Tim Watts, CFO at Shield Therapeutics #STX presenting at our Life Sciences Investor Briefing Watch Now
The fundamentals are good and the surplus CIH is growing,
The spread is around 8% in real terms.
I would expect the companies surplus cash build to continue and be put towards asset acquisition then into operation at almost zero cost to existing production thus doubling up o/p.
Despite the spread I have added several thousand to holdings paying a reluctant 79p !!! I expect the sp to drop back although in its favour the results should add some shine to the sp as would more large diamond finds.
The legal spat-
SMP will not deal with AAOG,
Not doing so Raises the question-Are the drill results as indicated by AAOG?
Taken in the context of the BODs failure to deliver on its first statements of BOPD, production, asset acquisition. Finance, and licence negotiations.
So the outcome may be that AAOG withdraws or drops it's claim for damages.
AAOGs claim will not be strengthened even if it wins, despite all the waffle, because the defence appears to be ' these are not assets in our full control or possession'
Nevertheless the claim has 'merit'as advised by AAOG,
Few of AAOG's previous claims had any merit.
Excellent thinking washers, transparency, like it or not better than the BODs obfuscation in all matters relating to their sure fire production claims especially finds, funds and CPR.
Include the BB wafflers forgetting to remind holders the fictitious 1500/5000 BOPD was to be shared with a real partner so all their calculations were purposefully wrong.
Too early to comment on todays sp failing below the 5p level
On a serious note- Investors have a dealing problem created by the very low SSI.
Problem is the sp can move rapidly in either direction so creating an 'unreal' spread'' as can be seen in the region of 15% when it should just a penny or two at most.
The spread can make a huge difference of perhaps 50pps on a 350p to 400p when platform dealing plus decreasing the NMS and an ease of dealing.
Example watch BIOM who have 10mill SII.
Best way to deal is set your own price.
I see manufacturing the truth is upset, having advertised his personal failure to the tune of £400k adding he is 'richer than you'
Not to expect an advertised loss demonstrating investment failure to attract comments is on par with not using stop loss-criteria as in to deep to get out.is to say the least -foolish.
In general true wealth rarely comments on loss situations just mans up and deal with them .
The sp has held up well reflecting an unusual amount of interest on the buying side which with all the failures does not add up.
So the question has to be asked ''is the shareprice being deliberately manipulated by the parties who's vested interest is in having the sp higher than 5p''.
Expected RNS should give update on awaited events, funding, licence,rig contract ,legal actions etc.,news expected at any time if it does not arrive in a format giving substance to shareholders expectations,enough substance to counteract the availability of more and more shares flooding the market every few weeks the sp will be going nowhere but back down to the low 4s earl 3s
That was the RNS to raise sp profile to start the selling of the shares.
Pure Market manipulation to which the sp has responded by a spike which should be maintained depending on
another couple of RNS statements coming designed to lift the sale price average.
Meanwhile the sp will become a short term trading paradise.
For the first time in what seems ages there is a small profit to be taken by those who bought in at 4p.
The sp is moving as expectation of news come nearer.
A cynical view; Could be that BOD are buying in at the expense of shareholders who allowed their large salary increases for delivering zero o/p,in effect giving them free shares.
It is not a question of ignoring facts as you put it,
The fact is no matter what has or has not been found nothing has been put into production.
But they found oil?
They had the money.
So what went wrong?
Remind us how many millions have been spent on getting zero production?
'The blindingly obvious' is factual, and is why the sp is where it is.
Little will move sp from its base except spike format until the 'blindingly obvious' is sorted out and cleared up.
So the sp can expect a number of false starts initiated by RNS, due any time soon.
Those that bury their heads in the sand prefer to hear manufactured truth , unable to accept loss , thus they insult and blame others for their own failures. ever holding onto the thought 'recovery' is round the corner.It is not.
If the sp drops much lower The 5 day notice becomes a factor or the share sales could somehow be delayed.
If The BOD had not come up with this scheme to raise money then the receivers would have been called in (See RNS statements about going concerns.)
The offers of funding stopped this from happening.
The recent cash injection has allayed those concerns for the moment.
Now the future depends on the proceeds of the coming share sales.
They will be on a consistent monthly basis from a company that has failed to deliver, has question marks over the activities of the BOD , and is running at a loss ,
Should it all go wrong the only ones to benefit are the BOD.
The sp is steady for the moment as there are still traders willing to risk small sums on a turnaround.
A successful outcome of the funding and litigation would help the sp,
Meanwhile the BOD has still not delivered on its plans, licence negotiations, New Rig contract and so on.
Last Nov., I started selling out substantial holdings at a heavy loss so I will be buying back in, not sure when as the sp is still in slow decline.
The sp won't recover yet,still drifting off towards lower teens unless a news spike or steady buying by those prepared to wait instead of utilising funds for quicker returns elsewhere.
So no short term gain.
The start of the drilling prog.,in late! q4 should change sp direction.
Previous drill bit successes did little to lift the sp.
If the BOD are raising 8+ million by stage payments .their is no way they can be an insurance policy, they need the money and the only way to get it was by creating a situation of monthly payments. More than likely the cash they have received made the deal possible as it gives them a head start.
The flip side is if the BOD fail to deliver on timing etc., drill date or Drill failure, monthly income failure etc., the finance deal can be cancelled with little notice leaving the BOD mired up.
As for the legal wrangle via the Paris C.C. it will be a drawn out process assuming arbitration is accepted.
#**The consent of both parties is required.
The BOD are taking a high risk gamble because the situation is each party pays its costs as it goes. and the costs of arbitration are generally much higher than in normal litigation processes.
Not all awards are immediately enforceable unless specific criteria in place.
Also if no arbitration agreement is entered into then a likely end to the case.
The BOD have not mentioned any of the above so the question is -was an arbitration procedure in the contract?
#**If there was an arbitration clause in the contract then AAOG have the right to enforce it.
Also the PCC can enforce AAOGs partner(s) to provide various documentation and appear if required.Presumably their partners have consented ? Great for the expense account,1st class 5/7 star.
Of course none of the above stop the claim from having 'merit'
A legal minefield.