Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I think we can assume that they’ll be some more big delayed sells that appear tomorrow so realistically about 3.2bln or more shares will have been traded across 2 days. Or 10% of the total company. On top of the steady volume of sells over the last couple of months it’s not possible for there to be much left for any minority holder now. We know most of the stock is held by directors who can’t sell. Surely the seller would have used today’s volume to kick the last of their holding, give or take 50 to 100 mil, which would easily be swallowed up tomorrow.
Thought I'd do a quick summary of the warrant situation as it seems to be confusing people over the recent buying & selling volumes.
On 19th July 2019 SYM did an equity raise of near £2m (at 12.5p), which was taken up entirely by Vincel holdings, which is owned by the family behind Indorama Ventures - please google them to understand how big they are and what they do! As a result Vincel owned over 9% of the company.
As part of the equity raise Vincel Holdings were given warrants totalling 10m at an average price of 22.5p. They were due to expire on the 25th July 2020 but were extended for a few months on the 22nd July.
The share price went to over 40p on the 23rd July and across the 23rd & 24th there was a huge volume increase with very heavy trades around the 32p mark (averaged out). The vast majority were reported late / next day so often flagged as buys due to the way a late trades use current share price to 'guess' whether it's a sell or buy.
It doesn't take much educated guessing to see that Vincel have sold a large chunk of the 10m shares at an average of 32p and will then buy them back through the warrants at an around 66% cheaper, in order to retain around 9% of the company. But what does all that mean?
Firstly, SYM get over £2m in the bank and as they were already funded for 12 months this is welcome additional capital to increase sales and marketing activity whilst also improving the product and getting further regulatory sign offs. The company shares in issue are enlarged but this has been swallowed up already by the positive statements and increased PI buying. As the warrants seem to have cleared there should be nothing holding the SP back as Vincel won't be selling anymore, so it should steadily climb ahead of any further updates. With updates on the US bread market and d2p test results due this could explode if they are even remotely positive.
Expect an RNS in the next few days to clear all the warrant stuff up. Just my thoughts and would welcome others opinions.
The food packaging market was $300bn in 2019 (and forecast to keep growing). That's not all plastic but the vast majority is.
Just kicking around some basic numbers but let's say that SYM take 5% of the market globally over the next few years - remember they're the only company to have FDA approval for a product that increases bread lifespan and once that is up and running they'll get other products agreed - and SYM take a 2.5% revenue on the average cost per item.
2.5% of 5% of $300bn is....$375m per annum!!!! Even if you half those percentages you're looking at silly numbers for this map - and that's just food packaging!!!
I don't think the biodegradable stuff will be a company maker. It's a plus point and they'll make a decent amount of money from it but the game changer is the development of d2p. Even if it doesn't blow Covid out of the water (and it seems positive that it'll have an impact there) the other uses are massive. Food packaging alone is worth hundreds of billions globally and the need to cut food wastage by giving foods long life spans is vital right now.
1 or 2 hours from now they will print a large trade, which will be a sell. They keep moving the bid up and then making it NT to sell until they have loaded the sale. In the meantime buys will go through at the Bid price and show as sells! It's weird. Obviously there's a seller in the background and lots of round trades yesterday and today (reported late) show this. When they finish selling it should take off.
They won't raise for a while and not until they're well past 30p. It would make absolutely no sense to do so when they have cash coming in to the business and a pipeline of further orders expected, which can be serviced with current cash.
Anyone think Major is drunk (or ill)? He thinks this is about a vaccine?!!!! A vaccine against viruses is the last thing this company wants!!! Anyway, time to filter his ******ation.
Fair enough Trek. I agree it can be seen as similar if very different in make up. ORPH is a short cut where as SYM is a final product (pending the final report and sign off). There may be some value in ORPH but even they must know where the future is. Hope they all do well.
That’s not the same product though. Do you buy a plastic with a built in protection or one that you have to coat? Two different products. One is now proven and one is still being developed. By the time it’s developed it’s already out of date! Buy in to the Beatles!
I noticed that too. They are definitely big enough. But I wonder if they just understand and appreciate the work that has been done for the last 20 years and know having SYM as a partner going forward is what is best. Between them they can corner a massive market. I’d rule nothing out with what we now know is happening.
See RNS 16/7. Fully funded for 12 months. Did your school report always say ‘must try harder’?
Agreed. It's like the stars have aligned. With PPE in high demand and a world afraid of viruses but environment conscious along comes a company and says "hey, how about I make all that nasty throw away plastic biodegradable and I'll also make it, and the long life stuff, kill viruses for you". And that's without talking about how it makes food last longer, with less additives, in a world that is trying to reduce food waste!! I mean, seriously??
I would also recommend watching the Proactive interview from 16th July. In that one they spend a lot of time talking about the food packaging technology (currently bread but being extended) that has FDA approval in the US and is the only company in the world to have the technology. Imagine a scenario where a small percentage of almost every plastic food packaging item in the US, for starters, makes money for SYM. The mind boggles.
"Rather than having to continually wash your hands, our product builds a permanent protection from viruses in to any plastic product to keep it clean". Wow. Just wow. Changes everything.
What an interview. Global demand for their product. Can be used on bank notes!!! Screaming buy.
We won't be getting a speeding ticket like MBO or PYC did yesterday. The recent interview and today's RNS clearly spell out that this should re-rate significantly. 3-400% by close?
Top of the risers board now too so will bring people in for a nosey.
They'll be bought out, taken private and turned in to a cash cow that will be sold on in a few years for many multiples of the 40p buy out price. Currently we're in a period of posturing and bluffing between the board and the large shareholders. You'll see shortly.
It's obvious to those with no agenda what is happening here. Only time will tell but those that can see the pattern, have read and watched the information to hand and understand why so many are blatantly bashing understand what is going to happen. And I bet you the bashers like Cloud etc try to blur even this slight positive post.