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Pump & Trump,
I don't like it one bit based on what info they have let loose thus far.
Too many holders dreaming up the "best" scenarios when all I can see is Potter and Co feathering their own nests to prolong a future in employment.
They have not tried too hard to convince me as a Perseverance 1 investor that massive dilution for a 2 bob company is a good diversion. Drilling Perseverance 1 then 2 then 3 is best for me.
Enough of dreaming up best cases and hoping that a White Knight is sitting on the sidelines waiting to assist BCP/CERP, why would they unless they see something we are unaware of? And, if we are unaware of something then please make us aware.
I'll finish with a bit of tautology (I had not heard of that word until last week)
We don't know what we don't know....
They are not issuing 10Bn shares to raise £200,000. Good Lordy..Lol
As Mr Linton says, this is a ceiling for the maximum allotted shares the company will have available to issue if it chooses to in the future at a market price. The par value of all BPC shares is 0.002p, (please look at your share certificate) the increased share capital increased to £200,000 which when divided by 0.002p gives a 10Bn share structure. Lets say P#1 is a success and the company want to raise money to drill develop and produce oil in the Bahamas all for themselves for the next 30 years, and they want to raise money. They will have a share structure that will enable them to be able to raise at whatever the sp is after a discovery knowing they have enough authorised share capital. So they can go it alone if they wanted to after a discovery at Perseverance. It's all about having optionality. Of course those people who are not optimistic about BPC will say this is just confetti dilution that devalues the sp. However, just remember these shares don't have to be issued. aimho, dyor.
P&T,
Its good to have the debate. I guess my main point is that the new 10bn figure is the upper ceiling and should be seen in the context of total number of shares in issue after the merger.
Don't get me wrong, if P1 comes up dry and the SWP value is not realised as quickly as possible the story drags on for many more years and becomes harder to reach the level of value we all want from this investment. Just for the record, I am pretty confident in both of these area's producing value in the next 12-18 months.
Linton,
I totally disagree, more dilution to raise £200,000 doesn't make any sense when you are sitting on nearly 10m and the 200,000 is a drop in the ocean compared to what is required to drill?
Before proposing to devalue my investment you surely have to divulge what you are going to be doing with the money?
As for directors holdings being aligned with ours, that is half true on the AIM as they award / give themselves options to buy shares at much lower rates than LTH.
Lallee, what are your thoughts?
Having sufficient headroom available to issue new equity is always a basic requirement of a well run company.
It doesn't mean they plan to use it straight away or at all in the near future.
Both management teams & boards own a significant number of shares so they are aligned with shareholders to a large degree. I am more interested in the final financing package for P1... hopefully we will hear shortly.
Resolution 4: "....the Authorised Share Capital of the Company be increased beyond its current registered capital to having a share capital of £200,000 being 10,000,000,000 shares of 0.002 pence each."
It'll depend on what they have in mind to use that for...but generally often not a good sign for PI's as the potential dilution is huge.
Such a shame BPC didn't just progress as indicated after securing the CL's to cover drilling costs (and perhaps also secure a farm, and not 'miraculously' after this deal which is possible but the effect on the SP will not be as great as it would otherwise have been without the deal).
That's why this deal announcement did not srike me as great (and of course they always give reasons to everything but often not genuine).
It is what it is......that's the way the game is played at expense of most PI's
What are everyone's thoughts on motion 4 of the AGM.
Looks like more dilution is very possible?