Member Info for Simms45

Tomorrow the next 35,887,491 shares from recent placing will hit the stock exchange so will have over 250m shares outstanding, this is after the last 100:1 stock split. otherwise would be 250bn in circulation! At this rate DP will need to do another 100:1 share split to keep us over a penny. Be interesting to see if they start selling in the background and price drop today might indicate further falls ahead until we clear out all this deadwood. However they are well under water and they did not get any warrants. they probably got a nice order for engines out of this due to the dubious scratch everyone's back approach but it is the 30th June that is more worrying as we do not know what Altair and Pitcole will do. Does Pitcole need working capital? Does Altair need to sell down to make space for any future placing? The issue is the management have kept all these shenanigans in the background so pis have no idea. Anyone sucked into investing in Eqtec over the last 3 years on the back of the bullish DP RNSs are then rudely rewarded by DPs investors selling down on news. We will see but the management need to make sure we no longer need to feed from the trough of these sharks and stand on our own feet and work our way out of this mess.

Seingrid i have always wanted a JV or to build the mine. Why MC thinks we are not capable to build a mine is beyond me as you simply find a partner who does this all yhe time. This is only way to extract full value and plenty more sales opportunities would come anyway as we near first pour. Its pretty clear from all RNS JM has repeated wanted full value and we must assume he must have got one buyer to commit to the point we have now been waiting. I think a JV can be done overnight with any number of partners such as Calibre or Mako or any Saudi or Chinese operator. So i am comfortable the plan B is pretty simple, albeit painful given it would then look we wasted 18 months. However June feels like the month even the board will think is enough time to close this deal or trigger another.

Lets also not forget the 35m shares being added on the 14th June. I am sensing a bun fight who will be first to sell down their holding. Will it be Riverfort or Insp and its 35m on 14th June or Picole/altair who have 50m+ where lockin ends on June 30th. Maybe 30-40% of company in hands a few shareholders whose modus operandi is to not hold positions but to recycle into the next desperate company but thats a huge amount of churn to work through.

“ Application is being made to the London Stock Exchange for admission of the Placing Shares ("Admission"), being in aggregate 35,887,491 new Shares and it is expected that Admission will become effective and that dealings in the new Shares on AIM will commence at 8.00 a.m. on or around 14 June 2024.”

Well we already know Riverfort converted debt to equity so once it probably got some fat fees paid in shares they upped their holding. Most of their holding is a bung for fees so their average will be less than 1p so they can probably exit their whole position. As i understand Riverfort are suspended and moving towards ownership so i suspect they will sell this holding as soon as practical, possibly over next few weeks before ra bigger slice of the company will be sold.

“ Riverfort Global Opportunities PCC Limited has agreed with the Company to convert part of the outstanding balances of the YA-RF Secured Facility by subscribing £200,000 for 12,802,031 shares in the Company at an issue price of 1.562p per share, representing a 5.3% discount to the mid-market closing price of 3 May 2024.”

We need to separate technology, potential of company from structural issues like the way they have organised placing finance as you can have a world leading company destroyed by bad management who took the company down a death spiral with these vultures and investors. All i am saying is once we have flushed out all these investors we can rebuild based on future. Today these holders of stock are simply not planning to stick around as its not their business model or as soon as they break even they will exit. However its the scale of their shareholdings that is the issue. I have huge enthusiasm for the tech and scalability but now understand why shareprice is what is as DP has not been selling to long-term investors but those who flip the shares asap and keep fees and warrants. Works fine when you have high volume and market cap but disaster for illiquid stocks and low market cap.

I dont think Palumbo is planning any sort of MBO he could find himself facing charges of shareprice manipulation as he worked with venture debt whose business model is to keep fat fees and warrants and sell the stock held and wait for their prey to come back for more snd so on. We still have potentially 25%+ of shares issued locked in until the 30th so that is going to be a lot to get through or certainly a stiff headwind as they unload. We have already had good news but everytime it is sold into and we head lower. Its a crazy situation as company and tech is in a great place but Palumbo and his shenanigans, not least his recent dodgy deal to pump another companies stock in return for a friday night drunken conversation that sounded ogood at the time will surely get investigated as it was no way arms length. Anyway we just nee to clear out all the shareholders who are trying to exit and build a new base to grow from.

JVing the mine is now the best financial option to maximise shareholder value and to get back on track or get the debt finance as money is flowing in mining again, even in Nic. However my expectation is we have had a sale for sometime at a price acceptable to JM as other options are very possible. Waiting 18 months has been painful when this should have concluded in less than 9 months but can only assume expectation on price was high. What the holdup is now we not aware but JM and MC have both said positive things recently so that will be for a reason and things are very quiet and with no update RNS can only assume a sale is shortly to be concluded. Hopefully June finalises the deal as MC was out in Nic and made a point in his last email to hopefully update shareholders.

That probably equatee to 35m more shares heading for the exit on the 14th June ahead of the 25m on the 30th June. have to see how the MMs play this.

Looks like brokers and possibly other investors are exiting and depressing the price. How long the shareprice will continue to decline is probably related to the number of shares being dumped. We will not find out until after 30th June what other investors will do as the lockin will be over and possibly another 25% of company shares might be dumped.

I would like to see Saint become the CEO asap and clear the shady deals setup by DP from the company. Shareprice would boom/ Plenty of time for Yoel who over the years has been a consistent buyer of shares and now well under water by a good amount while DP has mostly got freebie shares or salary sacrifice. I would expect internal pressure by Yoel and Saint as well as staff to push DP out and move away from his disastrous mismanagement and dodgy deals. The most recent is astonishingly dubious. We should be a £20-£50m market cap company, which i fully expect we will be over the coming years, but DP is now the roadblock to achieving that. he should step aside. His financing experiencing is nothing more than doing deals with bridging loan sharks and venture debt vultures. Has he ever been able to convince a single long-term strategic investor who is here for the long-term? not a single one even as we stand at a market cap so low. Things will change for sure and we will rise but i am not sure we have seen the bottom yet as we have no idea how all these remaining shareholders are going to play it over the next 3 weeks when they can exit if they chose to and some might be forced sellers. we just do not know and DP has said nothing to help pis understand what is going on.

Off topic but the key to the future of politics is, just like the BOE was made independent so should schools, NHS, defence etc and put in a 20 year plan that no-one can interfere with and then let the egomaniacs, who like to listen to themselves talk, just be given a small area of responsibility. So obvious to me that each government simply, out of spite, rips up anything the previous government has done creating disorganised mess. no wonder home schooling, private health care and going abroad for care is booming. anyway end of June Kefi has better have got the 2nd bank signed up and cash fro equity investors in escrow. This cant go on forever. I remember all the talk of Harry last October like it was all about to happen and here we are 9 months later and still there is always one more thing to sort out. Harry is obviously not looking to do a placing for a while as he has gone quiet. normally he pipes up to help get away a placing.

The other near-term issues to be possibly aware of is the £500k "settlement agent" placing that will land around the 10th June.

"The issuance of Placing Shares is conditional upon cleared funding from the Subscribers, being received by the Company on or around 29 May 2024, save for c. £500,000 of the Placing which is to settle through Global Investment Strategy UK Limited, an existing broker for the Company, acting as a settlement agent, on or around 10 June 2024."

This is prior to the 30th June lockin so if this £500k holder expects Altair/Pitcole/YA-RF to sell after the 30th June would they not try and exit their position before this time? Its hard to know given Palumbo form if any of these parties will hold any shares or if Palumbo is going to help them exit by releasing an RNS that surprisingly will look great but wil be sold into. We will find out as i am still unsure exactly what is going to happen. only good news is the main syndicated loan of £5m was refinanced but this leaves a lot still hanging over Eqtec.

And it appears the overhang has a long way to go as we are back under the placing price and you can fill your boots. if you look at the last couple of Palumbo stock pumps he issued carefully worded RNSs that led to short spikes that were then heavily sold into. Palumbo, i suspect, knew very well what he is doing and helping his venture fund mates rob PIs caught on the spike unaware what was going on behind the scenes. i am just not sure if the recent £500k is now on top as as the 30th June lock in ending

"The YA-RF Lenders have undertaken to the Company, for a cash fee of £50,000, not to convert the remaining £600,000 syndicated facility, until after 30 June 2024."

That will almost certainly be another share exodus? Catalyse who was described as a "special situations" bought some of YA-RF and literally sold the whole position within 1 week. YA-RF has 26m warrants. That was really unbelievable because many investors bought on the news, thinking it was a good thing, unaware it was the opposite and i am sure Palumbo knew exactly what was going on. Did he mention to long term investors that Catalyse were going to dump all their stock? Anyway i am very positive on the tech and potential but Palumbo has damaged so badly investor trust and why not a single strategic investor is willing to go near Eqtec because they can see what Palumbo has been doing to every investor who has come into his orbit.

And the lock from venture debt funders come off at end of June who might decide to recycle cash into next company desperate for cash. Now i know how they operate, loading up on warrants and fat fees in and out, they can take a loss on the share portion. We live and learn. If DP managed to dodge these dubious characters we would be 10x today but until they have all sold out their positions i suspect every good news will be heavily sold into and i wonder what will happen pist 30th June? anyway 100% behind tech and future capability but shareholders deserve an apology. Closest DP came to is admitting the problem of venture debt financing and admitting shareprice is badly impacted. hopefully 12 month forward we might be in a good place but how much loss of trust, some of whom are down 98% can forgive DP for not cutting costs faster and harder and even in last few weeks doing a dodgy deal with these engines for £150k a pop. DP sadly will never learn to play it straight. next Rns i suspect is a boatload of share options for management at historic low. when did DP serious put a decent amount into Eqtec?

If its true i agree. Company should have been sold 6-9 months ago so if options exercisable on sale this is potentially rewarding failure, especially if we do not get a top price for letting this drag on so long. Nearly 18 months is more than enough time to know approximately the price and we also know 18 months was max time it would take to build mine with 12 months possible with a good wind. As a result we are missing out on much higher msrket .To be any moderate success board should be targeting 65-90p in sale to substantiate these warrants and must be concluded this month or the board should be a little embarassed at those options and how long this has taken as many lths bought at £1 a long time ago. Board have taken £50m from investors and they should expect to give back double at least before they consider their rewards.

Bear in mind the following so i hope for everyones sakes this was just going through the motions unless they plan to bow build the mine and make some real money?

“ with the restriction that no options can be exercised within 12 months of the Grant Date, only up to 50% of the said options can be exercised in the following 12 months and thereafter, 100% of the said options can be exercisable, provided that the grantee remains with the Company.”

I suspect if it was just MC Condor would have been sold 12, months but maybe 45p as we have had offers. £50k is probably consolation I feel that Jim has been in charge and he wants his money back and then some. I am confident it will be substantially more and we just need to wait to find out, assuming that is we do sell and dont change tack. This 18 month sales process has been very long and in retrospect not great given market cap now on production would be £200-£300m given we would be about to tuck into £100m of net cashflow for next 10+ years. I think Nic visit was important and MC made an effort to say to investors he hoped to have an update very soon. Hopefully he had his last steak supper with Ortega and deal is done. We will see hopefully asap.

Harry over last 3 years has had a impecable ability to dangle how close we are in front of our noses but as usual drops a little issue that extends the process. I just hope resettlement is a simple as he has indicated and early works lead to 2nd bank sign off. I am still miffed that resettlement csn only happen post cash in bank but what exactly is early works and what does it cost? Something tells me it is not that simple and just like Columbo we will hear the line “oh just one more thing” and off we go again. We cant afford process to slip so June is a key month.

One big issue is to watch 30th June as Altair and Pitcole and others were blocked from selling their shares until this date. If its anything like before they will start selling probably immediately as they have their free warrants and shares are just a burden. They always need to sell this kind of venture debt to fund the next one ao they keep warrants etc. DP explained he is not going down that route again as Eqtec and shareholders got totally stuffed. Pendulum will turn but these holders are not exactly from past experience holders.

Some possible positive news for once. Seems cnel will purchase up to 10% of shares in a buy back. exactly what is needed as frankly $700k will do that. Just need to hope Cnel secure new business, which presumably they are doing given plan to do any repurchase. Should lead finally to upwards pressure on share price over next 6 months if theu do start mopping up the trickle of sells we have seen over the years. https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0529/2024052900402.pdf