Shaft Sink Share Discussion Threads

[5baggersrus] 22/8/2014 13:07

convertable at 5.5 pence is alot of dilution isnt it?

From the RNS
"The effective subscription price in the event of conversion is therefore approximately 5.5 pence."

[rcturner2] 22/8/2014 13:06

This seems to be the crucial bit:

"It is currently envisaged that the Convertible Loan Notes will be non-interest bearing and denominated in notes of GBP10,000 with an issue price of GBP7,200 per note and a redemption price per note of GBP10,000. The Convertible Loan Notes will have a maturity date of three years following from the date of issue.

The minimum amount to be raised under the Convertible Loan Notes will be GBP3,500,000 plus the sterling equivalent of EUR2,400,000 and the maximum amount is anticipated to be GBP9,200,000. In the event that GBP9,200,000 is raised by way of an issue of Convertible Loan Notes and in the event that all Convertible Loan Notes are converted into ordinary shares in the Company, the percentage of voting rights represented by these shares would be equivalent to approximately 78%.

The conversion price under the Convertible Loan Notes will be equal to 7.639 pence per ordinary share in the capital of the Company ("Ordinary Share") and it is anticipated that each note will, therefore, be convertible into 130,910 Ordinary Shares. The effective subscription price in the event of conversion is therefore approximately 5.5 pence."

So it is a funny sort of rights issue effectively, with a massive dilution, although all shareholders can subscribe.

[21trader] 22/8/2014 13:06

boom funding. Rns always comes out when I go for a nap. Just checking to see if any limit sales got filled.

[trek3] 22/8/2014 13:00

RC, it means the short term funding is sorted until they
sort out subscriptions for the loan notes,which I presume
will be open to shareholders, I guess it`s like buying
a redeemable bond.

[jumbone] 22/8/2014 12:51

Most people haven't seemed to have cottoned on to it yet

Look at the small free float of just 19 odd mill


Most of it is closely held by PIs from the 18 -- 25 p levels sitting on massive paper loss

So the actual free float is much much small.

For new PIs...some more info

SHFT Shareholders Information
Shareholder Name == Amount == % Holding
International Mineral Resources BV == 22,819,266 == 48.04
GTL Investments Ltd (dup) == 3,927,000 == 8.27
Church House Investments == 1,500,000 == 3.16
== ==
Major Shareholders Total == 28,246,266 == 59.47

Directors == Amount == % Holding
Alon Davidov == 78,554 == 0.17
Roger Williams == 50,000 == 0.11
Chris Hall == 23,000 == 0.05

Director Shareholdings == 151,554 == 0.33

Total Closesly held == 28,397,820 == 59.80

Shares in Issue == 47500000 == 100

Free Float == 19,102,180 == 40.20

[rcturner2] 22/8/2014 12:28

Anyone able to tell me what this means? The market likes it anyway.

[rcturner2] 22/8/2014 10:23

The stupid thing is that the MMs read those threads and just milk them. They are idiots.

[21trader] 22/8/2014 10:19

That Topinfo thread should be closed. There is still a load of idiots prepared
to buy at the high then sell at the low like that 23668 buyer did here this morning paying 8.45p then selling quickly at 7.62p.

[buywell2] 22/8/2014 09:59

trying to yes

but that doesn't stop a good story

[ryan83] 22/8/2014 09:43

arent SHFT strapped for cash and sorting financing out?

[trek3] 22/8/2014 09:40

21, with only 47mil shares in float, and m/c of
just over 3mil, it`s one of the best recovery plays
around, broker has had target of 52p all year.

[21trader] 22/8/2014 09:31

I see the parasite Reks from topinfo thread was pushing this hard explains the
spike up and down as they sold quickly. Still it was always going to rise on any support as there was no stock yesterday.

[buywell2] 21/8/2014 16:28

Your tone has improved ... almost as if you are now a different person

For now it's wait and see then

[21trader] 21/8/2014 16:25

Some buyers appearing later. Could be 10-30% to be made in a trade in this
last time they chase it to just under 10p.

[hedgehog 100] 21/8/2014 15:04

Buywell,

I don't see how EuroChem could avoid having to pay, at least eventually.

Especially as they are planning to IPO in London in a few years.

Of course they may try to string it out as long as possible, as they are doing with their court of law case against IMR, but it's hard to see how they could effectively legally challenge a binding arbitration decision.

[21trader] 21/8/2014 12:53

Might rise today. All I can get quote for is 15k at 7.4p

[buywell2] 21/8/2014 09:24

Regardless of the arbitration outcome

The monies might still not be paid ... but the leagl fees will be


Have you sold SHFT spike ?

[buywell2] 19/8/2014 17:28

Followed by a first appeal

[hedgehog 100] 12/8/2014 16:40

jumbone 6 Aug'14 - 19:17 - 2616 of 2634 0 0
"May be the Arbitration news is not that far off ...
"There were no significant developments in the arbitration process against EuroChem during the Period, however, we anticipate the arbitral hearings will take place in June 2014. Legal fees for the Period were GBP1.2 million."
According to their management statement of 19 May 2014
"


Jumbone,

The decision is still months away I'm afraid:

30/04/2014 07:02 UKREG Shaft Sinkers Holdings Plc Final Results

" ... Dealing with these damaging allegations continues to take up a significant amount of board and management time as well as financial resources. We have made a number of substantive submissions to the arbitrators, and expect the hearing to occur in mid 2014 with final determinations expected early in 2015. ... "

[ga11amar] 11/8/2014 13:41

buywell

its not investing i grant you, but it is an investment in a poker sense

if you get good enough odds then its sensible

the news of the win and end of drain on company will be enough for 100% gain

[ga11amar] 11/8/2014 13:33

yup

legal costs + counter claim

search through history of thread, an article gave a detailed write up
you can confirm numbers in annual report

for me this is a pure punt....even if they have to dilute a bit in short term i dont care.

good odds, if you start to add in a decent PE and low profit looks great

[muckshifter] 11/8/2014 13:13

Still wasting your time with pointless calculations buywell. You've again forgotten to convert m3 to tonnes, ie divide by 2.4 by the way.

The shaft lining structure would normally be designed by the contractor, approved by the client's engineer, and reviewed against the qualities found in the strata as work progressed, I would expect.

And underground work is about the only branch of civil engineering where weather conditions are irrelevant.

As pointed out in my earlier post there is a logical explanation for the reduction in contract value – why would the client (who owns a big part of the contractor) push the contractor uneccessarily into external expenditure such as buying shaft lining units, overbreak concrete risk costs, provision of offices, workshops, car parks etc, fuel for equipment, etc, at a time when the contractor has a severe cashflow problem, which might well interfere with the supply or price of such items, and hence contract progress.

If you want a wild guess at profit rates included in the tender, I would say 20%, which would be high by normal civil engineering standards, but quite a competitive rate for the sort of very high risk work this is, particularly if it is on a rates contract or only slightly less so on a target price arrangement. I'm sure, in the absence of any indication from shft that it will be one or the other. The reason that the "projected profit %" by the estimator is so high (20% compared to perhaps less than 5% on most civils work) is because there is a very high risk that production doesn't match expectations, ie the 20% is a theoretical profit at tender stage.

Regards.

[technofiend] 10/8/2014 18:54

ga11mar, how do you calculate the 14mil?

Is that SHFT's legal bills being paid by Eurochem or does that include their counterclaim?

I have thought that there are investment firms that invest in corporate litigation cases. Oxus gold recently took investment from such a firm to help with their ongoing expenses against the Uzbek government.

However I have not heard of SHFT considering any such investment.