry to do that. So it needs to run its course. In a few weeks time the THX still won’t complete and hopefully the SH action group can get Adam on side and go for it again. It will then secure the backing required IMO.
Good luck guys but you are stuck with her a while longer unfortunately
Look the main event here is what’s in the Resolution and can the SH Coup work or not? It has to happen before this stock has any possible hope of recovery IMO.
I think everyone knows THX are never going to deliver but it’s those on the fence that may vote to give her more time that are the issue here. IF they vote for her to stay I’m not sure how long we have to wait for a second challenge.
Meanwhile the Sanderson TR1 could be votes for her to stay? It’s a private individual buying using a Ltd company shell. Go to companies house and look at the PSC. A number of investors I know have similar set ups. Then again, it might not be anything Sinister could just be a punt from early Jan when they thought THX might merge and get a bounce and now find it’s not happening. I just hope they are not going to be votes to keep her.
Timing of the resolution still remains key, when the vote takes place. I just hope SH do Back it. Doing the same thing here and expecting a different result is plain madness.
Good luck
Ps. I also am starting to question if @PM2022 works at the company. Nobody but nobody can have that much faith that Suzy will still get THX to execute 201 over the line. Come on...
Https://find-and-update.company-information.service.gov.uk/company/08203248/filing-history
Just a private individual buying shares in a limited company shell. Poor sod probably thought he was buying in cheap back in early jan ready for the THX deal which is now never likely to happen.
Still 2p raise next, she won’t be giving the position up any time soon, not on 170k a year, you will need to drag her out kicking and screaming frankly.
I wouldn’t be surprised if some vote to maintain the status quo either.
Exactly:-
H2 to the end of the full Financial Year end completes 30th June 2024
In H1 they burnt over £2m of cash and following the .5m R&D Tax credit they had £2.1m left to get through H2
They are expecting to reduce cash burn in H2 but equally they were expecting to deliver £3m of revenue in the full financial year and only invoiced £300k.
Looking highly likely a further raise will be required shortly, if not in June shortly after. IMO Its not just a case of winning a big contract it's them actually being paid on it before the year end.
@ripley94
The broker reports have proven accurate every time without exception for when the cash runway runs out. I have zero reason to suspect it will be any different now. Hence on current trajectory they will need to raise in September.
Lots of what IFs until we know exactly what the resolution is requesting but let’s assume it’s to remove Suzy, let’s assume EGM called and let’s assume she fails to defend and let’s assume she is removed from the post end of March. In this situation we don’t know what the liabilities are, nor what she is entitled to, three months pay,?
IMO costs would increase during this period and cash runway would be shorter, a new BOD would be coming in to turn this around and likely need more cash to do it.
Hence, I actually think a raise can’t be avoided and new inbound BOD need to get cashburn under control, back to 350k a quarter, clear route to the lab breaking even and that may involved sacking the current BDM and building a new sales and marketing team, taking the business back to what they originally stood for, ie 10 new evaluations scheduled.
As I say, long term the BOD have to be replaced but this will get ugly before it’s gets better, I think a 2p raise as Nick suggested will actually become a reality. That being said, once sorted, new BOD with clear direction the future would be significantly better imo.
But as I say a lot of “what IFs” we don’t know what level of support Suzy would get or what her defence is yet, so anything could happen. Those on the fence waiting on THX may vote for her to remain giving her more time, you never know. There are no guarantees here.
@LTbeliver
That’s the million dollar question isn’t it?
The initial pledge was to a) get spending under control under £3.5m for the year and b) on the basis they meet a revised revenue target of £3m. Costs in H2 to be lower that H1 and cash runway to last until the year end on that basis.
However, they just delivered a mere £300k of revenue in H1 and burnt over £2m of cash. Market not impressed and understandably so.
So that’s your call isn’t it, obviously if the revenue doesn’t come in in H2 they will burn more cash and need to raise more sooner. Personally, from my own experience in my portfolio it’s stocks like this that cost me the most money averaging down to early, my view would be not to average down but to see if they deliver. Don’t buy into hype, buy on actual declared figures. If H2 comes in strong and BE in sight and they have enough cash then to meet it, buy then, buy into when it’s starts recovering not trying to catch a falling knife but that’s your call to make.
Good luck
The devil will be in the detail at this stage. We don't know what the resolution requests yet.
IMO for LTH the short term most likely could get ugly before it gets better so I wouldn’t make any knee jerk reactions.
If the resolution is for Suzy to be replaced she has the right to defend, once the resolution is verified as genuine she has 21 days to call an EGM to put her case forward and defend her position. It would then go to vote . So we could be looking at an early March EGM. Hence no rush.
Whilst a lot of SH are fed up of the situation there is no guarantee the vote would be passed, I would hope that it is for the long term future of this business but some are still holding on for THX in blind faith like @PM2022 and others and a percentage might want her to have more time. So again what date would she go from?
Also, I don’t know what the terms of her contract are, are we stuck with a three month notice period or more, so like Stella we end up still paying for longer. There will be liabilities to be met. Also as @PM2022 keeps reminding us, she is integral to the 201 THX deal. My view is that deal is dead anyway so no loss but it’s not official yet. Also Suzy has a big chuck of personal ownership in 301 so would that be affected by this?
Also a new team may also need to raise more cash as current funds run out in September if not earlier now if there are additional liabilities and costs to meet as part of this process. This also needs careful consideration.
As I say, let’s see what is on the table and see what she has to say about it and go from there but ultimately something has to be done IMO.
Well that was a turn up... well done indeed.
I suspect the BOD will be in total shock, they were likely feeling smug and safe that they are secured in the job for at least another three years. The response tonight to the resolution about legal referral is just standard issue. They will need to check that whoever issued it has enough voting power to call it.
At the AGM last year the Shareholders voted to re-elect all of the BOD members for a further 3 year term. See the comment bottom of first page on resolutions 4-8 : Reappointment of Directors. This was what was passed:-
http://tinyurl.com/4t2rjzfp
So to reverse that the first step is to force a resolution on them to remove them. That step now taken, tick box. Happy days.
For shareholders to mount that action there must be more than 5% of SH in favor of the resolution backing it. We have 132,348,673 shares in issue, so that's a minimum backing of 6,617,434 votes to call it. Adam alone has just over that so could call it in his own right otherwise it has to be a collective.
If its Adam, they just need to verify his holding but its TR1 declared so that's easy. If its a number of people together making up the numbers they all need verifying to ensure the 5% is reached.
The proposed resolution would then accepted by the BOD as verified and they would have 21 days to issue the resolution to shareholders and call an EGM where the BOD would then try and defend against it.
BUT, we are not out the woods at that point. In order for the resolution to be then passed successfully it would still need a majority vote. So its one thing getting a resolution proposed but no guarantee it would get passed afterwards.
There are many here still on the fence thinking THX will deliver. There is a risk that those SH on the fence may vote to keep all the BOD in place, frightening thought but still possible. It will be interesting how this goes.
SH May face some initial pain due to the uncertainty but i believe this needs to go through the cycle. They all need to go IMO and a new team elected to drive the business forwards.
Good luck all, stage one in, very impressed.
@Fredd1eboy, LOL, Sorry its just such a waste of an opportunity. Annoys the hell out of my to see this...
Once this goes through the pain curve and the BOD get voted out, it can then be rebuilt but until then unfortunately it will get a lot worse before it gets better. There are still SH left here giving them more time for THX to deliver. Meanwhile, they continue to squander your money. They don't give a flying fig about you but why should they, they have no skin in the game and drawing massive salary and benefits at your expense whilst this total nonsense continues. Its just a cash cow.
The BOD are 100% culpable for the dire situation and wasted opportunity they have created and the dealing of 201 has been nothing short of a total shambles from start to finish.
I'm just awaiting the day now for when Adam calls time on this and puts through a resolution to vote them off hopefully in time for the next AGM end of June, can't come soon enough.