UK 22:00 Saturday, 7 November 2026
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
I've had it double sourced this afternoon that Paragon Diamonds (PRG) is arranging a placing. The company released its interim numbers this morning and confirmed its intention to buy the Mothae Kimberlite mine from Lucara Diamond Corporation. It is my understanding that the company will need £8million to finalise this deal, which it will not be able to cover fully through debt financing. There is also the small matter of the £500,000 loan Paragon needs to repay in the next two weeks as well as the money it needs to keep the PLC lights on.
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Comments
Woody44
Does anybody know who the £500k creditor is? Why did Northland not require disclosure of the counterparty to the loan agreement when it was announced in June? Surely this is an omission of something likely to affect the import of the information contained in the announcement (AIM Rule 10)? Who is it that at a whim could call in the receivers? Perhaps it is they that have the short position?
Tim reynolds
Egg….face…..on ……..well they did warn you not to print the article . Hoorah for manduca re todays rns . Will shareprophets admit they where wrong …………..
Tom Winnifrith
Tim
a) half the debt is convertible at 5.5p – so that is er.. a placing
b) how will PLC costs be funded until mines in production?
c) spokesman accepted there was a placing. there will be
T
Tim reynolds
The current s.p is c 4.8 p. Hence the proposed debt is not yet convertible . So therefore its not a placing . Your article clearly suggests a severe discounted placing .
Tom Winnifrith
T
a) it is always convertible
b) how s PRG (net cash minus something) going to fund itself until mines are producing.
T
John Newcombe
Amazing that even after such obvious ‘egg on your face’ and shown to be no more than wrong, your usual stance is to try and twist your own comments into something different, your comment “I’ve had it double sourced this afternoon that Paragon Diamonds (PRG) is arranging a placing” is so clear as to it’s meaning even ‘double sourced’ eh and yet you have the audacity to try and wiggle out by using the convertible as how do you say it er..a placing.
Grow up man and admit when you are wrong, everyone see’s it except you.
Woody44
d) The money’s not in the bank and only a term sheet has been signed; in fact, the headline of the RNS is quite misleading.
The £500k mystery lender’s deadline is still very soon and it looks like there is work to be done before the new cash arrives. If there is any delay, there may yet be need for a placing.
P.S. Come on Northland, who’s the mystery lender?
Tim reynolds
Well they are getting $ 15 mill and have negotiated a $2 mill reduction in mothae plus only 2 mill upfront plus payment schedule instead off 8.5 mill. Further they have alluded to further cost saving and also the rns clearly states itgt will fund “production “ and manufacturing…… You have sources which i do not all i can do is read the rns so you maybe privy to insider information that i do not . But you have to ask yourself the question if the term sheet is correct and they are agreeing to 15 mill with half convertible at 5.5 . Prg accepting an imminent placing for short term plc money to me at a severe discounted price does not seem to fit . regardless of this without manduca the lights would probably already be iff here as all grimmer and co could pre ious manage was death spiral darwin financing .
drunken sailor
Would a discounted placing have been kinder to shareholders? 10% coupon on the $7M and 7% off the top line to pay the INTEREST on the $8m, with a charge over the assets, The conversion price is window dressing to make people think the shares are undervalued. This looks like daylight robbery with a gun held to their head, maybe they could not get the placing away and had to give in to this extortion instead.
Tim reynolds
T
http://www.stocktube.com/video/paragon-diamonds-chief-on-acrux-funding-deal New interview from manduca . At the end he says acrux deal to be done by the end of the month . So that means at the earliest the end of the the month . So yes they need more funding asap at min to repay 500 k . So odds on a placing . My guess would be itgt group to take some equity .
T
boyo
Tim reynolds i think things will be finished up within the 7-14 days imo
From RNS
“Extension of the £500,000 loan facility due on 30 September until 14 October to ensure that financing contracts can be properly concluded”
When he says about ensuring that the contracts can be completed it seems like he feels pretty confident on not missing the final payment date or he would of worked out a longer loan extension imo given how firm is on not diluting shares.