i actually have the funds to par take in a rights issue but watching my large profit demishnand turn into a loss Thursday and Friday I am likely not going to bother. Looks like more bad management to demolish share holder value. No parallel but got fecked over in African minerals made it all back here Wednesday at 44p and then say on a 20k loss at 33p Friday. Need to tree carefully now
I said earlier it could be panic action to cover what may be delayed payments. The KRG are totally without scruples and won't be rushing to pay out to the operators, imo! Also they owe us far more than we can ever hope to get in the foreseeable future. We are on a hiding for nothing...Gkp must sell at least one of its fields AND QUICK to meet their financial commitments...deadline June. A deal may be underway...but cash burn won't do us any favours once we get to the stage that AFREN did...ran out of cash as their bod did nothing? Gkp are just hoping to stave off the innevitable...for what...a sale or a back up payment, either of which is absolutely crucial for our survival? What IF the RI fails to gain support? After the recent shenannigans, why not just buy on the dips? One other point ...why would shorters lose from a RI...the nature of the way shorters operate, they'll keep shorting?
Its llike the cfo has stuck his arm up with the answer like some kid in a class room and said " please sir, I know how to raise cash, what about a rights issue" Surely there are other options to raise cash until takeover day,even the sale of 50% of AB to a supposedly cash rich hungry (and Hungary) MOL to shore up their reserves is a possibility. Any sale of assets would increase the sp before takeover, imv. However, all we can do is wait and see. But good luck.
Duffy agreed. if it is true then I'm puzzled. here's why. Usually companies do this for expansion or fixing a cash shortage. if they are using it for expansion them it implies that no asset sales are realistically on the near term horizon. if it's to get cash it should have been proposed a long time ago and implies a lack in confidence on payments. I personally would be surprised if they opt for a rights issue given previous RNS contents. I've not been following recently so not sure where this speculation of rights issue is coming from .If it's true one would hope it's for a specific tactical reason other than cash shortage or expansion. for sure The BOD need to speak up quick to confirm,reject or provide a tactical reason .GLA as usual
we were told that prolific producer Shaikan 11 would be...further payments expected soon...enough to meet interest payments $90mil in bank ...why are RI needed...unless just a suggestion in case the 75% doesn't get carried ?
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.