Primorus Investments Share Discussion Threads

[chutes01] 19/10/2021 15:20

looks like 300k r/o, but tick up

[timbo] 07/10/2021 21:46

The RNS? Court has rubberstamped the decision at the General Meeting. Must have helped that 100% of those who voted voted for it!

Just means that the company would be in a position to pay dividends if it wanted to without having to £42M profits first!

I'm not saying they're going to be in a rush to do that but it might actually attract some more conservative investors if there was also a small dividend - it would also mean that large holders could get some income without having to sell shares.

[mallorca 9] 07/10/2021 08:15

Timbo ....

what do you make of that ?

[skyship] 06/10/2021 11:20

Also GGP is a real gold mine - not some AIM dream.

Alistair Clayton of course did PRIM shareholders proud with his investment down at that 1.75p level; sold out at an average over 20p.

[skyship] 06/10/2021 10:56

medusala - GGP certainly no dog - last year from 1.75p to 35p - a 20bagger - my Share Tip for 2020 on my JDT thread. Unfortunately I took the very nice turn when they only doubled! If only Rodney, if only...

PRIM my Share Tip for 2021 - and still hoping for better things - a return to that 5p level for starters.

[medusala] 05/10/2021 14:05

Yeah he invested in the dog GGP instead.

[twixy] 04/10/2021 16:37

Probably a degree of clarity, which was needed.

[rental] 04/10/2021 16:13

well today was good rise

[chutes01] 04/10/2021 16:03

the other way ?
ok, will look to get back onboard here

[skyship] 04/10/2021 15:55

chutes - you extract a few of my comments - hardly evidencing a doom-monger; or perhaps you didn't mean that observation in my direction.

Look at each quote again in turn. I was arguing the other way

Explanation please...

[timbo] 04/10/2021 15:34

OK, understood. All the best!

[chutes01] 04/10/2021 14:33

not at all, out several weeks ago, after that last deal and the rns that was issued, it should have been a red flag, tied up investors over a huge growth period

[timbo] 04/10/2021 13:53

>>chutes01 - your comments on PRIM in the last few months are interesting...

chutes01 - 27 Apr 2021 - 10:40:40 - 1979 of 2146
decent chunk of cash into the hot area right now, may appear convoluted to some but post suspension we will gain proper traction, blue sky.

chutes01 - 14 Jul 2021 - 15:09:22 - 2065 of 2146
sp weakness suggests some large holders unable to exit in an orderly fashion right now, this ties up investment cash at the wrong time for many.

chutes01 - 20 Aug 2021 - 13:25:47 - 2101 of 2146
Looks set for another assault on cracking 5p

chutes01 - 16 Sep 2021 - 18:02:55 - 2120 of 2146
much of the early bluster from here gone now, investors been handcuffed over last few months by directors who entered into complex deals

chutes01 - 30 Sep 2021 - 12:05:40 - 2125 of 2146
surely he cant have blown the lot however MUST looks finished

chutes01 - 01 Oct 2021 - 10:20:00 - 2131 of 2146
disastrous initial investment for the rookie board, no wonder they've gone to ground. Previous board got onto Greatland, could see 2p here, back to initial 0.1p

chutes01 - 01 Oct 2021 - 10:58:58 - 2134 of 2146
So there we have it, over £1 Mio chucked at first investment,having tied investors up over a long period, all confidence gone now and several large holders stuck underwater.

You have gone from praising the deal in April, looking forward to the share price breaching the 5p in August to "we're doomed" by the end of September! Is it fair to say that this was a short term trade that's become a long term hold after the share price drifted?

[chutes01] 04/10/2021 13:09

"3.6p-3.7p! This is now being priced as though Labrum has totally blown the investment into MUST. We're again standing on a 44% discount!"

"Things there are certainly not resolving quickly and BMN are again drifting; so perhaps cause for concern. Also, I would have liked to have seen some comment on that deal delay in the half-year report. Sounded as though he wanted to duck the issue..."

"Actually not a "few million quid.". $2.5m; ie £1.8m.

To put that in context; if a 100% write-off (surely unlikely), the Net assets would drop from £9.17m to £7.37m; taking the NAV down from 6.55p to 5.27p. So at 3.7p the discount would still be 29.8%."

Above as quoted.

Lots of doom mongers, at least the price has stabilised to some degree, good to see Rupert 'the bull' has plenty of time on his hands.

[balcony] 04/10/2021 10:31

SKYSHIP-Thanks for that.

[timbo] 01/10/2021 13:59

Also, when a Company issues an RNS their reference to "the Company" will always be from their standpoint. That makes it fun when you compare related RNS issued by 2 or more companies and try and fill in the gaps as they will each use "the Company" to relate to themselves. :-)

[megaman2] 01/10/2021 12:25

I've only be confusing people and myself...!got there in the end though...

[twixy] 01/10/2021 12:22

Thanks for you and Megaman2 attempting to explain this. Lessons for whomever drafted the deal structure and/or RNS to be clear in their intentions.

[hj996] 01/10/2021 12:16

Typo: Should read:

I have now worked it out.

I think others may mistakenly have understood it this way thereby creating a buying opportunity.

[megaman2] 01/10/2021 12:16

Yes in between you writing your last post I deleted my previous one and rewrote it...I had misread it and I accept that. I don't think it states anywhere the bmn conversion price but as you say the 10 day average thing is the norm and makes sense.

[hj996] 01/10/2021 12:12

Hi megaman2. Thanks for your reply.

I accept the wording could have been clearer, but I believe I have not worked it out. First thing to bear in mind is that a 5% fee is mentioned payable by MUST (not the loan holders) to BMN if their is an election by certain of the loanholders to take BMN shares if there is no relisting of MUST.

The second thing to bear in mind is that at no time in days before was the price 20p for BMN - on the 27th April (date of RNS)the price was around 16p and the last time it close at 20p was January 2021.

Why would investors agree to subscribe at a price around 25% higher than market close on the 27 April and at a time in the future when the BMN price is not known which could be some 8 months later. No investor would make an investment on such terms. BMN already recover the 5% if they issue new shares (and that 5% would presumably cover their broker costs etc).

So using the above as one's reasoning we need to go back to the RNS to see what we are missing in our understanding and it becomes very clear that the 20p is the shares of Must that are being referred to.

All that is being said is this: the 5% will be calculated as 5% of the MUST capital raise which capital raise (MUST's capital raise) MUST is raising by ISSUING new ordinary shares in the Company (ie MUST).

That is the meaning of the passage. Don't forget that the 5% fee is calculated on the MUST capital raise and their shares at 20p. The reason that the 20p is mentioned here is because the 5% fee is calculated on all the shares - including capital and interest.

Hope that is clear. If the 20p was BMN it would have said BMN shares (like it does further down) and not the Company.

"In circumstances where Readmission does not take place by 31 December 2021, BMN has agreed to issue new ordinary shares in its capital ("BMN Shares") to Noteholders in respect of the principal amount and accrued interest under the CLNs (the "Backstop") in return for MUST: (i) transferring to BEL all of MUST's shares in VRFB-H; and (ii) paying a fee to BMN of an amount equal to 5 per cent. of the MUST Capital Raise (including both principal and interest), to be satisfied by the issue of new ordinary shares in the capital of the Company at a price of 20 pence per share (the "Backstop Fee"). In consideration of BMN providing the Backstop, the Backstop Fee is payable in the event of Readmission not occurring by the aforesaid date or immediately prior to completion of Readmission. Each of the Lead Investors have the sole discretion to elect not to receive BMN Shares and instead receive shares directly in the capital of VRFB-H."

[hj996] 01/10/2021 11:14

The RNS is clear - the conversion price of 20p is for shares in to MUST.
No price is given for BMN - normally new shares are issued at a discount. BMN is building I believe the second biggest electrolyte plant in the world so has a great future - storage batteries will be key for the energy transition.

Subject to Readmission occurring on or prior to the Maturity Date (such date being the "Conversion Date"), Primorus will receive new shares in the capital of MUST calculated by dividing the nominal value (and accrued interest, if applicable) of the CLNs (using the average US$/GBP£ closing exchange rate as shown on Bloomberg over the five trading days prior to conversion) by 20 pence ("MUST Conversion Shares"). The closing mid-market price of MUST on 26 April was 30.6 pence per share. Accrued interest at the Conversion Date may, at the sole election of MUST, be converted into MUST Conversion Shares or redeemed for cash. Further, Primorus will receive warrants to subscribe for new shares in the capital of MUST (one warrant being issued for each two MUST Conversion Shares held by Primorus), exercisable at a price per share of 30 pence ("Warrants"). The Warrants have an expiry period of three years from the Conversion Date.

If Readmission does not take place by the Maturity Date, AIM-quoted vanadium producer Bushveld Minerals Limited (whose subsidiary Bushveld Energy Limited ("BEL") is the majority shareholder in VRFBH) has agreed, as part of the Fundraising, to issue new ordinary shares in its capital ("BMN Shares") to the holders of the MUST Loan Notes in return for MUST transferring to BEL all of its shares in VRFBH and paying a fee to BMN of an amount equal to 5 per cent. of the MUST Fundraise (the "Backstop"). Primorus has the sole discretion to elect to receive shares directly in the capital of VRFBH in lieu of BMN Shares. Further details relating to the Backstop can be seen in the announcement released by MUST today.