Bluebird Merchant Ventures Share Discussion Threads

[mogwhy] 13/6/2019 22:47

This prospectus could have been put together in a few weeks.
The 180 page competent persons report was written in Jan 2018. They've just changed the date.
The last 100 pages are just photocopied notarial certificates.
A lot of the other stuff has been previously released or copied from elsewhere.
Have you actually read it ?

[cool runnings] 13/6/2019 22:05

One last thing from me and I think most importantly this was a prospectus so it isn't something that can be done in a week - they must have started it 6 months or so ago and go through a regulatory process which obviously just finished today!

[the deacon] 13/6/2019 21:59

I agree cbeadle. For me, it's what hasn't been said that's the key. Small cogs turning today, what we will see soon is the larger wheel in motion..

[cbeadle] 13/6/2019 21:51

It’s a real interesting one this financial solution, and I am not quite sure what to make of it. There are real positives, such as the strength and experience of the team, and also they have backed the project well. If they can access debt so easily, why have they diluted now. ?Yet the valuation compared with the potential seems really absurdly low, especially as the S Korea authorities seem quite supportive.
I am generally hopeful . I think BMV are hoping the next months bring highly positive news that results in a big rerate enabling them to generate further debt and equity funds eg placements, warrant exercise etc.
The big risk is a delay in permitting which would necessitate painful dilution and a big millstone for the share price
I don’t think the directors would have gone for the course of action today unless they were highly hopeful of progress

[cool runnings] 13/6/2019 21:47

Everyone has commented on the huge debt that the company has carried over the past 2 years. Now it is gone all that is needed now is permits and we take off and circa $1m is easy to get - and my bet is management will again be there to see it through

[cool runnings] 13/6/2019 21:37

The Working Capital Statement is a technical requirement in a prospectus and nothing to be alarmed about. In fact look at the cost to go to production - a paltry $1m or thereabouts - its nothing and we already can see the CEO has deep pockets

[cool runnings] 13/6/2019 21:34

It is not 1.87p per share. A number of shares relate to the vend in of the korean projects 2 years ago. The real number will work out to circa 2.5p

[euclid5] 13/6/2019 21:24

so another raise before July 19

Gives some confidence in the BoD's converting Loans to equity

[skyship] 13/6/2019 21:07

Clearing all that debt to equity @ 1.87p doesn't worry me overmuch. Committed directors further directly incentivised...

[tim000] 13/6/2019 18:21

The conversion price is poor. If they are going down the debt route, it would have been necessary to clear these outstanding loan notes first. Let's hope this signals the last major (unexpected) dilution.

[mogwhy] 13/6/2019 18:20

6. Current Funding and Future Funding Requirements
The Company is of the opinion that the Group does not have sufficient working capital for its present requirements, that is, for at least the next 12 months from the date of this document.
In the opinion of the Company, the Group has sufficient working capital to fund the Pre-Construction Phase, which is expected to be completed by 30 June 2019 and to fund its administrative expenses until 30 June 2019.
In order for the Group to be able to continue to meet its administrative costs after 30 June 2019 and to progress the South Korean Projects beyond the Pre-Construction Phase the Company will need to raise additional funding before 1 July 2019.

[digger2779] 13/6/2019 17:53

I stand corrected. I just naturally assume £'s. They are clearing the decks. Wonder how this will be treated by the market tomorrow? Always a bit wary when company's announce after market close but that little rise today must have been a reaction to a little leak of news. Here's hoping it's seen as a positive.

[tsmith2] 13/6/2019 17:51

At the very least they could have done at the 2.25p placing price that others had to pay

[tsmith2] 13/6/2019 17:49

Yes. 1.87p. not impressed at all.

[toyin] 13/6/2019 17:43

You are correct jasper the conversion is in $ not £

[tsmith2] 13/6/2019 17:43

The share price has been considerably higher in the past and they could have done this at that time or when permits etc are obtained.

[tsmith2] 13/6/2019 17:42

Can't say I'm impressed by level of dilution.

[jasper2712] 13/6/2019 17:38

I make it 1.88 p/share

[digger2779] 13/6/2019 17:30

So they have converted debt into equity at approx 2.38 per share. Directors wouldn't do this unless they are pretty certain of getting their money back i reckon?

[tim000] 13/6/2019 17:19

Southern Gold's share price is currently suspended, pending a capital raise. I don't think they're open to being acquired. Hopefully, this new capital will be sufficient to "get their house in order".

[tim000] 13/6/2019 15:18

If the company were contemplating equity finance then I can see 2Prsimo's point. Whenever an AIM company attempts to issue large amounts of new equity, the market gets wind and the share price plummets. If you were an existing institutional shareholder participating in the funding, you'd flip some of your holding at any price above the issue price, forcing down the share price. However, if cr is correct and the company can readily access debt finance, then I agree the share price will be unleashed.

[cool runnings] 13/6/2019 15:07

Well I totally disagree ! When the permits arrive these will be significantly higher than 3p. Debt finance will be a very easy option for the company as numerous parties are queuing to offer this on confirmation of the permits.