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Hi Guys , still no news on the relisting front, The new directors have been appointed , and are probably looking into the options that are available to them before relisting ( definately on the cards ). The DRC assets are fully covered by Total until first oil so no worries there. The main issue was the huge loan that was generated by the past BOD with ridiculous rates ( 10% per month ) , The company does need cash in order to process the Nigerian assests which are ready for processing. These two issues need to be addressed , In both cases the only way for an exploration company to raise capital is to either . Sell off assets , ( We dont want that to happen YET ) or to issue shares. The issue at heart is the quantum of shares. The previous board has effectively cost the company $10 million in fees and interest that did not generate any NAV for the company in agreeing to the Gairloch loan. Moving on , the only way to pay this loan is to issue shares or hold a rights issue . My calculations based on the info available shows that SAC requires approx $50 million to be able to process the two Nigerian blocks to first oil without selling off any assests. and pay off the Gairloch loan . Thus at current share price they would need to issue about 1.7 billion shares , This sounds a huge amount , but the company would then have post the issue 1.8p in cash , no debt and all the assets , including the extra 20% share of the Nigerian blocks that will be taken over due to EER defaulting on their payment to SAC of $ 7million . ( This extra 20 % share could also be sold , Eland just paid $40 million for a similar block % )
My primary worry is this company ceasing to be a going concern. I can understand shareholders voting against the massive dilution but how else could the company raise more money? To be honest I am mostly here for the small interest they share with total in the DRC which I believe they are carried for so money shouldn t be a worry for them there. It would be very regrettable if this company ceased to be a going concern before at least one well is drilled (providing the seismics are all positive). I am still very excited about the future with regards to this but certainly dismayed by the childish way some of the BoD have behaved
it seems like a mess and dilution is likley to follow. I cant see the former directors selling for a 90% loss but stanger things have happened. If they are going to sort out the funds then relist we may be susp for a while yet. maybe the new guys have some finance contacts
I got in at 3.8p. As shocking as the dilution would be, how else could the company raise more funds? I thought they were carried with the interest they share with total. I also still can't comprehend the resignation of robin vela. Especially since he has a massive stake here and hoovered over a million pounds worth of shares with his own money at just under 20p a share. Very strange
he short does not sit right with me. is there any hope of relisiting this week/ month. do you think the SP will tank on relisting?
from RNS Mr Muller has a short position of 821,997 shares in the capital of SacOil. This position arose as a result of an administrative ERROR in a transaction that Mr Muller previously undertook in SacOil shares, which position he could not close as a result of the suspension in trading of the Company's shares. Looks like prior to being made a director he sold off his SCL shares , and oversold due to a reporting error by the broker. They couldnt buy back the shares due to the suspension. Maybe he knew he was going to be a director and had to for some reason to sell off his holding prior to the event ????. Either way he will have to buy them back on the share being relisted . Lets hope he has to pay up !!!!
Mr Muller has a short position of 821,997 shares in the capital of SacOil ......does this mean he is shorting the SAC shares or is it bad wording??
feeling the pain when did you get in here?
This along with VOG and NGL have been my 3 disaster investments
Apparantly, after talking to Co Secretary seems that the new director has to get approval from the Nomad on the Aim , as well as the fact that the outgoing CEO had neglected to send new directors info to the Nomad This went off this morning and according to the Nomad should take approx 48Hrs to vet .Only thereafter can they request relisting.
any clue when will they come back?
have a good weekend all - i am sure more fun and games on monday !!!
Relax Bongostarjr enjoy weekend , cant do anything till next week, then the sun will surely rise !!
With a new board , this legacy loan settled , and capital to begin the drill work in block 233 , then this one could shoot the lights out. ( not taking into account any of the other Assets ) Then my Target provided drilling starts is minimum 6p cant give time line but I would say within 12mnths if all above conditions met . The craziest part is that if this overinflated ( illegal ) loan hadnt been taken on the company would have approx $30m in cash or near cash , almost 2p share price
get rid of under preforming board, get new people in and lift the value ?? or am I clutching at straws ?? on a more fun note as its Friday what are you shareprice predication for 1, 6 and 12 months I will start… 1 month = 2p 6months = 3p 12 months = 4p
Bongo , share has been suspended , co is a dual listed stock, last price yesterday was 27 s.a cents approx 1.8p Price can be found on site http://www.4-traders.com/SACOIL-HOLDINGS-LIMITED-6582795/
has the JSE stock not been suspended? also where can i check this price on JSE not in google?
I think that the acting CEO is the current non executive Gontse Moseneke , although not a mining man he is an Actuary with financial and invesment banking experiance , and has the necessary skills to make sure that company continues to operate.
No ! Interesting to note Colin Bird and Carina De beer ,there, were both directors of SAC, Shareholders at meeting also commented on the fact that SAC cant seem to keep the Financial directors, they get appointed , then after a couple of weeks leave claiming , " Pressing familiy or other commitments " food for thought
GAirloch is the company that provided the loan to SAC when , EER did not pay its share of the performance bond for block 233 put up by sacoil ( ie $ 10million in cash ) What wasnt disclosed at the time was that Gairloch is the major shareholder in EER . ( ?????? ) On the positive side , following the failed attempt at giving 35% of the company away for nothing, I was very heartend by the fact that the share price actually appreciated on the JSE on almost 5 million shares trading, so were as I'm sure there are a couple of people who sold , or tried to go short , a positive view must have been taken by some.
http://www.galileoresources.com/bod.htm#key is this the company that they were looking to sell to
Nope doubt it , In my opinion , this whole episode with Gairloch was a clandestine attempt in taking over the company . He would have actualy been getting his shares in SAC at 15 S.A. Cents thats at current rates almost zero pence . No shareholders wanted out , but it does seem that the board were hell bent on making shareholders accept the deal ... Even delivering a negative trading update 2 days before vote ( which actually was bull^&^& just a change in accounting standard) and then the day before a vague blackmail threat.
WOW some of the loan's are just plain wrong, did anyone elude to cor@~ption ect. I am stuck here with 850K+ shares @2.1p. on reflection should have stayed away. Who is the stand in CEO? Did any of the shareholders want out? I guess some of them must be sitting on 90%+ losses WOW also any joy on the minutes ? I can’t get hold of anyone. do you think a Takeover is possible ?
Directors seemed pretty rattled , specially when asked how these onerous loans were authorised and by whom and why the company lends money to debtors at prime rates , but borrows at unheard of rates , which I'm not sure are even legal !!. Most of the responses were about defending their actions. In that they hadnt come to shareholders ( rights issue to fund $6.6m because it would have been to costly and taken too long ) 2months and approx R 2million amazing they then proceed to raise the $6.6m dollars , and pay $3.3m in raising fees ( 30 million rand !!!! ) ......Jeez ......WTF Not sure of the biggest shareholder there but I think it was Encha they obviously must have voted against deal . Not sure on opening price , all depends on the comfort that any press releases will give and what direction the company is going to take . However it does seem that the biggest shareholders will not be sellers and will be backing , new directors ( Tito ,Maqetuka, ????? ) . I am holding a fair amount of stock . In trying to be objective without talking my book ! , We need to get clarity on EER payment , ( remember if Gairloch / EER doesnt settle he looses his assets ) and or details of how the loan is going to be settled , even if a rights issue. The company is still operational , the ASSETS & value are still there , and there is sufficient motivation ( in largest shareholders ) not to pull the plug.
how did the directors responde? who were the largest shareholder present ? what your view on the share price if and when this opends ? do you hold much stock? thank you for the assitance