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By Tom Winnifrith for HotStockRockets | Thursday 11 October 2018
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.
Tom Winnifrith writes: Held at the offices of morally bankrupt, journalist smearing, lawyer bastards Pinsent Masons, aka an ethics free zone, the AGM from Minoan (MIN) contained a statement from boss Christopher Egleton which can best be described as “unusual”...
Minoan seems genuinely shocked by the adverse reaction to the sale of its Travel & Leisure business, STL. God knows why. It was flogged to a management team for less than everyone expected having been lead to believe, by Minoan itself, that post deal it would be debt free. It is not. What on earth thus justifies “The Board of Minoan believes that the sale of STL has had an unduly negative effect on the Company's share price.” Hmmmm…this is not the way to lecture long-suffering shareholders.
What followed was marginally more pleasing, especially if you are a big fan of jam tomorrow.
We are told that Cave Sidero in Greece is effectively all systems go in terms of planning applications and that “the Project has attracted a number of interested parties in the form of both investors, who have expressed an interest in investing into and/or acquiring a significant stake in the Project, and of operators, who wish to operate a part of the Project. As a result, the Company has already entered into non-disclosure agreements with certain parties and expects to enter into a number of others as discussions and negotiations progress.
Discussions are at an early stage and, whilst the Board remains confident that the unique nature of the Project enhances its desirability and gives it substantial value, it is too early at present to comment further as to the outcome and timing of these discussions. In parallel, the Company is pushing ahead with technical aspects of the Project to ensure they are sufficiently advanced to be ready for investor and operator input.”
The board reckons that Cave Sidero is worth a multiple of today’s market cap (£7.4 million at 3.25p). And there is independent evidence for this. One report, albeit a few years back, valued it at 100 million Euro. But as ever with Minoan it is down to delivery. If it can start to monetise CS shareholders will have a multi-bagger but the company has not delivered anything other than cold gruel and dilutive placement after dilutive placement to date. Clearly there will be another placing unless there is a quick deal getting cash out of CS which we just do not expect to happen. Thus we are told;
“Following the sale of STL, the Group overhead will be reduced dramatically and secured debt will be less than £1m. This puts the Company in a good position to move forward. With a view to managing cash within the business and to show confidence in its future, a number of Minoan's directors have indicated that they are willing to accept shares or options in place of a large part of their unpaid remuneration, a gesture which is likely to be accepted by the Board as it seeks to best manage cash in the forthcoming period.”
Shares at what price? We’d hope it was 6p, the last placing price and that would show real faith. We expect it to be the current share price. We hope Egleton does monetize CS and see enough upside to justify a HOLD stance. But the board really must deliver and deliver SOON and uncertainty over its ability to do that means that we cannot upgrade our stance.
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