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We had the deal whereby we get 15M in tranche 1, etc after the deal details this was stated :
Approval will be required from the Falkland Islands Government to the transaction. A further announcement will be made on completion. Should completion not occur by 30.6.24. either side has the right to termination. In the case of non-completion Rockhopper will use proceeds of the Award to provide compensation to the Specialist Funder based on their legal fees incurred.
Time is running out with only 8 weeks before that deadline, should we expect FIG approval any day and the deal to be confirmed? This would help the sp a little?
Thinking of topping up.
GLA
Hi Nastynick,
I wouldn’t hold your breath! The statement says;
“Should completion not occur by 30.6.24. either side has the right to termination.”
That says to me either the funder or RKH have a get out clause, but doesn’t imply they will use it, in theory we could go past that date and wait until the OM annulment result drops and still be waiting for FIG to sign off on the deal. Cannot understand what they are playing at stringing RKH along. Paying off the lawyers and the litigation funders and having €15m in the bank would help RKH no end, with the promise of a possible €65m should OM rule in our favor.
Can’t understand it at all to be honest.
LTT
Here is the full paragraph.
Precedent Conditions
''Approval will be required from the Falkland Islands Government to the transaction. A further announcement will be made on completion. Should completion not occur by 30.6.24. either side has the right to termination. In the case of non-completion Rockhopper will use proceeds of the Award to provide compensation to the Specialist Funder based on their legal fees incurred.''
I'm unsure what they mean by 'completion'. Is that completion of FIG signing off on the award, or completion of ROI's annulment request.
I read it as FIG signing off the award before 30.6.24, at which point the contract with the specialist fund was in force.
However it may be completion of the annulment hearing before 30.6.24 that ensures the agreement comes into effect?
Does anyone know for sure which is true??
Hi SpaceHoppa - read the RNS & I concur with your conclusion - annulment isn't mentioned so I think " completion " is confined to the context of the RNS.
Regards,
Buffit
I think the approval will go ahead once Nav gets the funding in place or there abouts. No point in confirming it early and then seeing the SP drop on lack of further positive news. Its to protect RKH that you see this "apparent " lack of action. FI people hold some stock as PIs, they ARE being thought of. Sit down and chill, seems well right now.........
Well, it's perhaps somewhat on the ambiguous side but my take is that FIG have to legally sign OM by the 30.6.24 otherwise either side has the right to terminate the existing agreement.
Hence, if FiG don't sign (non completion) Rkh will use proceeds of the award to pay special funders legal costs 'they have incurred in the process'.
It cannot be to do with the annulment decision as the panel will never give a fixed date by which they will make a decision, so that's simple.
So to me, FIG have been dragging their feet signing OM off so the specialist funder has used a legal team to resolve the matter, hence, the 30.6.24 deadline for FIG to sign,otherwise the existing agreement can be terminated by both parties and Rockhopper & the specialist funder are FIG free on OM.
It's the FIG being slow & stubborn again but The Rockhopper team's got some big friends in the Specialist Funder on this and they will not be messed around by stubborn FIG Hillbillies, so whether FIG comply or not, the existing agreement expires on the 30 6.24. So that should be the latest date FIG can drag signing OM off .
It's important for both Rkh & the Specialisf funder that they are not hindered by FIG on this matter as Rkh will need the cash to fund its share of the costs and the Specialist Funder needs full authority over OM before it will pay Rkh so legal enforcement had to be implemented by the Specialist Funder to resolve the matter and it will recover these costs from the award proceeds.
I see this as good news and it matters not whether FIG comply or they don't.
Roll on the OM Decision now this irritating issue with FIG has been resolved.
Of course, FIG have also still yet to sign off the Tax ammendment for the free carry rkh never had.
FIGs been 3 years on this issue now and it would be good if this is resolved too.
I suspect Sam's recent trip to the FIs was related to both OM & the Tax Ammendment so hopefully we may hear something soon.
Naturally, the ammendment will have to be put through both legal teams & well as the necessary departments at FIG so this may take longer than the OM sign off,but nevertheless, I fully expect the ammendment to result in £0 owed -regardless of how long FIG take on the matter.
''and Rockhopper & the specialist funder are FIG free on OM.''
''I see this as good news and it matters not whether FIG comply or they don't.''
I don't see FIG not signing off on the monitisation, as a good thing.
Monitisation, regardless of the award result, ensure Rock a minimum Eur15m and potentially many 10's of Eur-millions more. Not signing off exposes Rock to getting in a worst, very unlikely case, nothing. Or a better position to get more from by selling perhaps the whole uncontestable award. Rock need certainty, much more than the potential of a few extra Eur-millions.
From nearly every perspective, FIG's pathetic dithering on this suggests they are blindingly short-sighted 3rd rate junior managers.