RE: Still goin12 Dec 2025 11:34
Billf.
The longevity of the warrant sales is virtually impossible to predict. Below is a quick ballpark calculation, based on what we have been told this year:
1.On 23 April 2025 the company announced warrant exercises for 110,728,300 ordinary shares. These shares were admitted to trading on 24 April 2025 and the exercise generated gross proceeds of £41,523.
2.On 2 May 2025 the company announced conditional warrant exercises for 400,000,000 shares with expected proceeds of £150,000. To ensure timely delivery, a short-term stock loan agreement was entered into between the company and Richard Edward’s with an equivalent share allotment on 9 June 2025.
* In terms of today’s CapAI shares, an equivalent of 51,072,830 shares were issued to warrant holders, at an approximate equivalent share price of 0.375p per share (the equivalent price of the original 400m share tranche). Further, shares were issued during an earlier fund raise via CLNs, which were converted earlier.
* This years’ converted shares equate to 511 tranches of 100,000 shares. Their sale is apparently still ongoing. It is impossible to determine how far forward we are in this process.
* At the current sell price of 1.07p, the warrant holders are realising a 188% profit on their sales. Earlier sellers would have made a considerably higher profit.
* Importantly for long-term holders, we need the share price to rise by 211% of its current level to return to the share price at the time of the consolidation exercise last October.
* Richard Edwards (our Chairman), Sarah Jane Davey (his close colleague in the boutique financial services business in which both are senior executives) as well as Marcus Yeoman, are all board members and high level financial professionals. IMHO, they should accept some responsibility for the huge decline in the share price, in particular since the share consolidation, and the company launch on the US market. The fact that so little capital has been raised through the warrant exercise suggests that they could have employed a less damaging method to raise the necessary funds to rebrand and relaunch the company?
I may be totally wrong about this, but recent events are what they are? As previously stated, the fundamental propositions underpinning the business appear to be sound, and are unchanged from the last Chairman’s message in which these were clearly stated. In addition Prof Nag’s proposals when executed should place the company on firm foundation for future growth in the coming years.
GLA.
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