Reabold Resources Share Discussion Threads

[silkstag] 08/1/2013 14:02

MTG, only way to short this shell seems to be T20, which looks ok on timing but many brokers will no longer do this. Feel free to cut and paste my post 43.

[m.t.glass] 08/1/2013 11:02

silkstag - do you fancy giving this a mention on my (DOWN) thread? With a reference to how to short it.

[silkstag] 07/1/2013 17:34

BP, thanks, your brokers are helpful.

[bubble pricker] 07/1/2013 15:28

T20 is the only way to short this. I managed to get only 50,000 away. MM would take no more.

[silkstag] 07/1/2013 13:19

Arf, no, all businesses were closed or sold and remaining assets transferred to CVA. Company renamed and AiM ticker changed to RBD. It is now a dormant shell, just incurring salary, overheads and advisor fees. Only liability (allegedly) is £201k of new loannote debt. Only tangible asset is £150k cash from a 60m share placing on 19 December 2012 at 0.25p. It also has its AiM listing which is worth say £250-500k for someone to reverse into. Value is thus 0.3-0.65p per 66.9m shares. The screen price of 4.875p is a huge anomaly.

40m of the 60m shares were placed other than with the directors and those shares will be admitted to AiM in the next week or two. I assume they will cash their multibag profit from 0.25p to 1p, which is my prediction for the share price in a few weeks.

Can anyone advise Yet Another Final how he can short this? A lot of brokers wont do T20 shorts any more, and if it isnt on IG then one cannot spreadbet a short, plus it is too small market cap for any CFD I have seen. There is no trade and no employees, just a lawyer and accountant as directors, laughing all the way to the bank, that they have a huge multibag return for absolutely nothing delivered or indicated.

[arf dysg] 07/1/2013 10:45

Adventis is back on the market, or is that a mirage? Do they do anything any more?

[yet another final] 07/1/2013 09:13

cant find it on IG!! any advice

[silkstag] 06/1/2013 15:43

billbyrne, you say "they will not be able to issue shares below the nominal value of the shares which is 1p". That is a serious factual error on your part.
1) The nominal value is 0.1p per share, not the 1p you suggest.
2) On 19 December 2012, ie just two weeks ago, RBD placed shares at 0.25p for each 0.1p share.
3) No value-adding commercial milestones have been achieved since so valuing the share at much more than that 0.25p is absurd.
4) Any placing or reverse investment will value the shares at 0.3-0.65p as that is the value (per 66.9m of these shares) of this existing empty shell AiM listing, being £250-500k. I have factored in the £150k of cash and £201k of new debt.
5) 40m of the 60m shares placed at 0.25p were to non-board members. They will soon be admitted to trading on AiM. When they are, many of them will rejoice at the x4 return if they are able to sell at 1p. The current market price of 4.875p is garbage. The shares are worth 0.3-0.65p as that is the company's only value, as an emtpy shell to reverse into or raise funds.
6) anyone who suggests this empty shell with -£51k negative net assets is worth more than 1p is a fool or a crook or both imho.

[loverat] 04/1/2013 22:05

I do not generally approve of shorting because I think this behaviour can destabilise and damage decent listed companies or those with a fighting chance. I do not think there is any such danger of that here however.

[billbyrne] 04/1/2013 19:20

Like I said its all there.

An investing company is generally considered to have substantially implemented its investing policy, when
it has invested a substantial portion (usually at least in excess of 50%) of all funds available to it, including
funds available through agreed debt facilities, in accordance with its investing policy. As yet no funds are
available for any such investment.

"As yet no funds are available for any such investment."

As an investing company, the Company intends to undertake an acquisition or acquisitions which will
constitute a reverse takeover under the AIM Rules for Companies, within the next 12 months. The
Company will require further funds in order to undertake such an acquisition or acquisitions and meet
recently incurred costs and future operating expenditure.

"The company will require further funds in order to undertake acquisitions"

I take it the 0.3-0.65 figures are yours. They are not on the website as far as I can see.

If they raise funds they will not be able to issue shares below the nominal value of the shares which is 1p.

Covering the same ground now so will call it a day.

Good luck with your short. We are all here to make money.

[silkstag] 04/1/2013 18:42

'All there' really? It talks about investment but it doesnt have any funds to invest. Where does it say "They will need to do a funding round at 0.3-0.65p per share or have a private company reverse into them at that price. Any talk of this being valued at above 1p is bogus imho. I believe that is the 'full story'."

[billbyrne] 04/1/2013 17:48

ss,

Like I said, its there on the website for all to see. The points you raise are all there.



Change of Business and Investing Policy
At the General Meeting, shareholders approved a change of business to that of an investing company with
an investing policy to acquire direct and indirect interests in exploration and producing projects and assets
in the natural resources sector, anywhere in the world. The Board will consider other sectors as well as
opportunities as they arise.
The Board anticipates that investments may be by way of purchasing quoted shares in appropriate
companies, outright acquisition or by the acquisition of assets, including the intellectual property, of a
relevant business, or by entering into partnerships or joint venture arrangements. Such investments may
result in the Company acquiring the whole or part of a company or project (which in the case of an
investment in a company may be private or listed or quoted on a stock exchange, and which may be prerevenue),
and such investments may constitute a minority stake in the company or project in question.
The Board anticipates that the Company may be both an active and a passive investor depending on the
nature of the individual investments. Although the Company intends to be a medium to long-term
investor, the Directors will place no minimum or maximum limit on the length of time that any investment
may be held and therefore shorter term disposal of any investments cannot be ruled out.
As an investing company, the Company will be required to make an acquisition or acquisitions which
constitute a reverse takeover under the AIM Rules or otherwise implement its Investing Policy on or before
the date falling twelve months from the adopting of the Investment Policy by the Shareholders, failing
which, the Company's shares would then be suspended from trading on AIM. In the event the Company's
Ordinary Shares are so suspended and the Company fails to obtain Shareholders' consent to renew such
policy, the admission to trading on AIM of the shares would be cancelled six months from the date of
suspension and the Board intends to convene a general meeting of the Company to consider whether to
continue seeking investment opportunities or to wind up the Company.
An investing company is generally considered to have substantially implemented its investing policy, when
it has invested a substantial portion (usually at least in excess of 50%) of all funds available to it, including
funds available through agreed debt facilities, in accordance with its investing policy. As yet no funds are
available for any such investment.

Subscription
On 19 December 2012, the Company entered into conditional agreements with certain private investors for
the subscription of 60,000,000 ordinary shares ('the Subscription Shares'), at 0.25 pence per share to raise
gross proceeds of £150,000 ('the Subscription'), which will provide additional working capital for the
Company. The Subscription Shares will represent 89.7% of the enlarged issued share capital of the
Company and will rank pari passu with the Company's existing Shares.
The Subscription is conditional upon the following being satisfied by 31 January 2013:
(a) the passing of certain resolutions ("Resolutions") at the General Meeting;
(b) the Subscription Shares being allotted and issued to the private investors within seven days
of the date of the passing of the Resolutions; and
(c) restoration of trading on AIM of the entire issued share capital of the Company.
Following admission of the Subscription Shares, and completion of the Subscription, the Company's total
issued share capital will be 66,915,895 ordinary shares of 0.1p each.
Among the subscribers for Subscription Shares was Jeremy Edelman who subscribed, prior to his
appointment as a director of the Company, for 20 million Subscription Shares. Following Admission, Jeremy
Edelman will hold 20 million Ordinary Shares of 0.1p each in the Company, representing approximately
29.89 per cent of the Company's issued ordinary share capital.
Loan Notes
As an investing company, the Company intends to undertake an acquisition or acquisitions which will
constitute a reverse takeover under the AIM Rules for Companies, within the next 12 months. The
Company will require further funds in order to undertake such an acquisition or acquisitions and meet
recently incurred costs and future operating expenditure. Therefore, following the General Meeting, the
Company has entered into a convertible unsecured loan note instrument (the "Loan Notes") for up to
£260,000 with Saltwind Enterprises Limited, a company connected with Jeremy Edelman. The Loan Notes
shall accrue interest at 0.5 per cent. per month and unless converted be repaid on 31 December 2013 or
such later date as nominated by the noteholder. The Loan Notes may be converted into new Ordinary
Shares at the last placing or subscription price paid per share on the issue of Ordinary Shares but the
noteholder may not exercise their right to convert the Loan Notes if such conversion would result in the
noteholder being required to make a mandatory offer to the holder of shares in the Company in
accordance with Rule 9 of the City Code on Takeovers and Mergers ("Rule 9 Obligation"). In such
circumstances, the Company will use its best endeavours to obtain from the Panel on Takeovers and
Mergers any dispensation reasonably necessary to allow the Loan Notes to be converted without incurring
a Rule 9 obligation. The Company intends to seek the approval of independent shareholders for a waiver of
the Rule 9 Obligation at the earliest possible opportunity being the next annual general meeting of the
Company, which is intended to be held early in 2013.
The entering into of the convertible unsecured loan note by Jeremy Edelman is classified as a transaction
with a related party for the purposes of the AIM Rules for Companies (the "AIM Rules"). In accordance,
therefore, with the AIM Rules, Anthony Samaha as the independent director of the Company, having
consulted with the Company's nominated adviser, Westhouse Securities Limited, considers that the terms
of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.
To date, the Company has drawn down approximately £201,000 under the Loan Notes in order to fund the
CVA and other associated costs, including legal, auditing and advisor fees.
Financial Review
The loss of the Group for the 6 months ended 30 June 2012 was £711,000 (2011: loss of £ 1,392,000). The
net assets as at 30 June 2012 was a deficiency of £6,296,000: (2011: positive £6,330,000).
Following completion of the Subscription, the Company will have cash and working capital of circa
£150,000.

[silkstag] 04/1/2013 17:29

ps noone was reading this thread as noone was aware of this new ticker after it changed from ATG to RBD. So I posted on some other threads where people had been aware of ATG or where I had exchanged analysis with other posters.

pps This sort of stone-cold 85% over-valuation does not "happen all the time". I thought/think this is a new year's gift for shorters, so described it as such. DYOR.

[silkstag] 04/1/2013 17:23

bb, there is no story on the website, just standard blurb. They only have £150k in cash to cover overheads (£201k in new debt), so no material funds to invest. They will need to do a funding round at 0.3-0.65p per share or have a private company reverse into them at that price. Any talk of this being valued at above 1p is bogus imho. I believe that is the 'full story'.

[billbyrne] 04/1/2013 17:09

Loverat,

I have no problem with Silkstags analysis of the situation on THIS bb. Over valuations (and under valuations) happen all the time. Its good to have
a balance of opinions. It helps to weigh up the risk.

This is a shell, the full story is there for all to see on the website.

[silkstag] 04/1/2013 17:04

Loverat, thanks. I note that RBD was the largest faller on AiM today at -22%. To correct the anomaly it logically will fall at least a further 80% down to 1p in the next few weeks as the 40m non-board shares placed at 0.25p on 19 December 2012 (ie two weeks ago) are admitted to AiM and are sold for a swift x4 profit at 1p. I think shorters should wait until those 40m shares are admitted before cashing their short profits. IMHO

[loverat] 04/1/2013 16:16

Good afternoon

I can confirm that Silkstag is not principally here as a shorter. He might be shorting but that is not the motivation for his posts. I traded ATG a few months back and he provided an excellent analysis of the balance sheet and what the likely result would be. He was right and his analysis was recognised as such by Lucien Miers who included it in one of his articles on ATG. Anyway I sold out of that and saved myself some money.

Please do research folks and check this out for yourself. I can honestly say that Silkstag epitomises what financial bulletin boards should be like. Exchanging information, knowledge and experiences for the benefit of all - rather than the usual unpleasant, dishonest and selfish people you tend to find on these boards.

Good luck with your research.

[silkstag] 04/1/2013 12:08

Billbyrne, RBD is a shell, it has no trade. In the next 12 months it might close an investment deal which values itself at about net assets plus £250-500k, attributing that premium to the fact it has a listing with management. It has £150k cash and £201k new debt, thus slightly negative (-£51k) net assets. Based on that £250-500k premium, the other side of its first deal will value RBD at about 0.30-0.65p. As you can see, I rounded up significantly to get to 1p in my previous post.

The previous 6p, now 5.5p, share price for this shell is just an extreme anomaly. It will reverse once the non-board placees who sbuscribed for 40m of the 60m shares on 19 December 2012 at 0.25p per share, are all free to sell their shares, when they are admitted to trading on AiM in the next few weeks.

My post was not a 'shorters slant' as you allege. It was an analyst's conclusion. That clearcut conclusion suggests that short is the right trading decision.

Look at it another way. Two week ago there was an equity placing at 0.25p per share. What great success has this company enjoyed in the intervening two weeks to justify those placees earning a x22 return [at 5.5p]? The answer is nothing. This is an extreme anomaly.

DYOR.

[billbyrne] 03/1/2013 18:02

SilkStag

The whole story is on the web site for all to see. So anyone thinking of investing would have done their research before doing so.

I take it you have gone short or why else would you go on to the epo, idox, fogl bb calling for shorters to short this share. Your slant on the story is a shorters slant. Each to there own.

As you know full well, the shares are worth what someone is willing to pay for them. After a quick rise its not uncommon to see the share price drop as people take their profits. But the shares could just as easily start to go up again.