Member Info for bigdouble

Tree shake due to possible news in the morning

Could well be the last time investors can buy this stock for under 3p.

https://www.investegate.co.uk/helium-one-group-ltd--he1-/rns/eyasi-project-update/202101200700032272M/

£85,000 of sells cleared in the last half an hour. Could start to move up higher now.

With a starting point of 3p, I Would think 4p - 4.5p on wood news.

Need 2.85p to catch up with the German markets.

Happy to wait for Wood news. If the SP can get into the 3’s and then news drops happy days. 5p could well be on the cards. Aries claim thrown out 6p could be knocking on the door. That would give me 36 million reasons to smile

hollyroller - some great research and yes lots of unanswered questions. The problem is unless you are willing to do what I did several years back, all this talk is just a waste of time. You need to gather names and proof of shareholding’s, enough to call an EGM and also enough to vote the Board down. Are you willing to do ALL this work!!!

Although I still have concerns regarding the Gneiss situation, I will personally not be taking the matter further at this time. I am busy on other matters and feel realistically there is little shareholders can do at present. Hopefully, this will be a warning to the Board that shareholders are on their case and unless they act with transparency they will face further difficult questions from us. Personally, I would like to see us retain Ruvuma until the drill, subject to funding being acceptable when looking at dilution versus return. I may even take a massive gamble in the next few months and double my stake.

Original e mail to Board

I would appreciate if you or the board could confirm/ comment / clarify the following issues which are of concern to many shareholders including myself.

Gneiss Energy - you state that at the AGM the Chairman gave a very transparent breakdown of the fees paid as financial advisor. I would dispute this, and see no reason why shareholders are unable to see a total breakdown of fees paid 2018 - £763,000 and 2019 - £538,000 as per the last two years audited accounts.  As stated in the accounts, we have a common director involved in both companies and I do not feel it is unreasonable for shareholder to examine these costs.

Stock - I fully understand the board are being given stock instead of salary to preserve cash. My issue is, whilst a large percentage of the UK population have been furloughed the Board are accumulating stock at unacceptable level. I have tried to calculate their holdings as of the end of 2020 and the figures I have come to seem total unreasonable when you look at the progress to date and the current share price.

Alastair Ferguson 39,963,185
Jon Fitzpatrick 41,563,586
Tom Reynolds 25,709,890
Doug Ryecroft 12,854,946
Don Nicolson 12,854,946

These figures presume incentive awards for June 2020 to December 2020 as per RNS 2nd July 2020.

The above figures would indicate, based on a share value of 1p the Board have granted themselves just over £1,000,000 salary for the calendar year 2020. Do you honestly think this is warranted.

Please either confirm this or point out any errors within my calculations.

Ruvuma - It is understood that negotiations are happening behind closed doors.  Is it possible, in the not to distant future, that shareholders are advised exactly how, if we are to retain the asset until drilling next year, how this will be funded.

ONE Dyas deal - As shareholders understood, the Board pulled out of the ONE Dyas deal mainly due to the drop in European Gas prices. Short term volatility is common within the oil and gas market, especially in the past few years.  Gas prices have already increased and are now at the levels they were in April 2019

Why did the Board not take a longer term view or were there other issues shareholder were not made aware of.

Helium One - To date we have not even recouped our initial investment. Hopefully in the coming months this maybe possible subject to Helium One not diluting our holding with placings to fund further development

Gneiss Energy - We do not agree with your view on this.  All listed companies accrue advisor fees, and the Board benchmark Gneiss' fees in the market to ensure they are reasonable for the services that they provide.
 
It is not however reasonable to provide a more detailed breakdown of those gross figures as there is commercial sensitivity for Gneiss and they therefore would not want their fees being disclosed in open forums.  It would be poor practice for any firm to disclose a breakdown of their adviser fees.
 
As I state, the Board is very cognisant of the common director which is why appropriate measures are taken with anything that involves Gneiss. 

Stock - You have aggregated shares which have been bought, share options granted in lieu of salary (to preserve cash) and performance options which have not vested yet and are underwater with a strike price of 1.3p and would result in meaningful subscription proceeds to the company if exercised.

Performance options will vest over 3 years (one third/one third/one third) and have a strike price of 1.3p so subscription would be £668k if exercised.

Therefore, your figure of £1million overstates the value of the awards to the Directors during 2020. As noted in the RNS of 29th June, Directors stopped being paid in cash in March 2020 (with some only drawing part salary in cash in February as well) – since then all fees have been paid in options representing approximately 19.0million representing Board costs of c.£190,000 for the calendar year 2020. You will note that no Director has converted a single option in the company so all continue to be compensated on an entirely risk basis. All of this has been done to preserve cash in the business to that we can further prosecute the business strategy.
In addition the Company put in place an Incentive Award scheme which would be entirely normal for a public company and there was not one already in place for Scirocco. This is done to incentivise the Board and executive management – awards were made under this total 51m shares – these options are not exercisable until June 2022 and no Director receives any value unless the share price is in excess of the exercise price so the Board is incentivised to deliver for shareholders. 

Additionally, Alastair was awarded 7.5m of existing shares held as trust assets within the companies EBT – at the time we noted that Alastair had not drawn any salary during his tenor as Executive Chairman (so dating back to Feb 2019) and therefore the award of such shares was made to recognise this, preserve cash and further align a Director with shareholders interests.
 
Ruvuma - I'm sure you appreciate that SCIR's ability to fund future participation is materially sensitive to the ongoing sales review so it would not be in the interest of shareholders for SCIR to making public statements on this matter at this point, beyond what they've already stated regarding review of all options.  Any further detail could weaken their hand in negotiations and create an overhang to the current share price. 
 
Clearly it is the duty of the Board to ensure the company has access to funding to retain ongoing interest in the project, and they are reviewing all these available options as appropriate. 
 
ONE Dyas deal - It's easy to consider commodity pricing retrospectively however at the time of the Agreement the move in pricing had a very sudden impact on the valuation which is why the Board tried unsuccessfully to renegotiate a better deal.  Shareholders, and the market more broadly, would not have been happy with the valuation they would have been paying to conclude the deal on the

Helium One - Well aware that the Board has not recouped initial investment, but again we ask that you and other LTH appreciate that this investment was made by the previous team and was not the responsibility of this Board.  The stock has performed well since listing, an event enabled by significant support and input from SCIR, and we would expect it to continue to perform well in the run up to the well.  Any further dilution is not in SCIR's control.
 
We have always engaged openly with you and appreciated your feedback.  The above responses are being submitted on behalf of the Board with their agreement and can be readily shared if you wish.  We do not believe it is necessary for the Board to discuss these issues with you privately as there is nothing further to disclose on these topics, and we remain committed to good governance which includes disclosure policies.

We recognise your frustration which is shared by the Board, both in their capacity as material shareholders and an ambitious Board that wishes to be judged on success.  

I explained in previous email that there is plenty happening, both in terms of business development and divestment, that cannot be disclosed at present as they are not fully formed and of course commercially sensitive.  As such an EGM would be detrimental for the company and its shareholders at this key juncture.

Hi White, I was also with SVS. Now I have split my holdings with Hargreaves and Shore Capital. So far so good

Delayed trade just dropped in

Amazing how well PHE are holding up seeing the placing was at a 30% discount. Proves how strong the sector is at present

Looking strong

https://www.investegate.co.uk/powerhouse-energy-group-plc--phe-/prn/placing-and-issue-of-equity/20210114070000P93DA/

£10 million placing at 5.5p

Anyone know what shareholding they had