RE: Chris Akers effect17 May 2020 22:53
Just a thought involving another Chris Akers vehicle.....
On 14-5-20 AAA announced that they were entering into options to acquire warrants for shares in ASLR.
Thus far, they've got options over 20.5M warrants being
5M @ 18p expiring on 30-9-2020 - which were "introducer" warrants granted by ASLR 10-2019 and 15.5M @ 6p expiring on 31-10-2020
The 15.5M @ 6p appear to be taken from three tranches of warrants issued by ASLR at various times over the course of its recent fundraising activities which appear to be designed at getting a company, Sentiance listed on the LSE -
10M placing warrants @ 6p, granted October 2019
2.5m commission warrants @ 6p, granted October 2019
5M placing warrants @ 6p, granted 20-12-2019
But the total of the latter blocks of placing warrants (most, if not all belonging to Chris Akers) comes to 17.5M, so as AAA have taken options over only 15.5M of those, there are 2M warrants from one of those blocks unaccounted for in the AAA options.
AAA take no risk (except for a £60k fee payable in shares) as they only have to pay for the options if they also exercise the warrants prior to the expiry date - then they have to pay the option price and a fee to the option holder - to be paid with 231M AAA shares at 1.5p.
Total cost for the options if exercise £3,465,000 together with the fees on the warrants £1,830,000. Average around 26p per ASLR share. Bargain all round as AAA shares are already nearly 2p and the ASLR shares were suspended at 47p.
But what of the "missing" 2M warrants from the original 17.5M?
Why haven't AAA taken those, as the additional cost of those would be negligible to AAA?
Maybe they are earmarked for PIRI.
If PIRI were to get those on the same terms/price as AAA, if exercised they would pay 2M x 6p for the warrant = £120K together with the option fee which would be £338,000 at an average 16.9p per share, which is the average price that will be paid by AAA if they are exercised.
Total of £120,000 + £338,000 = £458,000
Which is only very slightly more than the £454,286 raised by PIRI on 15-5-20.
If that were the case PIRI would get a bargain, paying 22.6p, if exercised per ASLR share when they are listed at 47p, and recent off book trades have been at 70p, with options at 130p.
PIRI shares could potentially receive a boost from such a deal, perhaps explaining why the recent fund raise is being done in three parts - after such a rise the raise may be rejigged, to raise at a price greater than the 2p, with warrants at 4p, being offered now.
Still no circular issued for the 3rd tranche as yet.
2p/4p is really a historic price as the shares are already 5.3p, and could be headed upwards again.
The additional funds could be used to support the ALSR/Sentiance deal/IPO, for which ASLR needs to raise around £30M in total.
An interesting similarity in numbers.
Sign In
Follow the stocks
