Australian (ASX) Stock Market Forum

TLG - Talga Group

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basilio said:
Hopefully the funding for the pilot plant sees a swift move to commercial production.
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well, that's what I took out of it.

and after the pilot plant
Strategic Partnering to Unlock Talga’s Potential and De-risk Development
• Formal process to find a minority partner for the development of its integrated supply of graphite anodes
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Mitsui, ABB, Morgan Stanley mentioned already
 
that negativity didn't last too long. When the placement and SPP announced, there was a selldown, but this has turned around today. It is early in the process, but the next wall of worry is participation in the SPP. With $10million available for allocation, does being an earlybird win, and the offer documents aren't available till 21 Dec, or would waiting till closer to the end date (15 Jan) give more certainty?
It is quite likely there will be scaling back if the upside continues to be there. (SPP at $1.45 a share).

Compounding the challenge is the 'absolute discretion' of how the applicants are treated.
As the SPP is not underwritten, the SPP may raise more or less than this amount. If the SPP raises more than A$10 million, Talga may decide in its absolute discretion to accept applications (in whole or in part) that result in the SPP raising more than A$10 million.
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and the tricky bit ...
If Talga decides to conduct any scale back of applications ....[it] will be applied to the extent and in the manner Talga sees fit, which may include taking into account a number of factors such as the size of an applicant's shareholding at the record date, the extent to which the applicant has sold or purchased shares since the record date, whether the applicant has multiple registered holdings, the date on which the application was made and the total applications received from eligible shareholders.
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1608168802200.png
 
I can certainly understand why Talga reserves the right decide how to apportion shares in the upcoming offer.

At the moment taking up the offer looks like an excellent opportunity to be a smartie pants and game the situation for a quick buck. Simply speaking one could sell 20,690 shares now at say $1.70, pocket $35k and then buy the same shares back at $1.45 at $30k with an instant $5k no risk profit.

I don't believe the company wants to allow or encourage such arbitrage plays and would want to see a wider range of small holders add extra shares to their portfolio at a favourable discount. The value is there without the overt arbitrage play and hopefully the share price stays supported rather than run down with mass share churns.

It does look like an attractive offer given the overall quality of Talgas business case. Sincerely hope there are no hidden glitches in the next 12 months development. I will be adding to my shares.
 
I think all teh ducks are lining up for Talga. They will have sufficient cash to build their pilot plant and the range of potential customers and technology supporters should make 2021 a turning point.:2twocents
 
buying interest is back, now at 39c premium to $1.45 SPP .... wonder how much it will be scaled back, or if they close early?

(I went the full $30K before Xmas)
1609729314117.png
 
Dona Ferentes said:
buying interest is back, now at 39c premium to $1.45 SPP .... wonder how much it will be scaled back, or if they close early?

(I went the full $30K before Xmas)
View attachment 117696
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Be really surprised and disappointed if they close early. They have reserved the opportunity to distribute shares as they see fit with regard to possible share gaming and also to take extra subscriptions if the opportunity arises. Certainly the current price spurt would encourage some arbitrage activity. Quite tempting.
 
In my experience, any deliberate attempt to arbitrage ends poorly. By definition, where there's a gap of 20-30%, selling high & hoping to pick up same via SPP sees only a few allocated, and you end up with fewer shares. With the cap at $10mill, expect scale back or an early close.
 
Interesting. Got a postcard mail from Talga reminding/promoting the Share Purchase plan. If they have already filled the $10m then theyseem to be encouraging some extra interest.
 
Talga Upsizes Heavily Oversubscribed 
 Share Purchase Plan
The SPP, targeting A$10 million, was heavily oversubscribed with eligible applications received for A$53.5 million at the issue price of A$1.45 per share. Talga received 3,991 applications, representing a participation level of ~53% of eligible shareholders
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Given the strong support from shareholders, and the potential to bring forward a number of development opportunities and further de-risk project development, the Talga Board has exercised its discretion under the terms of the SPP to increase the size of the offer to ~A$30 million.

The strong demand from eligible shareholders necessitates a significant scale-back of SPP applications. Scale backs have been applied using a range of factors outlined in the SPP Offer Document including trading activity since the SPP Record Date and metrics to reward longer-term shareholders.
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.... no wonder there was a sell-off yesterday. This may take a while to work out. Not everyone will be happy. Still well in the money, and higher this morning after the Ann.
- 5 day chart; 5 min intervals
1611100947959.png
 
Indeed ! Certainly the time and opportunity to fast track the development funds for their projects. I think the decision to send out postcards to every shareholder in January indicated their determination to get as much oversubscription as they could.
There are certainly other players with fast charging/high density batteries so moving quickly in this market place makes excellent sense.
__________________________________
I noted they were paying attention in allocating new shareholdings to shareholder activity since the announcement

Scale backs have been applied using a range of factors outlined in the SPP Offer Document including trading activity since the SPP Record Date and metrics to reward longer-term shareholders. Talga Directors eligible to participate in the offer have all applied for the maximum SPP entitlement and have been scaled back using the same factors.
 
basilio said:
Indeed ! Certainly the time and opportunity to fast track the development funds for their projects.

Scale backs have been applied using a range of factors outlined in the SPP Offer Document including trading activity since the SPP Record Date and metrics to reward longer-term shareholders. Talga Directors eligible to participate in the offer have all applied for the maximum SPP entitlement and have been scaled back using the same factors.
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The way I read it, everyone will have some scaleback, LT holders may do better than others (moi !), traders / wanna-be stags will get squeezed. No-one will be completely happy.
 
  • SPP shares are expected to be issued on Wednesday, 27 January 2021 and commence trading on the ASX on Thursday, 28 January 2021.
  • Holding statements are expected to be dispatched on Wednesday, 27 January 2021.
  • A total of 20,722,065 million new fully-paid ordinary shares will be issued, representing approximately 7.3% of Talga’s ordinary shares on issue prior to the SPP.
  • Refund Process; The payment of refunds for scaled back applications, as well as invalid applications, is expected to commence on Monday, 25 January 2021.
 
Came across this research on Talga on the net.
Interesting enough but in fact the producer just used the process of reviewing Talga as an example of how investors could run the ruler over any company they were evaluating.

 
Dona Ferentes said:
  • SPP shares are expected to be issued on Wednesday, 27 January 2021 and commence trading on the ASX on Thursday, 28 January 2021.
  • A total of 20,722,065 million new fully-paid ordinary shares will be issued, representing approximately 7.3% of Talga’s ordinary shares on issue..
  • Refund Process; payment of refunds for scaled back applications, as well as invalid applications, is expected to commence on Monday, 25 Jan 2021.
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SPP shares issued; I put in for $30K, got 15,932 which will cost $23,101.40 (same as 3 Directors). Refund not in bank yet.

Back of the envelope calcs; the company tried to make as many shares issued to LT holders as possible. Bigger applications weren't trimmed ex-proportionately. Traders probably clipped. Will be interesting if there is a methodology released.

and quite a few taking bat and ball, and heading elsewhere
1611797524898.png
 
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Dona Ferentes said:
The way I read it, everyone will have some scaleback, LT holders may do better than others (moi !), traders / wanna-be stags will get squeezed. No-one will be completely happy.
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Well Dona the Lord moves in mysterious ways.

All of us TLG investors who missed out on 30% of our shares at $1.45 can fill up at $1.39 ! So we get an even better discount than we thought we were getting when the SP was $1.80-$2.00 . :cautious:

Interesting times.
 
Perhaps it got ahead of itself. 2023 until a real producer of note. Smedvig dropping their holding doesn't help.
 
Dona Ferentes said:
Perhaps it got ahead of itself. 2023 until a real producer of note. Smedvig dropping their holding doesn't help.
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Perhaps Smevig decided that at the price it got it was a very good time to sell.
I tend to agree that with commercial production slated for 2023 the recent prices were very enthusiastic. But the good news is that Talga is now cashed up and can accelerate it's development.

IMV the mangement will use the additional funds well and if the SP slips until production is established and real profits are generated so what ?
 
Pretty decisive price movements in the past 9 days. The Quarterly report seemed to create a positive surge and it seems that some very strong buying today has pushed the SP up another 19c. :)

There could be some new announcement but I wouldn't be surprised if some bigger buyers have decided to take a position in the company based on their soon-to-be accelerated progress

The overall market is down today so this would seem to be quite particular interest in the shares
 

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