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Following the loan they made payments of 58k in May, June and July with 175k o/s to Riverfort. The next 58k is due on August 24th. Old Angus would let Riverfort have shares, thus dilute and then drive down the sp with sells. Given our normal average volume the overhang would last ages. If the new Angus pays the 58k it shows a different culture but also confirms confidence in cashflow.
Just replayed the video Lucan says “ we don’t have fancy offices in Mayfair with portraits on the wall”. Apologies I miss heard. What he said though is that he will be reducing overheads and not renewing the lease on the London office in September and that this would produce considerable sayings. He was also talking about hot desking and video conferencing. So I assume Chiswick office will go.
"Sorry are you making it up? No way in a million years would they have an office in mayfair,"
Believe it or not IGAS run their operations from a fully staffed office in Down Street just of Piccadilly in the heart of Mayfair - how they justify the expense is wayyyy beyond me. UKOG have an office in Guildford, Egdon are in Odiham and Europa sort of drift around London from one short lease office to another as far as I can see. Third are based in N Yorks these days
The office in Mayfair reference comes from the July Lucan video
In predicting cash burn , have you considered the charges that national grid will make for their connection - it will be six figures imv.
Captain , I think some reading of the RNS’s would help you. They have just under £3m in cash with just over 150k to pay to Riverfort. In September they are ditching their Mayfair offices. Next year they expect £3m net profit ( conservatively from Saltfleetby) and have a guaranteed buyer. Do you get it now? Doh ! A businessman will use the cash to fund Balcombe ( loans , whatever). Am I the only person here who runs a company?
A proportion of the issue proceeds of the New Loan Note will be immediately used to repay £250,000 of the outstanding £600,000 of the earlier Convertible Loan Note issued on 24 October 2019 led by Riverfort Global Opportunities PCC Limited (the "Convertible Loan Note"), and additionally the terms for conversion of the remaining £350,000 have been altered as follows. New repayment dates have been set at six equal monthly instalments between 24 May and 24 October 2020 and, if the Company elects not to pay an amount on the due date, that amount will become either convertible at any time as per the original terms or simply repayable at final maturity. Otherwise no amount may now be converted. 15,000,000 warrants have been granted to the noteholders at a strike price of 1 pence in exchange for waiving rights under their notes
what I am saying is that warrants will be exercised at 1p. the right of exercising warrants rests with Riverfort. nothing can be done about it. However, the loan amount will be repaid at 50k a month until its finished in the next few months.
High roller with all due respect you do not understand investment. Check out the last repayment. It was from cash Lucan did not let Riverfort convert. The warrants are all about not letting Riverfort convert. Dilution is the biggest enemy we face now.
repayments will continue as planned . Riverfort loan is peanuts now. They can exercise warrants worth £150k which clears the balance practically. expect the warrants to be exercised as the price crosses 1.5 pence. sf is fully funded. balcombe EWT is not that expensive. They are not drilling all over again. clear the drilling fluids and establish oil flow.Balcombe is firmly planned for the final quarter and so is sf works completion by November end. We may witness a huge rise in SP around Nov/dec based on potential and imminent revenues at that time.
Meanwhile, there is nothing stopping angus to raise bank loan capital secured on future gas revenues .banks are desperate to lend money and will lend/discount gas sales to shell ,a blue chip customer. The whole point of gas off take agreement is enable the company to obtain funding secured on future sales. Its a very common practice. GL knows what he is doing.
Fact is riverfort warrants will be exercised and in terms of cashflow its a zero sum game now. there will be no discounted share issue. my 2 cents
On August 24th Lucan will either let Riverfort convert below our NPV = dilution or will pay them with cash from the loan. If he does the latter he is a businessman if he does the former this is still a lifestyle company. The decision he takes will determine the investability of the company. My view is that we have sufficient cash to pay off Riverfort. Then we need to get Saltfleetby producing cashflow and only then address Balcombe. Any attempt to raise capital for Balcombe would be detrimental without the cashflow from Saltfleetby. Ideally the drill will be funded from cashflow and loans not dilution unless sp rises very strongly above NPV.