Member Info for StarBright

vicjain - all privately run placings are "oversubscribed". I wouldn't attach much value to that statement.

My guess is that the JV investors are happy with the level of commitment they have in cash terms, both historic and through the funding agreement. I don't think there's anything magical about holding a certain percentage for them. They will accept some dilution along the journey.

Rktech - the sums involved are just too small for the admin and legal costs associated with an open offer. These costs are broadly similar whether you are raising £4m or £40m. Most of the offerings that come through on PrimaryBid are >£25m.

Nearly £7m when the warrants are exercised...

Total after warrant exercise is 35m shares for £7m. Looks bad against Friday's close, but not so bad against the preceding week or two. On balance I'm ok with this, other than standard-issue irritation with TP.

If the JV partners had taken shares in the placing it would have been in the first line of the RNS...!

Come on peeps - don't be so naive.

Filled at 19.6p.

Happy with this right now. Hope I'm still happy in the NY when the drilling results come out...

Warrants mean 11.75m more shares at 25.5p. Not particularly punitive or material (just over 6%) but are likely to have gone to Turn-em-over's preferred punters, so will be exercised and sold into any rise. Main impact therefore will be a degree of drag on the sp if/when good news is announced. I'm not too vexed about these, partly because they'll raise another £2.9m for the company. Against any form of successful story, the company now has about £7m of funding (£4m from the placing, £3m from the warrants) in place through December 2022.

If they come back for more, the story had better be compelling.

Sure, but it is likely that there are sell orders in background. We'll only see them later.

At least the placing RNS didn't contain the usual TP b*llocks about the shares going to "Institutional Investors". This time we know they've just gone to TP's preferred punters, who will sell them in short order.

Spot on Tildo. If they were confident they would have waited and placed into the subsequent rise.

A modest top-up order at 20p for me. Not filled yet...

With a few roundings to make the maths easier...

24m new shares + 12m warrants = 36m new shares
Cash raised: £4m
Cash raise from warrants: 12m * 25p = £3m

Current MCap equation: 40m / 160m = 25p
New equation post placing: £44m / 184m = 24p
New equation post warrant exercise: £47m / 196m = 24p

Theoretical dilution "hit" is thus 1p per share or 4%. Slightly more after TP take their cut of the £4m...

Timing isn't great. Market unlikely to like it to react well, despite attempt to distract with drilling news (unlikely to be successful). Popular myths around low number of shares in issue and "fully funded by majors" therefor little/no chance of dilution thoroughly torpedoed. Fox and chicken story for me....

Could be an opportunity to add if SP gets close to placing levels. We'll see.

The commonly expressed view here that OMI is special/different because it won't dilute has been torpedoed.

Cool story bro..!

For charting devotees this is apparently a textbook "Pooping Rhinoceros"...

https://twitter.com/PriapusIQ/status/1332312628480405511/photo/1

Could we use this thread to collate a few questions? The open type that might elicit discussion...

I would be interested to hear some colour on:

- What do you hope to achieve in the next 6-12 months?
- Which of the projects are you most excited about and why?
- You've mentioned being open to new opportunities, what do you have in mind?

I haven't reached out to him yet Max. If I do I'll be sure to let you know if I learn anything valuable.

Max - you're the one who has shouted every day that this is a screaming buy. All the way from 3p down to nearly 1p. Every couple of days you alight on a new reason why this is the last chance to buy. Like the very worst sales guys you churn a high-energy conveyor belt of trite, superficial and simplistic ideas. Whilst simultaneously trying to re-frame every mis-step and setback as a triumph or inflection point. All those who've taken any notice of you in making their decisions to buy during the period won't be thanking you now. Whether intentionally or not, all you have done is help the sellers.

In the real world this remains an interesting company that says it is motivated to move forward some high potential projects. However the capital/shareholder side of the balance sheet needs to be looked after properly, and mistakes are being made. Those mistakes can undermine returns for investors every bit as much as screwing up a drilling project.

I will continue to hold, in the hope that the company does better.

Max - that analogy was spot on. Aznav were the monkey. We can agree that it's helpful their hand is out of the jar. It's a shame the company's broker wasn't able to help them achieve their exit without so much collateral damage. I guess they earn more for a placing than they do for facilitating a trade. I'm sure that Aznav and TP are grateful for the cover and support you've provided for them here though.

Well I've been saying there's a seller for a while too... Not a popular message with Max and the amigo accounts, but it turns out to have been correct.

Something has gone wrong here. We did a placing we may not have needed (supposedly to onboard Max's mystery "Professional Strategic Investor") whilst the existing supposedly supportive investor was busy selling their stake. Now was there possibly a better way way for that to have been achieved whilst protecting the interests of ongoing investors? I hope someone is asking questions of the company's broker(s)...

Whilst clearing a seller may remove resistance, it will also invite questions. It's not a simple "boom".

The invite/registration process suggests they’re going for the bare minimum, with the whole thing wrapped up in thirty minutes. So I wouldn’t expect much more than this.

Governments are the only ones who are finding the pandemic a useful shield from questions etc.