Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.
Hi TL
It certainly wasn't my intention to mock you and apologies if that’s how it came across.
On this matter I will be delighted to be proven wrong and if ENET is mainly populated by long term holders that will be excellent news. My comments were based on the situation we have seen in so many stocks and esp AIM stocks where ‘investors’, and I use the term loosely, demand instant gratification or off they go in search of the next stock. Clearly this BB is populated by many LTH, I’m up to about a year and my timescales are always measured in years, although if the story changes for better or worse I reserve the right to alter my stance with changing circumstances.
atb
TL
Just have to agree to differ on that one, see what happens when we get there. With 32m shares once you had taken out directors and other supporters there was not much free float.
With 90m shares, directors interest is reduced, more institutions/investors and increased awareness will all contribute to an improved liquidity situation.
That’s my take.
Be fun finding out!
I would suggest that buying post 5G/warrants will be a lot lot easier than it was.
18 months ago there was c 32.5m shares in issue
Post 5G and warrants there is likely to be c 90m shares in issue, pushing a three fold increase in the issued capital, assuming no more placings between now and then.
The effect of that will be to create a pool of liquidity so I don’t see too much of a problem on the liquidity front, further awareness and increasing trade volumes will
also play their part in enabling liquidity.
Well, ENET certainly leave themselves open to searching questions wrt their ‘funding partner’.
I’m sure everything that should legally be declared has been but there’s a list of questions as long as your arm about this relationship, none of which are ever likely to be answered.
Decent chance this could all be in the past by Xmas, hope so.
Re ‘liquidity event’, 5G will still be under the same restrictions, the sp will still rise on good news, but it will be more controlled with 5G feeding the market according to the terms they must operate under.
All imo, dyor.
We are now 10 days above 40p.
If 5G leave it another 10 days to activate the remaining c £820k then there effective price will be around 45p, give or take, compared to c 30p on this weeks batch. That’s a 50% uplift , so correspondingly less shares to be issued to them, if that is the case.
The above gives a strong driver to 5G to activate in the next few weeks. What’s holding them up? There may be clauses and conditions we don’t know about, but the obvious one is they don’t want to be issued shares that will take them above 5%, therefore they need to sell down or transfer soon. A liquidity event or events would do it. Can ENET supply this for their funding ‘partner’. I thought partner was an interesting and revealing term to use in the rns this week.
All imo, please dyor.
I missed an obvious point with the share allocation. They didn’t press the button on the whole c £1.5m as that would send them over 5%.
Wouldn’t be at all surprised if they sell down enough to access the ‘cheapie’ shares before that window disappears, ie pretty soon.
They may well need a liquidity event in the next 2-7 trading days to achieve that.
I wonder if their best buddies ENET are happy to oblige?
Would make perfect sense to me.
RNS-ville incoming, and soon, imo, please dyor as I could always be completely wrong!
atb
Would agree , as per my post, the conversion now gives 5G the ammo to take advantage of any future liquidity events.
And when even Mark is using the terms exponential and transformational then there can’t be too much doubt that events that demonstrate that can’t be too far away.
All imo
As I suggested in my post issue price a touch over 30p for 5G IF and a tidy profit in store for them.
Unfortunately dallo’s scenario was way too optimistic and was never going to happen, this guys ain’t running a charity.
Good news is if the increased liquidity is maintained, then they could be chewed through in a few weeks. Also there is still the remaining c £800k to get through, surprising they didn’t activate the whole lot but they may be prevented from doing that. Anyway, that does at least give a good chance that that tranche will be issued at higher prices than 30p.
I maintain this has been an expensive form of funding that has cost all of us, as ever with due respect to the situation last year, backs against the wall, options limited etc.
Bunting day when they are finally cleared.
I suspect the timing of the conversion could be for three reasons
1) They are more or less out of the last tranche
2) They needed to activate in next few days to get lowest possible issue price
3) If there are some liquidity events in the near future, then they need to be loaded up and ready. The last point perhaps augers well for such events.
imo, dyor as ever
atb
Hi dallo
The c 10% discount is contained here, from the Sept 2020 rns, nothing at all to do with rounding down.
5’G Fund will make an initial investment of GBP500,000 for new Shares ("subscription shares") valued at GBP547,000 in the next five days. Additional investments of three tranches of GBP400,000 each will be made by 5G Fund for subscription shares valued at GBP438,000 per tranche …’
Older and wiser
The formula is, from Sept 2020 release:
The number of subscription shares to be issued will be determined by dividing the gross subscription amount (or a part thereof) by the average of five daily volume-weighted average prices selected by 5G Fund during a twenty trading day period immediately prior to the date of their issue, rounded down to the next one tenth of a penny (the " subscription price") .
Then there is their c 10% discount.
So, as things stand right now, they could receive shares valued at c 30p, going on the 5 lowest sp in the last 20 days and applying a 10% discount.
Therefore £1.5m would give them c 5m shares.
A further 2 x 40,000 double tap now showing, looks like 5G IF shifted 200,000 today. They’ve sold c 1m in almost two weeks, so average other 500,000 a week. They are certainly taking advantage of the improved liquidity.
I expect them to hit the button for further shares to be converted very soon, as I believe they are down to last knockings on the c 1.3m issued week before last. And also they will want to pick up shares in the lower thirties, with their 10% discount and bang them out for a tidy 60-70% profit, or more if news hits! An expensive way to fund the company, but then options were strictly limited last year, and , as ever, I pay due respect to their help when it was needed.
I can see with further news and increased volumes we could see them moving 1m a week, so could be totally out relatively soon. That will be a great day to see the back of them. imo.
Link for last post
https://finance.yahoo.com/news/tarana-expands-global-partner-program-120000766.html?guccounter=1