Tribe Technology set to deliver healthy pipeline of orders from Tier-One miners. Watch the video here.
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2 Billion additional shares were created no too long ago as additional share capital. Is there anything preventing the company selling those shares to clear all the CLN's and using those same shares to fund future cap-ex, as opposed to having to go to the markets, or are they already assigned? Any ideas??
I remember a few months ago Tungsten West was seeking for staff who's specialized in debt financing, I believe it is to do with negotiation with the seed investors, the CLNs that Tungsten West announced were basically intended to serve as debts that were interest bearing loans, and used to save the company from insolvency until the major financing round, that's why the maturaty date of the CLNs were extended to Janurary next year. When the major financing round is complete, they will have money to repay the debt therefore CLNs won't be turned into equity, I don't think the board of Tungsten West would like their own equity to be dilluted anyways.
Ps: could you please clarify where the 2 billion number comes from? I thought it was hundreds of millions though. Thank you
There was a recent equity raise (from memory I think they raised £600K which did some fancy share split) resulting in an additional 200M shares. The finance director (Nigel) then quit and the shares went sub 4p - its visible on the share price chart. Since then (again from memory) they announced in financial reporting docs (I'm sure its online somewhere (see RNS above??)) the creation of a further 2 billion shares. This is 10 times the prior dilution. My question was whether those shares were to fund the CLNs ,whose terms allow for them to be converted to equity, or whether they were retained in treasury? If the share price were to recover to say 10p and those shares are in treasury, that would amount to £200M. That would easily clear the CLNs and negate any need to fund further cap-ex. The dilution sounds awful but if you look at the RR their value is multiple billions over the lifetime of the project so the share price should be many multiples of the current price even after dilution. Looking good.
Just a quick correction. There were 180M shares issued prior to last open offer. The £600K was raised at 3p per share which added another 20M shares taking the total to 200M. Then a further 2B shares were announced, at a later date. Working on the premise that the £60M cap-ex funding will require asset backing, it looks likely that the 2B shares are also to be offered at 3p each , as 3p x 2B = £60M.
Thank you for the clarification, I tried to find that under the "regulatory news" section on their official website but couldn't see the creation of the 2 billion shares, I did find the quote from their previous CFO saying they need 65m to fund the project, one of his quote raised my attention: "There are lots of expressions of interest from lenders wanting to fund this project, once we have these permits. That includes funding from existing shareholders and from new investors." I assume the word "lender" means 2 billion shares are not neccesarily the only way of recieving that 65m, they could also fund the project through debt??? I remember HSBC and Morgan were both relavent to this project.
Ps: Strongly agree with your point: even after dillution the value of projcet is still couple of times more than the current market cap, their pervious estimated NPV was around 215m, as time goes on market cap shall converge to this number
I think my memory must be failing me. I had a very good root around this weekend to try and justify these numbers. Current share cap 187M , 7M added in the last offer (which they described as disappointing). The 2 billion I am sure was one of the items from the last AGM, all of which were approved, but the notes of which I cannot source anywhere. (So if someone does have a copy please can you confirm that would be very useful TIA).
The £60M+ cap-ex will be debt, grants and dilution I would imagine. I expect another open offer say 5:1 (last OO was 1:2.7 at a discount), and the 2 billion seems to match up to the £60M mark at a 3p share price, which was the price in the last OO. I'm just speculating - so pinch of salt. ATB
Tro,
Another good day... even better month!
Moved quickly on fairly thin vols.
# Trades 211
Vol. Sold 1,108,121
Sold Value £44.51k
Vol. Bought 2,175,333
Bought Value £85.47k
Good to see bullish divergence playing out into a classic bear trap reversal.
6.5 paid there portfolio.
must be a rescue plan,on the cards
Something is a foot. 400% up this week... I'm in danger of breaking even 😳. I'd given up on this one.
Great to see finally. Good luck to all.
ATB LB
Tro,
The buying has been relentless over the past week.
Today is the first day it's taken a bit of a breather!