Canisp Share Discussion Threads

[down_under] 04/8/2010 00:42

Amazing the absence of celebrity resident redimp 98 after the release of rns?Didn't he tell everyone here it will open 1p minimum when it comes off from suspension?What is this 3billions plus share placing @.005?.Now do you still class redimp98 as a very knowledgible individual or just delusional? take your pick;-)

[hootster] 04/8/2010 00:42

Don't get too hung up with the dilution they are locked in for at least 12 months, think all should be looking at the newsflow in next few weeks.
I was able to get into PDX @ 10p when the share price was 34p only because I was invited and these guys that are in at .5 are the privy few but IMHO those that hold will reap the rewards.
As always DYOR etc....
REGARDS THE HOOT.........

[keya5000] 03/8/2010 23:22

Zaitoon, I agree the value given to the shares and the asset are purely for accounting purposes and are not linked to the true market value of either.

[keya5000] 03/8/2010 23:09

I am sure I also read in the AD that Strand would be paid in part with new shares and this figure amounted to a paltry number, that at a value of .005p per share would amount to just enough to pay for the staff's morning trip to Starbucks.

[keya5000] 03/8/2010 23:02

I think the issue is people are relating the consideration value to their perceived valuation of the new company.

I.e. on relist will the companies market cap be C£200K?

Its a simple situation Canisp holders now have a 25% share in the new company, of which the original owners have 75%.

I do not doubt the value of the shares issued could have been for a higher value due to them all going to the Ely family and being 100% paper they could have perhaps put two zero's on the purchase value and we would all be happy.

There must be something of real value all parties know about here, the existing owners you would have thought must have good reason to wish to keep such a large percentage of the new company and MH et al must have a damn good reason to think a 25% stake in this undeveloped punt is going to be worth something.

The legal fees and AD must have cost more than the £300K purchase price.

[boricom] 03/8/2010 22:40

New to this thread (so apologies if I am behind the curve). A couple of observations - having finished reading through the AIM document and then catching up on recent posts there seem to be a number of misconceptions regarding the mechanics of this transaction / valuation / certain shareholders.

Taking the last of these first - there are a number of suggestions that Corvus will (a) make a killing (b) take a significant stake (c)have some options in addition to the conversion shares. The AIM document shows that Corvus has no existing shareholding but is entiteld to convert its debt into 383.5m shares which will be 8.76% at that point (definitions page 5 and substantial shareholders table on page 128). There are no options or any other interests - these would otherwise be shown in the additional information section. This means that the entire economic interest of Corvus is within the conversion shares. Certain contributors have suggested that Corvus will dump these shares and other contributors have suggested that the shares will be valued at par on return to market - if this were true, and assuming that the sale of an 8.76% stake can be made without any discount, Corvus would realise £19,175. Some killing.

The analysis above perhaps also leads to some views on valuation. If the par value were to be the correct value for these shares the market capitalisation for the Company would be 3,994,047,275 shares (share statistics page 4) x £0.00005 (new par value) = £199,702.36. You should form your own view of the value of the Company post transaction and compare it to this analysis to form a view on this point.

Finally with regards to mechanics I have found that all transactions take a great deal of consideration to really understand how they have been developed. An instant reaction will never encompass an informed view. From a legalistic perspective I should also make a general point relevant to every (UK at least) company whether Ltd or Plc, listed or not - the nominal (par) value of shares is a legal definition relating to the minimum value at which shares may be issued by the Company and be regarded as fully paid up, any value in excess of this is recorded as share permium. The share, once issued may be bought or sold at any value below or above this and there is rarely, if ever, any link between a company's share's par value and it's fundamental or market value - take any company you like and compare its market/fundamental value with its nominal value and you will rarely find one that is the same.

[soulseeker] 03/8/2010 22:38

Wasnt Tristar not the company Gordon Geko bought?..........

[keya5000] 03/8/2010 22:37

Seems a very strange deal, looking at the CPR it would seem this was the first target, cant see how there can be any other targets or future outside aquisitions due to the existing owners now having a 75% interest in the 'new' company.

Why reverse your shell into a Turkish mine and then give the current owners 75%. The current large holders of Canisp who postured and moved to get in that position must think there is some serious worth to the 25% of the company that remains in the hands of existing holders.

I think the 0.005p issue is a bit of a red herring i.e. if that was the case the existing board only valued the canisp prior to the deal at less than £75K or in effect to be worthless.

Reading the CPR it seems there could be a decent Antimony open pit mine and there is little comments on the prospect of Gold at deeper levels. Perhaps this Spratley guy spotted this and then convinced the powers that be the gamble was worth it.

For the Turks it must be a win win situation, they get their semi dormant mine prospected and then if feasible developed and they still own 75% of it and if its successful they are multi millionaires.

Dont think all is out of the wash here at all.

[ditb13] 03/8/2010 22:32

So looks like we have to wait a little longer yet I for one have certainly not written my shares off yet!!!
Regards

[welshgoat2] 03/8/2010 22:21

this is not a bad deal £11m for a mine very rich in minerals, 25,000 tonnes ore 2500 tonnes antomony, if we can produce 10k/tonnes antomony that £50m on a open pit mine,[very cheap production]£25m profit, pe10 mkt cap £250m/6pshare, will need finance £50m imo, put the gold and other minerals inn, im not writting off my investment yet,

[keya5000] 03/8/2010 22:17

Wendy, how about doing us all a favour and give us your opinion on the contents of the CPR.

[keya5000] 03/8/2010 22:06

It seems it was the first target---

In mid 2009, the author was commissioned by Canisp to visit and evaluate the property and to compile available information and to write a report that summarized findings and which made appropriate recommendations. For these purposes, the writer undertook the following:

[keya5000] 03/8/2010 21:39

Admission doc and CPR.

[goz1986] 03/8/2010 21:27

it really isn't as bad as you think my dear chap, sadly my £10.50 will most likely now only be worth £5 but I remain confident that I will get my money back to buy that deep purple cd i ve always wanted.

[carrbradshaw] 03/8/2010 21:15

Come on Goz and Redimp - we have lost our money - had 6k invested - will be worth 100 pounds. Share Cruise had £200 invested - next we'll be hearing Hooster had £100!

[goz1986] 03/8/2010 21:06

okay, so we need a Market cap of around £14 million to get our money back.... it's not great but I don't think it's all over red rover by any means... chins up!

[share_cruise] 03/8/2010 20:58

Trying to find some info on the new boss

Brian spratley 60
Crew gold 2003-2008 took share price for 0.36 to almost 3p but took almost 5 years, of course many factors affecting this. anyone else found out any more information?

[safman] 03/8/2010 20:45

"Buy as many Tristar shares as you can afford on reopen, anything less than 1p is an abs bargain."

Redimp, whats the resource estimate for the mine.

I see that Net assets of the mine equate to around £200k and net loss around 7k. 1p would be like a placing at 0.5p and buying up to £1. Not to mention the company would be worth £45 million at 1p excluding the drawdown.

saffy...

ps. Why do you think the ORD Is 0.005p. Is it because the dirs think that the max they could extract for the vendors and themselves to have an interest.