Citius Resources Share Discussion Threads

[freddie ferret] 07/8/2013 14:51

Click on f for the prospectus.






167 pages of the sxxxxxx thing.

[freddie ferret] 07/8/2013 14:47

Read the whole of todays announcement very carefully and then again very carefully, it has implications.

[badger1963] 07/8/2013 14:47

Thanks for reply there will be dilution of this stock , with the potential 250mill extra shares at 2p gives the £5mill that doubles in effect quantity of shares , this must have a knock on effect on share price , so will that leave the stock holders who don't or cant afford the issue way out of pocket or will that be covered by the Nil-Paid issue , which I haven't thought about yet , can I sell my stock after the 28 August and still be eligible to buy the same amount back at 2p issue price ??? cos Peel are not going to get mine cheep if there is anyway to stop them ..question ,, in English what is a nil-paid rights issue thanks for any reply to my query

[the troll] 07/8/2013 13:11

they don't go 'ex-rights' 'till 28th August badger so don't attempt it before then !! but why don't you simply sell your 'nil-paid' rights in the market ? - same thing ?

a poor rights-issue take up will let Peel in through the back door though & give them effective control on the 'cheap' by virtue of the 'whitewash' agreement. worrying.

[badger1963] 07/8/2013 11:37

correction 300 million shares any reply appreciated

[badger1963] 07/8/2013 11:28

when the company issue the stock C@ 3million this will effectively dilute the market , what would happen to the share price ,is there a big chance it will dive or survive at current level, can I or anyone sell existing stock at current share price and buy it all back at 2p if the stock was in my trading portfolio when rights issue announced ??

[badger1963] 07/8/2013 10:54

I like this bit from the prospectus
9. Current trading and prospects



The Group now has no operational role but remains an active investor in HEPGL, which continues to perform well since the Restructuring. The combination of the immaturity, in planning terms, of the brownfield sites with their strong strategic location, including transport infrastructure, means that a considerable amount of value can be added by the work carried out in advancing them through the planning process. It is the Company's strategy to achieve medium and long-term realisation of value from this investment. In addition, the majority interest in HEPGL, which will in due course be held by the PPF, may become available for sale and create an opportunity for the Company to assist with the orderly disposal of such stake, potentially consolidating its ownership and operational control of the business (subject to the requisite financing being available).



10. Dividend Policy



Currently the Facility prohibits the distribution of dividend payments to Shareholders without the consent of Lloyds. Once the Facility is pre-paid or repaid, the Company will be able to pay dividends. Any dividends will be dependent on the performance of its investment in HEPGL and any dividends received from this investment. Whilst it is anticipated that HEPGL may be in a position during 2014 to arrange more flexible financing which may allow HEPGL to pay dividends whilst their bank facility remains drawn, unlike the present position, the Company would still not expect to receive a dividend from HEPGL in the short to medium term, as under the Propco Shareholders' Agreement, the Pension Trustees are entitled to receive the first £5 million of dividends due to the Company. Therefore we do not expect any dividend to be paid by the Company in the short to medium term.

[badger1963] 07/8/2013 10:54

I like this bit from the prospectus
9. Current trading and prospects



The Group now has no operational role but remains an active investor in HEPGL, which continues to perform well since the Restructuring. The combination of the immaturity, in planning terms, of the brownfield sites with their strong strategic location, including transport infrastructure, means that a considerable amount of value can be added by the work carried out in advancing them through the planning process. It is the Company's strategy to achieve medium and long-term realisation of value from this investment. In addition, the majority interest in HEPGL, which will in due course be held by the PPF, may become available for sale and create an opportunity for the Company to assist with the orderly disposal of such stake, potentially consolidating its ownership and operational control of the business (subject to the requisite financing being available).



10. Dividend Policy



Currently the Facility prohibits the distribution of dividend payments to Shareholders without the consent of Lloyds. Once the Facility is pre-paid or repaid, the Company will be able to pay dividends. Any dividends will be dependent on the performance of its investment in HEPGL and any dividends received from this investment. Whilst it is anticipated that HEPGL may be in a position during 2014 to arrange more flexible financing which may allow HEPGL to pay dividends whilst their bank facility remains drawn, unlike the present position, the Company would still not expect to receive a dividend from HEPGL in the short to medium term, as under the Propco Shareholders' Agreement, the Pension Trustees are entitled to receive the first £5 million of dividends due to the Company. Therefore we do not expect any dividend to be paid by the Company in the short to medium term.

[badger1963] 07/8/2013 10:27

thank you for that info.. appreciated

[dontshootthemessenger] 07/8/2013 10:25

in effect as existing holder you are getting a bonus issue

your nil-paid rights will have some value

i.e. this isn't just a cynical discounted placing to bucket shops

[jeffian] 07/8/2013 10:09

For every share you currently own, you get the right to buy another one for 2p.

[badger1963] 07/8/2013 10:00

can any one explain the rights issue in simple English please

[jeffian] 07/8/2013 09:54

I suppose it's a way to keep other shareholders onside by giving them the opportunity to maintain their stake in the business (it's a 1:1 issue). Peel's stake would only increase if other shareholders did not take up their rights.

I don't know what would happen if Peel did acquire additional shares above their entitlement as this would likely push them over the 29.9% holding which would automatically trigger a bid. Maybe this point is covered in the Prospectus.

[ivancampo] 07/8/2013 08:57

Convoluted way to increase Peel's stake

[semper vigilans] 07/8/2013 08:34

Why doesn't Peel make an offer for the whole of CRES and stop this piddling about?
Or are the directors and their mates just in it for the fees?

[greatwhitefunkmaster] 07/8/2013 07:10

Pleased enough with that.

[freddie ferret] 15/7/2013 13:04

On de other hand, rightmove has just doubled its estimate for the house price rise for this year. OK a lot of our land is commercial, all the same????

[jeffian] 15/7/2013 12:52

Your basic premise is right - that the Net Asset Value exceeds the share price - but realising that value is going to take (a potentially considerable) time and in the meantime there is the unknown of a dilutive fundraising and little or no income from the current assets. The market's in no mood to pay today for value whose amount and timing are both uncertain. Once any fundraising is out of the way, things may be clearer.

[badger1963] 15/7/2013 12:31

yep I should have ,in hindsight I am not a trader ,but have a few investments ..
when I bought Cres shares it was looking like a positive investment with assets value far exceeding share price ,was looking for long term investment and this looked ideal ,then Daw Mill happened ,followed by ppf taking over Harworth , thought this could lead to a buy out at a decent price ,but that hasn't happened and there is a total lack of interest by the Market ,when at this price it looks like a giveaway ,hence a little confused as to what next ,

[strutt12] 15/7/2013 11:43

Badger, shouldn't you understand what you're investing in before you invest?

[badger1963] 15/7/2013 11:00

invested in cres and confused to what's going on ,would anyone be able to clarify the situation and forecast the future direction for Cres ,done research but am not as clever as I need to be ,hence the need for a little advice

[freddie ferret] 12/7/2013 13:04

Read the last RNS.

[dazzaa] 11/7/2013 19:48

That said would small shareholders be offered any and assuming no what difference will it really make to the share price in a case like this?

[greatwhitefunkmaster] 11/7/2013 08:40

Assume a placing is more likely than a rights issue no?