The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I also feel it's a great deal.
The tranches will be called off as and when needed, with the ability to repay (if able) within 60 days?
You'd expect each tranche to be value accretive, so any future call-offs which may get triggered you'd expect to occur at a higher SP, so the level of dilution will diminish.
Calling off £500k now at a SP of 1.5p compared to a future call-off at say 3.5p reduces the number of shares issued if the loan isn't repaid.
Once the permits come through for the variation and the lithium plants, plus the completion of the recyclus deal, I'm hoping/expecting the SP to be quite a bit higher than now.
I don’t think they’d be bothering with doing this unless they thought it likely the RTO will get closed.
Hi TapWater.
In regards to the Recyclus deal, I asked the people who ran the IPO for TM1 (I invested pre-IPO). I questioned the 4.32p price and said why not at the current share price.
Recyclus had independent valuations as to what the business is worth, and it was valued at 4.32p/share, hence the deal at that price. If you extrapolate that out, then it would mean that the valuation of the mining assets is circa £15m (based on the 4.32p). That doesn't seem unreasonable bearing in mind 10% of the Idaho mine was sold for £900k, valuing the balance at £8.1m.
The deal was structured on that basis and not based on the current undervalued share price.
Now, I realise that some may disagree, but I think that's reasonable. The current SP is determined by many things and doesn't reflect the true value of the company.
When it comes to raising money via a fund-raise, that can only be carried out based on the SP. It's usual to give a discount. The 'encouraging' thing to me is that it's meant to be institutional money so hopefully won't be flipped, and the SP has bounced from the initial drop to be 1.35-1.4. Also, most trades appear to be buys at 1.4, so I hope we've reached the lowest point and, once news comes through, we get a bounce in the SP to more realistic values.
This is very cheap IMO.
I agree Marco.
As I have stated I am not impressed with the execution of the plan this year.
I wouldn’t class myself as happy clappy, but nor would I want to be accused of having hissy tantrums and making guesses, and portraying them as facts.
Discussion is fine, but it needs to be facts.
Too many post things based on what they feel or think (i.e. guesses).
For example, the black mass point is 100% wrong, so I pointed that out. If people don’t actually understand the basics of what the company are doing, then why should I believe anything else they post based on their enlightened guesses.
Am I impressed with their execution of the business plan? No.
However, do I (or anyone else on here) know for sure if the delays are caused by the directors or purely down to the EA delays? That’s just opinion-guesses.
I do believe that the automation process will work. However, I don’t know 100% it will and others don’t know it won’t. They have proven the concept so it’s just the upscaling now.
The Halo boxes will be another great addition IMO and 2023 has the potential to be a very good growth year. Institutional money will start to come in once the recyclus deal is completed too IMO.
If you’re unhappy, then sell and move on. Why hold but constantly **** the company off?
@Blaim.
They can’t prove that yet as the permit does not allow that part of the process.
They will need a variation on the permit which is well known.
Too many have an agenda here of FUD.
BTW, I’m not saying everything has been ideal here in the comms, but misinformation needs calling out.
You’re mixing up the 2 technologies.
The ’Black Mass’ is from the Lithium batteries, not from the lead-acid. As you don’t understand what’s going on with the company, I’ll treat anything else you post as having the same level of accuracy, i.e. none.
The delays with the permits are extremely irritating, but the EA will approve when it wants to.
There’s only so much the company can do to get them through.
Once that permit comes through I envisage much improved newsflow.
The money lent from TM1 was used to build the plants.
However due to the delays from the environmental agency in granting permits it has delayed production.
They will still be having ongoing costs so they will have spent more money than expected before production, as they will have assumed production earlier in the year.
It’s an annoying raise but it is a relatively small dilation. Just need them to get other things moving now.
Sounds positive if they are still talking. Just hope they aren’t too far apart on agreement.
Hear by 28th November now…
It feels to me as though the recyclus deal was the 'hold-up' to other things being announced.
Be great to get some news on the EA lithium license, then start the recycling at both plants. Revenues will drive the SP forward.
My sentiment has changed now as it looks like some progress is being made after nearly a year of delays (which I don't feel will all be down to external agencies/people/issues).
Hopefully with Oberon as the broker, we may see some institutional money coming in as well.
Currently 0.315p (16% up).
Maybe news coming through next week? Is anything expected?
@aandi
There does seem to be some steady buying going through.
Hopefully this is the low point and we experience a steady rise and positive news flow for rest of the year. Markets are generally crap, so I’m not expecting anything substantial recovery until things stabilise.
Not long to wait now - maximum of 2 weeks until we hear something.
My own expectations are low, but that’s because it’s the hope that kills ya! :).
As long as they can get some kind of deal over the line, if that allows a platform to build on over the next few years it’s a start.
@MarcoArco
Not a ramper - just a long term holder and I still hold (over 10m shares).
I will admit that I am very angered by the RNS and am seriously contemplating going to the AGM. However. It’s only worth going if there are other large holders who plan to go.
This needs explaining in more detail, as what is currently being proposed is not good for existing PIs. No plans to sell at these prices, but I am less confident in the directors ability to execute their plans. I like the business model, but there are too many failed promises,
They need to deliver the lithium plant on-line soon and get the agreements signed. It’s been a year of delays which I don’t think can all be laid at the door of ‘other parties’.
I’m a large holder here and sat on a substantial loss (which I’ve written off in my head anyway).
I do hope that they can pull a deal off, and I’m sure they are working hard to achieve that.
What the effect will be on the SP is clearly unknown. I’d be happy (relative term I know) to get som 0.3p from here initially and then see if they can build up to maybe 0.5p/1p over the next 1-2 years. I’d still be in the red, but it would be a big step forward.
Not too long to wait from here though. Maybe 5 weeks and we’ll get a clear statement.
Being honest, I’d take a bagger from here and the potential to start growth lol.
Anything more than that would be astounding.
Sounds optimistic to me.
I guess those posters earlier who were saying “pump and dump” wanted more shares available.
So news is incoming then it would seem. RTO????