Tribe Technology set to deliver healthy pipeline of orders from Tier-One miners. Watch the video here.
Just wondering when and at what price they will issue new equity - should happen within next month so as to clear the June deadline set by the banks. I still don't see sustained prices significantly above 10p levels till there is clarity on the bottomline this year, which in my view is very likely to be positive given the lower depreciation expense
@Capt - you are missing the fact that this is currently a microcap stock, with new investors comprised solely of retail investors (or rather day traders). Institutions won't even buy into this as it won't pass their size criteria with a $35M market cap - the current institutional investors got in at the IPO time when the company was valued at $500M+. Market needs to see clear profitability guidance post this cleanup, but in any case, my view has been that the eventual bidder is SF.
Current value + $25m raise gives $60M valuation. Possible they will be net income positive this year with the lowered lending cost and depreciation charge. For 2019, depreciation + finance cost + tax = $65M. For 2021, this could be $50M or lower. Assuming all clean up done in 2020 and no one off costs in 2021, an EBITDA of $51M means breakeven at net income level. If they improve to $60M EBITDA, you are looking at net profit easily in excess of $6M (or 10 times post dilution earnings). Deleverage and invest in some growth, and you are buying a company today for 5 or 6 times earnings in couple of years. Of course, this will not be a straight line, as with all things in life.
As long as SF does not reverse merge into GMS that screws minority holders, I think we are fine.
@camkite - there is an impairment of their vessels to the tune of 80 - 90m
"As a result of that process, the Board is of the view that the carrying book value, across a number of the Company's barges, should be impaired, such impairment expected, once finalised with the Company's Auditors, to be in the range of $80m-$90m"
1. Debt - fixed, with savings of $50m over 2021 and 2022
2. Capital raise - $25m by June 2021, with commitments from SF and Mazroui
3. Operations - EBITDA guidance cut, impairment of 90m, write off of fees paid to advisors (cleaning up the books)
4. 2021 guidance - not much by way of numbers, but seem positive
Overall positive, and I am relieved that the new board has delivered!
Absolutely spot on Si547. Only question is what they do with that much control. And their control is also dependent on the coalition with Mazroui and Horizon, and I would think they want to realize some value out of this, unless they have something else going on the sides. Mazroui had expressed their opposition to last year's bid.
https://www.londonstockexchange.com/news-article/ADES/offer-by-innovative-energy-holding/14890500
Transaction in an adjacent space. Bidding consortium includes Saudi sovereign wealth fund PIF. I don't think this is a good deal for minority shareholders, even though there is a decent premium to closing price. Good to see the interest in the space
I think at some point, investors feel that this is going nowhere, and decide to sell. - or they need liquidity - or found better risk reward. I mean, we are almost at the 1year anniversary of the bid, and we are still below that bid price! I do agree that its worth holding longer as there is clearly upside, and provides a very compelling risk-reward scenario. I just don't know about who the incremental buyer would be at 10 or 20 or 30p, unless they can clearly show that the debt issue is behind us and we are looking at stable or growing EBITDA - sugarcoating the extension of the debt talks for the Nth time won't cut it
Again, the volumes sold are really not much, so wouldn't read much into it.
Well....."good vibe" and "positive" statements were not expected to do the trick - need to see the concrete plan to get any buyers in. Ideally there is only one buyer - SF & friends. In the meantime, there are plenty of sellers, some of whom are probably just tired of holding this
Some news on the (rumoured) Zakher Marine deal
https://www.rivieramm.com/news-content-hub/news-content-hub/sector-downturn-forces-liftboat-sales-at-distressed-prices-63642