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full listing here. Cash shell with a lot of losses. Cash now for another year. Wont be suspended. A dawg but always bounces a bit.
Lol They milked so much and failed at Angus, now looks like they need new credit lines for new ventures, to similar to the existing board. But you might be able to flip a few bucks. Good luck.
yes thats all you can do with chal
and yet sub £500k and main market listing. Should be attractive to someone.
With them two If it’s like Angus and saltfleetby it Could be another £4-10m raise for a £1 asset purchase.
Debt holder will be happy.
True. But all the great risers have had, shall I say, a questionable background.
They do indeed, this Should set a 0.1p floor initially and give holders a ray of hope atleast.
RTO over at Attis collapsed; wonder if that undisclosed party would be looking at us instead now ?
Consider it as The debt holders appointing them to attempt to recover said debt instead of letting it go bust and them losing It all.
I’m not a mind reader but I’ll give fortune telling a go and I will guess how the story plays out, as follows:
They flip an asset in to chal, by tid and luc taking a director roll, they convert the $100k debt to force the approval at a Gm with around a ~25% holding that they will have plus stock the other directors hold.
Then some of the old debts get converted to stock and maybe partly refinanced, they might knock a bit of debt off to make an rns look good, knowing they can make it back later / plus some extra cash is raised to finance the RTO period, say £200-£500k. Converted stock is sold off by the big debt holders in to a ramped up speculative share price, they are happy they recovered some cash and with them paid back tid and luc can borrow new funds from them on new terms with more fees.
Tid and luc don’t care about the $100k, they get it back in wages, fees, perks, kick backs one way or another, they might have even been fronted the cash by the RTO target.
Asset will probably be a US oil play to utilise chals US losses, plenty of Texas and Permian assets going bust, or urgently need refinancing, or are being taken over by debt holders who now wanting to off load them, so they can be taken over with low upfront cost, (ie the uk based £1 saltfleetby deal at angus) but lots of longer term costs or repayments needed, it moves liabilities from one book to another.
RTO completes, stock at some point gets consolidated, re raises capital, might have a bit of a future but all old holders are diluted out of the equation.
Possible The big debt might not be converted and is instead repaid by a fund raise instead But that’s capital heavy and conversions are easy to flip, and every party here is skint.
if not all converted early its converted down the line, but in the end lots of cash will be extracted from the stock market to pay for it all.
This has all been foretold in my crystal balls, they are wrong a lot of the time, but more often by luck they sometimes speak some truth.
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If it goes Sub 0.1p, it could be worth a quick dabble on the idea that conversions will happen at 0.1p but who knows.
Ps I’ve Still not purchased any, still watching and waiting, and hope for it to be entertaining atleast.
People are not necessarily gullible most just timed their trade wrong, a small few have made good money from trading chal, this has always been a speculative stock and a lot of people get caught out by buying on the spiked days that a few use to sell, many people only buy this because it can rise 50%+ in a day on little or no news, deep down they know it can drop the same way on a couple of trades but where the fun in acknowledging ?
Been as It looked like this was going bust before tid and luc arrived, i think There is Now a chance for a longer term future for the listing, everyone who purchased in the past 18 months up to ~0.2p could probably recoup their cash and possibly profit if they traded on the next few spikes or during the rule 15 period, but long term they can’t magic cash from nowhere, it will eventually be raised from shareholders one way or another.
He will be a director of the new company and will be creating himself a new income stream, new company, new remuneration levels, new credit lines, ready to extract.
You can’t raise capital outside the stock market that you don’t need to ever repay back, but if you can “invest” $100k in a shell, put yourself in a paid role and then extract millions over years if you can keep the idea of a return going.
Use the “lord” for The idea of “ A Lannister Always Pays His Debts” and it goes along way.
PS a lordship can be purchased by anyone and costs £24.95. And If you use the title you are a certified bell***.
It’s not what chal was, it’s what the listing can be used as a vehicle for...
Wow, some coherent discussion on the CHAL board. I genuinely had double check that I hadn't opened a different board by accident.
No it’s not worth it as a stand alone listing to someone who just wants a listing, that is unless they can renegotiate the debts or if the debts are held in a subsidiary that they can liquidate that removes the liabilities from the plc.
But if they are doing this working with the debt holders to enable the company to raise capital from shareholders to repay the debt holders then it makes sense from the debt holders point of view.
They both have extracted more in wages from shareholders at angus then what the company has generated, if they can generate a return from something here with out extracting cash from new shareholders (ie financing against a revenue generating asset) here I would be amazed and I would love to see it for once over the normal style of death spiral financing.
In Tids defence he did lose millions in angus.
Or mass placings, consolidations and more placings.
Tidswell-Pretorius was ousted from the Angus board in 2018 by the then CEO Paul Vonk. He got his revenge by threatening an EGM to get rid of Vonk and forcing him to resign before George Lucan arrived as CEO. He is still a major (4.49%) shareholder in Angus but has nothing to do with running the company from an executive position. As itsagame has pointed out Tidswell did also lose millions in Angus from the top to where it is now.
One final thing that is worth noting about Tidswell is that he is the man who was originally behind UKOG’s Horse Hill. He acquired 65% of Horse Hill from their then owners Magellan Energy when Angus was a private company and was also in charge of the first drill that proved the oil was there. The Angus share of HH was all sold off when Paul Vonk was CEO – maybe this was one of the reasons that the two of them fell out so badly?
In short, two things to remember about Tidswell-Pretorius
1. He “discovered” Horse Hill – which at one stage drove UKOG’s share price to 8.9p and it’s market cap to £317 million.
2. He was involved in Angus when their share price was driven up from their IPO of 6p to a high of 35p and a market cap of £85 million.
Anyway, my point is that Tidswell does have a track record of discovering major assets and getting company share prices and market caps to increase massively. He would not have joined the board at Challenger unless he thought that he could work some magic here too. That’s why I am in.
Rastuss - I would respectfully disagree with you.
Tidswell-Pretorius is the man who discovered the Horse Hill asset and set up HHDL which UKOG first bought 7.5% of for £450,000 in December 2013 when their share price was 0.9p (market cap £7 million). Less than four years later UKOG had purchased a total of 49.9% of HHDL for an additional £4.8 million and they had a share price of 8.9p (market cap £317 million). This does not happen as you put it “by plain luck”. Tidswell-Pretorius clearly knows what he is doing.
Tidswell-Pretorius was also part of the team who took Angus from an IPO listing of 6p (market cap £15 million) to a high of 36p (market cap £85 million) in just under a year. Once again this was not an accident.
So, if you had invested in UKOG when they first bought into Tidswell-Pretorius’s Horse Hill project when their share price was 0.9p then you could have made up to ten times your money if you had sold out any time in the next four years. Likewise, with Angus, if you had bought for 6p in the IPO you could have got out for up to 6 times your money in just under a year. All of this was due to Tidswell-Pretoius and the projects that he provided to both companies.
I am not denying for a second that things went south dramatically for both UKOG and Angus after September 2017. I am also not excusing Tidswell-Pretorius for any role he played in this – though at that time you have to remember that Angus was being 100% controlled by Paul Vonk. But I am saying that Tidswell-Pretorius made a massive contribution to tow separate companies peaking at a combined market cap of over £400 million.
The point is, he knows what he is doing and investing into projects that he is involved with at an early stage is a proven way to make money. Of course you can’t hold on forever – this is AIM and what goes up almost always comes back down again but if you make over 5 times your initial investment and do not take out some profit then, quite frankly you got massively greedy and any loss is your own fault.
I have no idea what Tidswell-Pretorius is like as a person and I could not care less that his “chums” (as you put in in a slightly class-war kind of way) happen to be members of the British aristocracy. All I care about is the likelihood of him making me money via Challenger.
With the Challenger share price at this level and Tidswell-Pretorius’ track record of massive early stage success in raising the market cap and share price of companies that are involved in his projects then I think that over the next year this could be a five to ten bagger based on his involvement alone. This is why I have invested. If you think that everything that Tidswell-Pretorius does is lousy then nobody is forcing you to invest here – you can stick with Angus. However, I know where I would rather be…
tids sales were partly not his fault, his holding was held as security and sold by usa200 (or whatever their name was) because the value of his stock dropped they sold to cover the margin requirement which tanked the stock.
i say partly his fault because he was the one who put the stock in to that facility, the placings and multiple failures to meet of Vonks publicly made targets and over egged expectations of "Star wars" results from the worked over wells.
Ive decided i will probably take a small speculative punt here eventually, but i want to pay around 0.1p and not the 30 % spread, i want to make the money from my trade, i dont want to just over pay for the pipers (mms).
curiosity is getting the better of me here.
I agree with you on the spread - it is very frustrating but I have just put it down to a cost of doing business and have been acquiring regardless. I have not burnt all my powder yet and will definitely pick up more if the price drops, but at the same time I do not want to miss out if it spikes. To be honest, I think that anything below 0.2 will be a multibagger over the next 12 months - though I have also been buying at the best prices I can.
This is an important paragraph.
Keywords;
- unsecured
- transferable
- at 0.1p.
“ The Convertible Notes 2021 are unlisted, unsecured, transferable and must be redeemed by the Company on 19 May 2021, at the Company's option in cash or in Ordinary Shares at 0.1p per Ordinary Share.”
And why I think around 0.1p is a fair punt, gives a bit of protection from if they wanted to play the consolidate and then issue more shares game as the conversion price would adjust to the equivalent of today’s 0.1p. (They will issue shares but 0.1p should be the base.)
Without that paragraph I would have said no until they converted in to stock and used their price as a gauge on where I would buy, if at all.
0.1p is clearly the magic number if you want to be in the game with the same risk-profile as Tidswell-Pretorius, but like I said the other day even 0.2p will be a multibagger over the next 12 months if Tidswell-Pretorius can do the same thing with assets here as he did with Horse Hill for UKOG and Angus.
Yep. Always a bounce here. Full listing so no threat to delist. Lots of private companies must want to list and raise cash and this is cheap basically.
barentpeter - I don't think that this will be a takeover by a private company. It is far more likely (99.99% IMO) to see an asset vended into the company at the behest of Tidswell-Pretorius.
That is what I am have invested for anyway as Tidswell-Pretorius has been very successful at doing this in the past - and making early investors an awful lot of money along the way.
There are a number of ways that this could be done:
FIRST
The company would do a raising at a fixed price (but hopefully one that is higher than where it is today). It would be done wholly to a selection of private investors who would be made inside (ie aware of what the asset that was being vended in was). They would look at what they think that the asset could be worth in the future and make their investment (at a premium) based on this. The reason that they would buy in a placing as a premium instead of on-market is so that they could buy shares in significant quantities.
The company would pay for the asset in a mixture of cash (from the placing) and also shares (at the placing price). The seller of the asset would agree to this as they would be in receipt of some instant cash and also share that would likely go up in value.
SECOND
They could farm-into a project where they agree to take, say, 50% of the asset in exchange for paying for all of an oil drill (if it was an oil project) and giving the owner a free-carry (where they do not have to invest any more money) through to production. The company would still need to raise money but the share price should increase once they show that they have a potentially valuable asset and they can raise capital at a premium to the current share price in the way described above.
In the first instance the seller of the asset is able to generate revenue by receiving cash and being able to sell shares on the stock market. In the second instance, they know that they are going to be funded through to production without it costing them any further money.
There are a number of other options as well but these are the first that spring to mind. The bottom line is that whatever happens the company will need to raise capital by issuing shares. If they have a very good asset then they may be able to issue these shares at a premium of the current price but failing that they may have to issue at a discount. Either way, they will raise the capital based on the fact that the value of the company with the asset in it will be far greater than it is today.