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that this ,( the placing and the rescue of H&W ), may fail or be rejected by the shareholders.
There was no reason to rush ahead at this point. Infa has a backstop date until the beginning of January 2020. By that time the Islandmagee FID is scheduled to be completed.
The proposed contribution of the executive directors to this nonsense is ludicrous and probably represents less tha a couple of weeeks salary.
Bear in mind that INFA is going to fund the ongoing costs of H &W which will eat up at least £1M of the monies being raised.
Note too that the mention of the 10-15% saving on "projects" has been dropped in favour of something unspecified.
WE DO NOT NEED H&W NOW. Lets get on with the Islandmagee project and when the FID for that is completed the BOD can turn their attention elsewhere.
I really hope that my fears over Islandmagee are unfounded...
I cannot understand what has been happening at INFA this year.
Well put Setanta, I wonder if the motivation for H&W is a behind the scenes prerequisite to obtaining the imminent go ahead for Islandmagee. If so the fine, otherwise we could have sat on the project and avoided importing considerable risk and financial dilution
I have to say I am not surprised at this morning’s activities given Infrastatas recent ducks and dives – I am more surprised in some of the shareholders shock and anger – maybe you need to go to Specsavers if you didn’t see this coming or maybe you need to calm down and accept this is only a sign of things to come. It really isn’t hard to dig up information from the internet and come to realistic conclusions. Infrastata had to take a loan for the deposit of a shipyard that has been losing money for years and of course with 70 workers and a vast leasehold area was always going to have a large monthly cash burn (I agree with others this is probably half a million every month). So as smart as JW seems where was he ever going to get finance to purchase assets that cannot really be used anywhere else (I don’t think any bank could repossess 2 big yellow cranes and put them on Gumtree if mortgage payments weren’t kept up to date). Coupled with the fact that H&W has no secured contracts (this is why it went into administration) and potential profit-making work (i.e. the naval stuff) is years away means that any revenue the docks make would probably just to clear overheads and keep the place alive until the day that Islandmagee is actually approved and needs some steelwork made. So is seems the only way the rest of purchase money was ever going to be secured for the shipyard was to offer equity to someone (and obviously that deal was handshaked in the city last Friday – hence the SP dip, press leak, RNS and placing since). What I really don’t understand from some SH posters on here/Twitter (and try not put me in the same negative club as JR the ex-executive) but this is clearly not going to be the end of share dilution. H&W obviously is not going to add cash to the IF bank account anytime soon – if anything it is going to need more handouts and Islandmagee is going to need millions if not tens of millions to actually develop whenever the marine licences actually come through (maybe saving the local shipyard jobs will help accelerate the latter). Again, where is John Wood going to convince any institutional lender to give him extreme amounts of money to continuously dissolve salt underground for a couple of years before eventually putting gas in it and turning potential into revenueu for repayments. As I said before I think the technology is brilliant and I hope the environmentalists realise this too and back off so this can get going but I can see years and years of more share issues and dilution ahead because without it the original project just cannot be achieved.
So for the so called LTH, if your really in this for the long term and actually have an interest and belief in the gas cavern project then your in this until the gas starts flowing because you can guarantee this morning’s intuitional investors are here for dividends not a few penny raise in SP so complaining about a 10% drop in the last 6 days or speculating about a 5p price in 6 months is just wasting a lot of peoples reading time. Remember owning 1pc of something is better than owning 10pc of SFA. But if a company with no money was the best bidder for H&W then John and Arun have taken on a huge challenge/risk and I just hope it doesn’t actually deter resources from or have a long term negative effect on the original targets at Islandmagee.