By Tom Winnifrith | Thursday 6 July 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
No need to wait for the weekend. This PrimaryBid offering kicked off at 4.30 PM today and will close at 9.00 PM tonight or when £2 million is raised - the placing is in Highland Natural Resources (HNR). On the one hand we have been uber critical of Highland on the other this financing package with a massive private equity injection looks transformational. Worse still boss Robert Price has just called me and now I find it hard to be hostile to the man as he was quite charming. I am almost tempted to go for a small flutter as I shall explain below, but make no formal recommendation - here are the bare bones:
The offer is at 12p, a 21% discount to the closing price. Highland has also raised £600,000 in a placing and will do an open offer for existing shareholders to raise up to £810,000. But the big news is that it has secured a PE facility of up to $32.65 million to fund drilling in Colorado. That is without doubt transformational. There is a full prospectus approved by the UKLA. Having been sweet talked by Price i will leave it to more objective colleagues who have, like me, been uber bearish, to say where to go but the scale of the PE deal does appear to be a game changer.
The point about PrimaryBid is that it allows we private investors to get in on such placings as well as the City spivs and forward sellers - this would have been a bucket shop job in the old days.
As you know if those who sign up to use PrimaryBid via a link here like this one, take part in one of its offerings we get a small commission which goes to support the high quality journalism here. So natch I am supportive. But I also support PrimaryBid as a way of closing down the bucket shop discounted placing way of funding AIM stocks.
I am not recommending that you go for this offer or that you don't but that PE finance looks very interesting and a small flutter might be in order If you want some Highlands exposure you can take part by joining PrimaryBid and bidding to take part ASAP HERE
And if you have no interest in this offer join anyway as one day there will be an offer you want to go for and I might not be here to flag it up! So join NOW HERE
Never miss a story.
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments are turned off for this article.
Search ShareProphets |
Stock market news |
Recent Comments |