NTOG website also says It is a fast growing exploration and production company...!!!! Really, if that's fast I'd like to know what LOFGRAN thinks slow is. The guy is a total c..k, who doesn't know his a.. from his elbow...
NTOG's website (presumably Matt's responsibility) is seriously out of date - the home page embarrassingly declares... "Nostra Terra has more than doubled its cash flow in the last 2 years, enough to reinvest and grow the portfolio without depending solely on the stock market to fund growth"
That's a laugh in the same way that gross misrepresentation is funny
Just to clarify: 2015 cash outflow totalled GBP (717)k i.e. representing a fall of GBP 1.2M (!!!) when compared with 2014 cash flow.
A SEDA product is not pretty for the PIs and typically it is linked to some form of debt or convertible loan.
Note 25 of the 2011 annual report and the RNS on 11-May-2012 confirm the one-year USD 3M loan facility arranged was �supported� by the SEDA between Nostra Terra and YA. Debt �supporting� equity distribution�link established.
Generally speaking the process with regard to a SEDA or other �equity credit� or death spiral financing products is as follows:
The holder of the debt instrument (sometimes but not always a convertible loan arrangement) initially shorts the stock, which often causes the stock price to fall, at which time the debt holder converts some of the debt to equity which can then be used to cover the open short position. The debt holder continues to sell short and cover with converted stock, which, along with selling by other shareholders worried by the falling price, continually weakens the share price, making the shares unattractive to new investors and limiting the .ability to obtain new financing. Hence death spiral.
How damaging were Matt's deals to shareholders at NTOG? Difficult to say, however, from the period Matt exercised his warrants to the period Yorkville returned a portion of the loaned stock, oil price (WTI) rose c. 20% and the share price fell c.30%.
I�m not going to speculate on whether ML lied to the NOMAD, I think it unlikely. Instead, you might consider the circumstantial evidence that NTOG has historically changed its NOMAD almost annually; most recently because the NOMAD resigned � not common. (Strand Hanson Limited 2016; Sanlam Securities UK Limited 2014-15; Northland Capital Partners Limited 2013; Shore Capital and Corporate Limited 2011-12).
So, Notable, again it�s not about BMD attacking the CEO, or implications that ML might have lied to the NOMAD.
This is about events that factually took place in which Matt Lofgran was complicit. He has legal and fiduciary responsibility to the company and shareholders and it is questionable whether those responsibilities were compromised by the things he did. The value invested by PIs was structurally eroded to facilitate Matt�s financial gain. Remember, Matt exercised his warrants to acquire shares with money he personally borrowed from Yorkville, he then loaned Yorkville the shares which they then shorted. It�s as straightforward as that.
As an aside�per Nigel Somerville�s Shareprophet�s post 09-Jul-16 on Servision ��and so today we learn that the company has amended the terms of a financing package with YA II PN Ltd (otherwise known as Yorkville) which involved a loan agreement backed by a standby equity distribution agreement (SEDA) � for that, read �death spiral�.�
This is a well-trodden path by Yorkville and not a pretty one. Matt's involvement therefore is
RNS Number : 1858F Nostra Terra Oil & Gas Company PLC 26 July 2016
26 July 2016
Nostra Terra Oil and Gas Company plc ("Nostra Terra" or the "Company")
Sale of Chisholm Trail Prospect - Update
Further to Nostra Terra's (AIM:NTOG) announcement of 30 June 2016 regarding the sale of the Company's 20% stake in the Chisholm Trail Prospect for US$2.1 million (net to NTOG), which is operated by Ward Petroleum Corporation, the Board is pleased to provide an update.
The sale is progressing in line with expectations. A non-refundable deposit in the amount of US$100,000 to Nostra Terra was received per the terms of the agreement. The sale remains on course to close no later than 17 August, 2016.
Thanks for that. I'm not sure it makes difference who's running it to be honest. Lots of boards complain of the same,....poor communication.....late updates etc etc...and so down...dilution...consolidated blah blah....plus aim. I won't buy any more again and whilst there may be spikes that's it and it depends who's going to get caught or get out in time. As I've said before.....all shares come down in the end on aim anyway. 99.9% mugs game. Best of luck ousting matt or giving him a performance improvement plan! It would make difference sadly but best of luck. Machine off OFF
Hi BlueOcean, unfortunately my post was cut in half, I didn't realise there was a limit or that I was droning on. The bit chopped off was trying to explain that a SEDA is not a shorting instrument, they lend money and are given shares to cover the loan which are sold at an agreed price with the company. As to BMD's blog, as a former director of an AIM company, he should know that you can't lie to a Nomad or your lawyers when putting out a statement like the SEDA one, I don't understand his attack on the CEO.
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