A critical four week period coming up for Afriag. The swap
component of the Yorkville Advisors deal is due to be started after David
Lenigas has asked for it to be resumed.
The Share Price has started to rise off the expected bottom
of .35p over the last week.
Now to the more important bits…..
I’ve said before about a deal for Afriag SA in Zambia. Well
I’ve heard it’s a deal with Illovo Sugar to shift approx. 100 containers a week
of refined sugar product.
There is also rumours circulating that a reverse takeover of
Afriag SA is on the cards. David and Paul are certainly looking at a
re-organisation of the existing structure of AFRIAG:LON and AFRIAG SA. The most
likely of rumours I am hearing is that AFRIAG has finalised a £1m raising of
capital at .6 to .8. This along with a further 10% of AFRIAG shares will buy a
controlling interest of AFRIAG SA for AFRIAG:LON.
Again the assumption is that this will happen in the next 2
weeks before the release of year end
2013 results. Which must for bloody hells sake come out in the next month.
AFRIAG is still on course to make a profit this year in
excess of £1m , most of which will be used to “professionalise” AFRIAG SA to
AIM standards (AIM standards is said with a certain amount of cynicism).
All in All the current .45 SP and MCAP of 5M is a very low
price. If we assume a 20% dilution with 70% control of AFRIAG SA then an MCAP
of 20M (the fair price) would give an SP of around 1.8p which is fair value for
the next 3-6 month period with and allowing for strong growth potential going
forward.
The value is one thing, the conduct and business association with certain people can be an explanation to how the devastation occurred!!! Afriag should rebound but ask " how did this happen " convenience,hard luck,error of judgement or friends feathers caps across the city
ReplyDeleteThere was certainly a lot of inept handling and the structure of the shell company was all wrong to start with and blindingly obvious so. Need to se the potential happenings to truely judge feathering. But as an investor it's clear that .35 was the bottom. He's hoping you get your 1p or so exit price :)
ReplyDeleteI bought at 0.9 and bailed out at 0,7 and back in at 0.38. Now I'm happy. Lots of potential - if these rumours are true then it looks good. I think with this company you are buying into Paul and his contacts. Other investmnens outside AfriAG SA were promised by DL, but not heard much.
ReplyDeleteSo a placing for 400k has now happened since this write up. Do you still see this RTO happening? Will 400k be enough to buy controlling share in AfriagSA?
ReplyDeleteMaybe, not sure tbh
ReplyDeleteWill it still happen ? That's really upto Paul. Sp responding well though and a good start to Afri recovery