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Can not see any placing above the current 3p. For 2 reasons, if the prof traders /investors thought the placing was going to be anything like 10/ 20p then they would be buying hand over fist at the current price. Equally, the 3 cornerstones would be buying hand over fist knowing that their 3p purchases would triple to 10p on any announcement re placing at 10p.
It just doesn't make sense. There is no buying by anyone at the mo. Tells you a story 🤔🤔
Still can't see them raising at anything more than 3p .
It is seldom that a company raises at more than the current share price.
Money is becoming hard to get so don't build up your hopes. Bids folded today as they couldn't get money. Similar with Loop up and Copl threw in the towel .
Miners tanked a bit today , so it's not a rosey picture at the moment. We should know at the end of month .
To be fair , Fin is entitled to his opinion . I think he is wrong regarding the current leadership ie Karim
He might have a point regarding 4p . If placing is at say 2p , then if it doubles in 6 months then I'll be happy with that 😁
Very difficult to see the shares at 20p for a lot of years ,if ever . It might actually move to zero if any proposal fails in April .
The Fat Lady will be singing her song, hopefully not .
Interesting 🤔. GS have 0.5% short and they may be buying to close their position which would be a good signal.
It looks like Maven Inv had up to 1.65 % short bet and they closed that on Dec 20. If either really believed this was going to zero they would have kept their short position open 🤔🤔
Agree, it would be addressed as a package.
I don't think you would necessarily have to find additional money to cover those debts at mo. I can't see how any of these loans could of been repaid until the mine is generating revenue . There may be some agreement on deferral of interest or extended period of loans due to the 6 months delay. Difficult to say really without inside knowledge. Obviously if they were to go bust the loanees would lose everything unless they were secured, which I believe they may be. But they would have the security of a half finished mine. I suspect that's not as good as a finished mine 🤔
As you say 777 there will be no good options here if you are still holding shares.
At best it's going to be a severe dilution the worst is bust ,
You only have read the news today to see the risks , SED gone into admin today ; 6 months ago they were high growth co.
It could go either way , but I am afraid that when a company has run out of money they are not in a good position to negotiate a good deal . Any potential creditor will will walk away unless they get a good deal . I wouldn't recommend anyone to buy the shares at the moment in the hope of a bounce, but if your investment is now only worth tens of pounds it might be worth holding as you might get preferable treatment in any placing .
I think there will be some banks that may be willing to lend , as there is a good business going forward .
Most businesses that run out of money will go bust as the ongoing business can't generate enough revenue to make an ongoing profit. I don't think you can say that about Hzm.
It is still priced to fail as the co has issued the usual caveat ' may not be successful ' .
I doubt there will be any announcements now before the publication of final result at the end of March, so the price might even drift lower. If it starts to increase then the chances of a deal are good.
I don't think the placing will be the difficult part. It is likely the new bank loans that may be the problem as the bankers will not want to sign up for anything until they know that the co is safe investment again. They will want to know the placing will be successful before agreeing anything . That may mean the trio having to agree to taking a larger slice of new equity , which I guess they wouldn't be averse to.
As I say if the mm's get sniff of a deal they will gradually move the price up towards the end of the month 🤔🤔
I think you are right that the trio are desperate for Hzm not to go bust , firstly because it would be really bad for their reputations esp LM and O who are supposed to be expert mining investors, and admin opens up the bidding to outside miners some of which would love to pick up the assets .
Where the price is pitched makes very little difference to the trio . The amount the 3 have to put in is the same whether the price is 2p or 20p. I can see them getting a placing away at 2p but at 20p the brokers wouldn't be able to sell to new investors. The price should shoot up if and when a placing is announced as the mm's will reprice it as a viable company again instead of one that's on the verge of bankruptcy.
The problem is for the existing shareholders their holding at 125 p is now worth say £30 for every £1000 invested. So if the price doubles to 6p you now have £60, whereas if you decide to to put £1000 in new money into shares at 2p your investment would quickly triple to £3000. That's why placing are generally hated by existing shareholders. I've seen a couple of comments re Avacta and their existing PI's are spitting feathers over the placing at 50p .