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Seller's timing is bad but not the end of the world. Thanks to his canny deal structuring.
Imagine being the proud owner of 1,000,000,000 COPL common shares, issued to you one hour before the Atomic RNS drops. That is his expectation.
(If he somehow scuppers the deal, he returns to being the owner of an insolvent oil company with deadbeat partners and lenders who are likely to call his loans and shut him down.)
Dude's $4MM USD in shares is likely to be worth $20MM USD by the end of the week, if not the end of the day. And maybe $50MM USD by Christmas 2022, or even more if 226 ever gets started.
All while he sits retired, tending to his family and his (by our CEO's description) young wife. Nice work if you can get it.
I'm glad we will have him along for the ride and hope that he will not sell a single share.
For selfish reasons, yes, and also so that he can enjoy reaping the benefits of returns from the assets he developed.
@stebol
You are right, however as everyone has noticed the seller has had the worst timing. He could be looking for a reason to scupper the deal and capitalise on better oil price. Who know though. All just guesswork and AM is an experienced deal maker.
GLA
Good points Charlie, some are over thinking things.
Already the Atomic owner will get roughly 300 million less shares from when the deal was penned, who knows could be even less.
The dilution was part of the deal.
$4m on completion is a massive positive as its part of the financial deal.
I can imagine $4m up front would have upset a lot of shareholders as dilution at a lower SP would have been phenomenal so this was must and best outcome being after deal was settled.
Forget about it, without it no deal end of. Atomic since deal was made has increased 60-65% so what’s £2.8m shares in the grand scheme of things “peanuts” ????
Hi DG73. I don't think (although I don't know), that AM will be at all worried about 'hacking off' the seller. I also don't think the seller is going to be too concerned about the share price.
Whether its 0.3, 0.5 or, pretty please, 1.5 or higher, the seller still gets his $4M as agreed.
Higher is great for us as it means less dilution. So if there's news to come before Monday week then I'm sure we'll get it.
Not long now
not seen one CawCaw but the vwap on deal is pretty standard these days
including various share/loans and normally 3 , 5 or 10 days aggregated
So would not anticipate any change this late in the game
:))
" the result of dividing Four Million U.S. Dollars ($4,000,000) by the weighted average closing price of the Buyer Shares on the London Stock Exchange in the five Business Days preceding the Business Day prior to Closing"
It's pretty black and white. Not sure if there has been a contract amendment since then, but this is the signed K between COPL and Atomic.
Feel sorry for poor Cathy
swamped by calls for which she can only answer what's already been stated
or would risk losing that juicy monthly cheque CawCaw posted earlier 7k p.m
Thanks CawCaw. I confirmed that with Cathy but I was told it was the closing price at the time of the deal and not the preceding five days.
In the bigger picture, each minute is bringing us closer to the deal date.
All the best.
Thanks CawCaw
@TheAccountant it's laid out in the contract here:
https://webfiles.thecse.com/sedar_filings/00021327/2012291818555256.pdf
2.2 Purchase Price. The aggregate purchase price for the Equity Interests (the
“Purchase Price”) shall be Fifty-four Million U.S Dollars ($54,000,000), payable as to Fifty
Million U.S Dollars ($50,000,000) in cash and Four Million U.S. Dollars ($4,000,000) in Buyer
Shares and shall be allocated between the Shares and the Membership Interests prior to Closing,
subject to adjustment in accordance with Sections 2.4 and 2.5. The Purchase Price, as adjusted,
less the amount of the Deposited Funds (“Closing Amount”), shall be paid by Buyer at Closing
(i) by means of a completed federal funds wire transfer to an account or accounts to be designated
by Seller to Buyer and (ii) the issuance of that number of Buyer Shares registered in the name of
the Seller as is equal to, to the closest whole Buyer Share, the result of dividing Four Million U.S.
Dollars ($4,000,000) by the weighted average closing price of the Buyer Shares on the London
Stock Exchange in the five Business Days preceding the Business Day prior to Closing using the
official daily spot foreign exchange rate applicable at the end of the day that is two Business Days
prior to Closing by reference to the rate published by the Bank of England.
If the price is just at closing, then AM won’t risk hacking off the seller by releasing any update that would make the price shoot up. Would be seen as bad faith.
Might be a quiet week next week.
Think that came from a poster last week BUT the source escapes me at the mo
InvestEgate displays the origin, which is why the phrase rns logged is also a myth
as it would also contravene NOMAD rules getting them banned or suspended
:))
e.g. Barclays the only rns you will see is Market not company generated PME's
its been riding the BUS for years
https://www.investegate.co.uk/Index.aspx?searchtype=3&words=barc
Folks, I looked at the RNS and I still don't know where the ‘5 day average’ calculation has come from. Hence, earlier in the week one dropped a note to Cathy to confirm this. I have been informed that the $4m will be based on the CLOSING price at the time of the deal.
I hope that is helpful.
Nope the RN-Announcement is the message
The RN-Service is a machine
There are around 9 origin sources that RNA's are passed over for e.g. Barclays use BUS
Vast use GNW and some like TILS use both GNW first then resend on RNS same msg but
a different header
There are still a few others around including EQS EQN PRN
BUT they origination on any of the others or not all end up relayed on the London Stock Exchange
own newswire RNS so being a one stop shop it evolved over time that everyone calls for the machine
and not the message
:))
The RNS.
20th Dec RNA
COPL Common Shares to Atomic Shareholder(s): $4 million priced at closing
Accountant
all the schedule in the 20th Dec 2020 initial RNA on the atomic AQ
:))
Folks, I have been reading on this board that the $4m Atomic shares on deal closure will be based on the 5 day average share price. Where has this come from?