Columbus Energy Resources Share Discussion Threads

[bigsi2] 29/6/2020 15:59

I know BPC much better than you fella.Listen and learn

[12bn] 29/6/2020 14:23

With Lind shares,Schroders shares, contractor shares and a resurgence of covid-19 lock-down in the US likely, my guess is this share price is more likely to crash than go up,regardless of a long shot BPC deal.

[eggchaser] 29/6/2020 11:51

Or the likely income from PRD assuming they take TI off our hands for $4.2 mill

[bigsi2] 29/6/2020 11:14

So BPC currently need $25m ... will that likely be good or bad result for shareholders ??it's AIM... you work it out

[dodge_city] 29/6/2020 11:12

This has all the ingredients for a disaster.

[bigsi2] 29/6/2020 11:09

BPCs funding for PV1 as it stands is funded 2/3 via death spiral convertible loans ... yet to be issued.If they find an alternative which they are actively seeking as per RNS 28/5 it will likely be via huge dilution for subsequently combined CERP/BPC equity -

[eggchaser] 29/6/2020 11:07

Agree with that and as more details surface about the cash flow situation and the need to merge kind of puts up the flags to anyone taking any note and should answer a lot of the critics of this proposed deal.

[12bn] 29/6/2020 10:38

I agree it is only a death spiral if Cerp keep paying Lind in shares rather than cash but Cerp does appear to be very short of cash. Cerp pays its contractors in shares a lot as well as Lind,it does appear that they are skint imo. Schroders also has 82m shares or so left which I think they will want to divest. Just imo but the lack of cash could be the sole explanation for Cerp wanting the merger.

[eggchaser] 29/6/2020 10:16

12bn as I said It's only a death spiral if the company continues issuing shares to LIND - post merger it could be a very different story assuming the merger goes ahead!

[12bn] 29/6/2020 10:00

500k sell at 1.7121p,oh dear and more sells like that to come I guess.

[12bn] 29/6/2020 09:58

TIMBERRRRRRRRRRRRRRRRRRRRRRRRRRRRrrrrrrrrrrrrrrrrrrrrrrr I see arry. :)

[12bn] 29/6/2020 09:58

Finished reading your Beano arry I see. Now simple minded one tell me how the possible deal with BPC will stop Lind selling? It won't and this will drive the share price down ever lower in a death spiral and BPC is likely to follow it down. You really are a simple minded oaf.

[arrynillson] 29/6/2020 08:52

12bn - you clearly have great difficulty with those joining the dot exercises - in case you've forgotten BPC have made an offer for CERP ( in the knowledge that LIND repayments will be made in shares ) so those people believing it will proceed ( including CERP BOD ) know there is now a relationship between CERP share price and BPC share price - I'm not surprised that passed you by 12bn but you are plumbing new depths of ignorance 12bn!

[eggchaser] 29/6/2020 08:42

It's only a death spiral if the company continues doing it - post merger it could be a very different story assuming the merger goes ahead!

[tomford8] 29/6/2020 08:31

jcgswims here is the lse post by Starchild you are referring to


BPC/CERP Access to ‘capital markets’ after merger:

A key question 28 Jun 2020 06:06

Please refer to the recent Rule 2.7 Announcement RNS Page 13 quote is with my emphasis in CAPS: ‘…….the Boards consider that a business with a broader, regional portfolio, as would be the case with a combined Columbus – BPC entity, would both diversify risk and be inherently larger and more attractive to longer-term INSTITUTIONAL investors, thus providing a number of benefits to all shareholders in terms of enhanced market size, LIQUIDITY, and access to capital from multiple sources, including via equity capital and DEBT MARKETS.‘

My observations

1. ‘Equity capital’ means share diluting CLNs or rights issues. ‘Debt market’ is a different way of stating ‘capital market’. It means BONDS. Bonds are not usually share diluting. See hxxps://www.investopedia.com/ask/answers/071415/what-are-differences-between-debt-and-equity-markets.asp
2. CERP is too small to access the bond market. BPC is too risky. Combined BPC/CERP can and will, otherwise the CERP BoD would not have unanimously agreed to a merger that would require a massive CLN. It’s similar to a couple wishing to get a mortgage. Separately they do not earn enough (or have enough security) to get the loan, but jointly they can.
3. Corporate bonds can be structured in various ways, such as capital and interest paid on maturity. Bondholders are the highest ranking creditors above shareholders. They will lend to a BPC/CERP entity with the knowledge their investment is secure based on CERP assets alone, even if Perev-1 is not as successful as the studies predict.

Key question: So why haven’t the BoDs spelt it out? [My answers: (a) perhaps they will with the merger voting documents, or (b) It’s so obvious they can issue bonds, they don’t have to spell it out. A bit like a couple can clearly get a 200k mortgage on a combined income of 100k and additional security, or (c) a JV with Stena or another 3rd party is on the cards which would make most of the above somewhat irrelevant, or (d) a bit of (c) and a Bond issue.

My assumptions: I’m leaning towards answer ‘d’. This will explain the reluctance of senior BPC and CERP folks while recently being interviewed, to have given more information citing confidentiality. If purely a bond issue was on the cards, they would have all answered with a polite version of, ‘listen mate, are you a dimwit? How did you get your job as an interviewer? Don’t you know how the bond market works? If not, have a word with GNEISS or any merchant bank that issues bonds.’ Now, if a JV is on the cards, the BoD cannot pre-announce it unless the deal is TOTALLY signed off, otherwise if the BoD uses it as a key justification for the merger, the JV target could change the draft terms in their favour knowing the BoD would have to accept the new terms to avoid embarrassment.

I think news will arrive very soon. Perhaps even with the voting documents.

Starchild

[12bn] 29/6/2020 07:51

Lind are selling as well I see,they have 11m left to sell and sell they will, as they want their money back that they have leant out. This is 'death spiral' lending now. For those not familiar with the term,it comes from a lender who is paid for a loan with shares which are valued at lower and lower prices as the share price falls due to the selling of those shares, so the next month the lender gets even more shares that they then have to sell driving the share price even lower. This spiral down is known as a 'death spiral' and this is now what the Lind deal is.

[12bn] 29/6/2020 07:44

Class of relevant security: 0.05p Ordinary
Interests Short positions
------------------ ------------------
Number % Number %
----------- ------------- ---
(1) Relevant securities owned and/or controlled: 11,206,753 1.20
----------- ----- ------------- ---
(2) Cash-settled derivatives:
----------- ----- ------------- ---
(3) Stock-settled derivatives (including options) and agreements to
purchase/sell:
----------- ----- ------------- ---

TOTAL: 11,206,753 1.20
----------- ----- ------------- ---

All interests and all short positions should be disclosed.

Details of any open stock-settled derivative positions (including traded options), or agreements to purchase or sell relevant securities, should be given on a Supplemental Form 8 (Open Positions).

(b) Rights to subscribe for new securities (including directors' and other employee options)

Class of relevant security in relation to which Share Options to purchase the shares
subscription right exists:
Details, including nature of the rights concerned and 23,884,308 options with a strike price of GBP0.03
relevant percentages: expiring on 15 July 2020
4,893,596 options with a strike price of GBP0.087
expiring on 23 February 2021
5,472,136 options with a strike price of GBP0.081
expiring on 21 July 2022
14,625,000 options with a strike price of GBP0.06
expiring on 8 November 2024
16,861,207 options with a strike price of GBP0.051
expiring on 17 December 2024
----------------------------------------------------------

3. DEALINGS (IF ANY) BY THE PERSON MAKING THE DISCLOSURE
Where there have been dealings in more than one class of relevant securities of the offeror or offeree named in 1(c), copy table 3(a), (b), (c) or (d) (as appropriate) for each additional class of relevant security dealt in.

The currency of all prices and other monetary amounts should be stated.

(a) Purchases and sales

Class of relevant security Purchase/sale Number of securities Price per unit
Ordinary Sale 600,000 GBP 0.018
-------------- --------------------- ---------------

(b) Cash-s

[jcgswims] 28/6/2020 12:44

Yes I saw it, I'm no expert in bonds but since the merger was announced and with the various interviews given by Leo, Tony and Simon Potter, said to me that that the merger is a means to and end to access wider funding facilities that may not be available as 2 separate entities.

[eggchaser] 28/6/2020 09:04

JCG did you see the post from Starchild ref the bonds?Interesting theory I recon and it ties in with something Offerman said when he met LK & TH where they touched upon methods of funding the company?

[eggchaser] 27/6/2020 15:25

Yes I read the RNS but some on LSE say Schroders were adding - just goes to show some of the ramptastic nonsense posting that definitely balances the trolling!

Interesting to see how the share price fairs in the run up to the merger and one other benefit of it would be those wishing to divest being able to with an increased group of interested investors gobbling up the slack.
I recon there will be a consolation which don’t always go down - so news flow is going to be very important and interesting as well as the exit of Schroders who are out biggest pain in the ass!

[eggchaser] 27/6/2020 15:19

Arry did you see the posts around Schroders adding on LSE - should have gone to specsavers??