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The immediate need for me is to clear up finance. At 2p they were raising circa £1.65 but with the sp of .4p after the 25% discount (if that applied to all 110m shares) they would raise just £330k. That's a fifth of what was expected without any upside. They stated fully funded but I expect they have had to cut their planned testing significantly. Lack of finance to move this forward is the issue we can't attract hires.
Bad news out, spec / weak holders ditched rather than selling constantly into any news. Timeframes reset hopefully with plenty of room for improvement. This feels like what we needed to move forward.
Every month 25% discounted shares to raise less than 1/4 of what was used as example is an issue but it's a known one.
Holding but my timeframe just got pushed out at least a year.
No need to check in daily so take care everyone.
Morning filter, how much liquidity will lanstead require.. I thought it sat at about 5.5m shares per month or circa £55k per month with the sp down here? They would be cautious about selling more than they need if the sp is rising as they would potentially pay more to nfx in the settlements ongoing. Lack of news is annoyingly frustrating and we all hope it means we are close...
Thanks soup, I hold and believe but I'm not for misleading and Twitter was full of it. If the company can release great news and get sp up over 2p well all be a lot happier and no doubt we all need and want much higher than 2p and with a decent deal will get it. Time and patience....
The first 22m shares split into 4 and calculation is 20 day ma each month with lanstead paying 75% of the value. So first 5.5m due anytime will be based on circa .71p so only £39k not the >£80k we would get if so was 2p. Painful with so down here and why many were wary of this kind of raise...
I agree Taz I am very pleased to see none sold as long as we don't get a correction although first settlement only just about due? 17th Dec 22m issued and "The monthly settlement amounts for the First Sharing Agreement are structured to commence approximately three months following Admission of the First Subscription Shares."
Soup all you have done is shown in an unfollowable way that Lansdstead get a 25% discount. 110m x 25% = 27.5m shares.
As you have said they have the 22m shares but will pay for those over the next 4 months (ie settle for them via the terms agreed in the sharing agreement) and if the sp is lower they pay less for them. I said that was an advantage now. Obviously if they hold onto those shares then they would benefit more if sp goes up but it's still an advantage for them to pay less now.
Ignore the saring agreement, Lanstead pay 25% less for the shares than the 20 day AVG each month. Why complicate it.
More important questions, have they already sold a chunk, will they sell another chunk what can they sell before issuing a holdings RNs. When the actual FC UK will we get news. Fairly soon after lanstead settle for the first tranche?
Yes I'm cynical, it's been a long time coming....
So soup is it an immediate advantage on this first tranche for lanstead to pay less for their shares? The only scenario where that doesn't work is if they sell immediately after the AVG is calculated?
Not sure that makes your point soup. So yhey have been able to sell the shares knowing they pay 25% less than 20 day average now so why is it not in their interest for the SP to be lower now if we accept they may have already sold some if not all of those 5.5m shares?
Soup I'm saying that if the price falls they benefit from paying less for the shares. Who knows when they will sell or for how much. You seem to think they will sell immediately is that an assumption or you believe they have to? Maybe they already sold short?
Thanks soup, so if the SP is 1p they pay 0.75p they get their shares for 0.75p. if the SP is 2p they pay 1.5p for their shares? Explain to me how paying 0.75p is not better for them than paying 1.5p? I'm not sure if you are being deliberately misleading or if you just don't understand the agreement? I'm sure what I have stated is correct?
Lanstead get a 25% discount, if AVG price over preceding days is 2p they pay 1.5p. if it's 1p they pay 0.75p. If it's 4p they pay 3p. Main risk for them is illiquidity to sell shares and pushing the so down more than 25%. Other than that I'm not sure what risks lanstead face news or no news. Finance is what it is and it's a done deal but I'm positive on nfx despite the funding deal... Can't be long now surely..
Filter - IMM have to achieve a sp of 14.7p to receive the 80% premium of 11p. For this type of agreement I'd say it's better to have less of a premium as we are more likely to get the full funding. So nfx deal was better, lower hurdle before receiving full price. Let's see what 2022 has in store for nfx. Gla
What if say one of the recent placees wsnted a decent chunk and agreed a price with an ex director / cpi for them? Last 7 days excluding today all been below 2.5p so difficult to see how its a worked sell? Finally turned the corner. No more selling into any bit of strength. Tr1 incoming off back of that buy but may not be first thing. Interested to see how we open, what sp does and what volume we see tomorrow.