Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Just to clear all this up
The three bonds issued are:
the original CB at 8.5
The reissue of the original 8.5 CB at 5
The new CB at 5
These have nothing to do with the HYB issue
ATB
Who knows? Maybe there was some technicality impeding the issuance of the bonds due to the original AoA not being officially removed on CH via a CCo4. Hence the delay. But now it has been?? Wouldn’t it be nice if that was all this delay was about?! A simple technicality issue that needed smoothing over before issuance..
Hi Malkis
On incorporation as ‘charco 95’ SM were required to submit articles of association/company objectives. These objectives can be seen on companies house and are generic; covering as much as possible.
AFAIK laws changed in 2006, and companies were no longer bound by their objectives, and were unrestricted in their objectives, as long as no objective restricts it.
This was only effective for companies formed after the new law- conpanies formed before remain to some extent restricted by their original objects.
SM issued an updated articles of assossication as GK said and in it they announce that previous ateickes of association (objects) are effectively defunct, and to be replaced by these new ones.
However, there could still be some technicality issues in that the original objects have not be officially removed -therefore still stand. The CCo4 form as you can see on companies house removes these objectives (as far as I know), Laura Conlon is a personal assistant at SM prabably to a director (source: linked in).
As far as I know this is a process many companies formed before the new laws go through in order to renounce old restrictive articles of association, and abude fully by more recent ones- which are essentially unrestrictive as they were created after the new laws.
This is all my understanding of it. Hope it helps.
ATB
Dow well up again today
B effective yield down again to 5.90 (best since feb 18!)
Markets now looking looking even better than BEFORE bonds were pulled.
Really would’ve expected to see the SP higher today.
ATB
Do we know for sure that the swap contract was created before the 06/08 drop though? Or did we just assume that based on the 03/09 swap being pushed back to 2020?
ATB
Wwguk, have a sneaky feeling SBK might be the party at the other end of the equity swap. Volatility trading perhaps... they are after all ‘alternative investors’, and on their website they outline volatility trading as a strategy. We all know it is coming here, be it up or down...
A trade called the ‘simple long volatility trade’ means one can benefit from both up and down, so volatility is all that’s required... usually these positions are established with a 2:1 ratio options to shorts... (apparantly)
123m Eq Swaps
67m shorts
CLOSE ENOUGH?
There is some room for manoeuvre based on file prices (to reach delta neautrality) of longs v shorts. Hbk would seem well position with shorts at 10.5p and longs at 8.5p- do they not? All very complex stuff, but this is a complex game at the moment.
What’d you think?
The way their positioning seems to be changing in conjunction with Citi led me to have a look into this...
Ofc AIMO
ATB
Yes dadean, I noticed that too- also noticed a reply (to a worried shareholder asking whether anyone thought funding would be sorted) was deleted. It went along the lines of claiming CF could be exhausting finances to sell up on the cheap. It was quickly deleted (only the OP or SM themselves could have possibly deleted it) so make of that what you will. Another interesting note -if I’m not digging too deep- is that the video has been liked by CF himself, granted he has liked post in the past so might be nothing to it, but again... make of it what you will.
ATB
Epic video just posted on the Sirius Minerals Facebook page!
Interesting wwguk,
Can’t really nor tail of it. It’s ok to think perhaps PIs bought into II’s selling hence the rise, but buys of 2.5m shares suggest otherwise today. Perhaps Blackrock and HBK acted quickly on Friday after China escalated trade war tensions expecting the markets to react more negatively than they did yesterday... thus having a knock on effect for SXX. The US markets were suprising stable yesterday, in part thanks to Trump’s suggestion that China called and they were going back to the table; had he not said that things may have been worse. I’m suprised at the rise today, it seems there’s two totally different belief systems in play at the minute, from big players... I don’t think the rise is down the PI buying myself.
AIMO
ATB
Sorry, yes, should read ‘slight increase* and rejig of equity swaps’- as wwguk quite rightly said.
ATB
Looks like loaned out shares have been recalled and sold.
Slight reduction and rejig of equity swaps.
Likewise, slight reduction in overall holdings.
Yes, but they can use the RCF if they like- only it will probably be more expensive than the bonds. It’s basically there to gaurantee the financing of the project. Plus bond issues should be easier to raise as SXX will be a ‘rising star’ by then and hopefully earning an income.
Interesting then that Citi increased their bond holding this week. I’d presumed once they were all sold that was it...
Excellent post, got it. Thanks, Cranleigh.
Hmm yes that does make more sense, Cranleigh.
Sxx really should stick to one name for it though!
Although in fairness, the nature of the St.2 ‘convertible’ bonds do seem to be a hybrid of both ‘exchangable’ and ‘convertible’ bonds...
It does also seem unusual that a subsidary of SXX is issuing exchangable bonds into the parent co.
Rereading the convertible bonds offer from St2. It reads they are convertible (meaning in theory they are to be redeemed as shares in issuing company Sirius financing no2 limited) and gauranteed by SXX.
But perhaps when the contracts were drawn up they were written as exchangable bonds! Hence the latest RNS.
It just seems incomprehensible however that there would be such a mishap in the terminology of the original ‘convertible’ bond offering!
Are you following?
AIMO ATB
They are convertible aren’t they? Convertible into the corresponding number of shares in a subsidary of SXX?
My scouring of companies house suggests:
Sirius Minerals owns...
York Postash Holdings, which owns...
York Potash Intermediate Holdings, which owns...
50% of York port and processing (other 50% Han****s)
And 60%? Of york potash ltd, the other 40% is shares... will these be given to Citi?
Incidently- YPIH will issue the bonds, and they will be gauranteed by the two subsidaries and its parent YPH
I know complicated isn’t it, assuming I’ve got it right!
Basically, I think the exchange bonds are for York Potash Ltd. (note they all have similar names but are different companies)
All this info available for your perusal on companies house...
AIMO
ATB
They are not convertible bonds-
Exchangeable bonds are bonds to be redeemed in another company other than the issuer (SXX) it’s usually a subsidary of the issuer... perhaps York Potash Ltd?
Wwguk- well would you look at that! Lastest RNS has altered the dates of maturity- original Sept 3 2019 (46m) has now been moved to Sept 2020.
Thornback, I don’t know but the same thought did cross my mind. As for passing on the fees of the equity swap to SM as a service charge, I very much doubt that, IMO.