Member Info for valueseeker

By the looks of trading over the past couple of sessions could be a placing around the 12.5 p level? ? Purely based on trading activity and support/ resistance levels . But who knows could well be totally wrong????

Agree with much of what you say which is why the sp has gone from 55p to 5p and less.

The valuation now at 8m ish market cap also reflects those concerns. The company's business model is cost intensive to begin with. Over time as more chips are designed and move to the production phase revenue/ IP grows exponentially a la ARM model. I think it is likely they will get the funding required.The company is highly respected by the industry and it's customers. I think they may get a mix of funding through stakeholder investment (directors loans, options), bank loans/ debt, and maybe a small placing. I can't see the company being sold on the cheap or going to the wall over short term funding issues. They are among a small number of strategically important niche companies. You can probably count the high tech chip production companies that can work at the 5 nano level ( and smaller) on the fingers of two hands.

I agree with all of the previous three posters. We don't value innovation and British successes enough. Snd is also a well established company with a long track record of delivering and highly regarded by it's customers and the industry in general.

Imagine also if the funding required is met through negotiated advanced payments from the bigger customers who are ultimately paying tens of millions of in milestone payments anyway down the road and they are just renegotiated earlier.

Also the chairman has had number of big successes in the tech space, his last start up/ venture sold for around 100 million dollars. He could advance some of the required funds in the form of a combination of loans/ options/ share based payments. Being so close to the company I can't see him standing by and letting the company fail/ be bought out on the cheap , when are literally millions of future revenue coming on stream and a short term financial injection is required. all in my opinion dyor

My rough estimate is that the company needs somewhere between 8 -12 m cash raise for cashflow and working capital purposes.

They burnt through approx 18m since the IPO ( approx 18 months)) Payroll is c.500k per month, creditors also are ongoing issues. The 1.5m is probably allocated now with Dec/ Jan deferred payroll. It may or may not cover some of Feb payroll. They will probably need to funds to cover Mar payroll. Additionally, costs are increasing as they now have silicon costs for production to cover up front before milestone payments are received . If they go the placing route( which is now no longer attractive) it doesn't take a mathematical genius to work out those sums mean 100/ 150% or more dilution for current shareholders

The £1.5m received in Jan/ early Feb had to covered the outstanding payroll for Dec/Jan which over 66%of staff agreed to defer as the company effectively could not pay staff at the beginning of the year. That is probably now mostly used up. Unfortunately the company has hefty payroll commitments every month and other costs.

It is beyond debate that the company needs a cash injection for. working capital. The question is how much will they go for? It is obviously best to do it soon and take advantage of the sp rise.

Probably would be a wise move for the company to take advantage of the sp rise to do a swift placing. It does need to raise cash before the end of March it has said so twice so why not take advantage. The cash is to bridge the short term cashflow problems in supplying equipment,materials, and payroll as it ramps up production projects.

Perhaps if Elon likes snd so much he'll decide to buy the company! ( a la Victor Kiam). A cheeky bid of 50m ( a mere rummage down the back of the sofa for a multi-billionaire) should do the trick! lol

I was trying to buy too during the first hour yesterday. Wouldn't let me buy a thing mms turned off the retail side of things and when I rang up even when you tried going direct to market the amounts available were tiny.Not sure why but mms tried to crash the price yesterday imo but couldn't hold the drop and the sp bounced straight back.

Looks all to be Siemens problem nothing to do with co. For whatever reason they have decided to sell at almost 90% loss to what the co floated at ?? They must have their reasons. No basis to all the scare stories flying about on the bbs. Time to get a few.. rude not to imo

Directors already hold quite a large amount of shares - check out their holdings. I'm not sure there is that much free float hanging around.

Nice buy last thing on Fri 250k @ 15.9 - someone is keen

Isn't the RNs if you read it, just a renaming of the fund that holds thr shares under the Standard Life umbrella. If you READ the detail there really isn't that much intrigue unless of course you want to make as if there is

Lol

Rocky - just to reiterate, thanks very much for the update. You greatly contribute to keeping us all sane on here. The comment about the African energy arena being a roller coaster ride couldn't be truer - and being a true "save"r I often ask myself would I have it any other way? I have a theory that all save s'holders are thrill seekers as there is never a dull moment with so many dramatic ups and downs . atb

Looks possible the big seller may have cleared with those trades?

Agree, the Japex/ inpex relationship/collaboration hints at exponential growth possibilities with partnership developments of existing finds linked with new discoveries,and with additional tie ups/ bringing together or partner assets What it does show also is that financing projects going forward is much more assured now. Not many picked up on this with the possibility hinted at of further third party financing on a recent presentation Q&A with co

Longshort/ Trustiluie - thanks guys , much appreciated. I t does make you wonder what is the point of spreadbetting if they increase margins like this. You may as well -as some have already said - just pay the full price and buy the underlying security and stick it in an isa/sipp!

Cheers

Moho/ trustilie - forgive me if this is a stupid question but if you cover a spreadbet with a 100% margin ( as in the case of save) when/if the sp rises do you have to continually increasing your margin (i.e. adding to the pound cost of the margin as the value of the underlying share price or is that covered by the notional profit which is growing. Sorry to ask such an obvious question but i have never had to fund 100% margin on a spreadbet.

cheers

Dave - suggest to read the RNS of 2 May detailing the full terms of the deal with Japex

16m cash fee to LBE

4m for joint production acquisition ( probably being finalised now?)

up to 100m for projects within the joint venture for exploration projects/ drilling and further acquisitions etc

LBE also had 12m CASH at last results!

Helge has said no dilution...

Hope that helps...

Dave - not sure what you mean " inter company loan paid to JV etc"

The loan you are referring to is the exploration facility which is due to be fully repaid from the proceeds of the Norwegian gov generous refund/ credit of exploration costs due in Nov I think you will find. The company is also receiving 16m ( free

cash ) completion fee from Japex.

Not sure where you get your info from.

No dilution/ equity needed.

I agree very good presentation , much to digest and well done to Helge and the whole team. Approval was another milestone for me (great job) so all the ducks lining up.

Not that fussed if value not reflected yet as I want to get some more as and when other funds become available. This is a slow burner but steady - anyone looking for thrills should really look elsewhere.

Well done guys. Will be studying the agm presentation a bit later in detail.