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That's lovely rhetoric Mancave but sadly doesn't alter the stark facts which are what really count.
Just a few weeks ago there were 1.5 billion shares in issues here. The BOD then issued over 7 billion more at the price of 0.0275p. This flooded the existing issue such that those discounted shares then represented over 80% of the resulting issue.
The shares were then consolidated on a 1-100 basis, meaning that the equivalent share issue price was 2.75p
Note that this share had already had a share consolidation on a 1-20 basis just 4 years earlier in 2015.
It doesn't take much common sense to realise that the shares here are not worth anything over 2.75p and those that imo foolishly bought at prices of 3p and higher were just giving beneficiaries of the 2.75p shares a quick easy profit at their expense imo. I have followed RRR and RGM for years and one thing is exceedingly clear. They have both always diluted shareholders brutally and thereby destroyed the share price. Just take a look at the 10yr charts to see the devastation.
What I have also observed is that if naïve mugpunters pay stupid prices for shares which were issues at a discount then the placees who made a nice easy profit will keep coming back to the trough for more of the same and the company will happily oblige them. That's the recipe for endless dilution and "death spiral financing", effectively placings at ever lower prices. The SP here has inevitably quickly dropped to that equiv placing price of 2.75p. It will stay there for some time imo because nobody is going to want to sell below that price and lose money. At the same time sensible people won't want to give the confetti holders an easy profit at their expense by paying more than 2.75p for shares. So you have stalemate. The problem is that position doesn't remain forever. Sooner or later the next batch of worthless confetti will be issued to raise cash (not least for salaries and expenses) and that will surely have to be done at discount again. What price will that be? 2p? 1.75p? So holders of the 2.75p shares will be wanting to get shot of them before any subsequent dilution imo and then get a nice new batch of newly discounted shares at the next placing.
The only people who win in these situations imo are the BOD and the crony placees and beneficiaries of discounted shares. All imo. DYOR
Hawthorn - N4APound has asked me to post the following as an alternate take of JP's Regency pitch:
"History is written by the victors.
And we are here, collectively to create a financial legacy for our families. A legacy for the countries in which we operate. And to make history.
We believe the opportunities presented in the natural resources market are worth £billions and here at regency we have a world class team poised to take advantage of the latest technology available to us in a deal that has been made with the leading subsurface companies around the world.
For 95% of our license areas I have made a deal with Looks Great on the Surface Plc to undertake world class evaluation of the ground using latest technology – they will deploy 40 trucks in convoy, that will decimate the earth, we will use divine rods and copper pots of water with magnets and rain dance techniques to determine where next we will not find any lithium, or cadmium or anything that is worth something, and we will leave no stone unturned to find all non-commercial areas within our asset base.
This technique of adding value, may involve a few cash raises from share issues – but these will be relatively small as time progresses and we will make sure you never find out who snaps up the shares purely because we do not want our investor base to get distracted from how great our technique of adding value is.
Prime example of success is sound energy – we took something on the brink of extinction, hyped it to high heavens to get all manner of people behind us with wads of cash and then got them to ‘invest’.
Several years and share issues later, not to mention many many multiples of bank balances achieved, we created an asset that was ripe for a buyer at a bargain basement price with huge upside potential. A couple of deep dives later we determined where the buyer should not carry out any activities thus making it hugely efficient for them to monetise the asset at a price that makes the future dividend payout ratios incredibly appealing to investors old and new.
We will do the same thing at regency mines and are just waiting for our new cornerstone investor to free their funds from sound energy, at huge profit, to reinvest here at regency. Exciting times ahead.
The Failure"
All tongue in cheek but this is the perception of many on the SOU board.....
Just observed from the SOU share chat board that RGM will now have the benefit of more of his expertise.
It may just be bitterness on my part because he contributed to me losing a large proportion of my investment in SOU (if not all) but I think not. It is more to do with the manner in which he made statements and promises to the shareholders about the value of their shares. This is not an allegation of his actions there is a great deal of evidence on this either on the LSE site or on records shareholders have retained.
Worryingly, for RGM shareholders, is the image that this chap has of his abilities and the reality. He clearly stated that SOU was worth a price of well above 50p and that he, as a champion deal maker would make this a reality.
He walked away from SOU (going to RGM) with a share price of less than 2p.
I am sure all of this has been posted by other SOU shareholders, some of whom I understand are looking to involve the regulatory authorities but I was just moved to make my own comment following the news he had finally formally left SOU.
Just to avoid doubt, it is not an issue to fail to hit oil/gas in this game - investors know and anticipate that - the issue here is the manner that the concept of a bottom level foundation of value was promoted by Mr Parsons.
Make your own mind up about what he is going to bring to this business...……….
H