Morning Fencer Providence nowhere near Bankruptcy in my Opinion. Fundind conundrum to be dealt with thats true.
Believe the following
Funding Here are what I think will be the Funding Options in order of most to least likely 1: Barryroe FO with up front Cash Payment 2: Convertible Loan eg 40m one year either paid back at end of year or converted to shares at that time. 3: Placing between a few large investors at price higher than present unrepresentative low Share Price eg 150 pence 30 million shares 4: Rights issue Do not see the major shareholders agreeing to a rights issue at 25pence. This would be shooting themselves in the foot and automatically valuing all their shares at 25p. It is obvious that just because a small percentage of shares are traded at 25 pence it does not mean all shares are worth 25 pence. I could pay 20 euros for a share on Monday Morning. Would that be the true value if the share !!!!!For a placing to be seen as fair, intelligent, advantageous in tax terms to participants, acceptable to shareholders it would have to be at s price significantly higher than present value. At 150 pence 30 million shares would do the job. This would be advantageous in terms of capital gains should share price rise. It would be acceptable to existing shareholders who would not suffer such large dillution, be happy to see placing at a price that would value shares higher than the silly present value.
Also would be good for larger investors which would be valuing up their shareholding rather then devaluing it with a low price rights issue.
Talking down the Share price again. If you are all so concerned why not contact Providence directly and put your opinions to them. It seems like many have an interest in talking down share price. You are acting as if Providence is bankrupt. This is complete nonsense. We are all a little frustrated and the SHare Price had fallen on rumor and lack of progress. However Barryroe is close to closure and SP is close to drilling. A deal will be done funds will be raised and Share Price will be done. I would suggest that you stop talking diwn the share price if you have any and wait for the facts. If this does not suit sell your shares if you have any and stop presenting rumors as facts
You chaps are strange investors. You talk down your own shareholding with nonsensical afirmations. Who talks down without fundament their own shareholding. That is unless you have no shares and are interested in collapsing share price. Have a nice afternoon
Which funds have been sellling ?????????!!!!!!!!!!!!!!!
Have any of the major shareholders changed recently other than TOR Snr ( and ACC have not sold any shares). So chaps your assumptions about funds selling seem slightly overstated. I do not doubt that the share price has been walked Down. It is obvious that some have an interest in doing so. Does anybody really believe Providence will issue 200m shares at 25p. Non of Institutions would agree to this.
If you believe Barryroe is worthless you should never have invested in Providence. You should sell your shares and go and invest elsewhere. Sell them at 10pence. Good for something worth nothing. However I believe alot of people are short selling and looking for cheap shares. We will see who is correct. I believe management have made some bad decisions and market has been terrible given Oil War at present but I believe Providence have some real jewels.
Here are what I think will be the Funding Options in order of most to least likely
1: Barryroe FO with up front Cash Payment
2: Convertible Loan eg 40m one year either paid back at end of year or converted to shares at that time.
3: Placing between a few large investors at price higher than present unrepresentative low Share Price eg 150 pence 30 million shares
4: Rights issue
Do not see the major shareholders agreeing to a rights issue at 25pence. This would be shooting themselves in the foot and automatically valuing all their shares at 25p. It is obvious that just because a small percentage of shares are traded at 25 pence it does not mean all shares are worth 25 pence. I could pay 20 euros for a share on Monday Morning. Would that be the true value if the share !!!!!
Only if Barryroe FO closure will funding be needed. As discussed with fellow bloggers yesterday think convertible loan more likely than rights issue. I would go for a 40 m Euro loan convertible into shares in Providence if not paid back in one year. With this you can pay for one drill at SP. If SP successful share price rises and you can opt to farm down or not for second drill on SP. If Barryroe deal closed by then more cash will be on hand
Think it was misread. Believe Farm Out still on course. Good News. Providence cannot lie in public and this is closely scrutinized. It maybe that a short term bridging loan required whilst farm out deal is closed. This will come good yet. It amazes me how alot of very inportant newspspers are preocupied with Providence. Is Providence really that inportant to them or is there an agenda to damage Providence. Can think of a few candidates
There wont be any rights issue at 25 pence. Institutional investors who own majority of shares would laugh at this. To raise 25millionyou would need to issue 100m shares. I.e hand over 60%of Providence for25m. This is not going to happen. Believe there isa concerted effort to pressure Providence. Believe Todays RNS is also a way for Providenceto tells Sequato get a move on or Providence will raise funding for spanishpoint and leave Providence on burner until serious interestcomes along
Farm out still on track and conditional on funding. The alternative funding being examined (nothing agreed) is likely only in the case of Farm Out delay or not happening. I would imagine no rights issue but a convertible bond or some sort of secured loan to pay for drill at Barryroe. This is a good RNS