ā¦ how many?
I like Tuesdays!
Just remember, I 've never shorted a share, ever! Absolutely wrong in my book. Only short the indicesā¦ it's all about timing... and horses don't give a damn ( whether you look them in the mouth or not ).
ā¦ I suspect that it will get rinsed by EHGO, and the Ā£1.375 million debt is repayable after 12 months, along with a 5% interest rate, so where on earth is that money going to come from? Unless that debt also gets converted into shares and the death spiral financing continues.
If you do try to have a trade here, just make sure you arenāt the one who ends up holding when it does come tumbling down.
ā¦ Currently the nominal value of the shares is 0.25p and the shares are trading at 0.15p, so things donāt exactly look great for the company unless it can turn that around quickly, as the warrants are exercisable as soon as they are issued, with a five year term.
It also had to issue nearly 238 million shares to EHGO in settlement of previous debts, so that has given it an awful lot of firepower to sell and to keep the share price low ā which is in its interests to do so whilst the finance is being drawndown over the coming months, as it will ensure that it receives a larger number of warrants (the amount issued is also based upon the VWAP over a five day period) and a guaranteed minimum exercise price of 0.25p (with Iconic being responsible for the difference, in money terms, for anything below that).
So, taking all of this into account, the company is basically in a death spiral financing agreement, for an amount which may only settle all of its existing debts and leaving very little working capital, and with potentially huge amounts of shares to flood onto the market over the coming months.
Based on all of this you have to wonder why on earth Social Alchemist would choose to sell to a company like this. If it really was a strong private company with such exciting prospects, it would easily be obtaining funding from angel investors/venture capitalists, or at the very least would sell to a listed company that had the funding available to accelerate growth ā if it is as good as it sounds then they should have been queuing up for a piece of it. You certainly wouldnāt sell to a company that was in trouble, had little in the way of working capital, and little prospect of raising further capital. Donāt forget that Iconic canāt raise capital at below the nominal share value of 0.25p, which is around 65% above the current share price level. I suspect that the accounts of Social Alchemy are far less impressive than has been hinted at in the RNS ā it could have a tiny revenue and profit, and still fit the description of it in that release.
As if all of that wasnāt enough of a concern, the executive chairman of the company is David Sefton, who doesnāt exactly have the best track record to say the least.
On top of that the company has been heavily pumped across social media, including by those who have a track record of being involved in causing brief spikes on micro cap companies before disappearing when the share price subsequently crashes. Often this is accompanied by rumours, or even fake articles sometimes, and in this case the story doing the rounds is of a Ā£3 million deal with Sega!
The market cap here is only Ā£2 million so I suspect it will continue to be prone to wild share price swings, and some will benefit from trading that, but as an actual investment I canāt see any reason to buy it, with large amounts of further dilution due and the company in a position where it is unable to raise any further funds via an equity issue currentl
ā¦ From Gary Newman at SP...
It never ceases to amaze me how willing many private investors are to forget past failures and accept that a complete change of direction in a business is suddenly going to bring success.
WideCells (WDC) failed as a stemcell research business, so it has now reinvented itself as a media and technology business, having changed its name to Iconic Labs (ICON), and many are immediately assuming that the new company will be a big success.
A lot of the excitement seems to revolve around the previous involvement of Iconic CEO John Quinlan, and chief business officer Liam Harrington, in social publisher Unilad. What seems to be mentioned less often is that Unilad went into administration last September before a deal was finally done with LadBible to save the business, although it would be downsized, as LadBible owned a significant chunk of its debt.
Around the same time as all this was going on, former LadBible creative lead Jono Yates, now working for Dugout, incorporated a company in the UK called Social Alchemist Ltd.
Iconic (or WideCells as it was still known then) set up a media and technology division back in March, at the time Quinlan and Harrington joined the board.
On August 6 an RNS landed stating that Iconic had signed a heads of terms agreement to purchase Social Alchemist using a mixture of cash and shares. What is strange though is that both parties are refusing to disclose the actual amount of the consideration being paid, and given that Iconic is a PLC I donāt really see how this information can be kept from shareholders.
The RNS stated that Social Alchemist is ārevenue generative, cash flow positive and profitableā but no further indication is given as to exactly what extent ā especially when it suddenly becomes part of Iconic, and with all of the corporate overheads that it has, I suspect it will be far from profitable at its current level ā and it will be some time before we see the Social Alchemist accounts for the period in question.
In early August the company also announced that it had secured up to Ā£1.375 million, gross, of financing from the European High Growth Opportunities Securitization Fund over a six month period. The company has stated that it hopes that this financing will settle its outstanding debts ā although there seems to be some confusion as to exactly what is still owed as it is still in dispute with creditors to the tune of Ā£400,000, and if it loses then it would also be liable for that, although it has made a contingency for that.
Looking at the way in which the funds are drawable over the six month period, and the fact that warrants are attached to them at a 10% discount to the volume weighted average price over the five days prior to exercise, or at the nominal value of the shares if that is higher. If they are exercised at nominal value then a fee is payable by Iconic equal to the difference in price.
cont...
It was never an investable proposition ( you bought a dream that no one would wake up to ).
CH played the game, just like CC taught him. Nicely timed and worked to the bigger plan ( pass the [empty] AIM parcel ). Will the music stop with JB?
https://www.youtube.com/watch?v=4IgjGq2FH5k
ā¦ from scratch would have been far cheaper, but three years of audited accounts are required and a minimum Ā£700,000 MC. Annual cost of maintaining listing Ā£300,000 - Ā£400,000
"How much does a listing cost?
The total average fees for a main market listing depend on the size, sector and structure of the Company coming to the market as this affects the nature and level of due diligence required. The base level for admission costs would normally be in the region of Ā£700,000 ā Ā£900,000.
On top of these fees, the Company will need to pay the brokerās fees for raising the funds (unless listing by way of an introduction) which may be in the region of 4-6% of funds raised."
In any case, surely a 'clean' listing could have been found. Was this one specifically chosen ( with legacy issues ) in order to enable the operation of a smoke screen, rather than the transparency required in the set-up of a new vehicle?
https://www.youtube.com/watch?v=JT2Vx9jSyjg
https://www.youtube.com/watch?v=WTslB59lnzU
You've got to be in it to win it... Lol!
ā¦ since last November 92.5% . On that basis, holdings reduced massively.
With todays news, it's confetti shares ( anyone going to a wedding? ).
The only way this will see a penny plus ( with todays dilution factored in ), is with a one for thirty consolidation.
ā¦( ICBINB ) me too... and Makita!
ASX / Media Announcement 2 August 2019 Market Update on Horse Hill Production
Doriemus Plc (ASX: DOR) (āDoriemusā or the āCompanyā), is pleased to announce that it has been informed by the Operator of Horse Hill-1 discovery well on the Horse Hill licenses in the UK (Horse Hill Developments Limited, the āOperatorā) that, total aggregate Portland and Kimmeridge test oil production from the Horse Hill oil field, now exceeds 60,186 barrels (ābblā) of light, sweet, oil.
The Operator additionally informed the market that in preparation for the late summer start of the Horse Hill-2/2z (āHH-2/2zā) Portland drilling programme, the testing of the well has been switched from the Portland Reservoir to the deeper Kimmeridge oil pool. From 6 July 2019 to the current date, the Phase 2 Kimmeridge test has produced a further 5,524 bblās of Brent quality oil.
Kimmeridge oil flow was re-established at initial half-hourly metered rates of up to 332 bbl of oil per day (ābopdā), with continued stable production of dry oil at daily rates of 200-266 bopd. Total Kimmeridge production to date, now exceeds 30,618 bbl with no apparent produced formation water. Following a 5 month shut-in, flow rates and flowing bottom hole pressures appear more stable than during Phase 1 Kimmeridge testing.
Prior to the Kimmeridge production switch, which was necessary for the safe drilling and coring of HH-2/2z through the Portland reservoir, total aggregate Portland production reached 29,568 bbl, with HH-1 continuing to produce Portland oil at a stable rate of over 220 bopd. Kimmeridge test production is planned to continue throughout the planned drilling of HH-2/2z except for potentially two short well shut-ins to enable the moving of oil storage tanks and installation of the drilling rig. The drilling rig is now scheduled to arrive on site following routine servicing after the completion of its current job.
The operator has stated that preliminary analysis by the operator of the final Portland pressure build-up testing, indicates that the Portland connected oil volume accessed by HH-1 has significantly increased from 7-11 million bbl to 11-14 million bbl. Horse Hill 2018-19 EWT Oil Production Milestones announced by the operator: ā¢ 60,186 bbl aggregate Kimmeridge and Portland oil production; ā¢ 29,568 bbl total Portland production; ā¢ 30,618 bbl total Kimmeridge oil production; ā¢ No discernible formation water produced from either reservoir; ā¢ Stable Portland test production has continued to prove more oil in the ground; ā¢ Kimmeridge flow resumed at more stable rates and flowing pressures after 5 month shut-in
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Doriemus Plc interest in Horse Hill:
Doriemus now owns 4% of Horse Hill Developments Limited (āHHDLā), which owns 65% of the two UK onshore petroleum exploration and development licences being PEDL 137 and PEDL 246, which hosts the Horse Hill oil discovery in the UKās onshore Weald Basi