Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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ArielArrow apologies for posting O/T but mrc_ and I were just having bit of friendly banter as we are both used to that from the debating society.
I will keep my comments solely about SCIR in future!
EAG
I somehow think that this BB has turned into a comedy strip.
Better things to do with my time than join the clowns.
Have given!
My English beak would certainly given me a wrap across the knuckles for that sentence as I should have written “Both of you attended Oxford!”
EAG
mrc_mrc you were both at Oxford!
mrc_mrc you have quite a nose (beak) for discovering!
EAG
Ilovesushi - feel free to email me at
soloegm123@gmail.com
mrc_mrc a real tug! (tugs) KS!
Mrc_mrc I was waiting for someone to pick up on that!
Surprised it has taken so long for someone with an eye for detail to notice!
EAG
I want to be added to any share action group as I believe company's directors have been awarding to0 much money to certain individuals for non performance. Its disgusting. Such a small company should not be aloud to milk this for their own benefits.
Should be an investigation started here. I have a fair holding here and could take any private holding over 10% I am sure. Lets bring these guys to book. I think they are scoundrels running this business. Cant let them get away with it. Its probably to late to contact that man with the blond hair..
Lots of Entrepreneurs and Politicians have attended Eaton College!
EAG
Wow, was everyone at Eton a complete nob?
What a load of BS. You can’t even spell it correctly.
really? Wow thats amazing..
Ilovesushi there certainly was as 2 former PM’s were there when I was there and without giving away any names one has blond hair!
EAG
AGE: Wow you were at Eaton College? Anyone famous there when you attended?
Any way getting back to Jon Fitzpatrick’s success fee a life long friend from my days when we were class mates at Eaton works in the M&A department of an Investment Bank so I will be able to get some useful information to benchmark those fees that are stated to be within market norms.
The City of London seems like a big place but in the Corporate business world it is relatively small.
AGE
Mrc - well it will save me about £25 a month a least. Every cloud has a silver lining
A genius punch line “Gneiss work if you can get it!”
AGE
I think the Board are in for some what of a wake up call as shareholders are going to be very proactive going forward!
The GG accounts shows leasing obligations due within one year but those that are due after more than one year are disclosed within Other creditors so some what of an inconsistency!
AGE
The EAG/GG acquisition slides that are on Scirocco’s website do show that 700,000 was paid to acquire 100% of the share capital of Greenan Generation but what they do not show is that the three Montgomery Brothers paid just 90 pound for those shares!
The last set of GG Ltd accounts shows that it had negative net assets of around 250,000!
80,000 was also paid for solicitors fees and 100,000 for due diligence costs so 25.71% of the 700,000.
AGE
Careful BD - the board were furious about this article and may try to ban you again!
Article by *************
I have been peering into the world of AIM-listed Scirocco Energy (SCIR) – formerly Solo Oil (SOLO) – following a shareholder revolt which saw 36.56% of voting shareholders reject a deal to sell its interest in the Ruvuma Asset in Tanzania to AIM-listed Wentworth (WEN). 36.56% was not enough to derail the proposed transaction, but looking through the associated Circular is it hard to see what shareholders in Scirocco gain from the deal.
Whilst the headline was that Scirocco would receive $3 million plus contingent deferred consideration of up to $13 million. Note the “up to” here! In addition the letter to shareholders stated:
subject to satisfaction of certain conditions Wentworth will make a loan of $500,000 available to Scirocco (the "Initial Loan Amount")
Of course, “available” does not necessarily mean drawn. And “contingent deferred consideration” has no guarantee of generating any cash at all.
But reading down the associated Circular, I found this:
Pursuant to the Facility Agreement, Wentworth has agreed to make available to Scirocco a term loan facility of up to $6,250,000 (the “Facility”).
Utilisation of the Facility is subject to the fulfilment of certain conditions precedent including, inter alia, the Resolution being passed by the requisite majority of Shareholders at the General Meeting, preemption waivers being provided pursuant to the APA and no event of default having occurred.
The Facility is being provided to Scirocco purposes of meeting all cash calls due by Scirocco pursuant to the Ruvuma JOA between the Economic Date and Completion.
Well that seems reasonable enough: the Ruvuma asset might need some cash spending on it ahead of the formal sale being completed. Better still, we are told that the first $3 million of the loan facility is being provided interest free, but the rest is subject to 7% interest per annum until such time as the grant of the security in respect of the Facility is approved by the Minister for Energy in Tanzania – at which point the facility will be secured against the asset, in favour of Wentworth.
But we are then told:
Subject to Completion occurring, the Facility is repayable by Scirocco upon Completion by way of a corresponding reduction to the consideration payable under the Asset Purchase Agreement.
So if Scirocco borrows $3 million to spend on the asset ahead of completion, does that mean that the initial consideration of $3 million is then wiped out? And if the sale falls through we are told:
the Facility will be repayable on the date falling 90 days after Wentworth has demanded repayment following termination of the Asset Purchase Agreement (the “Repayment Date”). If the Facility is not repaid by the Repayment Date, Wentworth may convert all or part of the Facility into fully paid Ordinary Shares, subject to applicable laws and regulations.
Hmm – at what price? And given that the market capitalisation of Scirocco lies at £3 million, there is surely the risk of extreme dilution here if the deal runs into trouble. And if the sale does not complete by the “longstop” date – the end of June 2023, unless by reason of Wentworth defaulting, in which case the loan is non-refundable, then 50% of the loan facility is repayable – presumably immediately.
Let’s take a look at the $13 million deferred consideration. We are told that:
$3,000,000 to be paid following the date on which the operating committee provides final approval of a development plan under the Ruvuma JOA;
.....which could, presumably, be reclaimed if Scirocco has to spend the rest of the loan facility on the asset
$8,000,000 which shall be payable from first gas on the Ruvuma Asset where the net revenues payable to Wentworth under any sale arrangements shall be payable 75% to Wentworth and 25% to Scirocco until such time as Scirocco has been paid $8,000,000; and….
Er….so that is out of the profits generated (if there are any). Given that potentially Scirocco could end up spending around $6 million on the asset, a 25% cut over however long it takes to cough up $8 million doesn’t seem hugely enticing!
And finally:
$2,000,000 following the date on which the cumulative gross production from the Ruvuma Asset is equal or greater than 50 billion cubic feet.