Member Info for RTOK

Thanks for highlighting the different sectors, that is an important point worth of discussion:

Consumer Cyclical - a takeover generates a 30x return in a consolidated sector with no price growth.

Energy - significant investment expected in the sector and likely future consolidation, wholesale prices have quadrupled.

You’re missing the point again.

My participation wasn’t important and this chat isn’t important. Finding and seeing the short sellers burn is fun, but not important.

That’s why Reddit wasn’t in the analogy below, despite being what is was famous for.

What was important at this point in the analogy was RC Ventures taking a 9% stake at $4, or more precisely Ryan Cohen.

What is important now is Broomfield, .

In the analogy that $4 share GME opened trading 65% above the price paid by RC Ventures.

The short sellers continued to rubbish every angle they could think of but it wasn’t important.

A month later it was trading at $10, 3 months later it was $16.

It took 8 months for Ryan Cohen to be announced as future CEO but it was fully priced in at $120 after 5 months.

Broomfield and 5p are the important bits now.

Now with this analogy being all real events and historical fact, it seems impossible to compete with your compelling and deeply thought provoking lemons and pears story.

So with that in mind I’m going to take a break for a bit until something important is discussed.

Your analogy is a garbled mess, like your understanding of this deal, and is something you’ve just made up on the spot.

Try this analogy, everyone knows this one.

An analogy based on actual facts.

In July 2020 GME was a company that had been in decline for 14 years, management that couldn’t deliver and it looked like it would probably go out of business.

One guy thought the price would soon be zero and he happily told everyone this would be the case. Many agreed. The share was appropriately valued at $4.

The other guy thought there was value in GME. High risk but high reward. He bought some shares and suggested others do the same.

In August 2020 RC Ventures, who had expertise in GME’s field of business, took a 9% share and started to transform the business.

You know the rest, the bits in the news and that everyone talks about.

Almost two years later GME is doing the same line of business and is now appropriately valued at $120.

A 30 times increase in share price triggered by new shareholders and new funding.

I’m that other guy, there will be more of us soon.

No you are definitely that guy.

Well metaphorically, you are definitely that guy.

I’m the other guy, and it’s July 2020 again.

Patient Zero - appropriate choice of name
The source of the disease
Spreading it to others

You’re the guy from Melvin Capital, right? Well ex-Melvin. The guy who was short GME in 2020. The guys over at WSB have a little shrine to you, they love a short seller.

What happened, did you loan out some stock after the last rally, profiting from talking this share down. But now that profit is gone and big losses loom for you.

You’re a clown.
Trying to pump ahead of the fund raise?
Trading is suspended until after the placing.
Flip £17m of new shares? Yeah right.
Slip things though?
There’ll be an AIM admission document and a general meeting before trading is restored.

“Not holding but have an interest” - maybe you loaned out your stock hoping for liquidation and now you’re going to get burnt at 5p.

Lol Patientzer0 call me as a new account - I have it wrong - you’ve been here 4 months looking for exactly this opportunity, now you’ve missed the boat.

You’ll never recover the losses if you are a long term holder and KIBO as is will never deliver more than single digit MW growth but the shares are now cheap and the physical assets are worth at least 5x current valuation in capable hands.

Interested to know your investing strategy then. You’ve made a long series of bad decisions over many years with continuing to holding this share. Now it is actually at a fair price for its risk profile and attractive for a takeover it would make sense for you to sell up.

What possible reason do you have for still holding these shares?

Obviously you think they have more value potential than investing that money elsewhere otherwise you wouldn’t be here.

Blame yourself for your losses, their your decisions no one else’s.

Let’s be right though, if you strip out the management the current KIBO physical assets have a big discount compared to the mcap.

Win-win.

What other outcome do you think would be better for (assuming you are) existing shareholders?

The dates and conditions are not binding and can be adjusted or waived completely. Whilst ‘old KIBO’ are still involved I’d be surprised if they met the time lines proposed.

Maybe get an admission document June and trading July.

No that is not what I am saying. I don’t think I can explain it anymore simply than I already have.

I don’t have anything to add about shareholder claims but they are against Brownhill not Broomfield. That distinction may also explain why you have an issue with the balance sheet.

I think where I have used sentences with ‘depending’ and ‘could’ these are accurate descriptions.

The shareholding Broomfield will receive from the RTO is £10m. The placing is £7m. I don’t know if Broomfield will participate in the placing but they could and that would affect their % shareholding.

5p is the value at which the believe they can place £7m of new shares with a risk premium that is attractive.

I’m not trying to offload placing stock. From your posts you sound like you don’t understand even the basics of what is going on, but maybe that’s not the case either.

Current: Price 0.16p

Future: 10:1 consolidation of £4.8m of existing shares at 1.6p, Issue of £17m new shares at 5p.

Current: 55% of 9MW and 5MW in construction

Future: 25MW with 75MW to construct. Options on the controlling shareholders 160MW installed capacity.

AIM and the London stock exchange typically view controlling shareholders as having 30% or higher. Depending on their participation in the placing Broomfield could have ~55%.

Then there is likely further equity swaps for Broomfields other assets, installed capacity and the £100m+ cash that will be needed to finish the construction of the Victoria Falls project to 100MW.

You are missing the entire point.

KIBO did a reverse take over of Opera to form KAT. LC did the taking over and became KAT CEO.

Broomfield is doing the take over here, not KIBO and not LC.

This isn’t LC’s show any longer or KIBO as it has been. Companies like Broomfield who are looking to reverse IPO find a cheap shell company like KIBO with little revenue and few options to survive but RTO. It will be Broomfields major assets that are the revenue generators in the future and Broomfield will be the major shareholder. It’s a very significant dilution for existing shareholders but the market capitalisation of similar companies to Broomfield is around £5.5m per MW installed capacity so much better that they were likely to have done with old KIBO. Should be a great opportunity to buy if it opens anywhere near 5p/£32m mcap of the placing - that’s 75% discount on the 25MW that is funded with out considering the further 75MW or Broomfields installed capacity.

Patientzer0 - the £7m placing isn’t needed to fund the reverse take over, there’s no balance that needs to be found.

No losers here. KIBO isn’t buying an asset, it is a reverse take over.

KIBO get 25MW funded capacity with a further 75MW to come, options on Broomfields 160MW of installed capacity and the benefit of Broomfields IPP expertise.

Broomfield get 40% of the new KIBO, seats on the board and access to the markets without the need for an IPO.

They’ll be no shortage of demand for a placing at 5p - £32m Mcap would be a bargain for a company that had 25MW of installed capacity - that’s without considering the further 75MW in this project and options on Broomfields installed 160MW capacity.