theprior
03 Jul 2017
Re: Bonds or Shares Now £2.6 subscribed in bond issue. Open till 16 Aug for the remaining £2.4m. Interesting. I've signed up for Abundance account but still undecided.TP
badinvestment
03 Jul 2017
Re: Bonds or Shares Hi MT,I share your worries. Cash is king and all that. Cash flow, or a lack thereof, must rank highly in the list of reasons why new products fail. I too would like to see a bit more caution on the part of ARL management with proof of concept, and at least some degree of organic, self funded growth.Nice technology ARL, now make it work reliably, and make some money from it. Otherwise, what's the point?Badinvestment.
marktime1231
29 Jun 2017
Re: Bonds or Shares Well I am more and more doubtful about this, ARL has a curious approach to its financial management. And I am not persuaded by the Abundance pr. This was a £5M 5-yr 8% bond launch because the company need to refinance, not a £2-5M let's suck-and-see offering which would be nice to have the cash so we can exploit the capitalTo have only attracted £1M of investors on day 1 is awful, compare that with the WASPS 6.5% bond which sold around £25M last year. Fancy not being able to sell an ISA-wrapper approved bond at 8% !!!! No wonder they are having to run a 2-month sales campaign.ARL will need massive investment in order to fund the many projects it has announced itself to be involved in, tens or hundreds of millions in the next few years, so this bond is almost a distraction. And it has failed, as I thought it was intending, to deliver organic self-financed growth using an accumulating income stream from power generation starting with Meygen, about which outtage we still have not been updated.Unless a major investor with serious resources and proper management steps in I am beginning to worry about the future of ARL, and intend to sell out at the first sensible opportunity.
theprior
29 Jun 2017
Re: Bonds or Shares [link]
theprior
29 Jun 2017
Re: Bonds or Shares They say 8% is lower than their current debt, in fact it's the primary reason for issuing the bonds.I've decided not to take part as "Abundance" are not abundant with information about the bond issue unless you make a deposit into your account.If a company's in trouble its usually the bond holders that have to take a hair cut first.TP
badinvestment
29 Jun 2017
Re: Bonds or Shares It would be interesting to know the logic behind issuing bonds at 8% when borrowing is generally available at much lower rates. High interest rates are generally associated with a high risk of default, so what does that say about ARL?
theprior
28 Jun 2017
Re: Bonds or Shares I've started the process because 8% is not to be sniffed at. But it is quite time consuming and you've got to deposit your cash before you get to chose how you invest it. Still thinking about whether I'll go ahead.TP
marktime1231
27 Jun 2017
Re: Bonds or Shares On enquiry, unfortunately the bond will only be available to subscribe, hold and trade through the platform of the fund raiser Abundance (I nearly typed Ambulance there) where you would need to open a new account etc. There is enough risk in this already ...
marktime1231
26 Jun 2017
Bonds or Shares So ARL are thinking of issuing £5M of bonds at 8%, to raise even more capital and to refinance some loans at harsh rates ... so that explains the bad news in the annual report that last year they blew £1M on interest payments on debts of around £10M.Not sure this all makes me happy, firstly selling off a chunk of shares to Hyundai on the cheap which sliced the value of my holding, and now planning to pay a whopping 8% to new bond holders, presumably as an alternative to rewarding existing shareholders with a dividend anytime in the next 5 years.I still like the idea of this technology and its potential, but I am not sure I like the way they are managing their finances nor the way they are treating shareholders.Maybe swap my shares for bonds?
theprior
26 Jun 2017
Re: Surely some catalysts Worth a punt, R ??Wind doesn't blow all the time and solar isn't much good in the dark ! But the tide will ebb and flow roughly twice a day for as long as the human race will need it !!The future's bright, the future's tidal 
)))TP
Ripley94
25 Jun 2017
Re: Surely some catalysts Haven't looked at these for years looks like its coming back.
theprior
21 Jun 2017
Re: Saw something on Yep, got it now, thanks.. Wasn't showing on news tab when I found the Tweet.TP
Davey Baby
20 Jun 2017
Re: Saw something on Didn't you see the RNS?
theprior
20 Jun 2017
Saw something on Twitter by ProActive yesterday, but can't find it now. It was regarding negotiations between ARL and the Duchy of Lancaster for a tidal flow project off the Lancashire coast. Will take about 3 yrs planning.Good news if it comes off !!If I can find it again I'll post link.Luck all, TP
marktime1231
31 May 2017
Re: Results out They talk about successful MayGen operation in Nov '16, but not the turbine removal earlier this year nor the consequences on income. Maybe that is a question for the AGM?A bit disappointing, the long term success of this company rests on its ability to deliver power to the grid and earn a rising income. Definitely worth another read to work out why they are paying £1M a year in loan interest when they have around £10M cash assets, why they needed to dilute my holding without asking by issuing £4M new shares to Hyundai, what the financial outlook is etc. Not much to take away in terms of what I can expect from my investment.Other events are all post-end and which should improve the balance sheet considerably.
