Caution needed15 Jan 2016 12:14
Can this company be effectively managed by Andre Austin when in just under a year's time be Will be required to find the cash to repurchase his igas shares.
A cash call on a newly founded company does not appear to be a prudent strategy in my opinion.
16 January 2014
IGas Energy plc
("IGas" or the "Company")
Director Share Purchase and Finance Facility
IGas (LSE: IGAS), one of the leading producers of onshore hydrocarbons in the UK, has received notification that the Chief Executive Officer, Andrew Austin, has purchased 300,000 ordinary shares in the Company ("Ordinary Shares") at a price of 135.38p pence each.
To fund the acquisition of shares Andrew Austin has entered into a loan facility, and has transferred up to 7.5 million shares as security. Andrew Austin is required to redeem the shares at maturity when the loan is repaid at the end of the three year term and it is his full intention to do so. Under the terms of the facility the lender is contractually prohibited from short selling or voting the shares during the term of the loan. The loan facility has been arranged by Meridian Equity Partners and the funding provided by Equities First Holdings, a securities-based capital provider for institutional and individual clients.
A share to watch rather than dive into.