Member Info for bradis

But they’re not shorting as they “bought” the shares under the Subscription Agreement, but if you read the RNS, AST then returned the £1,080,750 back to Riverfort under the Equity Sharing Agreement. The amount AST gets depends on the SP performance, but we’ve effectively allowed Riverfort to dilute us for below the 0.27p “premium”. It’s bonkers and a win win for Riverfort.

HawaiifiveO, but the sad truth is the lower the SP goes below the 0.27 benchmark, the less Riverfort have to pay for the shares. They are actually perversely incentivised to see the SP drop, pretty much the same way a shorter is.

This will be sub 0.10p next week at this rate.

Also, Riverfort have not paid 0.275 for the shares. The amount they pay is spread out over 12 months and depends on the average SP for the month. If it’s below 0.275 then they are actually paying less. So it’s a win-win for Riverfort.

Mysteron, pretty obvious with Riverfort dumping their shares why it’s fallen no?

Yikes. This is really crashing isn’t it.

Another tick down.

If BoD don't deliver positive news soon, can't see this staying above 0.10p with Riverfort selling so much stock. All the while, they pay less and less money to the company.

HawaiifiveO, I was trying to get my head around the Riverfort equity sharing arrangement last night. I have to admit I was initially bamboozled by it - not really seen anything like it before - but a bit of research showed that Riverfort have entered into similar equity sharing arrangements with other small O&G companies.

AST issued Riverfort with 393m new shares in return for £1,080,750, but under the equity sharing agreement, AST have to return the same money back to Riverfort. So basically Riverfort have paid nothing for those shares. It's selling those shares into the market and PI's are buying those shares from Riverfort. The amount Riverfort actually pays AST depends on the average monthly SP - so actually it's not in Riverfort's interests for the SP to go up is it because if the average monthly SP is above the benchmark Price (0.275p) then they have to pay AST more? They obviously don't think AST is going to succeed otherwise why would they have agreed to this equity sharing arrangement?

I also admit I'm concerned by the £420,000 loan from Riverfort which has a ridiculously high interest rate of 10%. We've not seen any production figures for a while not had any news on field development - just how is the company planning on paying this back?

Does anyone have any views on whether this equity sharing arrangement, in particular, is good for the company. Obviously the SP depends on news flow, but assuming the company delivers the goods, are we able to benefit from it? It doesn't seem that Riverfort believes the company is going to succeed and hasn't helped AST with the punitive interest rate on the loan either. Let's not also forget the 43,000,000 warrants Riverfort have - but these still have to be approved by shareholders.

0.1335p must be a new low?

Interesting people still buying here. Can’t see the point if Riverfort is still selling in 2-3m chunks and no news. Only going to go lower until news and Riverfort dumping their shares.

Don’t think my PF can bear to average down here anymore. Already have enough of these as it is. Most of my money is in cash savings and cheap index tracker funds. This is gambling money only here lol.

It’s bad enough the SP is now falling to these ridiculous levels, nevermind this JB81 guy p!ssing everyone off on here as well with his lolol’s!

I see even the traders are avoiding this now.

0.13 bid? I think we all just need to be put out of our misery now.

I’m with them but they’re delayed by 15 mins?

Hulie which platform do you use to watch live trades on out of interest?

When is this going to go back up again?

Gut-wrenching even*

Gut-wrenching even*