The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
So much for a bank loan!
I don't comment so much on Prem now but this is concerning... not only does he need cash to pay all those bills but he needs an unknown amount of cash once in production. Plus there doesn't seem to be much confidence around the sorters.
And, of course, they could drop the ball again!
PS I'd be pretty miffed if I had been on GR's e-mailing list!
Some folk on here are way too sensitive and tetchy!
We're all speculating, pecten, to one degree or another... and it's very clear that this situation cannot be interpreted on a like for like basis. Let's just say that it's much more likely than not that the market cap will rise when the debt is repaid, isn't it?
They don't make it easy to understand, ASI, do they!
My point to pecten (and you) was that the upside to the consolidation and placing is that the debt is paid off... that would increase the market cap substantially and, who knows, our consolidated holdings could be worth more than they are pre-consolidation.
If VAST were to issue 8.4b shares after consolidation at 0.6p then that would put £50m in their coffers, ASI!
No, there would be around 2.3b shares in issue, debt would be paid off and the market cap would reflect that. Rather devious for some to suggest that anyone's holding is going to be WORTH a lot less when the debt would be paid off.
Pecten11 - your last statement is true but the real question is whether that smaller proportion of the company will be worth more or less than their current proportion. And that depends on Market Cap, doesn't it!
I'm trying to work out what the most likely sequence of events will be... given this move, I don't think the diamond issue is going to be resolved before the GM and I expect the creditors will want their money so I think we'll see the issue of new shares and the consolidation., despite the RNS suggesting that this is unlikely.
The debt would then be repaid and, at that point in time, we've still got the diamond issue to be resolved (both the return of the diamonds and the possibility of re-starting ops in Zim). There's cash coming in from PGM and Taj and things should be improving at BP. Plus, there will be at least £2m in the bank
At that point in time, what could the market cap be?
Assuming the diamond issues are resolved (with an extra few million in the bank), what then could the market cap be?
One would hope/expect that the market cap would be substantially more than today with the debt having been repaid.
Working out how many shares will be in issue is tricky because we don't know the sp when the shares will be consolidated/issued - taking the RNS figures though, there could be around 2.3 billion once consolidated.
I've done a few sums (guesses at market cap) and this ultimately could be good news for holders. The creditors may well be doing us a favour!
As for the Swiss Investment Company - they clearly think that there's potential in VAST if they're willing to lend and invest. What do they know about what's coming down the platinum line?
There's a lot wrong with VAST and AP (AP should really do the honourable thing!) and this news is a bit of a shocker but I'm relatively comfortable now. AP should've bitten the bullet on this last year!
I don't like this and it was probably a bullet that should have been bitten a while ago. It is what it is so looking at the company in a month or two's time and it could be debt free with diamonds on the way, an improving picture at BP and fingers in a couple of other pies!
Hi neil777 - found your way here too! Of course, some are going to sell on drops (and possibly take profit... no argument with that) but have to ask why invest in a company in this scenario if you're going to be scared into selling. There will be all sorts of shenanigans going on by MM's and, of course, day traders and shorters - if people are throwing in money expecting a smooth run up to £1.30 then they're sadly mistaken... has that ever happened?
Just my tuppenceworth - SDRY has long been on my watchlist and I've added a few since the announcement on 2nd Feb. Like others, I reckon it is way more likely that JD will make an offer than not. He clearly sees a bright future for SDRY and will know the company inside out. As for those who are saying that shareholders will be wiped out, this is quite a different situation to other situations - for starters, the RNS on 2nd Feb would have been written in a different way and there would be a massive warning that shareholders could lose everything... it's just not that scenario. I think that JD is making a move now because he sees SDRY being a beneficiary of the continuing improvement in the economy for retailers. For him, it's now or never... or, at least, he'll have to pay a whole lot more if he doesn't move now.
One never knows, asi, about the posturing and positioning intended with public statements especially where AP is concerned. It does appear that some talks have been happening so I'm assuming that the diamond issue has been 'settled' if I was to take AP's statement as read. However, I do wonder if 'settled' might mean something different to what we are all expecting. If I was in AP's shoes, would I be cheeky enough to say to the Zim authorities that the value of the diamonds is worth less than when they were 'taken into safe custody' so I'm expecting the higher value or would I be bold enough to say that I'm expecting to be compensated for the loss of interest, etc, etc. As you've highlighted, AP hasn't actually said much about either the diamonds or re-starting mining in Zim and I've got a habit of filling voids with nonsense!
On your last point - I'm of the same view!