Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
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UGC AND EVEREST HAVE CONVERTED $486000 OF BONDS TO SHARES 359,999,995 SHARES ISSUED ADMISSION EXPECTED 4TH AUGUST MEANING 3,674, 307, 298 SHARES IN EXISTENCE AFTERWORDS
Lawrence13 just beat me to the punch, we must have been posting at same time. This is not good if they are allowed to vote, and as they are going to be registered in time looks like they will be.
Lets see how the market responds to this ?
This doesn't make sense to me. Less than $500k in bonds converts to almost 360m shares? Also. I don't see it on the POG web site.
Oops! It showed up on refresh. Sorry.
So if $48m bonds have been converted that is $20m more than UGC laid claim to in their press release on 20th July. If these are all hostile to Pavel he will have a hard job winning. If Prosperity's bonds are included in the $20m then perhaps the game is still on.
more like 1.5 million shares not 360m as you say
Working stiff, look at Lawrence 13 post its $48,6 m not 48.6 thousand Looks like they had about 40% of the convertible bonds
This is actually excellent news for equity shareholders. At least $50m of the $125m have converted, which means that they are on an equal playing field. This should be share price positive as on this we don’t have incremental dilution risk.
Working stiff, this has nothing to do with prosperity, It is Everest and UGC, WONDER WHAT PAVELS THINKING NOW ABOUT THE EXTRA $25 MILLION OF BONDS THAT THEY ISSUED.
And an annual $4.25M saving on interest payments from this portion.
Updownflat, I don't know how you can make that statement without knowing UGC INTENTIONS. It has just given then extra voting power, you think thats a good thing ???
Which way did you say you had voted ??
UpDownFlat
"This is actually excellent news for equity shareholders."
Long term - perhaps. Short term it's an 11% share dilution. Under different circumstances I would have been pleased to see this happen. But as things are, it only adds to the uncertainty.
Rusty
for ye olde board'y , 3.4M shares. Net debt is also down by $50m. Really the other side now needs to convert and this company should start to fly.
Workingstiff,
the dilution was going to happen anyway, but UCG has just given away 4 years of interest and all sorts of dilution protection for nothing. This really makes a dividend possible. The only question I have is "Pavel running UCG ? " because the only reason we are in the mess is because he gave away the convertibles for nothing in the first place.
Updownflat, so you voted for the old board, UGC who are looking to replace them have just amassed a boat load of new shares and you think thats a good thing.
If UGC win the vote and then put there own interests at heart rather than smaller shareholders lets see how you think then.
If it wasn't for the fact that they are the instigators of the old board being ousted, I would have thought its a good thing because of the saving of interest etc, but if its then just to be paid back to UGC in the form of dividends or something worse then that is just taking money out of the company.
All this has done is bring more confusion. Just remember how the sp dropped when the old board were ousted and remember we haven't got an auditor at the moment.
Rustybucket
"this has nothing to do with prosperity, It is Everest and UGC"
Do you know this to be the case? The RNS says "....on behalf of the Uzhuralzoloto Group of Companies, Renaissance Securities (Cyprus) Limited and OTHER HOLDERS*,...." *My capitals for emphasis. You may be right in that if Prosperity had converted I think the RNS would have mentioned it. But we don't actually know that the $20m over and above UGC's holding all belonged to Everest, or that all those newly converted shares are hostile to the old board, do we?
Rusty,
there was no other way that these convertible bondholders were going to convert. I want the same thing you do, an increasing share price, preferably with independence. I just don’t see it as black and white as you do. I recommend to all shareholders to vote "for" 1-6 and "against" 7-19. If prosperity is truly on the side of the shareholders they too will convert. If not then you are being used.
working stiff, I do not know for sure, but I know its a very high proportion as UGC advised they were converting $28.4m then we don't know what Everest has. See below
Uzhuralzoloto Group of Companies ("UGC") today announces that it has acted to exercise its conversion rights for its holding of 8.25% convertible bonds due 2024 issued by Petropavlovsk 2010 Limited.
UGC has converted bonds of a principal amount of USD 28,400,000. UGC expects that the Company will not exercise the cash alternative election but will allow all shareholders to convert into shares and to be treated equally in accordance with the recent Court Order.
Mr Konstantin Strukov, President of UGC, stated
“UGC recognises the potential of Petropavlovsk, but we believe that one of the company's main issues is its large debt load. To confirm our commitment to the strategic development of Petropavlovsk, we have decided to convert the company’s bonds into shares. This was intended specifically to reduce the debt load and facilitate the adoption of a progressive dividend policy by Petropavlovsk in the interests of all shareholders, especially minority ones’.
‘UGC, as the largest shareholder of Petropavlovsk, regrets the actions undertaken by the former directors who were not re-elected at the Company's AGM, and believes that the purported temporary directors, even when combined with the directors duly elected by shareholders, do not create a Board that meets the independence criteria set out in the UK Corporate Governance Code.
We hope that the current forensic investigation initiated by another Petropavlovsk shareholder, if approved at the forthcoming general meeting, will lead to an objective assessment of all of the issues being examined. We remain ready to support and engage with the Management of the company in its development and anticipate productive engagement in ensuring a beneficial outcome to the Company’s current shareholder issues”
I wonder what happened to the poster on here who said he/she was having chats with Prosperity? It would be interesting to hear their take on today's news.
Updownflat, What do you mean there was no other way these bondholders were going to convert. They could have quite simply, stayed invested in bonds, earning there 8.25% coupon on a quarterly basis, and converted at the same price, possibly, or probably, with a much higher price in 4 years.
If you had bonds with the same coupon and conversion option, would you ave converted ?? I know I wouldn't have if I had any, unless I had an ulterior motive. ??
Chats with prosperity??
Only if you think he/she was telling the truth?
In a war.....
Investors are the weapon...
Bonds are like sandbags...... Whereas...
Shares are ammunition.....
I personally think UCG are preparing for a sizable counteractive move until equal ground is gained...
Working stuff
I presume you are referring to me above.
I made this clear all along as did Prosperity.
There is a very real chance that UCG can get control and then shaft small shareholders like us. They and their collaborators have 40 percent of votes already after converting their bond share...that's why everyone on this board needs to vote like Prosperity recommended....in my earlier post....
Who let UGC in?