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

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.

Not even sure that SEO have a golder share of BIOTEC anymore.
Did some quick flicking back and can't find anything to verify it.
Is this Management team a complete bunch of cocks?

i remember having the impression that seo got to cherry pick all the ip that they wanted from biotec as well as the golden share and sp metal/sphere got the rest . today's rns , coupled with the news from sphere recently gives the impression that there has been a bit of arguing going on. the announcement from sphere now looks like it was a shot across the bows. the fact that seo have chosen to include all the legalities at this time isn't that comforting when you understand seo-speak. they admit to having taken legal advice. either that's because they have been arguing or are gearing up for a fight.

Agree, bos. And if the fight lasts as long as the BPRG fight, a years time could see us with no contracts and the cash run out again.

Research Page updated

58 Proposed Placing & Open Offer
http://www.moneyam.com/InvestorsRoom/posts.php?tid=7681#lastread

looks like there must be massive deals in the pipeline to raise that much cash...i reckon SEO will be supplying all supermarkets worldwide by 2009...another Tetrapak in the making..hello 100p

Lets look for one supermarket and 1.00p for the moment shall we???

Just logged on and glad to see I'm not the only person slighty confused. SEO doesn't need 15m right now for what there looking to do and opperations. There has to something else, a deal maybe or aquisition..... Why not place half the shares now let the sp pickup and place again in a year when the sp is stronger. Mmmmm very strange, maybe for the final insult the directors want to draw against the excess in loans perparing for the job centre at our further expense.

explosive,
they will need operating capital of at least 2million between now and revenue from any contracts signed now, so I don't think they've overegged it. They also need a bit aside in case another one comes along and they need to finance it.
Alan

Alan your begining to sound like a director. How can you say "2m between now and revenue from any contracts signed", we know not when contracts will be signed let alone when they'll produce revenue. As for "they also need abit aside in case another one comes along and they need to finance it" I think the RNS put this better as;

- to provide further working capital for the Group to fund the next stage
of commercial development of the Group's existing and new products and to
provide the Company with funds to back up any negotiations with customers and
partners.

But..........
SEO haven't justified there ask for 15.8m in fact they said

2.8 each approx on two manufacturing facilities in the USA, if there talking about building two manufacturing plants there must be a deal virtuly signed.
1.6m due in June 2007 to EKI for the Biotech Acquisition.
Now thats 2.8m x 2 = 5.6m + (1.6m due to EKI) = 7.2m and SEO propose to raise 15.8. Thats 8.6m unaccounted for and over 50% of the placing. Also the 1.6m payable to EKI isn't due until June 2007 in 8 months time. If any significant contract is announced within the next 8 months the sp would be higher allowing for a smaller placing. Leads you to think a contract won't be. So I can only assume that 8.6m is for general opperating expenses and pocket money unless theres either another deal or aquisition they can't mention.

Anyone got any idea how long 8.6m would last on general operating expenses?

did they not say 3 months ago that they had 900k and that it should last 3 months ?

If my memory is correct - then that appears to be about 300k per month or 3.6m for the year - ignoring any revenue

explosive,
Can't remember which RNS it was but cash burn was at about 300k per month. All the rest is simple business sense. Terms are ignored and big boys pay when they want, but always late! Todays RNS said for at least the first 2 contracts, so one assumes they would like more than the 2 they are talking about now. How foolish would they look if they just raised 7.2m and then by December asked for some more because another contract came up.
No mystery there. probably the only clear point in the whole statement!!
Anyway, i own so many bloody shares now, I ought to be a director. I couldn't do it any worse than some they have had.
(8.6mill at 300k per month is over 2 years).
Alan

As I said privately to someone, we are mostly fairly successful people in our own individual diciplines - otherwise we would not have the resources or acumen (other than greed!) to get into the situation we are.

Between the dozen or so clued up posters I am sure we know more than any single SEO director

BUT

singly, I doubt it.

From listening to, and conversations with, Martin Wagner I realise there is much more going on and more being resolved than appears on the surface.

Personally, I am happy with the proposals although unhappy how we got here.

alan, i don't care how many shares you have, just , have you got enough weedkiller yet? ;)

11million has been guaranteed (OK, conditionally upon the proposals being accepted) by Institutions and certain other investors. This cash is probably already sitting in T&G's bank.
So at this point the company goes ahead with funds for quite some time - between 2 and 3 years at burn rate of 300k p/month BUT our % of the company reduces by 66%.
OR
if we put up about half a penny per share (not a lot compared with most original costs) the Company gets another year and half's cash and our dilution reduces.

what none have you thought of in these last posts is money for legal action if required, when the rns first came out some of you picked up on it,now if they did not have the money for it, then asked shareholders for the dosh how many would put up the cash on this basis alone? if it is part of the fundraising no one can give an amount that would be needed.

Full of it, bos.
I get a feeling it is more needed than ever. ;-)