Well put, its never easy i suppose and as always a lot of questions that need to be answered , only time will tell. I remember the talk about this share pre IPO on all the Falkland island oil share boards and the hype about potential for it was huge. If only it had a slice of that excitement now. I got £10k at 1p anyway so hope the board can muster up a few positive answers.
RE: I really
What stops Kea doing the same? In theory, nothing. But the RRL deal was not a free lunch; it relied on the investor being confident in the fundamental assets, and getting two non-executive directors onto the board, and getting warrants at a rate of 1 for every 3 shares. In total, they gained (with options) 949 million shares in a company that had, at the time, just under 4 billion shares in issue. What stops Kea in practice? We're talking about funding a) for the day-to-day running costs and b) for a last-ditch attempt at a successful well that would demonstrate the value of the Puka asset. A big gamble, in other words, which is why many equity funders (like Darwin) buy at a discount to the SP and sell up for a quick 10%, rather than take the gamble of staying in through the drill. To turn the question around, which of Kea's assets makes you confident to buy at a premium to the current SP? Any of them has *potential* - but you can buy into that potential at the current SP. Why would you pay a premium, and what return would you seek by doing so? Who (other than perhaps MEO) would be able to develop that confidence based on the current assets? Are we funding a certainty, or a gamble? In short, nobody will pay 1p for something that's freely available for 0.69p unless there is going to be something in it for them. Warrants to cover a premium are only the answer if you (the investor) are pretty damn certain of the success of your investment. That doesn't mix well with drilling for oil based on a re-re-re-interpretation of the geological model, having first apparently drilled too far to the left, then too far to the right, and then too deep! I suppose, conceivably, the BoD themselves could be the investors in such an arrangement. They are about the only people who might have a natural incentive to pay a premium to protect their already substantial investment, and who might have the confidence that they can carry on drilling until their warrants are worth something. However, the tone of warnings in previous results about Kea's ability to continue as a going concern does not suggest to me that they have unshakable confidence or unlimited funds to back it up; they need funding, on whatever terms they can get it, and they don't yet have the proven, producing assets to be a particularly good risk.
RE: I really
correct me if im wrong but I made an account just to ask this question. in May RRL raised capital at 1p / share when the share price was around 0.7p so why does it keep being mentioned that KEA can not raise capital higher then the current share price and what is stopping Kea doing the same? from rrl rns back then : "As per the terms of the Subscription Agreement, the Investor will now be issued with Ordinary Fully Paid Shares of the Company (Share or Shares) in two equal tranches. In each tranche, the Shares will be subscribed at a price of £0.01 per share, representing a premium of approximately 49% to the mid market share price at the close of business on AIM on 14 May 2014."
RE: I really
With the disclaimer that the following is purely speculative, I could see Kea following a very similar path to that trodden by Beacon Hill (which appears to have had a very similar relationship with Darwin). Funded previously via CLNs, then shorted whilst a funding crisis took place, then announced a capital reorganisation for the same reasons... and right on top of the reorganisation, same day, a placing for £1.25m, to investors arranged by and including Darwin. No guarantees of the same thing here, of course, but it just looks too immediately comparable. Similar market cap, similar sector, similar amounts of funding required to see through the next stage if it happens. This is what I had in mind before in suggesting that Darwin will wait until they have Kea over a barrel, then throw it a lifeline (of sorts). Doesn't tend to do the share price any good, but it would keep Kea alive through another drill. Can't see that happening before there is word from MEO, though, as there has to be a drill to invest in...
According to LSE it is ordinary
at 8.39 for 30k.. gosh luck some people hey.. i have a quarter of the share they have with the same amount invested!!
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