It’s not looking good for holders of Reabold Resources (LON: RBD). News has reached ‘Yours Truly’ from strong City sources of an orchestrated ramp & dump, pre an imminent Placing. Of course they’ll now deny it and maybe they’ll put it back a week or so. But placing they are…..
Yes folks there’s a placing on the way for a minimum of £2,000,000+. In fact they need £4,000,000 just to stand still. (Explained Below). I’ve been watching the order book price action over the last fortnight which tipped me the wink that some thing was afoot. On research now undertaken, sources and I mean multiple City of London sources have confirmed that there’s a placing on the way! Which is why some of the ‘choice’ P&Ders are quietly off-loading their positions in-order to reload up in the placing. And make no mistake a placing IS coming! If you don’t believe me then ask the one man band bullshitter Adam ‘Dubious‘ of Jub Crapital the sacked broker of ‘Lord’ @ChrisOil or the House Broker ‘Turner you over Holy Pope’. As a matter of fact ask each one of them to sign a legal binder that RBD aren’t placing. You’ll get the usual ‘corporate waffle’. That’s because they’re selling! Why? Because they’re organising the placing!
Now that’s not to say that Reabold don’t have potential, I tipped them on J&H and if you’d have listened to me then you’d have made good money. They have a decent story but that story is deliberately being used to sucker in the gullible to keep the share-price up so that they can get away another placing. Well that’s just not ‘cricket’ in my book….
The last half-yearly report stated RBD had cash in hand of £353,000. The new team of Stephen Williams and Sachin Oza raised a further £5,720,000 in 2 placings ( £3.96M & £1.76M ) which fleshed the company coffers out with circa £6M in cash. In November 2017 £1.5M of that cash was quickly gobbled up via a 35% stake in the private Oil company Corallion. Following on from that in December 2017 a further £1.5M was gobbled up in an ASX listed company called Danube Petroleum to buy a stake of the Parta Gas project. It’s the worst kept secret on the London Alternative Investment Market (AIM) that they’re also looking to bring in another asset, which if they run true to form, will cost £1M+ if we consider the same level of investment in this new asset at say £1.5m that leaves cash at hand of £1.5M. Now don’t forget that the Colter drill is being touted for April 2018. The rig for that will wipe out the cash. Indeed the deposit will do that in itself. Placing.
KILLER THAT NAILS IT!
The killer fact that nails the placing is thus: Corallion are currently in the City of Mammon trying to raise between £3.5M-£6M to fund drilling of their UK license P1918 which includes the “Colter” asset. If Reabold don’t want their 35% stake heavily diluted then they will have to come up with at least £1.6M-£2.1M in cash to keep their 35% stake of Corallion and the assets. This would then leave Reabold with a negative balance of -£590,000!
Common sense dictates that to keep the lights on with say £1m cash at hand Reabold will need to raise at least £1.6M that’s before any cash calls from Corallion or Danube for project development and cash calls will come. Placing. To keep the company progressing its investment opportunities the company must raise £4m! Which is why they’re secretly trying to keep the SP up. Expect lots of ramptasic horse shit with denials from paid promoters. Then a placing.
Shares are trading circa 0.65p which gives a market cap’ of just over £10m. Cash raised will have to be at a discount which is par for the course on the AIM Casino. That means a potential whopping 20%-40% discount to current levels.
Sell & buy back in the Placing. Because that’s what the P&Ders are sneakily doing!