It is still bad news for RRL when that happens. No doubt about it. One of the main reasons I bought and held RRL is because it is Isa allowed. I certainly would not hold it if other aim companies are allowed. I would drop it for GKP this instant.
I am sure many people who hold RRL are like me so very very bad news.
Thankfully shares and warrants issued for loan to IOP are exactly as per the merger announcement:
338.983m shares issued at 4p 169.491m warrants (options to buy at 4p in 2016)
These resolutions (1 and 2) are effectively your chance to vote on whether you want the merger to go ahead as without this loan it will not happen.
Other resolutions are retrospective and relate to:
- previous issues of shares and options to displace YS Global/Crede debt (as announced with the Texas sale agreement RNS I think) - previous share issues to take strategic stake in CTR/LAR
I need to re-review in the morning to make sure I have got the right end of the stick but on the face of it (and for what its worth) I will vote:
- yes to the merger loan, - no to CTR/LAR - think the Guatemalan adventure is an overstretch - I would have preferred our share capital to have remained focused on existing assets. - no to the YS Global/Crede debt displacement on the basis that even though it was a modest share issue, funds from Texas completion should be able to be used by the time of the General Meeting to pay these debtors rather than issue share capital. However I am a little ambivalent as to these share issues as they were at a much higher price than currently so voting down this resolution would effectively be sanctioning a buyback at a much higher price than the current one - will have to mull this one over.
Not sure what happens if the historic share issues get voted down? presumably these deals are contingent on being passed by shareholders and we get our cash back?
Anyhow long night on the juice and I have probably missed a few things so will leave it to more forensic minds in the morning
1st tranche : 267,944,818 shares 2nd tranche: 71,038,233 shares + 169,491,526 options Plus 20,338,983 placement options to advisors Plus 48,445,573 shares & 15,708,801 options re prior issues under financing agreements Plus another 16,000 shares & 32,275,862 options re prior issue under financing facility Plus another 40,000 shares & 40,000 options relating to a prior issue.
I know it is none of my business but you should reconsider your investment strategy of investing nest eggs in high risk outfits such as this. I don't know how old you are and all that so I might be way off with my concerns......
Perhaps have a good look at your personal circumstances and portfolio etc. Nest egg and RRL doesn't make sense.
Ditto! I have a nest egg of well over 1.5 million of these. If my money was not here, it would have been in the bank earning 001% interest. I think and believe we will live to see that dream yet and hopefully not the nightmare. Read CH's comments below. Hope that sheds some light on RRL' near term future. He quite clearly explains why they have to work in the winter month in Russia. Swamps become liquid in the summer season hindering any work. Winter month swamps become frozen and work is far easier. Lets hope that 16km pipelines gets built and we see another 4000bopd added. That's some serious production increase and will help fund other projects.
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