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my guess is bod trying to gain control of the 25% they need to swing control over to them .
Just in case of a dead cat bounce.
Yesterday at 15.43pm someone bought 500,000 @ 0.40 total cost �1500 plus Today at 08.09am someone bought 333,333 @ 0.45 a cost of �2000 plus Can anyone explain why people are buying when the BOD are threatening bankruptcy for the company.?
Robsky, Sorry, I don't buy the view that the bank pulled the funding when the realised the vote was going against the BOD, that would (a) suggest the bank was privy to the number of early votes cast, and although I would no longer trust the BOD to not reveal this information I would probably trust the bank to not ask for it, and (b) suggest a level of trust in the BOD to not be privy to this information before asking to de-list whithout informing the shareholders. I stand by my assumption that the BOD knew bank were pulling out when they call the GM and asked to de-list, but wanted to try and hide the asset sale possibly for the good of the SP and possible for the good of their own positions. With respect to changing my vote; could somebody, ideally the BOD, please give me a good reason to? Struggling, here are some suggestions: - the board members will take no salaries for 12 months and only draw very strict expenses, after 12 months their combined salaries can be no more than 10% of the year's profits capped at a total of 100k USD and subject annually to shareholder approval. - WED continue with their contractual investments. - There will be regular, at least quarterly, updates proving clear details of what is going on. Even then, why the hell would I vote for it? The only reason given so far is to save 100k per year, as previously that can easily be saved from the BOD's salaries.....
Today's RNS, another gem. 1. No mention of WED; not a word, count them. 2. BoD eager to sell the family silver and praise be, the market is liquid. {get on with then}. But, to put the wind up PI's, if it all goes a bit wrong and Chapter 11 beckons shareholders will get nothing. 3. BoD mention in passing we will not be cash-shell but as part of being scary to us dimwit PI's, it might happen so be afraid. . So, am I convinced by the BoD? No. And they can shove Delisting Mark II. Long shot? White Knight rides in and slays the BoD. I suspect most PI's have written their capital off, so this scenario may get a bit more support than some might think. After all, trying to scare someone who values their investment at nil is a fool's game.
Just wanted to pass on my heart felt sympathy to all the long term faithful who have been here since the 'good old days'. This outcome demonstrates complete contempt of PIs and what they allowed the BoD to do in the misguided belief that they would do as stated, how many times was it?, and return significant value to shareholders. I truly hope that Rita hangs her head in shame. For the paltry value left in the current SP, I actually hope this goes t*ts up! That isn't going to help any of you lot (and I really appreciate that) BUT anything less will leave the BoD in a position to salvage something from the wreckage for themselves and they absolutely DO NOT deserve that. By going bust, it might make Rita less likely to walk into another job. This (IMO) was never about the slump in oil prices. Look at the accounts - they weren't able to make money when oil was over $100/barrel. This is ALL down to mismanagement. If only Snead had had the balls to be honest with shareholders last year and actually tell the truth rather than making things look like Rita was being hard done by - I wonder then how many of you would have stood by her? No amount of analysis will bring any of this back so I'll say no more. Sure, there are lessons that can be learned but for some, this must be a really bitter pill. I truly wish you all well and hope that your families and friends etc help put some sort of perspective on this shambles. Best - OM
What happened there...tea cups flying!
Or BOD hoovering up shares for the next vote
We have ca. $4 mil worth of assets (property, plants and oil and gas working equipment) with $2 mil revenue with rising poo yet the company it's put to the wall by management. NTOG have $266 k worth of assets with revenue ca. $1 mil and �5 mil mkap. We should sell all assets -return cash to shareholders(sack all BOD) and start anew company(AIM listning it's worth more that current mkap.) imo.
punt money trickling in
Morning all George been there and done the same thing, the current BOD have bragged about their successes in the past ( PNR 1 & 2) when fortunes were made they will not be short of a few dollars to re invest in MAGP if their bel�eif is strong enough, my own view was that they would rid most LTHs by delisting cream off remaining shares cheap then sell assets to ward off the bank and build / sell on what was left. I think Mr E has it the wrong way, I think the bank pulled the carpet when the vote was seen to be against delisting. IMHO.... GLA
There is value here. Not sure what the equity is worth to NTOG or management MBO maybe 2p/s but the Aim listing alone has to be $500 k
Thats good news as the de list has failed ,it puts ,i feel a little more power back in our hands as we can now persuade the bod to take actions that will benefit us ,the long suffering shareholders who have over the years supported their business plan . As a business man myself i suffered in the economic downturn ,my business struggled and i could no longer draw down on it as before ,even had to use my own surplus to keep it going ,thats what a good business person does ,dont bleed it till it stops and complain that it wont work .My business is now thriving again. No more salary till it is turned around ,delisting to save cost is an idea just to get us back on our feet ,sell enough well interest to cover the loan ,and with the help of the increasing POO start to build from the ground up again . Can be done with the right business attitude to win through , Regards George
Have been in here for more years than I can remember and very sad to see state of affairs and many dreams in tatters for all on here Looking at company value now at £122k my holding a few years back was about that value Lol Good luck to all and hope after assets sold there's something Left for Shareholders
My assumption is that the BOD have known (or at least assumed) for some time that the bank would not extend the loan, hence the move to de-list. This would have allowed them to quietly sell off the North Dakota assets and pay down the bank loan whilst retaining their positions. The assets 'must' cover the loan, that was the whole point of the 'asset backed loan facility', the only question is what other value remains and is it a viable business. I suspect with the existing BOD pay structure and cost base in place the answer is 'no'. So, Rita has tried to de-list and failed (more then 50% support but less than 75%), no surprises, there simply was not sufficient information provided to the general shareholders to enable an informed decision. She is now going to to reschedule the GM and ask shareholders again if they wish to de-list given the 'new' information about the bank calling in the load facility. Personally I'd like to see some sort of plan, either the remaining business is viable but only with a reduced cost base or we sell the lot and more on. Details of the reduced cost base please, remove AIMs fees and drastically reduce staff costs?
"The Company had started discussions with a number of parties and believes it will be able to dispose of its North Dakota and certain Oklahoma interests in order to repay the Debt Facility in full within the time limit provided. It is anticipated that the Company will retain a portfolio interests in approximately 62 wells following the proposed disposals to satisfy the Debt Facility" How much are worth interests in 62 wells that Magnolia will retain. With poo at $65 they should be some value for us. I think we need new management here or in steed of suspension/delisting better sell out all wells and return cash to shareholders
Just to underline what a biblical mess Rita & Co have made of this we should remember that a little over a year NTOG acquired 10.9% of the Company. It cost them �125k and that was at a juicy discount to the prevailing market price thanks to Mr Snead. At Mid-price today we have a Market Cap of ............you guessed it �122k!!!! To add insult to injury, POO [WTI] May 2017 about $50 barrel; now about $70 barrel. You could not make it up.
That will determine if any option exists for MAGP outside the one taken by the Board: can they get their accounts done by June 30 - if not there is no hope. If they can, then it is possible someone could inject some cash to keep the lights on and implement a new strategy that would give at least some hope to shareholders.
Does anyone consider that SOS and NTOG were aware of Magnolias situation when they launched their bid to take over MAGP.? Will they now try another attempt to obtain MAGP? It stikes me as a little odd that we had the antics of SOS together with the coming together with WED. Surely at that time and it was only a few months ago MAGP was a promising company with a future. What has happened to put MAGP on the point of bancruptcy?
First step, a General Meeting to obtain consent to significant disposals to repay the bank loan in the timescale given. I The reason for the mention of a delay to publishing the FY2017 accounts will be due to such a divestment considered to be a significant post-balance sheet event and account taken of any provisions that may arise.
Last one out drop the anchor, kiss miss frank goodnight and torch the ship :( sad times
Smidsey, That should all be at arm's length with Magnolia managing the WED well investments (2 x $500k worth). If it comes to bankruptcy, WED would make arrangements with another party and assign the management of those investments to that other party. It's unthinkable that MAGP wouldn't have notified the market via an RNS if the contract had already been formally cancelled. So I guess it's still operating at the present time but, as you know, there has been no further deployment from WED for 6 months and I think we can take a pretty good guess at the reasons. So, I would say that the agreement is probably in limbo pro-tem - from WED's perspective, future deployments of capital deferred. until clarification of MAGP's position to continue in business.
Map 150k Punt ?
We do not know what is in the Contract but as Rita was fending of NTOG [with some of us supporting her!] I think this extract says most of it "The CMA provides for a minimum capital commitment to be provided by WED of US$10,000,000 by 1 January 2020 and includes customary warranties and protections (including a cash indemnity based on the Magnolia share price in the event that WED fails to meet the minimum capital commitment by this date). The term of the CMA is for five years and contains standard termination clauses including mutual consent, change of control, insolvency or material breach. In the event of a change of control of the Company, WED has the right to terminate the Agreement without deployment of further funds for management by the Company." You can read it any way you want but I suspect WED have wriggle-room by the bucket. That said, from their perspective MAGP going under relieves them of any liability. Make of that what you will.
I hope the company gets investigated. It would be interesting to know how all the money raised on AIM was spent and whether any directors benefited directly or indirectly from the expenditure.