Paragon Diamond Share Discussion Threads

[club sandwich] 18/10/2016 07:35

endgame - exactly. clear representations about the company's position and prospects, on the basis of which I and others increased our stakes.

six weeks later the company was suspended.

either he was lying or something changed. and if something changed the company should have informed the markets. My own view is the reason he didn't is he didn't want to lose face given the bullish statments above. However, that is not a defence in law.

[beeks of arabia] 18/10/2016 06:52

Good luck with that then.

Maybe you can help out Clubby with his case? Although i'm quite sure Judge Judy doesn't broadcast in Lesotho.

[endgame1] 18/10/2016 06:32

"We HAVE secured debt financing" ' I have NO doubt" "finance package CONFIRMS"

" we HAVE secured a proactive new shareholder'

I think the above are a lot more relevant? I am no lawyer but they do not seem to be forward looking statements to me? They seem down right misleading!

[endgame1] 18/10/2016 06:26

Yes ilovefrogs he certainly has me ROFL he is a legend in his own underpants.

[beeks of arabia] 17/10/2016 22:09

The words "potential", "we believe", "expected" are relevant there.

[club sandwich] 17/10/2016 19:40

and this from Jan 2015:

"Paragon's Chairman, Philip Falzon Sant Manduca said, "This US$12m finance
package demonstrates our ability to meet the goals we set ourselves,
specifically limiting net dilution for existing shareholders and securing a
significant cornerstone investor that shares our vision of building Paragon
into a major player in the diamond world. Under the terms of the MOU, new
equity is to be issued, near existing market prices, while the effective
re-issue of shares we recently re-purchased from Lanstead will make up around
two thirds of the new shares. We have secured debt financing on reasonable
terms and, in my view, this finance package confirms that a well-run diamond
company such as Paragon, with strong resource potential in the right asset
class, can attract substantial funds without having to give the Company away
cheaply, whatever the stage of development.

"Most importantly, we have secured a proactive new shareholder, which is a
highly respectable and influential investment group in Dubai, the wider Middle
East region and in China. We believe Dubai is going to rapidly grow into one of
the major diamond centres in the world. Paragon is now well placed to take
advantage of the expected growth in market share and concomitant diamond
distribution activity in Dubai and elsewhere. I have no doubt that our new
partners will greatly assist us in achieving our ambition to vertically
integrate our business and distribution reach from production in Lesotho all
the way downstream to both consumers and investors in diamonds in Dubai and
globally. Together with Titanium Capital, I believe that we now have a strong
and committed shareholder base in place for the long term.""

[club sandwich] 17/10/2016 19:36

this from the RNS of Aug 2014:

PM: "Our vision over the next three years is to develop Paragon into a vertically
integrated diamond house, with established production from majority owned
mines, starting with Lemphane of which we own 80% in conjunction with the
Kingdom of Lesotho holding the remaining 20%. Through related business ventures
and joint ventures in diamond mining, trading, manufacturing and sales,
investors will be able to participate in down-stream commercialisation
activities `from the mine to the high street'. Laterally, via fractional
ownership through collateralised investment funds, investors will benefit from
the entire value chain inherent to diamond production and sales. I am committed
to ensuring that shareholders benefit substantially from Paragon's future
success. To this end, I will seek to ensure that management and shareholders
will be aligned through ownership of the Company."

Paragon's Managing Director, Dr Stephen Grimmer, said "Philip is joining
Paragon at an exciting time as we look to bring Lemphane into production.
Philip's experience in financial markets and extensive network of contacts
within the financial sector and amongst high net worth individuals will prove
invaluable, as we focus on ensuring Paragon is best placed to maximise the
benefits from the growing stature of diamonds among the global investment
community for our shareholders."

[superg1] 17/10/2016 19:05

Cs

I know you have Beeks filtered but he says.


Why would it list again, with all the baggage and costs that would entail?
It's not even a shell with any value ffs! It's dead as a listed entity.

I know some hang onto Lemphane ideas but they quite clearly said Lemphane as a prospect not a proven mine is very difficult to get funding for. All Lemphane would be is a feasibility study, it's not a viable mine.

The nuts thing is PM said they had moved ITGT down the line to the polished side. Well they should have moved them back up the line. Obviously of course that was complete BS

[ilovefrogs] 17/10/2016 19:04

Not saying it will happen BTW, just saying only way this ever recovers is through some form of listing.

[ilovefrogs] 17/10/2016 19:04

How else will PM realise any value or provide an equity kicker to any financing? You need to have a publicly traded stock for that to have real power.

[beeks of arabia] 17/10/2016 18:40

Why would it list again, with all the baggage and costs that would entail?

It's not even a shell with any value ffs! It's dead as a listed entity.

[ilovefrogs] 17/10/2016 18:27

Indeed. One interesting question occurs to me: if PM does miraculously get the Company back up and running on AIM again, presumably with some level of dilution from some source of funding, whether the loan note strike price will remain the same, or whether there's some clause which would allow this to fall in the case of dilutive share issues?

[club sandwich] 17/10/2016 18:19

Well whatever his plan was it came very badly unstuck for him - and for shareholders too, of course...

[ilovefrogs] 17/10/2016 18:03

Superg1 - Subtle point, but paying half the nominal price for the loan notes is not economically equivalent to getting the option portion of the convertible at half the strike price. Based on your thinking, the option could be exercised for a profit above 1.35p, but in reality, you'd still need the price to be above 2.75p before you'd be in profit even though you got the note at a 50% discount.

[superg1] 17/10/2016 17:23

There was an interview that day too and he went on about people forgetting about the lnstead deal to remove shares when the mention of the Acrux conversion came in.

Sure he wanted Lanstead out of the way and sure he didn't want dilution unless it was his shares.

All heart yet in the OBT deal he got the non convertible loan notew made convertible before it was signed over. It meant he and mates would pocket around 71 million shares at a buy price of 1.375p each due to the 50% discount. To me that's what it was all about, all he needed was the funding and sod the mine, then the converted shares would be 10 baggers overnight and a right good deal for those in it.

Some say PIs were to greedy. Imo it was PM that was being driven by greed. Did he offer any to PIs or the market for 1.375p each? Why do you think the market told him to P off.



LONDON (Alliance News) - Obtala Resources Ltd Wednesday said it has entered into an agreement to sell its GBP2.0 million loan notes held in African diamond development and production company, Paragon Diamonds Ltd, to Titanium Capital Investments Ltd for GBP998,000.

Prior to the new agreement with Titanium, the loan notes in Paragon Diamonds were not convertible. However it said it entered a new agreement with Paragon to enable the loan notes to become convertible and transferable.

Under the new agreement, Titanium, or any future holder of the loan note, may convert the notes into Paragon shares at a price of 2.75 pence. The loan note now have a five-year term.

[superg1] 17/10/2016 16:35

They did similar mocking on the phone to those who called which is why some stayed in.

[superg1] 17/10/2016 16:33

2nd October news below and about 6/7 weeks later it was suspended.

As I said before he said far too much in that news and I'm not sure why a nomad would allow him to go on so much is was asking for trouble if they failed. BUT if you read it there was absolutely no chance of failure, done deal and 2nd stage financing already being sorted


"Secondly, the Board considers the proposed terms to be very strong and in
direct contradiction to the market consensus that told us we would be unable to
do so at this stage of Lemphane's development and would need to issue a
sizeable quantity of new shares at a significant discount to the market price
to raise new money. I believe that this proposed new investment confirms that a
diamond mining company with a strong resource potential in what I believe to be
the optimal asset class, can attract significant investment without having to
give the company away cheaply, whatever the stage of their development, and
regardless of sentiment elsewhere both in the mining and diamond sectors.

"In my view, it's the right time for investors to move into mobile currency
assets;"



"To all our existing shareholders, thank you for your support and
enthusiasm you share with me in regard to our prospects. They couldn't look
better right now"

[club sandwich] 16/10/2016 19:12

Super - remind me of the RNS where Manduca mocked doubters? I'm sure it will play well in court...

[ileeman] 15/10/2016 14:55

Me for one if I sell out of a company I will have the decency not to deramp, bash etc....Superg on the other hand?

And just so people know Superg was a holder in OBT and PRG and was ramping the stock when he owned, as soon as he sold, you guessed it.....

[club sandwich] 15/10/2016 09:27

Funny how none of the optimists seems able to answer really simple, basic questions about PRG...

[ileeman] 15/10/2016 09:09

Listing and nomad are easy. Only thing that needs to happen is funding, which should be alot easier in the current climate.

[club sandwich] 14/10/2016 23:06

as for the view that this will somehow miraculously come good: can anyone tell me *how*, exactly? no listing, no nomad, no funding. and I'll ask again - who in their right mind would lend PRG any money in the current situation? and if someone *would*, why haven't they?