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[bagpuss67] 10/8/2024 20:16

I'm sorry Tom. The facility agreement is not with any European entity it is with LCR UDF (UK) Limited. I don't understand what you are saying. Do you think some European fund was the lender.

[fft] 10/8/2024 19:08

Tom,Who has provided the 3m of capex funding drawn down so far ? Or, are you not believing the BOD when they said that at the AGM ?

[tomtrudgian] 10/8/2024 16:15

bagpuss67. “Even if the European Funding is withdrawn” you, somewhat tortiously, imply that you think the subsidised facility might still exist. You know it does not.

You, qualified in both administrations and accountancy, continue that Liverpool City Region are “contractually on the hook” to provide funding. They are not, and you know it. They have an existing charge, in case they decide to lend.

Following the terms of the European Union (withdrawal) Act 1918, the EU subsidised funding continued, but reducing progressively to Brexit applicants under the Act’s withdrawal provisions. It was still available to creditworthy Uk applicants until a final deadline of 31 Dec 23.

Sadly the SCE’s 2023 subsidised interest application was refused. Others may have a view as to whether the reason belatedly given by SCE was true.

I accept entirely your final point about an administrator appointment, if later required. If there are enough realisable assets to provide fees.

Tom Trudgian

[batiatus] 10/8/2024 14:57

Recoup your losses at GEX:

Next big thing is Helium.

Currently 15p with broker target £321 if they pull it off this December.

Https: //www.youtube.com/watch?v=uUhiPjkzLGI

[bagpuss67] 10/8/2024 08:37

So the point being I think that even if the European funding is withdrawn LCR UDF Partnership (aka Liverpool regional authority) are still contractually on the hook in terms of the facility agreement. Provided of course there are no further breaches that are not waived.

The dynamic that has now changed is that there is a material secured creditor with covenants who could appoint an administrator if things go south again.

[bagpuss67] 10/8/2024 08:33

The lender is LCR UDF (UK) Limited which is the general partner of LCR UDF Partnership and is owned by the Liverpool Combined Regional Authority.

I do accept that this partnership itself is/was funded by the ERDF.

But it is the Liverpool legal entities that appear to be contractually obliged under the facility agreement referred to in the security docs filed at Companies House to provide the loan funding and appear to now be doing so..

[tomtrudgian] 10/8/2024 08:16

cyberbub, anyone can search “ERDF” to find that following the 1918 European Union (withdrawal) Act’s tail end provisions, it’s subsidised (7.25%) capex loan expired on 31 Dec 2023 for non EU applicants. It was never drawn down, and an application in early 2023 was refused. A search of Companies House records shows that the ERDF registered charge has been deleted.

There are currently five existing charges, three new ones created winter of 23/24 for Liverpool City alone, and two old ones to Alliance Fund (now Riverside Capital) and Natwest bank (A small overdraft?). Interest rates or Capital Repayment terms are not disclosed.

However Bundred stated in para 15 of his FY 23 chair’s report that the LCR UDF interest was 12.15% ignoring capital repayments. The reliable bagpuss67 says 11.47%. Neither seem remotely affordable with capital repayments, unless SEC becomes profitable quickly. As we all hope.

It is not disclosed whether this is or is not a capex only loan either. No RNS statement as to whether it has been drawn down recently (£3.66m is believed by fft) has been issued as the LSE requires. No disclosure either that the ERDF facility has expired either.

Oh yes, executive director bonus in FY 23 (note 20) was £86k (£50k in 22). What for, and what will it be in 2024?

[fevertreeman] 09/8/2024 15:49

Sobering stuff. Any incoming Chair will need to balance the opportunity to turn this around vs the big hit to reputation if it goes under. The Board's evasiveness (for which I read incompetence) in the light of ongoing lousy performance is another factor that would concern any incoming chair. So its a tricky call - if they go for one of the existing NEDs, who after all are already in the dock here, that will tell us that they couldn't persuade an outsider to take it on. The only crumb of comfort would be that whoever took on the chair would bear the scars of dealing with Johnson & Maddocks and hopefully take a very firm grip, especially with Johnson, who is totally out of his depth as a plc CEO.

[bagpuss67] 09/8/2024 15:02

This is a non exec post(although you wouldnt know that from the way Bundred runs the show) . They seem to want that rather than boosting the exec team by bringing in a CEO with that scale up experience and moving KJ to a technical/sales role

[cyberbub] 09/8/2024 15:00

Tom are you still insisting that the loan has "expired" when we have witness testimony from the AGM that the CFO stated that the loan was executed and £3m had already been drawn down? Do you know something the CFO doesn't?

[latentvalue] 09/8/2024 13:38

The key matter to consider here is that they take the necessary time to select a Chairman with scale-up experience. There will be many applicants with turnaround experience but this is not what's needed for the critical move to implement phases 2 and 3. Commercial experience of scale ups is harder to come by in this country. They might be looking abroad...

[tomtrudgian] 09/8/2024 12:26

I have thought hard, but cannot see anyone of sufficient repute accepting the position as chairman unless as executive. That may be both unaffordable and unacceptable to the CEO. Neither is a chairman required by LSE rules.

David Bundred, whose continuing SCE share support, after an exemplary international PLC career, deserves better.

There seems little possibility of another share offer, or of bank support. The EU capex loan expired last year. There is the conceivable support by an OEM, or of a takeover, but either way shareholders will be wiped out.

[cyberbub] 08/8/2024 15:20

Looks like someone did exactly that LOL (wasn't me)

[cyberbub] 08/8/2024 12:08

Well I can still sell 1.25M shares in one go, above the published bid price, FWIW

[bagpuss67] 08/8/2024 10:50

Fft I'm not sure that worked for "key shareholders". By the end of Q3 the die could be cast here.

[fft] 08/8/2024 09:55

At the AGM they said they had 2 candidates and were expecting an appointment in Q3.

[soixanteneufdude] 08/8/2024 07:59

SP holding up remarkably well despite the great stock market crash of August 2024 :-D
Would have thought the new chair announcement must be fairly imminent, but if they're widening the net there's going to be more weeks of faffing about unfortunately

[bones698] 06/8/2024 17:04

Cyber, doesn't need cash for another 6 months.. I would like to know how you are certain of this given they had only 5m left at end of June and have been burning through cash at a rate of 2m a month since last year approx.

I would be careful making assumptions on just what the cash position is with sce it hasn't gone well in the past for many

[batiatus] 05/8/2024 12:56

Gex is looking interesting:

Reverse takeover of proven assets, Helium wells located in Australia. License obtained.

Low risk of re-entering old producing wells.

Off-take agreement with Harlequin Energy for refining and transportation of hydrocarbon & helium when they're extracted. Gex gets paid at the well-head.

Asset estimated to worth £5billion.

Company have plan to admitted onto the main FTSE market

CEO have invested £2.5 million of his own money.

Small number of free float shares.

Fully funded programme to start in Q4.

[cyberbub] 05/8/2024 12:51

The company doesn't need cash for another 6 months, so the stock price dipping doesn't really make much difference. I am hoping that we get reconfirmation in Sept/October that good progress is continuing, if so then the share price will rise significantly from its current priced-to-fail level IMO.

[soixanteneufdude] 05/8/2024 09:19

I'm hearing that it's just a correction and the market is getting a little spooked. Looks like it's having a slight knock on effect on the share price of this, but unlikely do any long term damage. This will dance at this level until the next bit of news. Good one to play with if you're savvy at swing trading I reckon though.

[major courtenay] 05/8/2024 08:39

I think the stock is still in a period of ascertaining / consolidating a fair value. The last results with the slightly disappointing yield results won’t underpin it so well now in the face of a general global sell off. If / when there’s an update with improved yield, I think things will improve. If not, well, difficult to see where things go really.

[bones698] 05/8/2024 07:14

Didn't last long. I know there a general market sell off but this looks a bit worrying

[cyberbub] 02/8/2024 15:49

Good to see blue on a day like this. I could sell 1M shares in one go, just an hour before close on a Friday afternoon...