Assetco Share Discussion Threads

[ccr1958] 31/8/2011 15:12

I have read the docs . Interesting !!

[deswalker] 31/8/2011 14:39

LOL. Why are you guys tapping on here when you should be reading the docs.

No position.

[rorrys] 31/8/2011 14:37

18th March 2011
Statement regarding Additional Capital


The Company announced on 14 March that the approach taken by certain creditors has impacted the ongoing working capital requirements of the Group following its proposed £16 million Placing. The Company has continued discussions relating to these matters and has concluded that it still will not have sufficient future working capital. In order to provide the necessary certainty for the Group and to allow the Placing to proceed, a number of the major shareholders of the Company have indicated that, in the event that the Company cannot meet its needs from banking sources, they would be prepared to provide additional support for the Company's requirements. This support is subject to a maximum of £10 million, although the Company does not currently anticipate that the maximum amount will be required. If the support is provided by means of further equity it is intended that it would be at not less than the Placing price of 10 pence per share. Further details will be provided before the shareholder meeting.
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What this statement clearly says is this...........
The lenders(we already know the names of the 3 instis which took part)
Would "CONSIDER" lending up to £10 mill if required as further support and if "more shares" were the chosen way for them to be paid then they would insist that such lending was based on the share price being at 10p or above.
Otherwise forget it.

Since then more debt has been discovered and a paltry £10 mill dont touch it nor come close.
As for a buyout if a buyout were to succeed then such a buyer would have to take on the companys debt.Which as we know is vast so any such buyer would probably offer a nominal amount for the co ie £1.00 yes thats right one pound.They are taking on £100 mill in debt so a fee of one pound for the co would be reasonable .
Why take on such debt when you can let them go into admin and snap up the tasty bits from the reciever for pennies and whatsmore with NO DEBT!!

It looks to me that any potential suitor has stepped back and the co are trying to get a creditor agreement and issue more paper.

[greedfear] 31/8/2011 14:24

Rorry- I'm a serious investor ALWAYS doing research. I too do think that ASTO is very much undervalued.

You base yourself on FACTS you say? Where exactly is one to read that a t/o at 2p was agreed on? Or are you making that up in order to justify your view of ASTO?

If you base yourself on FACTS then you know there is no such thing as an efficient market. Sorry to wake you up there!

BOL

[deswalker] 31/8/2011 14:23

Much of the info is now there on the website.

In short creditors get circa 20-23p in the £, a £12.5 mill placing at some undisclosed level and the preference shareholders get 3.75 mill ord shares for their prefs (circa 5p in the £).

If it don't happen then it's bust but they see significant value in ME contracts.

[ccr1958] 31/8/2011 14:18

Thankyou both just intreagues me this is on HS . Thanks both !! ccr.

[treacle32] 31/8/2011 14:01

In march 2011 the investors group committed themselves to take up newly issued shares at 10p for a period of twelve months.

A lot has happened since then. Very true. One of them being that the creditors will -as far as we know now- get paid 25 million for the 100 million debt.

Sharesholders will benefit from that as equity improves with 75 million.

Currently there are 250 million issued shares issued. If the placing price is 10p then the investors group will get 100 million newly issued shares in return for the 10 million equity injection.

The investors group will benefit (via the newly issue shares) from the raise in equity of 75 million (due to the creditors agreement) for 100/350 part, being -roughly- 21 million (=75 x 100/350).

So for providing 10 million new equity at a 10p price (which they committed themselves to only a couple of months ago) they'll get rewarded with a raise in equity of 21 million.

Instantly turning 10 million into 21 million does look like a rather good deal.

Mind you, the investors group will only take up the newly issued shares if (when?) an agreement with the creditors has been reached.

Besides that as the investor group currently allready hold at least 160 million shares out of the 250 million (didn't bother to look that up), there's very little need to dillute the hell out of it all as there's not that much to gain for them. (That would be very different if they were currently holding 10 million share or so).

Is a 10p placing possible? I think so.

If the preference shareholds are being asked to convert their £15m of preference shares at 10p per ordinary share, there will be another 150m shares issued. I also cannot see that the preference shareholders will agree to convert their shares at 10p if the investor group is injecting capital at less than 10p. Therefore there will be 250m shares issued and the company will reduce their liabilities by £15m and increase capital by £10m

[treacle32] 31/8/2011 14:00

Rorry - filtered. Been here since 15th July and concentrated on doing my own research.

[ccr1958] 31/8/2011 13:59

Thanks Rorry. Why do people think this will rise then . Only asking out of interest ,spotted this on HS. Cheers ccr..

[treacle32] 31/8/2011 13:22

The SOA hasn't been agreed by the creditors yet. The rises will come once the RNS comes saying the SOA has been AGREED.

[ccr1958] 31/8/2011 13:20

10p ??? this is languishing at 2p . Please enlighten me > CCR.

[greedfear] 31/8/2011 10:43

There must be very stupid people employed at AVI.

[effortless cool] 31/8/2011 10:34

Re 1959

The investor group would be better off making the second cash injection at 1p and then agreeing a takeover at 2p.

[comedy] 31/8/2011 09:28

yep 2.075....

[treacle32] 31/8/2011 09:26

Thanks to someone else:-

'My opinion has always been that we will see the liabilities reduced on the basis that the company will go out of business otherwise. The £10m from the investor group will happen at 10p and the takeover will be pitched at 10p. This lets the investor group exit with no loss on their recent capital injection and recover some of their original investment which would have otherwise been written off and may already written down on their books which would lead to them showing a profit on the takeover (albeit less than the losses previously written off)'.

[treacle32] 31/8/2011 09:25

Well done comedy.

[greedfear] 31/8/2011 08:53

at 2.075? Asset value (what's in a name? lol) still selling I suppose?

[comedy] 31/8/2011 08:46

just got another 100k.:)

[rorrys] 30/8/2011 22:20

Lol thats not going to happen.

[treacle32] 30/8/2011 22:06

I am buzzing with excitement, possibly 10p placing would mean this could rocket to 20p easily and more with the initial surge at some point soon.

[tez123] 30/8/2011 21:36

10p placing

This support would be available for up to 12 months or as long as it is required but AssetCo does not have to ask for all of the potential funding. These investors may ask the company to redeem £15m of preference shares in AssetCo Abu Dhabi Ltd in exchange for shares at 10p each and the cancellation of warrants related to the preference share issue.