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Sorry MT I have no desire to get into the accounts. Are you sure the new loan was not a refinance of the existing?
My view is that EAG is a non-business unless they can get funding for more acquisitions. Even in that case I’m not sure if EAG adds value to these mom and pop businesses. Perhaps access to funding (obviously a disaster so far) and expertise gained from owning multiple assets would make it a good business case.
I don’t like the opaque structure. This BOD treat shareholders with contempt in my opinion.
The numbers are correct. EAG is not the first company to borrow to buy a business.
I guess what MT is saying is that the debt is higher than what the asset is valued at. E.g. SCIR /EAG paid a significant premium?
So the asset cost more to build than it is worth. What is £700k? 2 years profit? £900k is what, 3-4 years net profit? That would be be judge as to whether it is a good ROI.
I’m guessing the directors of EAG will be taking hefty fees. That is the only way they can get money out of the business until the loan is repaid to SCIR. I suspect between these fees and the rundown plant being refurbished there is nothing left in the kitty to repay the loan.
SCIR loaned the money to EAG, so that is ok, as it will come back at some point. The business is profitable, so the purchase price reflects that and future earnings, not the asset value. A bit like buying a service based business. The PCs are worth less than you paid, the building is rented so you have no assets, but the workforce generates earnings.
What are you driving at MT? The purchase of GGL isn't the issue. It's one of only two things the BOD have done well, the other being selling He1 shares for 20+p. The issue is the fees and general cash burn for a small company, ultimately resulting in surrendering the flagship asset as unable to fund.
See page 8 of this ridiculous presentation.
https://d1ssu070pg2v9i.cloudfront.net/pex/scirocco/2021/06/13223309/Scirocco-Energy-Deal-Presentation-June-2021.pdf
It was only a part payment.
Depends if purchase price is less than debts, and whether the entity still exists. GGL has continued, just with different owners.
£300k was used to ay down the GGL loan, which GGL owed to creditors (presumably the build and start up costs).
Looks like another red flag to me? I thought they bought the stake in EAG? That’s what they told investors.
The BOD need to start explaining themselves IMHO. We should not need to be trawling through accounts for information.
Thanks MT. So SCIR will be receiving income from interest payments. That's a good thing, right?
Good stuff MK, I will place the total of £2,132,000 for 4 years into my previous calculation.
Total Income £11,940,000
Loan repayment £1,220,000
AD plant £1,200,000
Missing £9,520,000
Gneiss payments £2,132,000
Missing £7,388,000
Lots of senior folk for such a small company. Contrast with Predator.
He’s legally stolen millions from us.
FlexxyP - please drop me an email soloegm@gmail.com
Thanks
Hi Big Double
You can Add me and my shares to this group only 100,000 shares but every little help. These guys need to go. What information do you need me to add my shares into the group to force these guys out or whatever you are trying to do. Please let me know. Alex
How about requiring a shareholder vote on any related party transactions. Or requiring an independent assessment of the value for money provided by such parties.
If the BOD don’t have the honour to step down then shareholders should severely restrict their actions
Directors' remuneration the obvious target?
NR will have looked these guys in the eye no doubt and seen their shiftless arrogance. No wonder he got out.
Now that the board have taken this route into renewable energy why have we not yet heard a word from Muir Miller who is the only one amongst them that has any experience on the subject?
Maybe he would sound more convincing than the others who have their background in O&G.
NR sold up as I have been advised
I am almost feeling sorry for NR now as he bought quite a lot of 'Solo' shares for his retirement and this bunch of scum have rinsed it all away. He never was any good at negotiation but I always felt that his heart was in the right place, not like the present BOD.
just another 1,300% to go and then I'll break even! Yay! God bless our board for guiding us on to this path of growth and prosperity. Good job guys. Really great work...
Booom! Take off time. I never doubted these guy! Hahaha who wants to risk everything on a little 25% of a billion $ proven basin.