Member Info for Skippysb01

The example given below was a regulatory matter. They didnt have the risk plan in place to manage the eventuality that the placing didnt go ahead. Which is consistent with what I wrote. If a company has a risk plan and they can cover any potential losses - they can forward sell.

IMO, the reason this loophole has not been closed is down to the terrible state of AIM and it's a big incentive for funders which is needed in the current climate. Otherwise a lot more AIM companies would be going under. The whole funding system for AIM needs review.

Forward selling is not illegal. It carries a regulatory risk should forward selling start and then a placing doesnt happen (e.g. if an AGM doesnt get the votes). This has happened. Regulated entities are required to manage that type of risk.

Forward selling really is a thing. It should not be but any funder can buy and sell shares in the company before the placing is completed. So if HE1 have secured funding from x individual or entity then that individual or entity can sell any other shares that they may already have, knowing that they will receive shares at the placing price in future.

Stinks but happens a lot.

What I heard at the recent AGM was that they had done a forward cost plan and established that they didnt have enough funding to finish the drill and go back to Tai3. It did not seem to me that they had no cash now and it was even said they didnt have cash to fulfil the full drill + testing (which suggested to me it was close but why drill and get samples if they couldn't afford to get them tested - so marginal position).

So they wouldn't start the Itumbula drill without securing funding and they have a stretch target for this round to get back to Tai3.

It did not seem to me that they don't have cash and worse case they have to down tools and think again in the new year about funding. Bad situation but not administration unless they owe someone big money.

One would expect that it is possible to extract Helium from water. There needs to be s source of that for the industry to want to figure it out. It is so valuable that the technology to do so would IMO be made to happen should there be significant value in doing so.

There hasn't been a duster.

To get a farm out they need to complete this round of drill as a minimum.

True that funding isnt easy to come by but I take into account the massive potential of the asset. it really isnt comparable to most of the oilers and gas exploration companies as the potential is far greater with demand immediately in place. Not that this guarantees anything but that was my thinking when I topped up yesterday. Seems to be support around 1p so I'm wondering if the funding level is becoming bit clearer.

Its a huge gulf between risk and reward on this one right now so not recommending anything to anyone. Eyes open folks.

CrustyPete. I was stating that they won't discuss it at the AGM. With potential funding partners they will have discussions that are private. No chance they can directly answer the question in an AGM unless it's in published accounts.

'rumours'. Take with a pinch of salt. They probably heard it on twitter.

Also. They cannot answer questions like that at the AGM. It's fair to criticise them for not being ahead of the curve on a number of things - so the questions din't need to get asked - but they are not going to disclose stuff like the cash position at the AGM - it impacts negotiating position for a lot of reasons.

Blubay - absolutely. It has all been made clear and it all makes sense.

Funding is the issue. Solve that and we drill.

Are you seriously thinking they should RNS before they have secured the funding? Blimey LW and his mood hoovers would eat that up for breakfast.

Next RNS needs to be funding secured please.

I see the spread has tightened up for now at least. In reality the bid hasn't moved away from 1.03 to 1.05 for hours and the spread was never actually 15%.

Like a bit of Roxy Music. More Than This is my fave track. This thread has happily reminded me to play that and hopefully thats an omen for the sp.

Anyone watch What We Do In The Shadows?

Colin the Energy Vampire - might explain someone on this message board.

Isnt all of that just legal wording to manage risk? i.e. standard small print?

LW. Read what I wrote. I know the risk. It wasn't a big buy but due to the low sp it has significantly lowered my average.

Level headed view - If you are worried about the prospects of an AIM company failing to achieve its objectives you simply cannot invest in it. So that means I would never invest in AIM full stop.

So by investing I have taken that risk on. every single investor who purchased in an AIM company today took on the risk too.

If HE1 can secure funding they are very close to the 'risk event' which is completing drilling. It's way oversold 'IF' there is further de risking together with Nobles lab results.

It just doesnt make sense to be a holder for the journey and then panic right at the end. This feeling right now of fear and failure was always going to happen the closer we get to the 'risk event'. Remember I sold some at spud time on Tai3. I haven't added to my overall exposure in HE1 since the Minchin days.

I got some at 1.04 this morning. Can’t say I don’t know the risk. To me if they secure funding this is way oversold going into spud. If they don’t, well that’s just how it is.

All investors, new and old, need to be careful full stop. Blaming rampers is childish at best. Make your own decisions.

Gogs. Got to mix it up with global investments for sure..

My pension fund has increased 30% this year. So that’s all unit trusts. Back on track following the impact of the Ukraine war. Sobering reality that over years, boring investments are way ahead.

I invest small amounts in AIM on the basis that a big win might make a difference but the losses don’t hurt too much.

The drill MIGHT break down. The well itself COULD have issues. The CAN be unexpected operational issues. HE1 MIGHT discover commercial helium.

This can be said for any drill situation so absolutely not unique to HE1. Going in with a professional can work too but no way right now would we have any prospect of drilling in January if we did and it can hardly be said that it worked out better for Minchin. Lorna has achieved more.

HE1 was too optimistic on its timescales for Tai3. Hindsight and all that. SO now it’s a 30 day projected drill next time - lesson learned. Right now pending funding it’s likely they will complete that drill. They are getting better at this.

I would remind everyone that drilling to nearly 1500m at Tai is no small beer. A big list of ticks toward de risking further drilling in Rukwa, the more they drill the better the evidence of significant Helium finds.

I watched the AGM presentation on Friday and noted that LW and others would be back pointing at the Bakers Hughes question. I felt it was nothing noteworthy and typical that 2 separate entities tend to have questions on what they have agreed contractually that need to be applied to events. In fact in my life of work I have never seen a third part arrangement that did not have something to discuss.

Big risks. Potential big rewards. Choices for grown ups. My last buy was at 1.9p. I might participate in a retail offer but honestly find the restrictions on the amount of shares you get makes them fairly pointless a lot of the time. Might buy if a placing is announced and the SP moves close to that price - which it always does.