Blencowe Resources: Aspiring to become one of the largest graphite producers in the world. Watch the video here.
Following on from BigDaves post regarding the updated presentation, I may be wrong but VELA interest is only in the COVID treatment side of AZ1656, which if CDT have no plans to pursue it means there is no value to Vela at all, so begs the question why haven't they exercised the put option. I agree they may not want to because of the balance sheet but that is a now just creative accounting. All the value is now on exercising the option and either waiting for the CDT to increase SP or taking whatever value they can out and relook at their investment strategy. Either way there is no value in not exercising the option.
The last 10 trading days are all under $5 so the vwap is below $5. We should be exercising the option.
Based on the current CDT SP ($1.70) then the 976,000 shares we should be getting are worth $1.65m.
It should just be a waiting game for the SP to increase, ideally with news.
You would like to think they will notify us once they have exercised the option, its not as if its 10-20k, we are talking millions so they absolutely should let us know. The vwap must be down $5 by now, or maybe one more day.
They will need to generate some cash from somewhere shortly as the cash balance only had to the end of October or so.
Not £49k. That was the original investment but sold half on IPO for a tiny profit.:
· On 20 January Vela subscribed £49,000 for 700,000 shares in Ethernity Networks Limited, half of which it sold almost immediately at a profit of £600.
Found this online, hopefully shed some light on things for everyone:
Here is an example of how to calculate the Volume Weighted Average Price (VWAP) of security:
Suppose a security traded 100 shares for $50, 200 shares at $60, and 150 shares for $70 over a specified period. Thus, to calculate the VWAP, we first need to calculate the sum of the products of price and volume for each trade:
$50 x 100 = $5,000
$60 x 200 = $12,000
$70 x 150 = $10,500
Next, we add up these values to get the total dollar value of all trades:
$5,000 + $12,000 + $10,500 = $27,500
Finally, we divide the total dollar value by the total volume of shares traded:
$27,500 / 450 = $61.11
So the VWAP of the security over the specified time is $61.11. This indicates that, on average, each share of the security traded at $61.11 during that period. It takes into account both the price and volume of trades.