Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Still Wondering how the SMP update went, if there is any legitimacy to the askell claim, and how/who the hell lets an aim listed company with no cash on the books run up a $2.7m credit line, and what it is actually for. They must have done no DD at all.
Adraian. Agree because we are not dead yet. We have proven oil so someone will want it as long as our BOD don’t close us down before they make a move. Our books must be toxic so they don’t want any newcomer l to view them.
As AAOG can do placings, it would make sense for the company to have a share consolidation. This would make it possible to raise much needed funds.
Given the last vote count for the disposal, Forum could also just call a gm and opt to take it private “to save on listing costs” if they wanted to, like many other aim shares of late.
0.2p/ £800k Mcap on bid. All time low sp and not a peep from the board who are overdue on reportable news.
but they don’t care aslong as there is still cash for their overly paid salaries. They have drained more than the Mcap as salary and the company has only been listed two years old ( to the day almost....)
Surely Forum, could take over the company anytime and still RTO an asset? The odds of Zenith completing the deal by the end of March is very dubious at best. So we need Forum to take the reigns ASAP.
They certainly are a red flag, something is really wrong with the market and its regulations when the company can have an open short against itself.
My gut says they have approval, if they dont its one big bluff.
I dont think SNPC are too happy that the deal values their share of the license at less than the debt they to AAOG Congo, as It must make it harder for them to arrange financing or justify repaying the debts at the moment but Zen committing to pay the license fee "Bonus" is the bribe that the officials need, we know its all about the palms you can grease.
Those ESA shares are now a huge red flag on any investment - if brought in by a CEO then sell immediately.
DS and Zenith certainly peas in a pod
Perhaps AC is concerned about a vote of no confidence in him soon, as some think he will bin the Azerbaijan asset for which most there invested, he is taking positions to take positions - if luck favors him then one of the assets will come true, if not then the AIM lifestyle Director continues his dance to the next asset.
Can any truly see Congo Minister approving this company on this Licence, the one which SNPC has the highest 44% share of any and is therefore much more of a partner/operator ?
Forum has double their market cap on account last year just as working capital.
Infact that might be why Zen just took one on, AC has diluted his own voting rights alot over time, this would hand him another 50m votes, which for example he could use if disappointed shareholders decided to put an EGM forward with a resolution to boot him out; he could vote to keep his own job, just a bit of a conflict of interest.
"Equity Sharing Agreement
Zenith is pleased to announce that it has entered into an equity sharing agreement ("ESA") with a consortium of institutional investors ("Investors") for a total amount of NOK 9,700,000 (approximately £810,000 or US$1,051,000)
Highlights
· Subscription for 50,000,000 new common shares in the Company (the "ESA Shares") by the Investors at an issue price of NOK 0.194 per ESA Share (the "Issue Price") to raise gross proceeds of NOK 9,700,000, representing approximately 9.86% of the Company's enlarged issued share capital (the "ESA").
· The NOK 9,700,000 gross proceeds of the ESA will be pledged by the Company pursuant to the ESA with the Investors. The ESA, details of which are set out below, entitles the Company to receive back those proceeds on a pro rata monthly basis over a period of 12 months, structured to commence one month following the subscription of the ESA, subject to adjustment upwards or downwards each month depending on the Company's share price at the time.
· The ESA provides the opportunity for the Company to benefit from positive future share price performance."
are you on about ICON (was WDC prior to rename) - He was a director but 'stepped down', he told everyone he was putting a £1m advertising campaign through it that has yet to appear, and was positioned there by EGHOS who milked shareholders with an ESA / ISA type deal that we had.
If you are trying to find the problem Its the ESA / ISA funding that is becoming the bigger problem with aim companies now, as more are taking them on over standard CLNs, and as shown here when the company directors can use the voting rights for shares that have been issued but not yet paid for against paid up shareholders it can give voting control to the directors at no cost to them.
Its worth tracking ADL as in almost exactly the same position as Forum and AAOG - PI have lost 98% of worth
new investors and new board have come in, stumped up 500k, , got the shell, plans to RTO an asset - news in 2 weeks expected
Forum invested £400k, plan to take over board, RTO and onwards
Can anyone remember who previously posted about the company that DS worked for before being fired, it was said that the company in question had 8.5 million and when DS got fired all that was left was 2.5 million, I’m sure it was the times financial that interviewed him.
Once again, thanks in advance if it can be re-posted.(Gathering information)
Another option has been undertaken by ADL shareholders, as posted on Baron oil BB
" Have a look at ADL which is shortly to change its name following new investors have kicked the old BOD out and invested more than £500k of there own money and now want to increase the share capital to drive it forward. Like many investors in ADL I lost complete faith and money with the old BOD but can see the new investors changing that. "
Is it possible for AAOG to do a share consolidation 25-1 in able to raise the share price and raise much needed capital?
depends on where the debt is held, lots of money was drawn from AAOG PLC to AAOG congo, so AAOG congo owes AAOG PLC money on the books, and AAOG PLC would be listed as a creditor If AAOG congo was liquidated, apart from the listing costs and funding the ATOG fiasco AAOG PLC should have very little debt, most will (should) be held at the congo level.
Thanks for the clarification.
So it's a case of fingers crossed for Forum.
Papa
Technically, shareholders get a share of the assets following their fire sale, which is basically the Licence worth on the open market to whom ever may want to buy it (after Minister approval of course!) less paying off creditors etc and legal costs.
http://aaog.com/archive/Admission-Document.pdf
P299, Section 5.7
Distribution of assets on a winding-up
“On a winding-up, the liquidator may, with the authority of a special resolution of the Company and any other sanction required by law, divide among the shareholders in kind the whole or any part of the assets of the Company and may value any assets and determine how the division shall be carried out as between the shareholders or different classes of shareholders.”
Im sure PI are the lowest class of shareholder and would be the last to be paid off, if at all, so would end up with next to nothing or enough for a fish and chip supper perhaps.
We do have a ray of hope in Forum , they didn't invest £400k for this to go to the wall and just be one of the ones picking over the carcass. All should be revealed in the next few weeks either way.
Tiburn.
If aaog go into liquidation will all shareholders lose said shares.
The time runs out for AAOG in just five weeks, end March = all funds expended.
The disposal time period deal also then runs out end of March.
Forum have to step in and take control of AAOG board and find the company - or lose their investment.
The only other asset AAOG have is to sell their remaining Licence asset of 11% to survive longer - but to whom? and in what timescale for the cold cash up front required? - In any case this sale and last licence position relinquished on Tilapia still requires Minister approval, which hasn't been forthcoming to date on the main disposal to Zenith since Dec 27th. Therefore this is not a viable means of extending time for AAOG, nor it seems, is gaining a Zenith loan due Jan 25th regardless of disposal completion or not, nor Zenith payment each month as per the disposal terms.
AAOG still owe £2.7m to mysterious creditors aswell, none of which is being picked up by Zenith as per the defaulted agreement, Legal challenges may also occur in these last days.
Frankly, its extremely questionable if the deal finance terms could be honored by Zenith even if the disposal was confirmed tomorrow, or in next few weeks, they are in desperate straits it seems and would look to their own survival first.
So as it stands, AAOG go into liquidation in 5 weeks.
Forum could wait until the end of March, take their three board positions, retain all of the Tilapia licence, then sell this asset on to another company for its true worth, not the peanuts scale of the Zenith deal, but based on this being 56m of oil found and Djeno in reach.
That hypothetical deal that may be in negotiation now, in Brazzaville, London and Manilla.
Or Forum could drill it themselves of course.