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The Board believes that the value of the project post discovery is currently at today's placement value. Thats pretty clear no?
Bluebay - this BoD giving away this project. They are constantly sourcing money at steep discounts even when they have a high grade discovery - it's pretty clear to me they are doing a couple of investors HUGE favours....
The number of shares is relevant - it sits in the equation with the market cap as the sum
Well not really - they could easily be bought out 100% by someone offering 100% premium to. todays price - and they give it away - this is what they could be preparing for - 4 billion stocks - just ridiculous. They are like UKOG - project becomes worthless to a shareholder when you start getting billions and billions of stocks to fund it... great for short term day trading if you doing that makes sense but for LTHs this is a Total Wipeout. and they appear to have done it with clear intent.
Regarding the second point:
1. The company-led placing has provided the Company with sufficient working capital to advance its planning for the next stage of the work programme in Tanzania.
2. The Placing was conducted with long-term supportive investors, with Peterhouse Capital serving as the placing agent.
3. This placing empowers the Company to delineate the next stage of its work programme following the success of the Tai-3 and Itumbula West-1 exploration wells.
The term "long-term supportive investors" refers to individuals or entities who consistently invest in the company over an extended period. These investors have profited significantly from their investments, often obtaining stocks at severely undervalued prices, such as 0.25pm (ten bagged that one). They frequently capitalize on opportunities to purchase shares at low prices and subsequently sell them at much higher prices, sometimes earning substantial returns. This pattern of behavior, wherein investors obtain stocks at low prices and later sell them at significantly higher prices, may appear advantageous to these investors but can be perceived as detrimental to existing retail shareholders. Some investors may acquire shares at low prices through funding rounds years ago and subsequently realize significant gains when the stock price appreciates.
However, this practice, when executed repeatedly and with the intent to profit at the expense of existing shareholders, may be considered unethical and potentially harmful to the company and its stakeholders. If there is planning and intent to do this and it could be proven would there be any consequence for BoD who are there to look after all shareholder interests?
And if someone understands what I am getting at and feels they can explain it better then please write to Lorna and BoD explain to them this option because they may actually be really dumb and have no idea what they are doing with their responsibility to create shareholder wealth not blow it on purpose.
A bidding war? If it is 1p stock not going to be bidding all the way to 28p so that everyone wins - thats not what our BoD act like from what I see they have sold the company to their own contacts for nothing. If it was me my company and I was in this mess I would be hoping obviously for a commercial discovery so could end up with 5 billion stocks and a lot of unhappy shareholders BUT I could do a deal couldnt I and sell product from first hole for a cheaper rate with upfront cash and buy back and cancel 4biilion stocks and use the change to go do a further 3-5 drills and we be all in a really good place. this BoD wont think like that - they will want to get rid of this company, discovery and all future potential to a buyer for as cheap as possible as they will be in on it with the buyer and network. They would stay on the Board, Lorna would remain CEO, Drilling guy will still be drilling guy and the team gets bigger and better - so no impact on them at all - its us that get BINNED. I hope that I am wrong, hence holding on and see what happens. Because they MAY actually do a deal and buy back and cancel all these JUNK STOCKS and leave us with a billion stocks and no more cap raises as can sell the helium on forward contracts etc get cash and keep making discoveries and so on - could be worth it in the end - Im probably just dreaming though.
The problem is we have 3.5 BILLION STOCKS and soon probably going to have a total of 5 BILLION STOCKS - so thats a major problem here regardless of ANYTHING ELSE. Unless of course, they do a special off-take deal for cheaper Helium, post commercial discovery, to a buyer in return for 30-50m up front cash (not much when a company could buy £800m of Helium for £500m over time plus a downpayment of £50m cash) and HE1 BoD buy back 4 billion stocks (& cancel them) and keep drilling and making more discoveries as BAU. Then we will be able to say this project has been a success for all shareholders.
I reckon they could have got a MUCH better deal -
You can see here they sold the entire company for 0.25p and allows those that buy get it for free within a couple of weeks. How come this can happen surely there are some rights for long term shareholders. Before the raise at 0.25p there was value in the business – all the value building up to that point over the last few years. A lot of knowledge and business development work had been going on, this has value - >> So they bankrupted the company, gave it away for free as those funding parties in at 0.25p easily out now if they want with money back and ownership of HE1 for free.
Is this actually legal for a CEO and BoD to actually facilitate? Surely this is not allowed?
Yes, this is a terrible outcome from a BoD who clearly have taken advantage of us retail investors to say the very least...
However, there is one idea that I hope they consider post a discovery etc - to offer a 'special edition off take agreement' with one buyer where the deal involves some decent cash up front in return for a cheaper rate on helium gas and then uses that cash to buy back say 4 billions stocks & another drill or two - say around £20-30m cash worth and then cancel the stocks then we back to where we should be, keep drilling, more discoveries, more off take agreements and the show goes on and booms for everyone still involved... anyone know if this is actually possible?
No one available to discuss this subject? I be keen to hear from anyone who has seen this happen before... Assume they got discovery, free flow gas, loads of Helium - 5 billion stocks at fraction of a penny, can they do this and would this then resolve the entire situation for long term shareholders with 10p++ average holdings...?
So HE1 goes into another phase of funding, so let’s say it then has 5 billion stocks and at 0.2p per stock is sitting there on market and it’s got a discovery declared and just sitting there doing nothing, maybe go to 0.4p when they get to phase where they are able to get offtake agreement where they can offer helium gas at cheaper rate to a buyer in the terms for the benefit of the cash payment included in the agreement and so then they go okay that’s fine so we’re going buy back 4 billion stocks at 0.4p and buy them as a company buy back in and then they cancelled them. Then you’re back to 1 billion stocks at 0.4p. Is this a tactic to use to bring back long term shareholder wealth?
No, I believe they will find and declare Helium Discovery, on both sites. The Geology speaks for itself and we have our drill that is more than capable for the job. Eventually this project will continue to new sites with our drill and I suspect they will farm out the evaluation and production of the sites they declared discoveries at. Thats one way to play it isnt it...
IMO the team will be in final stages, getting everything set up and then they will take a break have a BBQ, then kick the first shift off in the morning and release RNS to say they have Spudded and that will be it, all on from there 24/7. We just dont know what day they will do this. Nothing to worry about, they definitely going to Spud soon.
Yep, everything is on the table now. It's all about Discovery. Obviously this price isnt reflective of a discovery but in the meantime there be loads of stocks being sold in to this pre results and they will be the people who put up 10 million cash for 5p and 6 million cash for 6p - those professional investors at high level just hand over money, trade out for 10+% gains and dont take the risk. Unfortunately HE1 mgmt have determined sub optimal times to fund so its their lack of experience that has cost many of us here dearly. Some great PR to showcase the project, some interviews on site with key players in the team there etc would have been great.
Well worth a watch just released in the news:
https://www.youtube.com/watch?v=rZw_HMw_VN4
this will hoover up all HE1 HELIUM
All good going so far, an exciting time for the project!
My question on this thread is to ask if anyone has any idea what options are available for HE1'd drill once they completed the second site? They say in latest tweet 'before wet season' - anyone know if HE1 can lease out their rig over the wet season to keep the team and equipment at all times hot so that after wet season, HE1 get straight in to 3rd and 4th sites using the revenues they just got from leasing out their drill and crew for the months Nov > Apr for example? No need to raise more equity when can use revenues from drill leasing for periods HE1 not using it.
Would that farm out comment mean that on discovery at TAI they would hand it over to another business to appraise it and take it to production whilst the HE1 team move on with their drill and keep exploring and declaring discoveries and passing them on to the farm out partner to do their work and production and so on. Would that be a fair interpretation?
Granting authorisation to issue shares for cash - does that mean that instead of paying bonuses or increasing salary that these options replacing these things since they are issuing the options shares instead of paying cash - is this correctly interpreted?