Graphene Nano Share Discussion Threads

[varies] 08/2/2017 09:30

JohnHenry
Thank you very for your helpful explanation of debt financing.
Having reduced my holding greatly before the suspension, realising a considerable loss,
I was foolish enough to buy back in at 12p in late December. I must now have another look at the balance sheet in the light of your remarks.
Luckily my stake was modest even before the recent slide.

[john henry] 07/2/2017 19:46

Death spiral financingDeath spiral financing is a process in which convertible financing used to fund primarily small cap companies can be used against it in the marketplace to cause the company's stock to fall dramatically, which can lead to the company's ultimate downfall.Many small companies rely on selling convertible debt to large private investors (see private investment in public equity) to fund their operations and growth. This convertible debt, often convertible preferred stock or convertible debentures, can be converted to the common stock of the issuing company often at steep discounts to the market value of the common stock. Under the typical "death spiral" scenario, the holder of the convertible debt initially shorts the issuer's common stock, which often causes the stock price to decline, at which time the debt holder converts some of the convertible debt to common shares with which he then covers the debt holder's short position. The debt holder continues to sell short and cover with converted stock, which, along with selling by other shareholders alarmed by the falling price, continually weakens the share price, making the shares unattractive to new investors and possibly severely limiting the company's ability to obtain new financing if necessary.An important characteristic of this kind of convertible debt is that it often carries conditions like a quarterly or semiannual reset of the conversion price to keep the conversion price more or less close to the actual stock price. However, a lower conversion price also increases the number of shares that a bond holder gets in exchange for one bond, which increases the dilution of existing shareholders. A lower price reset can also force investors that have set up a long CB/short stock position to sell more stock ("adjust the delta"), creating a vicious circle, hence the nickname death spiral.Companies willing to agree to financing on these terms are often desperate and could not obtain funding through any other means. The terms, though viewed by some as onerous, give the lender a potential way to recover their debt regardless of what happens to the shares of the company. The lender would have a potentially greater gain if the shares were to increase in value, but if they decrease in value, there is some protection. Otherwise, they would probably not be willing to lend the money because of the poor risk profiles of the companies interested in this type of financing.

[kazz] 07/2/2017 18:50

I guess they would have gone bust without them.
Probably the same outcome, just making us suffer a bit longer to the final outcomne.
I hope not.But another future innovation dead in the water before it has begun.
Management, I think that is too good a word for them.
Regards... Kazz

[plunger2] 07/2/2017 16:39

I hope you're wrong too.
What is undeniable is that the management/promoters seem to be happy to let Darwin in at very depressed price levels.
It doesn't suggest great confidence in the future to give away equity like that - does it?

JMHO

[mdvorkin] 07/2/2017 11:18

So Darwin will receive the 1.3m shares they cashed in on Thursday.

Given that only 4 of the 30 loan notes is being cashed my expectation is that they will use the new shares to take the price down further and cash the remaining 26 loan notes at a much reduced price. We might then see a rise but who knows....

Pure speculation on my part - further new orders might limit the movement but currently this looks like its going to be a penny share or less unless there is considerable buying at the current levels, maybe even from Scomi who have 50 per cent of the joint venture.

I hope that I'm totally wrong so please don't use any of the above to make a decision as this is me getting extremely frustrated by the lack of communication.

[leedskier] 06/2/2017 09:32

Scomi Energy Services (SES MK) jumped another 8.7% overnight to 0.25 SEN (Cents).

I still wonder whether there will be an all share full merger, rather than the current formal JV company of Scomi Nanochem. If so given the trajectory of SES shares, which have risen some 90% so far this year, the sooner the better.

[plunger2] 03/2/2017 18:02

Can't argue with that. No real buyers about.
My patience is waning.

[rob67] 03/2/2017 13:42

This afternoons price action a case in point!

[rob67] 03/2/2017 10:46

I feel that Darwin will keep the price as low as possible until they are fully loaded. Which means at current conversion timescales is at least another 6-7 months of manipulation.

[plunger2] 03/2/2017 09:09

But you could argue that with some opening skin in the game at an attractive price Darwin too might like to see a floor on the price - at the very least!!

[marketeer4] 03/2/2017 08:43

RNS today stating Darwin have converted 4 of their loan notes at 7.4 pence and have 26 loan notes outstanding. The process has started.

[leedskier] 02/2/2017 07:16

Yes, it is not the cost of making graphene.

That is low,

it is the science of integrating into other materials where the skill lies. In GRPH's case a range of oil services and water treatment products. And forecast that it would have a full order book this year for its graphene oil services products.

Which is why GRPH has never sold raw graphene.

Scomi Energy Services continues its recovery and is now 23 SEN, and on a 12 month chart is now up 9%.

[gerryjames] 01/2/2017 06:46

On the BBC news site this morning...cheap graphene from soya bean.

"Australian scientists have turned ordinary cooking oil into graphene, in a discovery they say lowers its cost to produce.
Graphene, a strong carbon material, is just one atom wide and conducts electricity better than copper.
It was discovered at the University of Manchester in 2004, winning its inventors a Nobel Prize in 2010.
Now researchers say they can make graphene with soybean oil, potentially making it more commercially viable.
Graphene is hoped to have numerous applications including in electronics, biomedical devices and water filtration.
"One of the limiting factors in utilising graphene is the high price compared to other materials," said Dr Zhao Jun Han from Australia's Commonwealth Scientific and Industrial Research Organisation (CSIRO)."

[marketeer4] 31/1/2017 18:06

Darwin took a similar stake in PREM on August 2016 and have today announced by RNS the conversion of their loan notes to shares. The share price rose by 25% today.

[leedskier] 31/1/2017 15:41

Everything is dependent on GRPH selling the palm oil refinery at Lahad Datu. The Company hinted that that should be in Q1.

The sale of the refinery will raise £millions. How many £millions we do not know.

What we do know is that the freehold 14 acres of land, the refinery and the pipelines to the harbour cost (conservatively) £11 million and was completed in about 2011/12.

One would have hoped that if it is sold together with the biofuel business, assuming that has any value, the Company would be able not only to settle its debt but draw a line under Darwin.

[leedskier] 31/1/2017 15:00

Rob, I understand the concern.

[rob67] 31/1/2017 14:40

I see your point but I'm more concerned with what's happening to our SP! We were warned!

[leedskier] 30/1/2017 10:51

Meanwhile Scomi Energy Services share price has risen from a low of 13 SEN to 20 SEN this year. That seems to be on the back of its anticipated revenue boost from oil production from the JV off the Malaysian coast, which is projected to come on stream in a few months.



the stronger Scomi Energy Services the better for GRPH.

[2350220] 30/1/2017 09:02

Sadly, this doesn't look like your typical 'tree shake'.
This just looks like I/we have bought into a company going to dust despite the lovely contract win, which had a great effect for all of a few brief days.

John

[rob67] 26/1/2017 16:06

Relentless manipulation by Darwin!

[rob67] 18/1/2017 13:20

Manipulation continues I see!

[rob67] 18/1/2017 13:19

JHWise words regarding Darwin! Looks like they are already at work with the downward SP!

[rob67] 05/1/2017 19:32

Nice find. Backs up what we already know.I doubt the share price will move forward much till we see some figures for 2017 with GRPHS current improved trading prospects and that is some way off! Until then, I fear JH will be correct and we'll continue to be manipulated by Darwin for their own ends.

[mdvorkin] 05/1/2017 18:52

Seems to be a mix of both good comments and bad. I for one am very pleased that with all the problems the company has been able to relist and therefore stakeholders have the opportunity to either leave or stay.

An article issued today on seeking alpha gives a reasonably good update on the current graphene market and is also very positive towards Graphene Nanochem.

I've provided the link but also attached the info.



Graphene Investing In 2017

Jan. 5, 2017 10:45 AM ET

Summary

The risks are high especially in mineral mining stocks promoting their intentions to insert themselves in the graphite and graphene nascent industry.

Stock picking is a worthless endeavor using traditional fundamental and technical analyses. Investors do grunt work to find companies with which they feel comfortable.

Nevertheless, graphene is the most exciting new industry since the digital revolution and there are four companies worthy of investment consideration.

High Risks

My first background article addressing the wonder chemical graphene for Seeking Alpha cautions investors to the high risks involved:

· There are few publicly traded companies.

· They are in the R&D stage of development, or in

· Mining minerals that carry heavy baggage from governments

· Seed stage of developing with unconfirmed products for commercial and healthcare applications, and

· Companies are hindered by high costs and first stage technology for producing graphene in mass quantity.

Unending Growth Potential

Nevertheless, it is the most exciting new industry since the digital revolution. Materials & Chemicals Market Research News just released a report affirming, "We expect that China's graphene market size will grow at a compound annual rate of over 90% in 2016-2020." It also lists more than a dozen companies engaged in mining minerals, R&D, and commercialization of graphene.

My biochemist educated son forwards science articles to me practically every day. Articles about graphene awakened me to the ways graphene will change our lives. The potential for graphene commercialization is seemingly unending, a sui generis.

Information about new applications of graphene in science publications out in the few short weeks since my article in Seeking Alpha detail applications for graphene having the potential to detect cancer cells, improve 3-D printing, make ammunition and guns more efficient and effective, produce a super-strong silk that conducts electricity, helps other materials handle 1,000 times more current than regular materials, build better, safer and longer lasting lithium ion batteries (demand is growing 20% per year), fuel cells, and nuclear reactors.

How to Proceed with Investments

Fundamentally sound statistical and technical analyses do not yet apply to any pure graphene companies. Stock picking is a worthless endeavor unless investors do the grunt work. I suggest investors find a company that is:

· Led by an experienced business management team,

· Sticking with a strong sensible business plan,

· Deep pocketed with enough cash secured to carry it out, and

· Led by a business management team that complements the R&D people.

In my earlier article I addressed three small companies with long term potential for growth and profitability:

Haydale Graphene Industries (OTC:HDGHF)

Graphene 3D Labs (OTCQB:GPHBF)

Applied Graphene Materials (OTCPK:APGMF)

Early Birds

Here is a brief analysis of several listed in the MCMRNews. The first two exemplify the risky business of graphite mining companies. The third investors ought to seriously investigate commercializes graphene with marketability.

Northern Graphite Corp (OTCQX: NGPHF) is a start-up company with no revenues but listing a $10m market cap. More than 5,000 are traded almost daily. This Ottawa, CN based company mines graphite. It cannot control fluctuating world prices on the downside. NGPHF touts the company produces "the highest percentage of large flake material, the best infrastructure, the lowest capital costs and the lowest unit operating costs...the highest margins" in an industry with exponentially growing demand for graphene.

The share price 42-weeks high was 47 cents. A share sells today for 20 cents. Insiders hold seven percent of the shares, and institutions hold 1.27% shares. StreetAuthority last May describes the stock as "basically a publicly traded business plan." NGPHF reports a chest of $658,000 down from a $1.5 six months ago. Then company reports securing 100% interest in the Bissett Creek graphite property located in Ontario.

A Seeking Alpha contributor suggested in May 2015 that Focus Graphite (OTCQX: FCSMF) was not transparent in its use of money raised from stock sales, nor explains "or how it will create value" in the graphite market. They are still listed with shares at 5 cents down from 22 cents. On December 28, 2016, Critical Metals reported FCSMF raised $212,500 from the sale of 2.125M shares. It too is a mining company producing graphite concentrate.

A Stand-Out Company

Graphene NanoChem PLC (OTCPK: GRPEF) is a very interesting company selling for 16 cents per share. It is a commercialization company "that designs, formulates, manufactures and markets a range of nano-enhanced solutions, from chemicals to performance materials." GRPEF focuses on the oil and gas sectors: fuel additives, oilfield chemicals, and performance chemicals. Its Advanced Materials Division uses graphene nanomaterials for production of chemical synthesis processes, and uses graphene dispersion to enable application for specific performance uses and product commercialization. The company does not intend to become a market supplier of graphene nanomaterials, but uses the proprietary technology for enhancing strategic partnerships in commercialization initiatives. The company headquarters are in Kuala Lumpur, Malaysia.

On December 28, 2016 it was announced Graphene NanoChem won its first order for $360,000 causing shares. The share price spiked from a penny trade to 48 cents. Shares currently nearly touch 16 cents. 4,000 barrels of a smart fluid were sold for use in China to make shale drilling faster and improve environmental and economic qualities in two wells. If successful, GRPEF may be tapped to supply its smart fluid to more than 300 other wells China expects to drill in the near future. It is partnering with Scomi for drilling in Southeast Asia.

GRPEF is emerging as one of the most promising publicly traded companies. Management wants to design and commercialize its own products. They are decisively defining their target market, and management has little intention of allowing debt-fueled profligacy. Theirs is a tight business plan demonstrating confidence and determination to build the business in their image and maintain control of their future.