powerbattles
3 horas hace
Thanks. Different strokes for different folks. I like to dig deep to find the nuggets. Magnum and Saudi partners project dead or not? The latest article on the project indicates that they have completed an engineering study. link at the bottom.
Quote: From Magnum:
"Any party may terminate this agreement after December 2024 by giving notice to each of the other parties.
"No timelines other than the December 2024 termination are included.
V Capital and 2×1.Digital Private Limited to undertake a capital raising.
2×1.Digital Private Limited primarily focuses on supporting fast-growing ventures across various sectors such as healthcare, banking, financial services, media, retail, automotive, telecommunications, smart cities, and sustainability
https://www.2x1.digital/company.html
02 Aug 2024 12:57
https://hotcopper.com.au/news/special-report/149344/collaboration-in-a-green-steel-future-the-focus-for-magnum-and-saudi-partners/#:~:text=With%20the%20completion%20of%20an%20engineering
pinkslipjunkie
15 horas hace
After reviewing both form 6-k and form F-3 filed today. Let me correct the statement I post earlier.
The Form 6-K filed earlier described the conversion of the Senior Convertible Note by AOF into 9,099,181 shares, and the company announced that it had filed a prospectus supplement for the resale of these shares.
Form F-3 is used to register securities with the SEC, allowing a company to offer and sell them to the public. In this case, the F-3 relates to the resale of the 9,099,181 shares that were issued to AOF after converting the $1,000,000 Senior Convertible Note.
ALERT: The prospectus in the F-3 is not yet complete, meaning the offering is not finalized or fully effective until the Securities and Exchange Commission (SEC) reviews and approves the registration.
The company cannot legally sell or solicit offers to buy the securities until the SEC declares the registration effective.
UNTIL THEN NO SALES OR SOLICITATION CAN TAKE PLACE.
HOWEVER,
After the SEC declares the registration statement effective, the company is required to file Form 424(b). This form contains the final prospectus and is filed to officially announce that the offering is effective.
WHAT WE SHOULD WATCH FOR Form 424(b) will be the key indicator that the SEC has declared the registration effective, and the sale of the shares can begin.
MY SOURCE OF INFORMATION: powerbattles on Stocktwits
Helter Skelter
17 horas hace
THE OFFERING
149,618,942 / 9,099,181 = 16.44 ⚪️ Price .146 / 16.44 = .00888 "dilution hit" to share price, at worst, $0.137, in exchange for $1,000,000. How much does the 9 million share buyer desire for the 1 million dollar investment? Could possibly see 100%-300% appreciation pretty quick depending, of course, on developments...JMO 😺
$VCIG
powerbattles
2 días hace
The Kingdom of Saudi Arabia is developing a Green Pig Iron-making facility using HIsmelt technology. This project is a collaboration between Midmetal and Magnum, aiming to leverage high-grade magnetite concentrate from Magnum’s Buena Vista Iron Project in Nevada, USA, and mill waste from steel plants in the Arabian Gulf region
The facility is designed to produce low-emissions steel and is part of Saudi Arabia’s broader efforts to enhance its industrial capabilities while minimizing environmental impact. The engineering study for this project has demonstrated its viability, with a planned production capacity of 1.1 million Tonnes per year.
There are many articles on this project; I’ve only included a few, but you can easily find more by Googling.
Magnum Mining inks Saudi funding deal
https://mining.com.au/magnum-mining-inks-saudi-funding-deal/#:~:text=Magnum%20Mining%20and%20Exploration%20(ASX:MGU)
Magnum Mining & Exploration’s update on the Saudi HIsmelt project.
https://montpelliercorp.com/2024/03/08/magnum-mining-and-exploration-saudi-hismelt-project-opportunity-with-midmetal/#:~:text=Magnum%20Mining%20and%20Exploration:%20Saudi
Engineering study demonstrates viability of Saudi green pig iron project – Magnum
https://www.miningweekly.com/article/engineering-study-demonstrates-viability-of-saudi-green-pig-iron-project-magnum-2024-01-17#:~:text=ASX-listed%20Magnum%20Mining%20&%20Exploration
Green, high-purity pig iron project, Saudi Arabia
https://www.miningweekly.com/article/green-high-purity-pig-iron-project-saudi-arabia-2024-03-08#:~:text=An%20engineering%20study%20has%20assessed%20a
Now come to the good part. Do you know V Capital Consulting Limited (VCCL) is involved in a significant project in Saudi Arabia? The great news is V Capital (VCCL) is a $VCIG subsidiary
https://www.sec.gov/Archives/edgar/data/2038160/000121390024081295/0001213900-24-081295-index.htm
VCI Global Provides Preliminary Funding for Saudi Project
https://www.globenewswire.com/en/news-release/2024/05/15/2882370/0/en/VCI-Global-Provides-Preliminary-Funding-for-Saudi-Project.html
Summary:
VCI Global (VCIG) is set to raise $210 million for Magnum Mining & Exploration Limited to support its Green Pig Iron Project in Saudi Arabia. The capital will include $10 million for working capital and $200 million for the Midmetal HIsmelt plant, with half of the funding matched by the Saudi Investment Development Fund.
Investors in this deal will receive shares in Midmetal (up to 50%) and, pending approval, shares in Magnum (up to 19.99%). Under a binding Project Funding Agreement, V Capital Consulting Limited and 2x1.Digital will each gain 10% of Midmetal’s shares and a board position for 2x1.Digital.
Update Confirmed on the project Green Pig Iron facility in Saudi Arabia.
The remaining 50% of the project, is estimated to have a capital cost of $410m therefore this project is $820M. Magnum is also in talks with potential investors and has secured non-binding letters of support for additional funding. Keep in mind that (VCCL) is set to raise funds for Magnum Mining & Exploration.
https://www.mining-technology.com/news/magnum-midmetal-enter-shareholders/?cf-view
Summary:
Magnum Mining & Exploration has partnered with Middle East for Metallic Industrial (Midmetal) to develop a Green Pig Iron facility in Saudi Arabia, making Magnum a 50% owner. The facility will use HIsmelt technology and high-grade magnetite from Magnum’s Buena Vista Iron Project in Nevada.
Midmetal’s Saudi shareholders will fund half of the estimated $410 million (A$616.89 million) project cost, while Magnum will cover the other half through a loan, to be repaid within two years. Magnum is seeking additional investors and has received letters of support for funding.
As investors, we are always searching for good stocks. I think this stock has potential, and with some luck, this might be the one.
powerbattles
1 semana hace
I don’t believe they’ll let the stock drop below $0.10, and I don’t think they’ll resort to a reverse split or face delisting. This is relatively straightforward because the company only has one class of shares common stock and the CEO and his wife control over 50% of them. A reverse split would be more damaging to them than to us, which is one reason I decided to invest.
However, dilution remains a concern. They’re selling 30 million shares from May 2024. Prospectus through the equity line, which was issued by Alumni Capital LP. I honestly thought dilution had ended. I didn’t expect new shares to be issued. Right now, I’m holding as I believe this phase should end or will end within days. Patience is often the toughest part of investing.
Starting in October, with our AI project and other ventures kicking off, I’m optimistic that things will improve, and the results will be favorable.
pinkslipjunkie
2 semanas hace
As stated in the same PR as the Share Repurchase Program I think they are working on enhancing collecting receivables as you were saying: "I believe the company initially intended to go through with the buyback but may have temporarily encountered a delay in collecting a $30.1M receivable."
https://ir.v-capital.co/articles/events/VCI-Global-announces-44-revenue-growth-in-its-financial-results-for-the-six-months-ended-June-30-2024-announces-US-10-million-share-repurchase-program-over-2-years
The Company believes this amount, along with planned actions, will be sufficient to fund operations for at least the next 12 months. To improve liquidity, the Company plans to enhance the collection of outstanding receivables totaling $30.1 million as of June 30, 2024, and reduce general and administrative expenses.
pinkslipjunkie
2 semanas hace
Good point ...they wouldn't have updated us on the buyback program...after reading the initial press release announcing the Share Repurchase Program the company really gave no time frame as to when the buyback was to start taking place over a course of two years....but as of today's release they actually have set a time frame as being in the 1st quarter 2025 as to when it will start, so that was good...and when it comes right down to it...2025 is not that far away...we all know how time flies...it will be here before we know it...but anyway as you can see there was no promises made on the initial PR as to starting this year as stated below, but I will have to admit I was hoping it would be like any time...I guess that is where having patience comes in handy...LOL
Authorization of a Share Repurchase Program
VCIG’s Board of Directors has authorized the implementation of a share repurchase program for up to US$10 million of the Company’s outstanding ordinary shares over the next two years (the “Repurchase Program”). Under the Repurchase Program, VCIG may repurchase for cash, from time to time, its ordinary shares through open market purchases pursuant to a Rule 10b-18 plan, in compliance with applicable securities laws and other legal requirements.
The Company’s proposed repurchases may be made from time to time on the open market at prevailing market prices, through negotiated transactions off the market, in block trades, or through other legally permissible means. The timing and extent of any repurchases will be influenced by market conditions, the trading price of its ordinary share, and other factors. These repurchases will also adhere to restrictions relating to volume, price, and timing under applicable law. VCI Global expects to implement this Repurchase Program in a manner consistent with market conditions and the interests of the Company’s shareholders. VCIG’s Board of Directors will review the Repurchase Program periodically and may authorize adjustments to its terms and size accordingly.
“Our outstanding performance for the six months ended 2024 is a testament to the exceptional efforts and dedication of our team. We have successfully advanced our strategic initiatives and strengthened our position in the market. Looking ahead, we remain committed to leveraging our expertise to drive continued growth and deliver unparalleled value to our clients. Our focus remains on innovation and excellence, and we are excited about the opportunities that lie ahead as we build on this momentum for future success,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
powerbattles
2 semanas hace
If the company were a scam, they wouldn't bother updating us about the buyback program. The delay seems to be an unexpected issue for them. Unfortunately, this postponement triggered an unnecessary panic selloff.
I believe the company initially intended to go through with the buyback but may have temporarily encountered a delay in collecting a $30.1M receivable. As a result, they were forced to borrow $1 million to fund the launch of GPU servers for the AI industry by October 2024. With AI cybersecurity and large language model (LLM) solutions being in high demand, new contracts and revenue could potentially improve the stock price.
“VCI Global is committed to driving long-term shareholder value through our pioneering AI businesses. Our advancements in these areas are strategically positioned to capitalize on Southeast Asia’s growing digital economy. We look forward to the execution of our growth plan and share repurchase program, which underscore our dedication to sustainable growth and enhancing shareholder returns,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
powerbattles
2 semanas hace
The current price is unjustifiably low and seems to be the result of manipulation by short sellers and with the help of market makers. Common sense. If the company decides to issue more shares, we should see a significant increase in trading volume. Furthermore, until there’s an official announcement of a new offering, I don’t believe dilution is imminent.
The short-selling pressure here is intense; they seem to short every time the company releases news, and they’re quite adept at it. However, there’s a positive side: shares are shifting from weak hands to strong hands. The business is expanding, revenue and net profit are increasing, and funding for AI is secured, so dilution is off the table. The next two quarters look promising. Besides stock is manipulated by the short, I don’t see any threats to the stock at this moment.
I’m down significantly on paper, but I’m not afraid to buy more. I’m committed to holding strong and waiting it out. This situation is incredibly frustrating, but if making money were easy, patience wouldn’t be required. Imho:))
powerbattles
3 semanas hace
This news highlights that they were able to secure a loan with an exceptionally low interest rate of just 6%, which is quite rare in the commercial sector. It also suggests that they have presented a solid and credible business opportunity to investors, convincing them to offer such favorable lending terms. Additionally, they are taking steps to protect the investor's interests and prevent stock dilution. Previously, they had to raise working capital through acquisition offers and growth initiatives, but those days are now behind them. The 10M buyback and insider buyer indicated their focus is on boosting the stock price and building trust with their loyal shareholders. IMHO:))
powerbattles
3 semanas hace
This is excellent news and might not require conversion. Here are the details:
VCI Global Limited (the “Company”) entered into a securities purchase agreement with Advanced Opportunities Fund I (“AOF”) whereby it issued a Senior Convertible Note in an amount of up to $1,000,000.
In my view, this is GREAT NEWS because (“AOF”) is providing them with a million dollars upfront at just 6% interest.
A Senior Convertible Note is a type of debt instrument that allows the holder to convert the debt into equity (typically common stock) at a LATER DATE, usually at a predetermined price.
Companies issue senior convertible notes to raise capital without IMMEDIATELY DILUTING THEIR EQUITY. It’s often an attractive option for companies needing funds but not wanting to issue more shares right away.
Senior convertible notes typically have lower interest rates than regular debt, making it cheaper for the company to borrow. In this case, they pay only 6% of the Original Principal Amount calculated from the Original Issue Date until the Maturity Date.
A Senior Convertible Note typically has specific terms and conditions that dictate when and how it can be converted into shares, and these terms usually include a time frame or vesting period before the noteholder can convert their debt into equity. This prevents immediate dilution on the open market.
Conversion Period: The note usually cannot be converted immediately after issuance. There is often a "lock-up" period or a specified date in the future when conversion is allowed. The conversion price is typically set at the time the note is issued, often at a premium to the current stock price. This ensures the company gets some benefit from the conversion as the stock must perform well for noteholders to gain significantly.
In my view, here are the key points of the purchase agreement with Advanced Opportunities Fund I (“AOF”):
The Company agrees to pay Advanced Opportunities Fund I (the "Holder") $1,000,000 by March 2, 2025, or earlier if required or agreed upon in writing by both parties. Interest will be paid on any remaining balance of the loan according to the terms.
Under this Note, the difference between (a) 6% of the Original Principal Amount calculated from the Original Issue Date until the Maturity Date and (b) any payment of interest made prior to such date with respect to such principal amount.
The company will pay interest on the outstanding principal of the Note as follows:
First 3 months: 4% of the principal will be paid immediately after the Note is issued.
4th, 5th, and 6th months: 4% will be paid on the first of each month (Dec 1, 2024; Jan 1, 2025; Feb 1, 2025).
Interest can be paid in cash or in shares of Common Stock at 90% of the average price from the last 5 trading days before each payment date. If paid in shares, the Holder must notify the company, and the shares will be delivered to the Holder’s account.
Any early repayment of the principal will include the remaining interest to compensate for the Holder’s potential loss of profit. This agreement doesn’t cover any additional fees or costs for actions taken if the company defaults. IMHO:)))
Bottom line: A Senior Convertible Note is not an offering or toxic dilution. It’s essentially borrowing money from an investor at low interest, with the option to repay by March 2, 2025.
This indicated they couldn’t issue new shares during the buyback. Legally, a company cannot mislead investors by claiming to buy back shares while secretly selling them, as this would be considered fraud and is prohibited by securities laws.
Additionally, would you lend one million dollars at low interest if you believed the company wasn’t performing well?
When people don't fully understand the filings, they tend to panic unnecessarily. This is actually great news for the company. IMHO:)))
https://www.otcmarkets.com/filing/html?id=17822625&guid=uwL-kpJ1tsVpVBh#ea021375901ex4-1_vciglobal_htm
pinkslipjunkie
3 semanas hace
Probably why the company insiders own 50% of the outstanding...they know they are about to turn the tables on these shorts with strong fundamentals, very little debt, massive revenue growth, and solid net profits....IMO
With the reduction in the ATM offering size, a $10M buyback, and the CEO increasing his shareholding by 15.27%, it's clear the company is taking serious steps to stop the bleeding, as the shorts currently have full control over the stock price. But nothing goes straight down forever eventually, it will rebound. In our case, with strong fundamentals, very little debt, massive revenue growth, and solid net profits, the stock is poised to rise and sustain higher levels.
pinkslipjunkie
3 semanas hace
The part highlighted in bold is the part I like...from what I see in these micro nasdaq stocks is that they don't seem to care about negative marks from a reverse split...but put a hurt on their own pockets is a different story I would imagine...LOL
LOL:))) When insiders control preferred shares, they typically have control over voting rights, so a reverse split (R/S) wouldn’t significantly affect them. However, in our case, it's entirely different. The insiders hold more than 50% of the common ordinary shares. A reverse split would hurt them more than anyone else. Moreover, a reverse split would also leave a negative mark on the company’s history.
powerbattles
3 semanas hace
LOL:))) When insiders control preferred shares, they typically have control over voting rights, so a reverse split (R/S) wouldn’t significantly affect them. However, in our case, it's entirely different. The insiders hold more than 50% of the common ordinary shares. A reverse split would hurt them more than anyone else. Moreover, a reverse split would also leave a negative mark on the company’s history.
With the reduction in the ATM offering size, a $10M buyback, and the CEO increasing his shareholding by 15.27%, it's clear the company is taking serious steps to stop the bleeding, as the shorts currently have full control over the stock price. But nothing goes straight down forever eventually, it will rebound. In our case, with strong fundamentals, very little debt, massive revenue growth, and solid net profits, the stock is poised to rise and sustain higher levels.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175031525
powerbattles
3 semanas hace
No preferred share is one of the reasons I feel very confident about this investment. Since the insiders hold over 50% of the outstanding shares, they have a strong incentive to avoid a reverse split. While they might dilute shares to acquire companies or for working capital, my research indicates that the current offer has ended, which is why they’ve announced a $10 million buyback.
Keep in mind A company cannot legally mislead investors by claiming to buy back shares while dumping stock. This would be considered fraudulent activity and is strictly prohibited by securities laws and regulations.
In the past, they released news and then diluted shares, which created a pattern that allowed short sellers to target the stock whenever news was announced. Now, even with the buyback announcement and the CEO acquiring over 15% of the company's shares, no one takes them seriously. It's sad to see such manipulation, especially when the stock is trading near its net profit value.
powerbattles
3 semanas hace
This is all the company’s fault. In the past, they would release news and then dilute shares, which created a pattern that allowed short sellers to target the stock whenever news was announced. Now, even with the buyback announcement and the CEO acquiring over 15% of the company's shares, no one takes them seriously. It's sad to see such manipulation, especially when the stock is trading near its net profit value.
Right now, the market cap is $12M That is a joke.
powerbattles
3 semanas hace
The Frankfurt Stock Exchange (FRA) is one of the largest and most prominent stock exchanges globally and does experience significant short-selling activity. However, that doesn’t imply insiders are shorting their own stock. Short selling is a common practice on major exchanges worldwide.
In case you're still uncertain, just two weeks ago the company announced a 10M share buyback, and the CEO, Victor, increased his stake by 15.27%. So, the idea of insider shorting is simply unfounded and nonsense.
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