ADME28 Jun 2019 19:56
I have said this before but will go over it again.
The resolutions that were not passed re the MXO AGM was for our benefit.
The authority to issue new shares in a placing will take the time it takes to write it out.
Its a simple process the company can call an egm whenever it wants or needs to to simply give authority to themselves again, nobody will vote it down this time as it is for our benefit this time.
There are no intended actions as a result of the past vote , it was voted on the result was clear and that's that it is a closed matter there need be no further comment on it by the company.
Going forward when they need to raise funds by a placing or open offer or rights issue they simply RNS the fact and call a board meeting have a vote and Bobs your uncle and Fannys your aunt.
There will be no further details of the past vote however if you were really keen and wanted the votes counted then I am sure it was recorded and can be accessed by anyone who finds this non matter important.
Financing the new company ADME is exactly the same as any other listed company they are not hindered by past votes.
If you think for one second that a large oil asset will be dropped in here for free then you are insane.
When a deal is agreed it will come with funding/financing.
Lets say for example The sheikh suggests dropping a £500m project into ADME and using ADME as the vehicle(this is exactly whats going to happen by the way)
Then there are several likely things that will happen and most likely a combination of several if not all of them.
Keeping it simple they could say ok we are placing 500m new shares @£1 per share to institutional and corporate investors and some net worth individuals.
Such a thing gets agreed behind our backs we don't get a say in this sort of thing, we will get a vote but even if we didnt like the deal the Sheikh outvotes all of us combined.
But such a deal would likely not be all in shares.
Debt for equity ie a loan for a promised amount of shares in the future or repayment of loan with an interest rate of 10%
Borrowings from Banks controlled by the Sheikh etc.
Performance related payments.
And all sorts of strange and weird ways they come up with these fundings.
But yes I expect shares to be a part of it and will be delighted when it happens as it means we are well on our way.
And for anyone who says a premium placing at £1 is unlikely then ok...2.5b new shares at 20p it makes no difference.
It only makes a difference and it only matters if it is just yet another shady deal done with shady people who deliver nothing and take take take.
A penny oiler take your pick their ten a penny.
I wouldn't be interested at all if I thought this was going to be yet another shysters plaything.
The Sheikh doesn't need to piddle around on AIM for pennies.
He wants to build his billion dollar oiler and I bet he will do just that.
The share price will grow with the deals.
And the new team.
And the new Brokers
Think
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