If you would like to ask our webinar guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund a question please submit them here.
Lawrence, I bow to your superior knowledge on this company. As you can see it's not one I follow or have been invested in. I take it you have been a long time investor in the Co. I just feel for the investors that stay with companies that have shafted them whether that's through incompetence or fraud. I have been there in the past where the price keeps going down and down. SED is another one that's gone tits up, yet It was 40p not so long ago. Again not invested. Money is expensive now compared to a few years ago so there will be a high price to pay for the new money. It is normally best to take a loss now or should i say at 25p rather than hang on and then reinvest when the company is in a safe place. It's just my view through my own experience. An investment is there to make money not to lose it, so I hope you were not one that was invested at 125pš²
Totally, convinced the mine will be completed. Not convinced the current management will be allowed to complete it, given their previous track record. 100% convinced there is a tremendous investment case once they can get the additional money. However, at this stage you are gambling not investing . The current shareholders have all but been wiped out and are likely to be diluted further. I would wait until you see the additional money has been secured before putting any new money in to it.š¤
Difficult to see the current share price increasing by very much. The situation is very similar to the Sirius potash project in North Yorkshire. They ran out of money 4 years ago and AA bought them for peanuts. Yes the mine will be eventually completed but probably not by Hzm. Likely AA or Rio T or some other big mine co will complete and yes they they will make big money out of it. Same old , same old, if a mine start up says it will cost X, the you can say the cost is likely 2X. I don't think current shareholders will be left with anything by the end of this year. Love to be proved wrong though , but risk reward is very high .
Obvious basket case. Helikon just sold out their 3% after the share rose to 4p. If they survive , and that's a very big IF, then existing shareholders will be wiped out. Get out while you can . There are very little positives to drive the shareprice higher and a lot of neg news coming to drive the shareprice lower š¤š¤
NFTs , I would agree with most of what you said there. last year the company had to settle for CLN's which are obviously inferior to a placing, so whether they can get a meaningful placing away is debatable. It is difficult to see them getting more than a million. More likely under 500k . Why they don't just try and mirror Fever tree in terms of margins & strategy beats me. Seems logical to me and even FT is finding the popularity of their product is waning . It is ok sitting on the sidelines. I feel sorry for the shareholders but I did say to Toplocks sell at 1p and revisit the situation after 6 months.
Yes, for the sake of the existing shareholders, I hope it is. However, in order to get the placing away it is likely to be at a good discount to the current price. You saw the 325000was raised at 1.1p when the current price was just under 2p. The RNs said the shares were placed with a single investor but there was no TR 1 issued which suggests they were placed with a broker who immediately sold them on. So draw your own conclusions at what price they will be placed but if I was a betting man i would bet on some price below 0.5p . As they say DYOR
As the saying goes.
I invested here a few months back on the back of the growth story. If it works it will propel the shares much higher in value than they are today. Unfortunately, at best it has stalled as the calcs for the growth plan appear to has underestimated the cost of getting into the new areas they identified. The 325000 raise was to keep the lights on whilst they organise a more serious placing on or after 20th feb. No doubt Allenby brokers will get the placing away but the cost to existing shareholders will be high. For my sins I follow Fusion Antibodies (fab) and Allenby did their placing in May 2023 . Prior to the placing the shares were around 36p and their placing was at 5p . I hope and pray it's not going to be that drastic , but if the co were doing well the 325 k would have been raised at 2p or above. So based on that kind of scenario, any placing will have to be well below 0.5p . DYOR
My take on this is that having got funds in mid 2023, they have gone for growth in a big way, but underestimated the requirement for additional money for achieving the growth. I think they have effectively run out of money again like they did in early 2023. They had to stop production in first part of 2023. If that is the situation then he is going to have difficulty asking new investors for money having miscalc the requirements for growth. Burt's credibility may be shot š¤
I feel for those shareholders that have fallen in love with this company.
It is difficult to see how the company gets out of this without a large dilution of the existing shareholders. The company had difficulty raising money last year but did so eventually (2.2 m) by issuing CLN (convert 2025). Most of that money will be gone now as they were losing 3 mill a year. The 300000 raised at 1,1p will keep the lights on for another month and half. Whether they can get a placing away in time is debatable and at what cost to the existing shareholders. As I say very difficult situation.
It's a shame about the situation. It could have been the Fever tree of the Far East & America. Now they are back to square one. If they survive, then it might be a good investment at 0.25p providing they can raise a sensible amount that could get them to profitability. Only time will tell.