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There is a similarly named U.K. company. No idea if they are connected.
Given the related party shenanigans here (and in my view a failure to declare such between 2018 and 2021) I would be assuming the worst with regards connections between Fitzpatrick, greenan, EAG, KKV.
Mt - if I thought the BOD were capable or motivated to actually deliver this latest strategy then it might be an OK deal. I don’t think they care about building a business.
I would add that most of these AD businesses seem to be mom and pop operations. Is it a viable business plan to buy these up? Are there economies of scale and benefits of being under a listed company topco?
Given that SCIR have failed to raise debt finance for any more acquisitions I have my doubts that it is a viable business plan.
I don’t have a big problem with them keeping 50%. Without them there is no business. They have a big incentive to stay and grow the business. Exit for them will likely only come when SCIR decide to buy them out, SCIR go into liquidation, or the EAG gets to a point where it pays dividends.
Of course they will be drawing a salary I expect, so great deal for them from that point of view. Nice safe job, lots of jam tomorrow upside if SCIR can hold up their end.
Market timer - the theory goes that the 2 partners in EAG know the AD business. They bring their knowledge to the company in return for retaining 50% of the company.
For all we know that is fair enough. SCIR were supposed to bring the financing to the party but have failed miserably beyond that piddly initial deal.
I think the SP here may have further to fall. The prolific conversion will be highly dilutive now. And given the way money is spent at this company investors will not attach any value to it (beyond staving off more dilution for a few months). The existing AD plant should be showing a good operating profit, but none of that will be coming back to SCIR as it will be used for G&A in EAG in my opinion.
One AD plant is not a sustainable listed company. A significant amount of cash will likely be needed now but at what cost?
The BOD will never build a viable AD business.
The finance they like to use and costs of obtaining it make any plant or group of plants unviable in my opinion.
At least Rycroft should be headed for the exit now.
Marketttmer, such is the way of things when investing in microcap stocks.
We all invest in them for that fantasy 10 bagger which hardly ever comes lol
Most of us get the timing wrong & lose it all.
£15M down the drain & recouping £3M is raw deal. By the time WEN pay the other £8M, I think Scir will still be posting yearly net losses. As for the final payment, that might not be payable till 2026 or later. Personally I don't think Ruvuma will be producing gas to sell by then.
Anyway Tanzania is no longer of concern. I am actually glad to see the back of it.
Arguably Scirocco now has the means to buy another AD plant which will break even by 2027. So 2027 should be a it's first net profit lol.
Directors responsibilities (Companies House)
Promote the success of the company
You must act in the company’s best interests to promote its success.
Well the BOD have failed meeting this responsibility!
Why oh why did I not hit the sell button in January 2017? I could have saved myself 5 years of my life. A life lesson learned the hard way.
With regards to the new AD strategy, I do think it will ultimately lead to market cap growth, to which the BOD will declare it a triumph. However there is no way that I will ever recoup my losses here. I'm going to sit tight until the deal gets signed and then the first $3m lands - hopefully that will push the sp nearer to 1p to give me a route out of this tragedy.
How did it come to this? Multi billion dollar asset and we're looking at a payment of $3m. My word that's the best example of poor leadership that I have ever seen in the whole of my life!
So Scirocco is now is an position to pursue its diversification model, or now its core business model.
So we should see growth & value creation for shareholders right? Lol start the clock.
I think they had enough institutional votes all along and the only shareholders who voted NO were retail investors. Deal got the go ahead even before voting took place.
Welp that's that. Market reaction speaks for itself.
All must feel the same 44RJ. I have lost count of the number of times I have said on this board ' Just when you think it can't get any worse it just does' and each time I have been proven to be right. I have stayed in here for over 10 years as the company has had the potential to multibag but not whena bunch of crooks are running it. Time to leave with a 98% loss.
I hung onto the one hope that our largest asset was going to bring long term benefit… that hope has been sold off (given away). What is left? The share price says it all! The market doesn’t see the deal as a good one. All I hope now is that the BOD are held accountable and pay the price for running the company into the ground. Where is all the money from sales of previous investment sales etc? Are we all the victims of fraud?
I just can't believe that over sixty percent voted for that POS deal. They must have very very long term aspirations - I've already waited one decade, I don't think I can wait another to get my money back. I feel absolutely robbed.
The criminal BOD need investigating and removing !!
As expected the sp has tanked. Not enough cash from the deal to avoid further dilution.
Really disappointed! Can’t believe they’ve gotten away with it. Who the hell voted for this deal save for the BOD ! They must be lining someone’s pockets to push this through. I’m sure their own pockets are stuffed full of shareholders’ cash.
Big D - hope you can still call an EGM and get an independent review into the account and the voting process. This whole things stinks and the BOD seem rotten to core.
Bod has clearly got away! Zero expectations now!
These guys need to be removed.
Company received the requisite majority approval from shareholders at the General Meeting held today in respect of the proposed divestment of its interest in the Ruvuma Asset to Wentworth Resources.
Well best of luck everyone, a very sad day indeed for those long term shareholders & I see no reason to hold any shares in this company and certainly not with this BOD.
All the best for the future
Seeing as I received confirmation of 102 million votes against, I find it hard to believe no one else in effect voted.
Doh. Thanks Chris. Trying to multitask and obviously failing!
https://www.londonstockexchange.com/news-article/SCIR/result-of-general-meeting/15517930
30th June 2023 is the longstop Highland.
The Conditions Precedent must be satisfied or waived by 30 June 2023 (the "Longstop Date") (unless such date is extended by agreement between Scirocco and Wentworth), otherwise the Asset Purchase Agreement automatically terminates.
The last Comms said the meeting would vote on the Resolution to progress the deal. The Long Stop date is tomorrow. Any news on voting?
Really appreciate your attendance today, we needed shareholders there to show the board we are not going to let them get away with this.