W Resources Share Discussion Threads

[idandy] 19/7/2018 12:19

What happened to the Gold sell off plan - has that been shelved

[red rook] 18/7/2018 16:13

Another MM placing. Come on Masterman you know you want to do it !

[rookie666] 18/7/2018 15:36

WRES beginning to trickle higher. Anyone know what's on the horizon in terms of noteworthy news?

[livewireplus] 13/7/2018 08:30

As regards chart direction then it looks like this mornings RNS' may assist in the direction .... :-)

[rookie666] 12/7/2018 10:10

From looking at the WRES chart, I think we're close to a breakout from it's recent downward trend....how high it goes from here is anyone's guess...

[2magpies] 06/7/2018 08:42

2020 is a long time away - for day traders.

But I doubt that Blackrock is too concerned about 18 months: after all the financing facility is for five years anyway.

[sleveen] 06/7/2018 08:21

Hansource: quite possibly

Blackrock:jam today by selling now or more jam tomorrow by waiting for full production in 2020. I think we will have to agree to disagree on the which option applies.

[2magpies] 06/7/2018 08:06

sleeven

Slippage in share price is due to nervousness re what the Crown intends to do with the Hansource shares,imo.

Surely, it is in the interests of Blackrock to see the share price go higher and higher, one would have thought -- because they know they can get stock at 0.10 so their profit will be bigger the higher the share price gets? No?

[sleveen] 06/7/2018 08:03

What you say about Hansource could also be true and having a further effect on the share price

[sleveen] 06/7/2018 07:58

If you short a stock you are selling at a price and you then buyback ie close the short at hopefully a lower price and the difference is the profit.

If you shorted 300m WRES shares down to 0.1p then closed using the warrants , wouldn't it be the same but much simpler to just sell the warrants as is currently happening?

Don't forget the share price was 0.5p when the final funding drawdown was announced and it now 0.41p bid.


I did say "If it was possible to do the above with all 300m warrants" of course it isn't, because the price of the warrant sells would be lower each time the warrants are sold, as is currently happening 0.5 to 0.41.

Don't forget the warrants are a handsome bonus "free money" (sell price minus 0.1p) to the interest being paid.


Agree decimal place wrong :-(

[2magpies] 05/7/2018 18:26

sleveen

ok I see the May '18 RNS says exerciseable at nominal value.

However, consider this:

Blackrock short 300,0000,000 (say), at .40 down to 0.1 (as you have suggested, they could) and then buy them back (by exercising warrants, and thereby bag a handsome turn), it does mean that WRES will have to issue an RNS saying that 300,000,000 warrants have been exercised, and shares issued to Blackrock.

At that point Blackrock will actually have a holding of 300,000,000. If they have already shorted these, will they then have to notify WRES, immediately upon exercise, and following the holdings RNS that: they have sold 300,000,000 shares, and have nil holding?

There will have to be TWO holdings RNSs back-to-back! One buying, and one selling!

Please note: a holdings RNS shows situation prior to transaction, and resulting situation following transaction.

Therefore, the reduction MUST occur AFTER the buy.

Any exercise of warrants will be known to the Compnay (obviously). The issued shares will be recorded in the shareholders' register.

What you have said seems unlikley, in this instance, since the timing of exercise and sells would be awkward to say the least, if not impossible.

And if indeed you were correct, why not wait until share price is 1p or even 3p and THEN exercise the warrants?? The profit would then be 9,000,000 approx

The HIGHER the share price goes, the greater is Blackrock's profit! No?

What you have said is if all wts were exercised @0.10p, then, a short at 0.40p would equate to a profit of 9m. Not correct: 300,000,000 x 0.30p (NOT £0.03, but £0.003) = 900,000 (NOT 9,000,000)

IMO the downward pressure on share price is because Mr. Market knows about the Hansource situation, and it is THAT 333,333,333 overhang which is worrying him! (and nothing to do with Blackrock's - admittedly, rather generous -entitlement). Mr Market fears that the Crown may decide to sell what is now (legally)THEIR holding.

[sleveen] 05/7/2018 15:53

I read it and wept!

[marvelman] 05/7/2018 12:05

Quite!!..compare that to the deal BCN has just got for their funding arrangements. Blackrock are the payday loan lenders of the funding world

[sleveen] 05/7/2018 11:23

If it was possible to do the above with all 300m warrants then that would be £9m profit, plus the interest payments.

Very nice indeed.

[sleveen] 05/7/2018 10:52

RNS 25/8/2017 states

"...the Board has elected to increase the size of the target debt financing from US$25m to US$30m, which is expected to allow the Company to remove the equity financing component previously outlined..."

----->So no project funding placing before hand BUT

RNS 30/5/2018

"As part of the completion of the funding, W has issued a total of 307,605,430 million warrants on a pro rata basis to the BlackRock funds that participated in the funding, representing 5% of W's fully diluted equity. The warrants are exercisable for 5 years at nominal value. The warrants can be exercised on a cashless basis where the exercise price that would otherwise be payable by the warrant holder to the Company in cash, can be funded by the warrant holder taking a lower number of shares on exercise of the warrants,..."

-----> So in effect, say 50m warrants are converted to shares and those shares sold at 0.4p then that can be netted off against the 0.1p par value and so Blackrock receive 0.3p. Lovely Jubly.

[sleveen] 05/7/2018 10:45

Nowhere in the all sing all dancing funding RNS of 12/12/2017 is there mention of warrants being issued.

[sleveen] 04/7/2018 17:31

warrants issued "at par" ie 0.1p.

So any warrants sold above 0.1p is at a profit.

[2magpies] 03/7/2018 16:23

where do you get the exercise price from?

0.1 is the nominal value (all of WRES shares are of 0.1 nominal value)

earlier, warrants of 0.1 were exercised (by another investor) @ 0.42

[sleveen] 03/7/2018 15:37

Blackrock already have around 330m warrant at 0.1p, which are being sold hence the fall in the share price

No idea about Hansource. Their shares could also be being sold.

One thing's for sure , the share price is going a lot lower.

[2magpies] 03/7/2018 15:10

The point is: does HMG want to dispose of this holding in the market.

It's not about Blackrock selling, but as to whether Blackrock (or someone else) might want to buy the entire Hansource holding from HMG (at a nice price)??

In any case, it represents a huge overhang, IMO.

Also, IMO it's amazing that WRES weren't on top of this much, much earlier.

[sleveen] 03/7/2018 14:58

Blackrock can sell all the way down to 0.11p and still make a profit

[2magpies] 03/7/2018 14:48

Hansource Investments:

1. Blackrock would have done due diligence, one presumes, and would have noticed this substantial shareholder. Wouldn't have taken much to then discover that Companies House had struck it off (on 28 JUNE 2016 -- that's almost exactly TWO years ago). That was a compulsory strike off.

2. Hansource had a holding of 333,333,333 shares - this is highly unlikely to have escaped Blackrock's attention.

3. Hansource' holding is now property of the Crown (bona vacantia).

4. Does that mean that HMG is now a shareholder in WRES?

5. This, huge holding could be exerting a VERY strong downward pressure on the share price (because maybe Companies House wants to sell?) - unless something resolves the situation in the interim.

At the current bid (0.0041) Hansource' holding is valued at £1,366,666

Why didn't WRES know about this situation for two YEARS??

[sleveen] 28/6/2018 16:19

5m shares sold just reported.

[sleveen] 27/6/2018 18:03

JAF

First sentence fair enough, 2nd well look, he can't help himself

[jaf1948] 27/6/2018 14:13

It's not quite non-news. For MM to actually say it is on time and on budget is a welcome change from his usual updates. However, the last bit about the wonderful cash situation is somewhat disingenuous - that cash is spoken for rather than being spare.