Can someone explain the significance of the 4.8p offer?

[HungryBadger]

Can someone explain this? Is this a massive kick in the pants to existing holders or am I being handed a stunning opportunity? Is my current 8p average going to turn into a massive piece of red ink in my portfolio?

Losing 40% of the value of my holding doesn't seem to be cause for a celebration, or have I missed something?

[RationalAssessor]

My immediate reaction to the 4.8p raise was not very good - why do they (IIs) get the opportunity to buy at knock down prices? But as someone else has said, it's not a real number.
4.8p enables anyone stumping up that sort of cash to get a good return.....risk/reward. Also, it gives NEM the opportunity to make something out of the sale - but not for another 12 months can they sell - sticky hands

However, putting that aside, the purchase price was pretty damn good. In fact, I think exceptional when you consider all of the other stuff that's thrown in. Stockpile, Antipa shares, Tenements and fluffy dice.
We now have the opportunity to start generating cash from the Telfer stockpile,
We become a miner and start attracting share buyers who have pretty sticky hands - plus GDX will be wanting to get involved at the next reweighting.

The only non-sticky hands will be retail - most of whom have been here for quite some time and (IMO) are unlikely to decide to sell at this point.
The 4.8p shares only become available once voted upon - early next month.

So, I think that I have surmised (possibly incorrectly) that there should be no reduction in the SP tomorrow - where will the MMs get the shares from to drop the price?

Not financial advice. Hope I don't need to eat my words.

[Spondy]

The few lines are from the RNS 'Transformational Acquisition of Havieron and Telfer' released this afternoon (10th Sept).

Underwritten US$325 million Placing and Proposed Retail Offer of up to ~US$9 million

The Retail Offer is expected to close at 4:45pm on 12 September 2024 and may close early if it is oversubscribed.

Certain directors of the Company are intending to participate in the Placing by subscribing for up to US$0.4 million in aggregate at the Issue Price.

The Company reserves the right to increase the size of the Placing. In the event that the size of the Placing is increased, the first £64.1 million (being the pounds sterling equivalent of US$83.75 million) of additional Placing Proceeds will be paid to Newmont and the Consideration Shares will be reduced and any additional Placing Shares issued at Admission will result in a corresponding reduction in Consideration Shares issued at Readmission.

Shaun Day says "The capital raising has been structured to allow our shareholders to participate..."

My thoughts;
325:9 placing to retail offer ratio. Directors get their fill in the placing. It doesn't say whether there's an upper limit to what they can buy. The company reserves the right to increase the size of the Placing, so why not do this if the Retail Offer is oversubscribed and let PIs have as many as they want.

I'm not a fan of these short notice, limited time, Primary Bid offers. 'structured to allow our shareholders to participate' only applies to those in the right place at the right time and possibly with funds available at short notice to participate.

Good luck to anyone wantinghoping to be a part of the Retail Offer.

Overall I like what I've seen of the deal. Going from 30% of Hav to 100% of Hav and Telfer and other assets as well for a doubling of shares count and mcap sounds good to me. From 1st Oct GGPs evolution will resume with rigour.

[Pistonbroke]

Morning all, mixed feelings on the news but somewhat excited I think..

I'm a little confused about the retail offer, how do I get access to it if I want to buy at 4.8p, I cannot find how on HL and I've had no secure messages?

Is the retail offer not available until October?

Cheers

[Spondy]

@Pistonbroke, ... not available until October! See my previous post; "The Retail Offer is expected to close at 4:45pm on 12 September 2024 and may close early if it is oversubscribed."

Nothing from HL yet. Primary bid website says apply through your broker. I can't even open an account with them. A couple of years ago HL advised that I had to apply directly to PB giving them my client number. It looks at though the procedure might have changed since then.

[Pistonbroke]

So this is the bit I zoomed in on and that I am struggling to properly understand.....

"The Retail Offer is conditional on approval by the existing company Shareholders of Resolution 1 set out in the Company's notice of meeting at the general meeting to be held at Simmons & Simmons LLP, CityPoint, 1 Ropemaker St, London EC2Y 9SS at 10 a.m. on 30 September 2024. The Retail Offer is further conditional on the new Ordinary Shares to be issued pursuant to the Equity Raising being admitted to trading on AIM ("Admission"). Admission is expected to take place at 8.00 a.m. on 1 October 2024. The Retail Offer will not be completed without the Placing also being completed. The Retail Offer is not conditional on completion of the Acquisition (as defined below) or on readmission to trading on AIM following completion of the Acquisition."

Hoping someone more experienced than me can come along and clear things up...

Cheers
S

[Pistonbroke]

Just got a secure message from HL, this makes it much clearer....... Clock is ticking guys...


"What is happening?


Greatland Gold Plc have announced their intention to raise up to £255.4m via a Placing for institutional investors and a Retail Offer for individual investors.


Greatland Gold Plc have decided not to issue a prospectus as part of the fundraising. This means that the Offer has been limited to the sterling equivalent of €8 million and may only be open for a very short period. It also means that information relating to the fundraising is limited to the Company announcement.



Applications are due to close at 3pm on Thursday 12 September. Due to the nature of the fundraising, applications can close at any time and without prior warning.
Shares are being offered at a fixed price of 4.8 pence.
The minimum application for the Retail Offer is £250.
By applying for shares in the Offer you are deemed to have read, understood and agreed to the HL Retail Offer Terms and Conditions, HL Retail Offer Risk Warning and the Company Announcement. These documents can be found in the Secure Messaging Centre of your online account.
Hargreaves Lansdown will receive 0.5% commission on the total allocation from the issuer as part of the Offer.




What are my options?


Option 1 – Do nothing. If you do not apply for shares by the deadline of 3pm on Thursday 12 September, the Offer will lapse.


Option 2 – You can purchase new shares.


The easiest way to take part is on our website. We can’t accept instructions by post or the HL app.



Log in online at hl.co.uk
Select your Stocks & Shares ISA.
Check you have enough available cash. If not, you can top up online or realise cash from your existing investments.
Click the dark-blue icon to the right of your holding and follow the steps on-screen.


If you don’t want to buy more shares, you don’t need to do anything.


When do I have to decide by?



Any instruction to participate in the Offer must be received by 3pm on Thursday 12 September. Due to the nature of the fundraising, applications can close at any time and without prior warning.



Please note that any instruction you give must be based on the full details provided and not on the summary information outlined above.



What happens after I apply?


If you apply for shares you will receive two further secure messages. The first will confirm your application and be sent shortly after 5pm on Thursday 12 September. The second will confirm how many shares you have been allocated; this will be sent on Friday 13 September.


You can view your application in the pending orders tab of your online account from midday on Friday 13 September.


Your shares will be credited to your Stocks & Shares ISA shortly before 8am on Tuesday 01 October. This may be delayed in the event the company does not deliver your shares to us by this time. Please note admission is subject to the approval of a resolution at the General Meeting expected to be convened on Monday 30 September.


To assist the Company during the allocation process, we may be required to disclose the number of Greatland Gold Plc shares you hold with Hargreaves Lansdown. We will do this by calculating the shares held in your Hargreaves Lansdown account at the close of business on Tuesday 10 September.


It should be noted that an application for the shares and any investment in the Company carry a number of risks. Investors should make their own investigations into the merits of an investment in the Company. This message is not personal advice and is a summary of the Greatland Gold Plc announcement.


I hope this has been of assistance to you. If you have any further queries, please contact our stockbrokers on 0117 980 9800"


Cheers
S

[HungryBadger]

I'm more than a little phased by all this, mostly because of the mass of red ink I have in my trading account due to the huge drop in price this morning, and also the fact that due to constant rounds of averaging down I'm now b*lls deep into this share that started out as a small trade that went bad a few years ago.

I feel like my savings are now being held at gunpoint by a maniac*.


*The maniac may well be me.