The next focusIR Investor Webinar takes place tomorrow with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
These shares traded at 45 at one point I believe. These assets were acquired at the expense of shareholders and now they have disposed them off at shareholder's expense.Worst thing is whoever will foot this funding shortfall would take a big chunk of company for peanuts.
Whatever way you look at it it is disastrous for shareholders.They need money for working capital,they need money to pay orion and they are not profitable at this level.Aim at its finest shareholders will be shafted royally here.
Outlook
We are maintaining sales guidance of £23m for the year ending 31 December 2024. However the scrap problems in particular have absorbed a sizeable amount of working capital and cash. The Board are assessing options to address this short"
How can you say no cash is needed as I am curious to find out about "options that board are assessing"
And needs to raise it through placing.What I dont understand is why did they let shareprice get this low and not raise it around 6.This company needs minimum 5 millions and that would dilute existing shareholders heavily.
Brand has some value, buying it out of administration is best outcome for JD , he can leave loss-making stores with administrators along with other hmrc liabilities but that might not be acceptable for lenders.
On the flip side if it fails to hit targets then there will be serious cashflow problems as debt repayments would need to be moved forward. There is nothing new in this RNS so why did they not release it with quarterly production update?
Game was up when they said they have exceeded the budget and need more money and worst thing is they did not even know how much money they needed.Shareholders were going to get wiped out at that point.Shareprice hit 16 and a few people got in for a quick trade and rest is as they say is history.Someone has made a lot of money here and half a billion has gone to waste.