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Looks like brokers are selling their free shares given as their fee
"735,294 broker warrants will be issued to the Broker pursuant to their engagement terms. The Warrants will be exercisable at the Placing Price for a period of 3 years from the date of Admission. 737,082 new ordinary shares of 0.2p each will be issued at 4.25p per share to satisfy commissions payable pursuant to the Subscription announced on 6 December 2023 (the "Fee Shares").
Hi Paul,
You have idea why they are asking only 50% of the profit if they end up with getting 60-70% of the company?
Also, Gary said that he would hoping to sign the agreement before end of 2023 (He mentioned that someone would think it's optimistic)
Do you think it will take as much as end of March 2024 ?
Dibs
"Because they don’t yet own 83% of the company! It’s a projected hypothetical future valuation!"
Yes , we know that. Are you saying once they invested the money they will get 83.33%?
So you are saying projected hypothetical future valuation is £78mil and our share price will be 4p? 5p? Maybe a bit more.
Don't think your calculations are adds up
Dibs ,
According to your analogy
"$81m convert to £ is circa £65m so £13m + £65m = £78m"
So based on this we own 16.66% and the LB own 83.33%
Why would someone own 83.33% of the company demand only 50% of the profit? Why not 83.33%?
Even with your valuation of £78mil , share price would be 30p (6x ) of the current market cap of £13.
Hi Dibs,
May be I don't understand this unique situation.
I think it's best to wait until we see the Agreement rather than speculate about the outcome.
One thing I don't agree with you is that your price prediction of "4p? 5p? Maybe a bit more " as we were well over 10p prior to the licence cancellation also without any MOU so surely we should be at least 10p.
Forgot to mention that the institutional investors just invested another £1.3mil @4.25p voluntarily. Surely they will not invest that kind of money without any decent return
So the current situation
We have couple of licences with proven assets ready to develop with JV mou signed - Current market cap is £13mil (5p share price)
Let's say LB Group inject $80mil and devlop the asset but demand 50% of the company and 50% of the profit.
That means they value our asset for $160 mil (£127Mil). Almost 10x of the current market cap(50p)
Let's say LB wants 60% of the company. So the market cap would be $135mil (£107m). Almost 8x of the current market cap (40p)
Even if we offer 70% the company , Market cap would be $115mil (£91mil) . Almost 7x of the current market cap (35p).
Just some funny numbers 🤣. I'm not ramping
I remember Greg was saying that even at 20p ,our share price would be greatly undervalued.
Who these investors are ?. Why the company is not disclosing the name of these investors?
Is this the same Non UK investors who had a opportunity to invest at 1p in July 2023?
While appreciating all the great work BOD has done over the last 12 months to protect shareholders, these funds raises are sounds like treating their mates for a bigger gains.
"from an existing Australian shareholder holding over 5% of the Company's current issued share capital, with the balance being provided by one other investor."
Not directly related to our business but its certainly getting interesting
https://www.adaderana.lk/news/95157/sri-lanka-likely-to-approve-sinopecs-45bn-refinery-proposal-on-monday
Https://x.com/MetalsCapital/status/1724733557354954861?t=viyg53nadK90qfzRXZh-5w&s=08
It's getting better and better. They are getting rid of corrupted officials rapidly. We are in a very strong position to start the project ASAP.
https://www.adaderana.lk/news.php?nid=94746