Viridas Share Discussion Threads

[jeffian] 17/2/2012 22:34

Several people have talked about VIR selling their BRDY shares but, until there is an RNS announcement from BRDY to that effect, they haven't. If a 29%+ shareholder in BRDY had sold their shares, I think we would have spotted it in the volumes!

Ref #896, the reference to 12 months is, I think, supposed to be a plus. Cash shells are given 12 months under AIM rules to turn themselves into 'real businesses'. Surely what VIR are saying is that the clock is turned back and their 12 months start from now.

[howdlep] 17/2/2012 21:10

A few points guys if I may:-

1) I take the RNS today to mean they have sold their BRDY shares, so I would expect both BRDY and VIR to issue zero holding RNS'

2) VIR do not own LDP warrants. They have the right to exercise the warrants at a price of 0.15p up to a certain date (which I would need to check the RNS for expiry date). By exercising that right and then selling the shares in the open market, they then realise the financial gain, which they pay tax on. However, why exercise now when they can just sit there and await LDP developments? If the share price of LDP goes down in the future then they will not exercise until such time as LDP's price recovers. If the LDP share price goes up, then VIR can exercise when they judge it is the best time to do so. Remember they need a buyer for the 166m shares when exercised. At the moment there is a big buyer for LDP shares, so I am a little surprised they havent exercised and sold.

3) If VIR do not do anything within one year they will return the cash that remains to shareholders, less closure fees. Otherwise VIR will be suspended.

4) An AIM cash shell is probably worth approx 300k to a buyer so add that to the shell value.

5) My money is on a big investment being made by VIR and I wouldn't be surprised if they are not already working on it.

I hope that adds to the debate.

I hold VIR and ZOL

[supercity] 17/2/2012 21:00

surely all the rns means is that as cash to shareholdings is approx £3.4m v 400K the company is classed as a cash shell, so under aim rules they need to make a purchase within 12 months to reverse the balance...nothing more than that.

it doesn't mean they are going to sell their brady stake or purchase the leeds shares.

[engelo] 17/2/2012 20:46

As of now, ZOL have cleared their decks, VIR have just cleared theirs, and BRDY's decks have always been clear. I have no explanations, but VIR has more cash on its decks than the others by a very long way. As most here will know, WSAG are coholders in BRDY and are also probably (because they have given no meaningful data for about 4 months) at a discount to NAV.

While VIR have always been the most open, they have started to get secretive as with their failure to disclose their position/plans for their BRDY and LDP warrants. All 4 cos are giving very little information about their forward plans atm, although WSAG might conceivably change after their EGM on March 1st.

Thinking upwards down the bottom of the pile BRDY look like they're clearing their decks of investors, in that both VIR and WSAG are hinting that they're getting out, so that should mean someone is poisad to get in ;-) Maybe the mkt is thinking this way: after BRDY perversely went up a bit to-day on news of VIR's likely disposal.

[engelo] 17/2/2012 16:48

Considering the impact of this RNS and zero share price change it must have been well leaked.
Edit: to explain what I mean we are in a nervy market and the only words in to-day's RNS that the traders will have read is '12 months' :-) So that's possibly why we're depressed.

That said, the RNS is very downbeat: none of the 'various opportunities being pursued', manganese in Africa, gold in S America etc.

Have a feeling that we are adopting a sitting duck position in cooperation with a hawk out there somewhere.

[cocorico2009] 17/2/2012 15:53

every £1 worth £1.50 and if they didnt sell the warrants - LDP up another 10% !!

[pamelling] 17/2/2012 15:50

Assuming VIR took up the LDP warrants and sold at 0.67p, and sold BRDY @ 2.25p then our NAV/share is currently 0.80p... so why the discrepancy???

[skiboy10] 17/2/2012 15:45

VIR has to be a very attractive RTO candidate now with 2 million+ in the bank.

[marn2] 17/2/2012 14:55

It does'nt seem to matter what the NAV is, the cash or chairman it's still going down or am I missing something.

[carchase] 17/2/2012 14:18

Moochy if it helps Nick Lee is also the chairman of CHC soon to be Centurion House, and that has been suspended for over 14 months. Possible return date April 2012?

[moochy] 17/2/2012 12:16

Thanks for that post MJ84.

[mj84] 17/2/2012 11:54

Moochy. The point of an RTO is so that a private company can reverse its assets into a cash shell like VIR. The private company then becomes public and gains the AIM listing at very little cost. It wouldn't make any sense ZOL acquiring VIR unless a private reverses into VIR and then ZOL acquires the new company.

Check this link on how good a target VIR is now.

[moochy] 17/2/2012 11:41

MJ84 please explain? why not an AIM company?

[moochy] 17/2/2012 11:39

I will try and do more research this evening on the two major share holders and the chairman of VIR Nicholas Lee.

I f anyone has factual information on the above, please post them here.

Thanks

[mj84] 17/2/2012 11:34

Only a private company will reverse into VIR. Thats the point of an RTO

[moochy] 17/2/2012 11:31

Major shareholders in VIR:

Ronald Bruce Rowan 100,000,000 shares (£500,000) 17.31%
Zoltav Resources Inc 44,000,000 Shares (£220,000) 7.61%

Is there a possibility that VIR gets taken over (by reverse take over) by Zoltav resources, or possibly Starvest PLC which Ronald Bruce Rowan is Chairman and CEO and has a holding of over 23% of Starvest?

Many questions, but I don't think this will affect the share price untill we get more news.

[mj84] 17/2/2012 11:21

They still hold the warrants and BRDY investment. They would have to release an RNS if they sold.

[jojo_jo] 17/2/2012 11:17

Not a very clear RNS at all!
Still not clear if they continue to hold the LDP warrants

My take...
They have been classed as an investment company NOW requiring investments (within 12 months) because Brady is also a cash shell without investments. LDP was classed as a legitimate, qualifying investment because of its deal with Manas. The implication is that the warrants may also now have been exercised and sold, or just sold as warrants for their 'in the money value' (less a reasonable trade discount). They must still hold Brady.

A clarifying, investment holdings RNS is needed.

I think it's broadly positive as it indicates they have quite a bit of 'dry powder' with which to barter for an acquisition. Cash is king at the moment, and having it provides good leverage. It could get them a huge discount on a 'operating business' acquisition. I suspect one is coming soon now.

I'm happy to see them out of LDP/Manas. LDP are risking a lot putting cash in there on a wing and a prayer. Just for comparison Oracle Coal have a much bigger coal resource than Manas, but a lower M.Cap. Yes, I'm glad they're out of LDP with a good profit.

IMPO/DYOR.

[kiino-ke] 17/2/2012 11:01

is asking Viridas to invest the proceeds from LDP to MHG.

[moochy] 17/2/2012 10:58

From VIR website

"Nicholas is currently a Non-Executive Director of AIM listed Brady Exploration"

Directors

Nicholas Lee - Chairman (age 49)

Currently Head of Corporate Finance at Novus Capital Markets Limited, a privately owned equity brokerage and corporate finance group. He read Engineering at St. John's College, Cambridge and began his career at Coopers & Lybrand where he qualified as a chartered accountant. He then joined Dresdner Kleinwort where he worked in their corporate finance department advising a range of companies across a number of different sectors and most recently was a Managing Director and Head of Investment Banking for Dresdner Kleinwort's hedge fund/alternative asset manager clients. Nicholas is currently a Non-Executive Director of AIM listed Brady Exploration plc and AIM listed Leed Petroleum plc. He was previously a Non-Executive Director at Paragon Diamonds Plc, also listed on AIM.

[marab] 17/2/2012 10:58

marn2 - well done, saves hours of idle speculation if you get a reply. If you do get a reply it says a lot about the attitude of the company as well.

cocorico2009 - great minds think alike :)

be interesting to see how many people take this as bad news and sell.

[moochy] 17/2/2012 10:55

This is still on their Home Page of their website;

"Viridas currently has a 29.18% shareholding in Brady Exploration plc, an AIM listed company focused on the natural resources sector."

[marn2] 17/2/2012 10:47

I have emailed them asking these questions and await a reply.

[moochy] 17/2/2012 10:45

Is there any way we could have confirmation from VIR if the warrants in LDP and shares in BRDY are sold? Anyone?