Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Dallo - the dilution takes place in the future in the event we see positive news. We take the risk, someone else skims the reward.
Cuvio - most companies don’t have the level of dilution here. If they did it would be entirely appropriate to make it clear during an investment presentation.
With due respect dallo, that is not right. The shares potentially face highly material dilution from options and warrants, limiting the upside, a fact that I had erroneously believed was reflected in the deferred share count. Our friend cuvio is right there, but he is wrong to state that the fully diluted number of shares is 325m. He can delight himself in his own time by looking up the definition of “full dilution” and realising his error. On the subject of whether full dilution calculations should be shown in an investor presentation - of course they should, if the aim is to give a true and accurate reflection of the investment proposition. This is particularly the case with imm, where it has a highly material impact on valuation. Yet IR chose to omit them… Exactly what is the impact of full dilution at the minute? No one seems to know… it was circa 25% back in November 2020, but I suspect post multiple raisings, the number will have jumped again. ATB
Cuvio - your statement that the fully diluted number of shares is 325m is completely wrong. In the November 2020 RNS, the company reported 311m shares on a fully diluted basis, and since then we have had multiple rounds of further dilution. So I ask again, what is the fully diluted number? If the deferred shares figure does not reflect it, then what does? The point that you have sat through the AGM and the investor presentation, and still believe the figure is 325m, is testament to the point that IR has failed to make the basic figures clear to you (or anyone). ATB
The fully diluted number of shares right now is far higher than the 325m you state, and any investment decision based on a valuation using that number will be a poorly informed one. The reason you and many others here are poorly informed, is because investor relations have thus far failed to give any clear guidance as to what the diluted number is, or will be post the latest dilution. The last time they gave clear guidance was November 2020 in a total share capital RNS, and it was around 300m then - there has been multiple dilutions since… Of course, knowing the diluted number of shares in issue is key to making an appropriate investment decision - unless you are somebody who is ok buying things without checking the price first. ATB
First, thank you for conceding that the fully diluted number of shares here is around 610m - an outcome which should have been made clear by IR in the investor presentation. Second, the status of the deferred shares is they will be redeemed as/when anything good happens, diluting the upside to ord holders by up to 87%. Have a lovely weekend.
And respectfully, you need to do some research.. “ Total Voting Rights… Fo llowing Admission, the Company's issued share capital will comprise 325,803,104 Ordinary Shares with one voting right each and 284,984,933 deferred shares with no rights to vote. ”
Pokerchips - to repeat, the diluted number of shares in issue here is 610 million, with the deferred shares representing a further 87% dilution to the ords if/when exercised. It should be a minimal expectation of an investor relations function to make information of that materiality abundantly clear to all investors. Instead, they did a one hour presentation and, as far as I remember, it was never mentioned. In fact, management stated that the market value here was under £20m - well, yes it is, if you conveniently ignore the prodigious deferred share dilution. I’ll leave it up to individuals to work out whether the omission of such material info represents good IR practice or not. ATB
Pokerchips - the fully diluted nosh puts the market cap way higher than company has been suggesting. It is their usual unprofessional approach to investor relations, which has done them no favours over the years. Where the additional 285m shares comes from is a puzzle the company is not too interested in clarifying - for obvious reasons - though they used to publish a total share capital, that has now stopped. “ Fo llowing Admission, the Company's issued share capital will comprise 325,803,104 Ordinary Shares with one voting right each and 284,984,933 deferred shares with no rights to vote.”… still looks decent value even with 610m shares in issue, and as you suggest they would receive cash from some of the issuance, but a large reason for the “decent value” is that no one trusts the story presented. How NOT to do investor relations.
Agreed. TM was positive - “on the brink of something really special” - and contrite about past mistakes. Managed to pick some up at 4.99 and 5.1 this morning, and if it falls to those levels again I may buy more. GLA
In parallel, a further longstanding institutional shareholder in ImmuPharma was approached to gauge their interest in participating in the current funding round. They too indicated their agreement in participating alongside Lanstead.
A 14.7% dilution to get us through the next 12 months.. “Assuming the Broker Option is fully subscribed, the Lanstead Subscription, (including the Lanstead Value Payment Shares), the Placing and the Broker Option combined would result in the issue, in aggregate, of 49,218,182 new Ordinary Shares, representing approximately 14.7 per cent of the Company's issued ordinary share capital as enlarged by the Lanstead Subscription (including the Lanstead Value Payment shares), the Placing and the Broker Option.”
Outlook for FY22
We expect higher revenue in 2022 across our business supported by the continued growth in our order book.
We expect a stronger performance in the second half, helped by an improved performance in our Turbines joint ventures and stronger revenue growth, particularly in our Projects business.
We expect the sale of Built Environment Consulting to improve our net debt position in the second half.