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No the directors have the right to grant the shares, it doesnt say they are given to the directors.
Updownflat- no I do not have a short position in POG and indeed just took a £60.000 hit yesterday on the shares....
I am angry and I would (more than anyone) love it to be as everyone says it is on this message board.
I took a £400k hit yesterday
mdunsire - This is tedious. From resolution 19 (my capitals for emphasis) -
To resolve that in substitution for all subsisting authorities to the extent unused the Directors be and they are hereby generally and unconditionally authorised in accordance with section 551 of the Companies Act 2006 (the Act) to exercise all the powers of the Company to allot shares in the Company and to grant rights to subscribe for, OR TO CONVERT ANY SECURITY INTO, SHARES IN THE COMPANY up to an aggregate nominal amount of £11,034,000.
Be sure and let me know what fund you manage so I can avoid it.
updownflat,
granted they are alloting the shares and do not say to whom. More clarity is required here.
I dont have the convertible bond contract at hand- but we can easily check this - to see what the total share value of the convertible bond is and the strike price?? Do you know this off hand?
Is the convertible priced at a strike price of 1p per share and for 1/3rd of the shares? If so then MAYBE it is related to the convertible.
actually less, but its only a hit if you crystalise. This goes up an this goes down, but the trend is up.
12.9cents I think
"Is the convertible priced at a strike price of 1p per share "
No. But the shares have a NOMINAL value of 1p.
Sorry I do not have access to the convertible bond. OK so as long as the convertible bond total number of shares matches the newly to be issued shares under Article 19, then admittedly I may have jumped the gun here. Thankfully.
Does anybody know off hand the total shares which can be issued under the convertible?
Mdunsire, You posted that the newcomers were trying to create more shares. That was and is Rubbish because Pavel and co proposed it. End of !!!!
shareholder backers, Do you not understand They voted AGAINST it, totally contradictory to your posts !!!!!?????
mdunsire, Kenj has already stated it is Nominal Value. If you don't understand this, you should seriously consider whether you should invest, it is basic, as for anybody taking hits, you take a hit when you SELL. Nobody has forced anyone to sell. I dint hear people panicking when the price went up from 10p to over 30p. These are share they go up AND DOWN.
OK Rustybucket - do you know the number of shares of a nominal value of 1p to which the convertible bond has conversion rights relates? Unfortunately I donot have access now to this. If the same as the number of shares in Article 19, then we have no dilution beyond the CB at the 12.9 cents price. Dont get me wrong I want to be wrong here OK. They should have perhaps provided more clarity in Article 19.
Its actually in our best interest if they do convert now. Less interest to pay, no share of the dividends.
I am totally confused now by the chat post exchanges......
I Have followed Kenj and Rustybucket for years now ..but clearly some newbies on the board including a fully qualified Fund Manager who "Could have got it wrong" and in fairness holds his hands up if he has
R and K are giving him some very convincing arguments
The thing is have OR are we being shafted and do you think there is a chance we will be offerred a vote which could turn this arround. If so when and how ....I.E meaningful shareholder vote within 3 months to overturn yeterdays vote??,
Either way to me in simple terms the fact the share did not retrace by another 10/20% today and closed slightly blue is reasuring thus far. Hope ive not stated this too soon
Come on guys hopefully try and reach agreemeent and bare with me as it is above my head and apologies if you think i have overstepped the mark
well the CB, if with a conversion price to equity of 13.5 cents, would mean that the $100m (which can be increased to $125m) would mean = 740 Million shares. and based upon $125m bond value would mean 925m additional shares.
Under article 19, they are proposing issuing £11million of nominal 1p shares which is equivalent to 1.1 Billion new shares.
This is considerably higher than what would be issued from the CB of June last year. IMO it is not clear at all that this intended issuance is related to this bond. This needs to be clarified. If it is not we need to be very worried that it is issuance to enable control of POG by UGC and the oligarchs.
You are still not quite right. The bond issue was in pounds sterling not US Dollars. Go back through the RNS's.
I would have thought that a trained fund manager would have understood that a share's nominal value is the original unit / denomination from when the shares were first issued.
This has nothing to do with a company's trading share price eg:
BP. nominal price = $0.25
BT. nominal price = 5p.
I would be delighted to buy either at their nominal price, but it ain't gonna happen!
There isn't much wrong with your maths though Mdunsire.
Converting the $125m CB's will result in 825.9m new shares, by my counting. However, there is probably a clause in the convertibles and the ordinary bonds restricting POG's ability to issue new shares while the bonds remain unpaid. We would probably be required to increase the number of converted shares payable by a third as well.
Interestingly, if you did increase the 825.9m by one third, you would get 1.1bn.
Now where have I see that figure before?
May be a pure coincidence, or it may not!
Kenz
I don't need these unfounded insults! Also please recheck your maths!
Sorry typing error - $125m bonds converted = 925.9m new shares.
Adding a third would give 1234bn.
GeOrge123 I do ot believe we have been shafted, after all its a vote at the AGM., ALBEIT a very important vote, In reality, Pavel is still i control and calling the shots, unbelievably last night, someone was suggesting Peter was back, and he had stabbed Pavel in the back, then the RNS today. I believe Pavel is still calling the shots, and I believe that already IR and the BOD, will be canvassing votes in order to overturn this. The suitors have already lost one ally with Fortiana bailing out as soon as their vote was recorded. I think the result will be overturned and Pavel and co reinstated, my opinion only, but the big problem is the loss of trust between The bod and UGC. They have said they will try and see what has gone wrong, but, it will leave a sour taste. The bottom line is a rebel amount of shareholders, we have been here before many times.
The high hopes I had here have disintegrated with the involvement of the Russians I am out, I am not going to learn the hard way. I have taken my profit and moving more money into AAZ and CNG. I know it
Comes to something when I consider AAZ inAzerbaijan and CNG in Tajikistan safe compared to what’s gone on here the last few days.
Good luck all I think your’re going to need it.
Misterdeb - I'd never heard of CNG as a possible London listed gold miner to invest in ... but having done a little research I won't be selling out of POG for this one. Think you will need much luck when you consider that even producing 40k oz of gold they will need their entire profit to cover interest expense. Looks to me that this is one company that is wholly in existence to benefit the Chinese Banks that hold the loan notes - but good luck to you. As for AAZ, I thought this was good value a year ago and topped up at 80p back in March, but right now I think it probably slightly worse value than POG anyway that's just my opinion