The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
TR1...?
Where did you find that Champions...?
And northerncharm...
BTW if ChinaBlue is on here he's just shown why he is filtered, with his false and demeaning tweets...
You are correct. That was slipshod posting done too quickly.
For the sake of correction
"as soon as an informal approach is announced..."
You too mate. I'm flying to Madeira on Sunday weather permitting but I will still be reading every one of your posts.
HH is accusing me on Twitter of plagiarising him.
For the record I have never copied and pasted any of his tweets without giving due credit and indeed have in the past said "HH on Twitter has said..." or similar.
Second. He copied and pasted a brief excerpt from the Takeover Code.
I was already looking at that and his Tweet triggered me to look at Rule 2.2.
As a result I copied and pasted the whole of Rule 2.2 DIRECTLY from the Takeover Panel.
For clarification.
Look at the header mate...
So let me be precise
As soon as an INFORMAL approach iu announced...
Angels on the head of a pin...
Thanks for the mention Scotkio. I am disappointed that you felt the need to exaggerate in your tweet on HH's stream.
The heading to this thread is "Informal approach."
I.e. there is no formal offer or formal offer period and Scott would not be precluded from buying shares once the 'informal' offer was announced publicly and until any offer was formalised.
Even after a formal offer the following terms of the Takeover Panel Rule 9.1 apply:
"Directors of a company which is subject to an offer or a possible offer will be presumed to be acting in concert from the beginning of the relevant period as defined in Rule 21.1(b) or, where Note 9 on Rule 21.1 applies, from the beginning of the offer period. The normal provisions of this Rule will apply in these circumstances. At other times, directors of a company are not presumed to be acting in concert in relation to control of the company of which they are directors. Subject to the constraints imposed by the Rules, directors are, so far as the Code is concerned, free to deal in the shares of their company. "
In other words there are still circumstances in which he could buy shares provided a formal offer was not accepted.
No they wouldn't...as soon as a bid is announced it is public information...until a further bid is made...
But he could buy them as soon as the bid was announced...
You and I both know that when a bid is announced the shares go higher on speculation of a counter...
To remind again...if the Noront Directors had bought shares immediately after Wyloos first offer for the company they could have made 250% profit by the time the final bid was final...
And if the SOLG Board declined the first offer, Scott could reinforce the implicit undervaluation by buying shares...
Why?
In any case, 'project finance' raising wouldn't come before the DFS which he says will be in 2025...
But that doesn't prevent you announcing offtake offers, which you don't have to take up...
E,g, SXX announced that they had conditionally sold their entire annual production of polyhalite...at terms to agreed at the time of production...
P235 of PFS3 informally indicated they had 10 EOIs for more than $1.6 billion in total.
With the permission of any formal offeror, they could announce any or all of those offers without ever having to take them up...
Then people like Quady would jump all over the implication that they had fully funded the Phase 1 CAPEX...
Think what that would do to the SP...?
Takeover Code relevant quotes:
"Absolute secrecy before an announcement of an offer or possible offer is of vital importance. If secrecy is maintained, it should be possible for offer preparations to be conducted in private, without an announcement of a possible offer being required. Accordingly, all persons who are privy to confidential information concerning an offer or possible offer must conduct themselves so as to minimise the chances of any leak of that information. For example, confidential information should only be passed to another person if it is necessary to do so and if that person is made aware of the need for secrecy....
A key issue in applying Rule 2.2(c), Rule 2.2(d) and Rule 2.3 is whether an offeror has made an “approach” to the offeree company regarding a possible offer. ...
For these purposes, the Executive interprets the term “approach” broadly. Each case will turn on its own facts, but the Executive normally considers an approach to have been received when a director or representative of, or an adviser to, an offeree company is informed by, or on behalf of, a potential offeror that it is considering the possibility of making an offer for the company. This may be at a very preliminary stage in the offeror’s preparations and the manner of the approach may be informal and no more than broadly indicative...."
Now communication at Solgold has been totally bolted down...one contact said "we're scared to talk to anyone about anything..."
And Scott said he cannot buy shares.
But..."theres lots going on..."
"In the event that the Company undergoes a change of control by way of sale of greater than 50% of the voting shares in the Company, or 50% of the assets of the Company..."
A JV for Cascabel wouldn't do it (51% of the Assets) because of the other projects especially Porvenir and Blanca Nieves, unless...
And not even if its 51% of the Balance Sheet Assets (i.e. $458 million) or $230m...Scott has said Cascabel has had $300 million invested so far, so it would take 77% of Cascabel in a JV to trip the Options qualifier in that case, so...
We have to be looking at an outright sale...
Meanwhile, have they had an informal approach yet...? See my next post...
This is already a Gold play...especially if you take in Porvenir, Blanca Nieves, Rio Amarillo, and $70 billion in Cascabel...
And for many who don't know the story I still think the name SolGOLD is a big reason for the correlation to GOEX, GDX, GDXJ as well as COPEX, which just set a new 2 year high...
The gold miners only have 9 years ore left...as well as Bristow saying they are looking at 'copper/gold' plays; Scott has made clear that the gold can be produced at the same time as the copper at no additional cost AND...where you find copper you often find gold...
Let alone the silver we have at Alpala which produces a globally low AISC of c$1/lb for copper...
They also said on P235 of the PFS3 that they had EoIs totalling more than the initial CAPEX for Alpala...i.e. $1.6 billion....
As my very good friend has pointed out to me...
Scott DOESN'T need to be in a 'closed period' for "non dilutive, non equity funding"...so their must be something else brewing i.e. 'monetising the asset'...lesser project sale; JV; SOLG bid; W.H.Y.
How about a J/V for Cascabel where the 51% partner gets first dibs all the ore in return for funding the whole of the upfront CAPEX
The Phase 2 CAPEX is funded from revenues...
Interesting alternative to a full bid but...if it was announced as a proposal I believe it would trigger bids anyhow...
"Monetise the asset"
Why accept 51% when you could have 100%...
Meanwhile the "non dilutive, non equity funding" could drop any minute...
Then watch the SP go...its the only worry left now for those who don't get the full picture...
Hi add...I think it was a deliberate tease, scripted, to flush out bids...
Of course a Board recommendation counts for a lot but the Noront Board recommended Wyloos bid of 55 cents but after BHP weighed in they ended up paying 110 cents...
What strikes me is that the video was filmed on 16 March, between PFS3 and Blanca Nieves...
I think they held it up until they were advised GDX, GDXJ and COPX were Rio for take off and the timing was perfect...
Viewed first 13.00 Oz, AM London and AM Canada...which piqued retail investors, started the SP spike and kept the momentum going for 36 hours.
If you think about it anyone coming fresh to SOLG would see the video or hear the fact and think...8.5p...24p...easy triple bagger...
This thing will either end in a major JV or Jiangxii owning the most mining real estate in Ecuador on the back of a fruitful trade deal with China...
Closed at 10.73 on TMX