for more information about stanelco click on the links.

driver's research page link
http://www.moneyam.com/InvestorsRoom/posts.php?tid=7681#lastread
website link
http://www.stanelco.co.uk/index.htm

Hi Bhunt,

It appears we were both thinking the same re If Contract.

i really do hope you are right Alan, my avg is around 8p and i have been thinking of averaging down. the sleepness nights are making me more tired every day!
anyway goodluck, hope this comes good for all shareholders

What happens to loan stock when this dilution happens?
Do shorters have to close, or is there position extended by the amount of the dilution any one know ?
With 60m shares on loan if they had to close that alone would send the share price up.

I have to say that I am disappointed not to hear news of a contract.

It does beg the question as to what has happened to those letters of Intent

But if the Times last week suggested that a contract was in the offing ......

They are still there, baza;

to ensure successful completion by either Biotec, or in accordance with
the provisions of the Joint Venture Agreement, Stanelco of at least the first
two manufacturing facilities in the USA, which will cost approximately 2.8m
each, for the production of starch-based resins, including Starpol materials,
developed by Biotec;

Baza
If these companys want Starpol 3000 they will not sign untill it is passed for use.

Jim , know what your getting at - expecting shorters to close and if it is real stock which has been loaned out to sell then one would imagine the owners would want it back before the rights issue so they can take part.

unfortunately if the 60 million loaned is correct then you may not see it in the market with the amount of trades going thro,

A few suggested answers to some of the questions above:-

I think firm placing means 1.375bn are placed. So are a further 148m, subject to being clawed back. All that is not guaranteed is (600,992,559 - 148,278,000) = 452,714,559 under the open offer which depends upon either existing shareholders taking up their allocation, or the remainder being placed with other new shareholders by T&G.

I don't expect any contracts to be capable of being signed until after the fund-raising is completed. I hope to God T&G are properly convinced that they will be thereafter.

I think Biotec will have to grant a licence on the Starpol IP to each JV between SEO and a US manaufacturer. Can't see how Biotec can refuse, if they cannot provide the capacity and location required. So all Starpol IP licence revenues are split with Sphere. SEO also shares the profit on the JV operation, I guess. I hope SEO do not piss off Biotec and Sphere by trying to strong-arm them into letting SEO have the IP licence for nothing or via the wrong contractual relationships.

I read the jv costs as being 2.8m each to SEO - X 2 plus the final payment on Biotec = 7.2m, leaving 7.2m for working capital after expenses. Seems about right.

Nothing need happen to any borrowed stock being used to sell short - existing shares are not affected by the placing (other than being a little cheapened!). But it might be advisable to close the shorts and return the stock, since, if this is to work at all, the odds must favour the SP rising after fund-raising is completed and contracts presumably thereafter signed.

Nothing in the above is certain, but it's the view I am comfortable with until facts are presented which suggest otherwise. The cost of taking up the open offer at 0.8p for most of you serious long-term holders must be pretty small compared to what you're in for already. You've all been waiting for the solution. Now it's arrived, there may be one or two irritating anomalies and omissions, but it's there on the table and 1.375bn of placees say it's going to work. There's only one conclusion I can come to which is to support it.

sd

stockdog
thank you.

Good post, sd.
Alan

Jim,
Re ....Do shorters have to close, or is there position extended by the amount of the dilution any one know.
As I understand it a dilution of shares has no baring on shorters positions. They can only extend as they normally would. The trading date is binding unless both parties agree to an extension.

over 100 posts since I last logged on.
is this right:
it's a 3 for 5 offer to shareholders at .8p
When is it due?
whats the concensus opinion?
mine is I'm buying it. as happy ish.

You're right. lots of questions re the mechanics of it, and where are the promised contracts,but I, like you, am in.
Alan

greekman the answer to your post 2117 is anybody with a cfd or spreadbet has the same choice as shareholders as at the date when the new shares come to market dont forget same will also be long on seo.the same applies when a company goes ex-divi you still get the rights to the dividend.shorters do not have to close there position.

my main concern is the IP shambles with biotec.
i've re-read it several times.
I can't see why biotec would block seo, as they will get money out of any deal, but is's always a possibility and if they did, I think that would pretty much seal seo's fate.
Would like some clarification from SEO re this point.
Though i doubt i'll get it.
Anyway messages away............

I'm undecided at the moment - we're between a rock and a hard place. My instincts tell me to get out, but I'll sleep on it.

My feeling at the moment is that we've been offered what is best for the management and not necessarily for the shareholders or company and I feel a little as if I'm being blackmalied into make a further investment.

The paragraphs below,from the RNS, worries me. They are saying that if we dont finance them any lenders offering finance 'may necessitate the Group undertaking to effect certain actions and grant certain rights to the lenders......would not be able to continue the development of its intellectual property portfolio to commercialisation in a manner in which would allow the Group to retain all of its key staff'

In other words, we're doing it this way so that we all keep our jobs as in our other financing options the lenders insisted on some of us being sacked.

I would have welcomed 'the Group undertaking to effect certain actions' - if those lenders thought it was necessary it probably is, but now we're not getting it!

Many otther things worry me in todays RNS - not least of all the SPHere Biotec problem - theres more to that than meets the eye. We were told that the MMP deals were imminent some time ago - they haven't materialised and now we have a problem with SPHere. No smoke without fire and SEO are good at making smokescreens.


---

'Shareholders should be aware that if the Resolutions to be proposed at the EGM
are not passed and Admission does not take place, the net proceeds of the Issue
will not be received by the Company. If Admission does not take place, the
Company's cash requirements would be likely to exceed the amount available under
its existing overdraft facility with Barclays Bank by the end of November 2006
and, in any event, this facility would be subject to immediate review and
potential withdrawal.

The Board considers that, in this scenario they would seek to agree new facilities with an appropriate lender and/or seek alternative means of funding. However, the Board believes that any such facilities or loans, on the assumption that such facilities or loans could be agreed, would be on significantly restrictive terms and may necessitate the Group undertaking to effect certain actions and grant certain rights to the lenders. In these circumstances the Board believes that the Group would not be able to continue the development of its intellectual property portfolio to commercialisation in a manner in which would allow the Group to retain all of its key staff and intellectual property rights. The Board consequently believes that any such arrangements would not be in the best interests of the Shareholders.
'

Ok I'm lost.
I get the new share issue bit of the RNS.
However the Biotec Ip/JV/ advice re litigation etc bit confuses and really worries me.
Can anyone put it in plain english.
Is anyone else (apart from tweenie- just noticed post) worried?
answers on a postcard please.
i'll be at the EGM, wearing dark glasses and carrying a violin case. I'm a crack shot with pea shooter.

Hi All
Exactly what did we get in the biotec joint venture
very confused
Lindos

Thanks for the reply this morning Oblo, I guess we'll have to agree to disagree on the extent of journalists influence.