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Thanks to the several of you who responded to my previous post. I repeat that I think the H& W acquisition was unnecessary and foolish, although I hope I am wrong on the latter point.INFA doesn't need a shipyard. We had perfectly good ,experienced, and reliable contractors available for the construction of the gas caverns.
Mr. T I understand and respect your point of view. I was not at all surprised at the speed of the bookbuild. The placing had clearly been agreed at least a week ago and that after JW had told us that the balance of the (H&W) purchase price would be funded by "a long term debt facility." Where did that aspiration go? The Riverfort loan was derided by shareholders as something akin to banditry. Yet we are taking more of that too.
As we can already see from the non working cost of £.5m a month to finance the running of the shipyard it will be both expensive and time consuming and, INFA did not need it. Vanity thy name is JW!
I will be amazed if there is no slippage in the FID. Such an eventuality wouldn't sit well with investors.
And Snowman, much as I enjoy your posts I was sorry to see you castigate,(or try to), crl123. He wears his heart on his sleeve. Appreciate that. And by the way" the bloke" ,(JW), hasn't just made him into a millionaire, and he probably never will.
Just one final item. I was decidedly underwhelmed by the participation of Arun in the placing. A few million shares. And He's the Finance Director. Speaks volumes for his confidence!
Go well all.
Thanks for your thoughts Setanta and as we've come to expect from you a well written, balanced post.
Only time will tell if this very large dilution at a very poor price will be worth it.
A couple of points, the purchase of H&W, we were told was to be funded by debt & maybe equity "The Company is in advanced negotiations with a number of lenders to provide a long-term debt facility to provide the balance of the £5.5 million consideration, and equity will be considered also"
I don't think any of us expected quite so much equity!
From today's 2nd rns
"The Company remains on track to complete its debt capital raise to complement this equity raise. Debt capital will take the form of asset backed finance and working capital trade finance, both of which we expect to come to fruition soon after completion of the acquisition."
Also the 500k 2nd Riverfort drawdown is NON CONVERTIBLE (unless the company defaults in the future)
From today's 1st rns
"The Company will draw down the second tranche of the debt facility provided by YA II PN Ltd and Riverfort Global Opportunities PCC Limited ("Lenders") under the Bridge Loan for a sum of £500,000 (after costs and initial interest payment) in order to pay for the overheads of Harland and Wolff for the month of November 2019. This tranche of the debt facility is non-convertible and carries a fixed interest amount of £40,000, half of which is deducted from the advance of the loan with the balance repaid on the first repayment date. The loan will enjoy an initial three-month debt repayment holiday and will be repayable thereafter in three equal monthly tranches on the first day of each month starting in March 2020. The Lenders will only have the right to convert this tranche of the loan in the event of a default by the Company in repaying the loan on the dates mentioned above"