SeaEnergy - Live Discussion

Re: Mello2014 investor event I asked the CEO at Mello whether they would need to raise funds. He gave a categoric 'no' answer. I actually think raising some funds to institutions only would be a good idea. This company needs institutions on its share register to give some oomph to the share. However, having bought back shares at 36p a couple of years ago, to issue shares below that now would look a bit silly, and would possibly imply that they dont see LOGP rising anytime soon. Given they are cash generative and profitable now, there is no urgent need. Even in the event they won a tender for their ships to service offshore wind farms, they have the option of raising debt finance. The directors and ex directors hold 25% of the shares, and almost half the staff have just participated in the SAYE scheme, so I doubt it is something we will see, certainly until the share rises to over 40p. As far as I can tell, the only cash committment they might need in the short term that cant be covered from existing income is some money for an Asian HQ for R2S, but as that will probably be a small rented office initially, that shouldn't need special funding. The free float of shares here is very small, which is why we saw the rises on mainly tiny volume, and why the opposite is happening now, also on tiny volume. The mms only make a market in 10k here, which is less than 3k's worth. I am hoping the new Nomad will change it to 25k, and better still, move it onto SETS, where institutions can directly get involved. The cash balance was approx 600k-700k on 30th June, and since then R2S has had a record quarter, and marine a further 2 ships under management, so its fair to assume that the cash balance is comfortably over 1mln. Or am I missing something?!

SeaEnergy Live Discussion

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