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PS BV yes, the markets will see this postponement of needing to pay off a fairly imminent big fat bill in shares (or the equal postponement of a need to do a placing in the short-term) as a good thing.
Both options would have resulted in a double figure dilution against current levels of shares in issue, so yes, this deferment is a positive thing.
Because if an outfit like Knowe expects they can double or treble their money in the short(-ish) term, that's exactly what they'd go for.
If Knowe expected the SP to get to say 2.5p by say mid next year, why wouldn't they agree to get given 140 million shares in April 2022 at 1.0p each? (Actually it might have been 155 million shares at 0.9p, depending on whether Knowe gave written consent to the 0.9p Sept 20 placing).
The markets don't dislike the RNS looking at the SP, that should be a big hint to anyone.
HITS, No, it does not make sense.
How can you conclude that Knowe agreed to the CLN extension deal because they thought that the SP will not get to 2p or 3p?
WG818. Sometimes you have to do what's needed, not what you always want to do by weighing up the best option at the time. Conserving cash is always the best option IMO. ATB.
Yanis, obviously Knowe the noteholder would have had to agree to the change in terms - the extension, right?
So if it hadn't, one of two things would have happened.
a) ANGS would have had to raise enough cash to pay Knowe off before Feb 20th next year (which would have meant a placing for sure). Knowe would have been paid off its £1.4 million and would have got a load of warrants along with. Taking this option would have been entirely down to ANGS to choose.
or
b) Knowe would have been issued with 140 million shares at 1.0p on April 20th next year. Again, this would have been entirely ANGS's choice to make - but I think it is by far the most likely one (because I cannot imagine ANGS wanting to do any placing before first gas).
So, when presented with the above options (and particularly option b), or a 12 month extension for an extra £56k of interest and 11 odd million free shares, Knowe clearly decided that the latter was better for it.
You therefore have to ask yourself what realisable value Knowe ascribed to the 140 million shares it would have got under option b)?
Make sense?
A successful “what” BV…….He doesn’t seem to good at adding up or deal making if that’s the case!!
I would have a bet that he would turn up 3 or 4 months late to appointments judging by his records over the last couple of years come to that!
HITS, bang on? How do you justify this “ That does suggest that they may not be expecting the 2p or 3p that some are predicting.”
On what logic/basis?
Nomlungu
"I think most would agree that ANGS are pressed for cash, so the convertible loan could have been expected to be settled with shares, not cash, early next year. If you agree with that premise, then the noteholders have decided that getting the free share and 4% return on the loan is preferable to be being issued with shares at 1p. That does suggest that they may not be expecting the 2p or 3p that some are predicting.
It does remove some pressure on ANGS's cash resources, which is a positive if they are able to avoid doing a placing as soon as I expect."
Spot on.
BV, is all good now. There are two things that could possibly cause a delay (1) EA and (2) equipment delivery (drivers).
GL seems to be more concerned about (2) than (1) and this is a good think - it implies that he is not concerned about EA approval, is in the bag.
As far as (2) is concerned, we got Brexit to thank for it, and the whole country has the same problem, even the supermarket shelves are empty. In any case, any delay due to (2) should be minor.
WG818. I'm not being funny mate but GL is a successful banker, are you?
WG818. you may notice that GL uses the word conservative and caution for a reason. It's prudent being safe rather than sorry!
C Boy
You mistake realism for negativity. And we both know you won’t filter me as you might miss something important!!
Why take the deal?
Prudence.
Yanis
But they gave figures of £17.1 million for the field over 4 months in the Q&A . Half to Angus of course so if they actually expected it why take the deal?
Expect a first gas delay update. If so then yes this is a very good deal for them and shareholders.
It will allow the company to build up a cash reserve before they have to pay the loan. That's a better position than to be constantly in debt during early production.
nom. I'm not bothered about the back scratching as long as we all make money in the future.
It's exactly as GL states:
"This extension strengthens the Company's medium term capital base and in particular will relieve the Company of a possible cash outlflow in the early months of production at Saltfleetby and will be greatly beneficial to all shareholders.
balancedviewer,
I think most would agree that ANGS are pressed for cash, so the convertible loan could have been expected to be settled with shares, not cash, early next year. If you agree with that premise, then the noteholders have decided that getting the free share and 4% return on the loan is preferable to be being issued with shares at 1p. That does suggest that they may not be expecting the 2p or 3p that some are predicting.
It does remove some pressure on ANGS's cash resources, which is a positive if they are able to avoid doing a placing as soon as I expect.
WG, 11.2 mil shares to secure the LCN extension is not bad at all. Also, Knowe will sit on these shares, they are not going to flog them in to the market. Watch for the TR-1, is coming soon.
The Knowe loan now will very likely be paid off with cash from the gas proceeds and avoid unnecessary dilution. All good.
It’s very much how you read it as normal. If you believe they are still on schedule as per the Q&A answer it seems a poor decision given the amount for the 2 months they calculated they would make!
If you read it as there is likely to be a further delay then it’s actually win-win for Knowe and Angus. Just a bigger win for Knowe. ….Just more dilution for shareholders as usual.
BV, for some reason these guys are only happy when things are not going well for Angus - I don’t understand this.
As you know, I been with Angus for many years now. I was furious after the Brockham failure but quickly got over it and begun to average down. Currently about £50k under but I am confident that I will see a hefty profit. Is taken a very long time but we are almost there. Glad I averaged down, it will pay off.
Yanis. I've noticed nom no answer has gone quiet, more posters agree with us obviously.
BV, my friend I am now very confident that the SP will go up. The only hurdle, EA approval, should come soon IMO - GL is still confident that SFB will be up on time (was in the RNS).
Some people have blinkers on and are searching for negatives, struggling to read the full RNS. Now, as I was saying before, the CLN is confirmed as a non-issue.
Yanis. You just carnt help yourself can you LOL!