Brucey I’ve voted against them, I’m merely not being kept up at night on the prospect of a <5% net dilution. The company will succeed either way
Honestopinion - since your last prediction was “this will never dip below 3p again” just a week ago, I’m not sure this new prediction holds any weight
£5m isn’t a lot of money for a company trying to upscale a new operation from scratch, they got that £5m months ago and they’ve probably already put a big dent in it. What exactly is “enough money”... we don’t want them to scrape by - we want them to grow extremely fast, particularly with a product like this. Can you imagine what the SP would go to if we got an RNS that the first machine is commissioned and 10 more have been ordered due to demand?
Ratherbelucky, the dilution is based on the SP on the day of the warrants being passed, not on a fictitious day in the future where you think the price might be 5p.
If that was the case then every dilution that has ever happened in any top company that has had a SP increase since is crooked.
These warrants were decided long before there was prospect of imminent income from masks.
What if the first few weeks of the mask production goes amazingly and we get orders 10 x our capacity to produce. Would you want the company to instantly be able to purchase multiple new machines, or would you rather wait a few months for profits to come through and get a new one in H2?
Think you’re just saying that because we’re blue today for the first time in an eternity ??
Beforegolf you are spot on, 90% of the gamblers on here aren't aware that the dilution would be next to nothing at the current SP, and fail to see the benefit in the company having £8m of additional money in the bank. Apparently they “don’t need” any more money because they have £5m which will last them forever.
Strange logic, maybe they shouldn’t bother producing masks if they’ve got enough money.
HeresHoping - I’m neither for or against them in principal; but I have voted against them solely because I believe the SP will perform better if they’re voted down than approved.
But I cannot understand why everyone has such a ridiculous view of these warrants.
I work for one of the top British banks; we have share schemes where we get to buy stock, risk free for a discounted rate - most big firms do, it’s not illegal, immoral, crooked.
The fact is, if these warrants are passed, the company is diluted by 20% BUT gets an additional 18% of the current market cap in cash - that’s a total net dilution of 2%. How is that a big deal?
For the morons saying “THEY DONT NEED THE MONEY” - get real; every company in the world would like more spare cash to scale up - are we not all hoping this company scales up? Are we not all hoping more machines are purchased and better directors are hired? Or do you want this company to be small fry forever. Make your minds up and stop moaning about something that is a non event
Apologies - 10% discount. A net dilution of 2%
Who cares?
Oaktree please explain why a company currently valued at 2.2p per share selling warrants at 2p each means we are “fuc*ed”?
It’s a net dilution of 10%. The share price moves by more than that pretty much every day.
Remember a few weeks ago when people on this board expected the machine to arrive on the Thursday and would be “plugged in” and producing masks by Friday?^_^
Better times...
Cavendish, why would they take up warrants for 2p if the share price was at 1.5.
They would just buy them on the market like us, for a 25% discount
Agreed. At this price they’re no longer an event.
Friday on this board was absolutely ram packed with morons saying the company was crooked because they hadn’t given us an update either way, despite promising to.
Some of which even saying “even if it’s bad news, we need to know”
Then when they post bad news, everybody kicks off. Seems if they don’t post 1 good RNS after another there’s got to be fraudulent crooked behaviour going on, because otherwise how would the genius share holders in this group be losing money......
If they’re taken up at this price, the warrant holders will be receiving shares worth 2p for the price or 2p.
The dilution will instantly be wiped out by the additional £8m of cash added onto the market cap
The result is net-nil.
Those or you wetting the bed every day about the warrants, just give it a rest now.
So when they didn’t post anything on Friday and the share holders on here were calling them crooks; now they have posted an update and the share holders are calling them crooks.
Why the hell would it be another game stop? The apparent bad guys here are the top shareholders of the firm, if Reddit sent the share price sky high, the people who would gain the most are those same guys.
Christ.
I wonder if the RMS BoD are also involved in bill gates plan to microchip all of the world after infecting us with the 5G virus... makes you think.
You missed my sarcasm PL75 ;) I agree with you