Member Info for Spikeyj

tell 'em yourself, royo, and then maybe they'll come and buy in here?

sure, there are worse deals out there. but it's not exactly a sign of strength to have to structure the deal like this. one unknown is their prior position, since the equation shifts a bit if they are already short, as per mattwales' suggestion earlier/ (personally, i'd guess probably not so likely.)

that's the key to most of these convoluted financings forecast-strapped AIM cos. build in enough fat on either side, so that they win with both tails & heads. (nice work if you can get it.) royo, try post a bit more enthusiastically, and maybe you can get the market to agree that it's a good deal?

they can win either way if they play the cards right. ... nicely loaded dice.

from RNS: ""Market Price", (calculated as the average of the lowest ten daily volume weighted average prices of the Ordinary Shares during the relevant month)" funny way to calculate the market price. why not use a weighted average of the previous ten trading days, for example? or the average price across the month as a whole? --- this way of doing it, biases it strongly in favour of those investors, since they will stand to pay less if the price if lower. they get to use a 'market' price derived from the ten worst share price days in the last month! these investors might simply dump their tranche of subscription shares quickly, then hope sula SP stays low. but presumably, their other strategy would be to sell those subscription shares at tactical intervals to selectively hit the SP ten days/month. (they've promised not to short, but they can use subscription shares as ammunition.) *** royo, i'm not 'deramping', as you put it, simply having a look at what the RNS actually means. e.g. as per your post, some folk might mistakenly think that this agreement means the company is fully funded until sept '18. but it is not.

in terms of their 'alignment' with the company, unfortunately it appears to be set up so that these investors will make *more money if the company's share price does badly*, if they do not hold onto those initial subscription shares. (and as you point out, it's a very short lock-in.) *** "The Sharing Agreement provides for a monthly payment to be made by the Investors to the Company [...] This payment may be adjusted up or down depending on whether the "Market Price" [...] is above or below the Benchmark Price. [...] If the Market Price is below the Benchmark Price then the Monthly Payment is reduced based on the following formula: £41,666 - (51,369,863 Ordinary Shares x (Benchmark Price - Market Price))" *** - so once they have sold their initial branche of shares, and received their cashback from the company, these investors will be hoping sula share price stays the same or falls more.

hi my21, i'm fine, likewise hope you and yours are well and happy.

well, the payments from this agreement extend to sept 2018, but that does **not** mean that this money will be sufficient to keep the company fully funded for that long. the company is likely to run out of cash for working capital etc. well before that. "Net proceeds of the subscription are expected to fully fund the Company's exploration activities well into 2018" "... well into 2018... " seems deliberately very vague. feb? march? who knows!

good post. such sad times for that country, so often it seems.

http://www.proactiveinvestors.co.uk/companies/news/182374/legal-general-plans-to-bid-for-prudential-s-uk-annuity-business-182374.html

"when I had chips at Rick Stein's they weren't cheap" yes, that was part of my point; cheapish, but not as cheap as proper chips! rick stein makes some good nosh, but builds in pretty fantastic profit margins.

the bomb on beijing/alaska/seoul/pyongyang, it's pretty unlikely that an insurance company is going to do well. but providing that doesn't happen, this is as cheap as rick stein's chips triple-cooked in padstow's finest goose fat. so what odds on a hot war kicking off?

hargreaves comment: "Overnight US and Asian stock markets slipped into risk-off mode late on, as Trump warned North Korea would be "met with fire and fury and, frankly, power the likes of which the world has never seen before" if it continues to threaten the US. [.. snip ..] Asia-focused financial stocks, namely Prudential and Standard Chartered were among the main fallers. [.. snip..] Life insurer Legal & General posted a 43% jump in half-year profits before tax to £952m, which saw earnings per share rise from 11.27p in the year-ago period to 15.94p. In turn, the company's payout was raised from 4.0p to 4.3p. Its shares were caught up in the general risk-off mood, however. Fellow life insurers Aviva and Standard Life were also lower."

but voda still perky.

aviva and prudential also down circa 2% this morning, seems lgen just moving broadly in line.

like pretty decent results to me, but wonder what mr market thinks, after the recent anticipatory rise.

daniel, i wasn't meaning anything in any secret language. i just meant what i said. ... directors buying big stakes is promising. RNS today shows some pretty decent sized buying from several senior company staff. of course, that is no guarantee that the share will do well, but i don't agree with driftking that it is meaningless. his idea that it is just to 'gain dividends' doesn't make sense (unless they then sell back those stakes after ex-div!)

good looking BoD buying.

i am still holding, but i am wondering whether the share price may be getting a bit ahead of itself? there's been a pretty good rise recently, so the half-year results on 9th would have to be quite special to propel this up by much.

i'm still here, daniel, with reasonable size. - just busy picking raspberries and courgettes and blackberries and now the first of my v. tasty tomatoes. i love this time of year, harvest plus foraging too. vod taking care of itself, hopefully.