Pressure Technologies Share Discussion Threads

[cerrito] 07/6/2019 19:33

I do not see an equity raise in the immediate future although given we have had no update since end September we are flying blind. Let#s hope there is a Hydraton payout.
Remember that the new CEO said at the AGM that he will set out his vision of the company with the interims.
I suppose departure of Cantor mixed up with Greenlane but who knows.

[jeevsje] 07/6/2019 07:22

Interestimg set of events. Board member resigns yesterday and now, change of advisors. Looking to raise to shore u balance sheet after the Greenlane fiasco?

[cerrito] 06/6/2019 23:05

I assume no coincidence that today's terse statement on Wilson's departure coincides with the closing of the Greenlane sale which must have provoked a good deal of tension. One wonders that role if any Gresham House played in it.
Given the failure of this acquisition there is poetic justice in his departure.

[jeevsje] 05/6/2019 21:03

Main issue is that they could face a 7 figure fine for QHSE breach.

[cerrito] 05/6/2019 15:19

For the record, this was in yesterday#s Telegraph Questor
quote
This column’s speculative look at Pressure Technologies has yet to make any waves but shares in the firm are back to our entry point and there could still be scope for improvement.

Management is in the process of slimming down the company’s range of activities with the aim of leaving two core operations – cylinders and precision machined components – for clients in the oil and gas, defence and industrial gases sectors.£

Read Questor’s rules of investment before you follow our tips
One unit, Hydratron, has already been sold to help cut debt. Another, the alternative energy operation, is on the block and a sale to Canada’s Creation Capital is tantalisingly within reach.

Late last month Pressure Tech announced that Creation had received sufficient interest in a private placement designed to raise the cash to fund the purchase. Details of the deal will hopefully come through soon, in the next step of Pressure Technologies’ turnaround.

There is still a long way to go as the tiny company – its market value is just £20m – has just racked up three years of losses and the same spell off the dividend list.

But this business has in the past made double-digit operating margins and the shares could look very cheap if earnings even start to move towards those levels. It remains a high-risk punt for patient investors.

Questor says: hold

Ticker: PRES

Share price at close: 109p

[jeevsje] 04/6/2019 22:43

The handling of the sale gives an indication of what to expect from the sale of Greenlane. Going by their past actions, it is likely that PRES holdings in the new entity will be diluted to oblivion or worth nothing in the not too far future.

[meijiman] 04/6/2019 22:12

Management come across as amateurish

[cerrito] 04/6/2019 20:56

Interesting that the share price has fallen today as the terms would have been known by anyone following this thread or doing basic research.
Perhaps people saw the net debt figure given was almost 9 months old and so deduced that it has worsened since then.
I note no reference to when interest being paid-ref earlier Seddar posting that it will be paid at maturity.
Not sure what to read into fact that announcement made by CFO rather than CEO.

[jeevsje] 04/6/2019 07:07

There you go, initial cash consideration of £2million only instead of the original £5million we were told in Dec. PRES bent over to close the deal. I hope market punishes them for the way this has been handled.

[jeevsje] 25/5/2019 09:32

Webpax, correct. They uploaded the placing doc shortly after i posted here. The final amount raised is critical and i guess we find out next week. However, the whole episode with Creation has been a disgrace and highly inneficient.

[webpax] 25/5/2019 09:19

Completion date extended but looks like they have raised at least the minimum $6m

[jeevsje] 24/5/2019 18:27

New documents published by Creation. I haven't been through it in details but at first glance, it appears PRES are bending over again to Creation. PN extended to 4 years now. Doubt they will even get to see that money.

Still no placing finalised.

[meijiman] 24/5/2019 08:17

Agree..bunch of......s

[jeevsje] 23/5/2019 22:43

I checked as well after the perky share price action. MMs could be trying to entice new buyers before any significant news. I reckon market will punish them for the new contractual terms of Greenlane sale. The recent fiasco around the placing says a lot about the soon to be new leadership team at Greenlane. Time will tell but I strongly believe PRES are doing a huge mistake handing over Greenlane to Creation Cap.

[cerrito] 23/5/2019 14:15

Routine check on Creation Capital's SEDAR website page revealed nothing since May 13th as I suspected

[jeevsje] 15/5/2019 22:28

Still no placing finalised for sale of Greenlane.

HSE hearing also aproaching. Anyone has any clue what the fine may be, if they are found guilty. There was mention of 7 digit penalty somewhere - anyone with the required background willing to give us an indication?

[fillipe] 13/5/2019 14:31

RNS of earlier, today.



f

[cerrito] 13/5/2019 14:21

Pleasantly surprised that the share price has gone up as I am not a happy camper.
I continue to have preferred that PRES would have been more explicit about the changes in the deal. I see that we are now getting our interest on our now 4 year p notes at maturity…perhaps that has been announced before
Good that Greenlane got four deals in 2018; too bad none so far this year. That may well be because no one wants to place an order with an entity where there are so many question marks about its future ownership and begs the question as to who would want to place an order for equipment requiring long term maintenance with a company of such a flaky ownership structure, especially given what appears to be Mr Nesmith’s track record. Let#s hope that that will be covered by the major company they have signed a LOI with.
One wonders about their future working capital position…although a large part of that may well be provided by PRES when they defer payments of the p notes .
With the possibility of getting just £1.2m in cash it must be very tempting to walk away even with the fees that would need to be paid.
I am continuing to hold as there is for me enough recovery potential in the rest of the business but have no current plans to sell, even though I have a nasty taste in my mouth.
PS
For those who think I am being a party pooper, let me know
PPS
I was surprised when I went on the SEDDAR page that we had a different set of documents from the last time I looked.

[jeevsje] 13/5/2019 07:18

So, COMPANY blatently just ignoring shareholders on the Greenlane deal.

[jeevsje] 07/5/2019 23:16

You're welcome, Cerrito. Shame the company prefers to keep us in the dark. Still no placing news from Creation Cap. I am wondering whether PRES have the option to walk away from the deal but I reckon they are painfully aware of the debt. Moreover, they are likely to have fingers pointed at them considering the fees associated with the transaction (weirdly enough, it appears that the fees are due to the same individuals acquiring Greenlane).
Besides the debt, PRES could face a heavy fine if they are found guilty in the HSE case. Probably lawyer fees are already starting to add up.

[cerrito] 06/5/2019 23:16

Thanks jeevsje for uncovering that news and I wished I had done so before the AGM.
Not very encouraging; I have just checked to see if there is any news on the cash raise and there is none.

[jeevsje] 03/5/2019 20:49

This article does not really fill me with confidence(remember we still retain a large interest in Greenlane after the sale):

[cerrito] 03/5/2019 10:16

letter sent to CFO
Cantors would not give email address; both of them were on a conference call and said they will ring back.
quote
Dear Joanna
We have met at your AGMs which I have been to over the last 4/5 years,
I need to say that I am disappointed with the way that the news management of the above has been handled. On the bulletin boards I have been alerted to the Material Change report of April 11 issued by Creation Capital Corp. I note in Para 5.1 under the description of the Share Purchase Agreement, the amount of cash to be paid differs from the £5m stated in your December 10 RNS-and in some eventualities the difference is quite big.
Given that you have a Nomad of the stature of Cantors, I can only assume that you are under no legal/market regulation obligation to inform the market of the apparent change in the nature of the deal.That said the fact that shareholders need to use so much legwork to find out what is going on does leave a nasty taste in the mouth.
I appreciate of course that matters may well be delicate as Creation have not met their aspiration to have their funding closed by the end of April.Nevertheless I would encourage you to review with Cantors(who are not copied as I cannot get their email address) having the level of transparent news management that rightly or wrongly I expect of institutions of your calibre.
Thanks and look forward to hearing from you.
Ps There seem to be two changes since December 10. The first is the cash upfront, which is not only key for the reason that PRES needs the cash but also the increased number of promissory notes increases the the credit risk to PRES.. The second is that the total amount appears to have gone down from £11.1m to £10.1m, which may be related to debt levels but on which an explanation is appropriate.