Fibregen Share Discussion Threads

[turbotrader2] 15/7/2008 22:55

so how much is it worth at current levels?

[westythedon] 15/7/2008 22:30

probably greensmith when he buys it back :-)

[bubface] 15/7/2008 22:05

yes things have been made overcomplicated for what should have ulimately been a straightforward business to fund and understand.nobody stands to gain from this.

[sg31] 15/7/2008 21:53

There has been so much shifting around of companies and their paper,debts and obligations and interlinked holdings its reasonable to be suspicious.There was someone on the grassy knoll.

[bubface] 15/7/2008 21:41

lots of conspiracy theories interesting.why did the directors all invest money in the mid 30's the other day...just to get us off the scent of their masterplan? cost £90,000 in cold blood.i think not.

[sg31] 15/7/2008 21:32

Bubface,you say this has been very badly handled.I don't think so,I think it has been very well handled.The intention appears to be to make the company almost worthless to make it easier and cheaper for a buyout.Looks to me like a job well done.B*st*rds

[bubface] 15/7/2008 20:32

lots of shocking stories out there and a lot more to come,lots of financial planning by quoted co's has relied on tapping the equity markets for finance to grow and now you can't even raise a smile.this particular situation has been very badly handled in terms of timing and disclosure of this put,but the real crisis has happened because they could not raise the £5m-£10m the company really needed from the equity markets earlier this year.

[psolomons] 15/7/2008 20:11

Now worth 0.25p in old money, pre consolidation. Absolutely shocking story all round.

[turbotrader2] 15/7/2008 19:19

So, has this been a ploy by them to get the company for nothing

Evergreen that is?

I spoke with someone at Librum who said the enterprise value here is still $25million dollars less $8.5 million liabilities so thats approx £9 million sterling? which equates to 45pish?

sorry, head too done in to try and work it out properly

[bubface] 15/7/2008 19:14

oh forgot they also have the holding in evergreen itself,
Libra Acquisition
Evergreen will acquire securities in Prometheus, Coal International and HaloSource (mentioned
above), owned by LNR for an aggregate purchase price of: (a) £2,684,286, to be satisfied on
completion by the issue of 2,556,462 New Ordinary Shares at the price of £1.05 per New
Ordinary Share; and (b) if the securities being acquired pursuant to the Libra Acquisition are sold
for cash by Evergreen prior to 3 October 2008 at a premium to the value that they are acquired,
further deferred consideration equivalent to 50 per cent. of such premium will be payable to LNR.
This deferred consideration will be satisfied by the issue of New Ordinary Shares or, at the
election of Evergreen, in cash.


therefore 2.5m shares now at 40p is £1m.worth more than the ordinary share cap.

[bubface] 15/7/2008 18:32

john henry not too keen on your maths you are assuming that the current equity value is already assuming no debt and that they just issue more paper.no not joking if the conv shareholders took a haircut say 50p in the pound equivilent i.e. £3.9m of new equity would be issued would represent 80% of company at current levels and would give market cap sub £5m which would give decent upside to all from here assuming no more banana skins.without selling all the assets to pay conv holders in full at a distressed price leaving no equity value i see little choice.

[john henry] 15/7/2008 18:07

Debt for equity swap are you joking Bub. Equity hoders would be left with about 10% of the company worth around 0.35p at todays price.
Greeny has totally screwed this company with the directors blessing imho. You have to wonder if there has been a pre set agenda here.
The incompetance of the directors here has been staggering. A lot of questions need to be answered espescially concerning the put option.

[bubface] 15/7/2008 18:00

100% interest in the profitable north american operations.
1 non operating site in canada.
1 questionable clean coal operation in springfield ,illinois.lnr kincaid.could have some residual value.possible carried interest.
1 large unfundable [by them] east coast project which could be of interest to another better financed player.possible carried interest.
some phone numbers in russia.
probably all worth more than £10m imho.
a deal needs to be done with the 7.8m 8% conv holders, possibly equity swap deal that would be dilutive but would leave a cash generative debt free company that might make a strong comeback or get taken out for at least a realistic value.

[psolomons] 15/7/2008 17:56

Doesnt look like the city thinks there's value.

[the shuffle man] 15/7/2008 17:49

Seems pretty complicated

We have swapped the Chinese JV with Evergreen for £300,000 (or is it £100,000) plus we get back Halo & Waipuna that were originally valued at £4m back in April when they were transferred to Evergreen.

Then to settle the £4m put we have paid £900,000 + fees and given them Halo & Waipuna and have agreed to defer £3.1m until next year.

In the mean time if either Halo or Waipuna are IPO'd or the minority holder gets any income from these companies then this is used against the deferred consideration and if there is any excess this will be returned to FBG.

So we are left with the Canadian operations and Argonat which apparently are EBITDA positive and we may or may not have to pay the £3.1m in a years time.

Does anyone know what Halo or Waipuna do.

It looks llke we may just get out of this one if they dont run out of cash. I was told last week that the mke cap was trading a 1x ebitda of the canadian operations. We must now be on 0.5x so there must be some value here.

[turbotrader2] 15/7/2008 17:34

so is there anything left

[loafingchard] 15/7/2008 17:09

agreed , not worth selling now anyway

good luck to all

[asparks] 15/7/2008 16:56

not sure why that should have caused a 40% fall

[bubface] 15/7/2008 16:02

well it appears that they are paying 900k now and will have to pay further 3.1m within a year.in the meantime they are using the holdings they have recieved from selling chinese interest to evergreen as security.if the holdings are sold then that is offset against the deferred consideration any excess above and beyond amount owed goes back to fbg.
in the meantime the company struggles on with a v tight budget and needs to sell any odds and sods it can while trying to squeeze cashflow out of remaining opps.
walking wounded.