Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
We all know the OTC is imminent, so looking at the last few days:
1. We had the placing (at 70p, and warrants at 80p). I believe that's usually a signal for a base price from investors.
2. Then you had the selling, some would say it was induced (at prices lower than the placing) of smaller shares and bigger block sales, but most of the bigger block sales were bought up.
3. MMs will obviously require shares to sell when OTC happens.
3. I've heard (and I haven't had time to check) that OTC listings are usually Tuesdays.
Could it be? that is the question
Some Holmes sayings springs to mind, "when you have eliminated the impossible, whatever remains, however improbable, must be the truth", OR even better
“In solving a problem of this sort, the grand thing is to be able to reason backwards. That is a very useful accomplishment, and a very easy one, but people do not practise it much. In the every-day affairs of life it is more useful to reason forwards, and so the other comes to be neglected. There are fifty who can reason synthetically for one who can reason analytically…Let me see if I can make it clearer. Most people, if you describe a train of events to them, will tell you what the result would be. They can put those events together in their minds, and argue from them that something will come to pass. There are few people, however, who, if you told them a result, would be able to evolve from their own inner consciousness what the steps were which led up to that result. This power is what I mean when I talk of reasoning backwards, or analytically.”
Never thought I would see the day on here when there were more messages on here than on Arb; i always thought high a number of messages (activity) only served to increase volatility.
Fingers crossed though, I do hope the board gets back to and remains respectful.
when you post a link, put a space between the words of the site, ie. https://www.r a m b i n o.co.uk
Hope that makes sense. LSE auto filter some links understandably
The OTC "application to completion" process is advised as taking 4 to 8 weeks. Then recently someone has said that OTC themselves were behind and cited some other applications that had taken 10 to 12weeks in reality. So its due any day now, but beyond anyones control as its in OTCs hands. Then someone has said its due to FINRA form 211 that needs to be completed.
So its still going ahead; we can only wait, and thats all we can do.
Notable number of buys coming through. Surprised the SP is not higher. Is it normal practice for MMs to collect shares before OTC? I don't know, its all fairly new to me this, only started trading in December 2020, so picking up knowledge as I go along.
Oh, ok, well I got £1.24 and 7days of trading left. So that's roughly a 65% increase (or a 165% for the maths purists out there). So that equates crudely to an 8% increase each day which is compounded. This is very doable based on what we've seen in the past week, though it'll get blown out of the water if OTC lands, then it's £1.50.
The above is just my opinion, and I'm not an expert, my prediction is based on what I've seen and learned thus far, and using that to inform my future SP prediction.
It's a fair point @willhi02. I think there is a subtle difference here though in my opinion. This investment (placing) is with existing shareholders who had obviously already bought in to the company. I think "placings" when they're with an external source (a new investor) are viewed a little more negatively. That's just my opinion, and I think RP was thinking of the latter (an external source, going out to the market) when he said a premium placing in the future. Fair play to RP though, if the company needed investment for growth in the short term, I'm glad he's gone out to get it, and he's got it from existing investors to grow the business for us all.
As for the warrants, investors want to be rewarded for the risks they take, and it also depends upon the timing of the negotiations and how soon the investment is required by. So I'm guessing the £1M was needed ASAP to ensure VLRM takes advantage of it's current momentum, so yes, it could be argued that the warrants could have been a higher future SP, but 80p doesn't seem unreasonable in the context of the status quo, and what is required right now.
All investors are ultimately here to make money (it's not a crime), and existing shareholders that have invested £1million pounds (at their own risk) to further develop the company are being given the option to purchase more. That just sounds like "fair" business to me.
Another way of saying the same thing: If anyone was investing another £1million on top of their initial large investment to grow a company, then understandably (in my opinion) they would want the option to buy more shares if it had been their £1million pounds that helped grow the business.
Investors need a reason to invest, and if they are not rewarded then they won't invest.
The RNS shows the confidence the existing shareholders have in VLRM that they have invested a further £1 million pounds of their own money at the current SP in to VLRM for further development (IE. growth of the business).