Strange goings-on1 Feb 2024 16:46
Good news about the Subscription shares going through. GCM now seems to be in as strong a position as ever with the political will (with or without Hasina) being as positive as I have ever known for actually mining the $100 billion worth of coal that Phulbari contains - this will help enormously with the country's energy needs.....and it's balance of payments.
However, regarding the Special Resolutions at the forthcoming AGM, there are 2 resolutions that have to be voted against:
- firstly the removal of Christian Taylor-Wilkinson from the Board since the consequent reduction in the number of Board members will almost certainly lead to a de-listing of the shares.....unless there are plans afoot to bring in 2 NED's which we haven't been told about.
-secondly the Board are proposing a facility to raise £1.5m through the issuance of 150m shares, ie. at 1p a share. When other Companies propose to raise future money through the issuing of new shares then normally the number of shares proposed is quoted - I don't ever recall the price of the shares being included in the proposal presumably because of possible variations in the future share price. And here, indeed, is a classic case in point. Without the uncertainties of both of the above, and with the immediate cash problems being answered by the seemingly out-of-the-blue Subscription for £500K @ 1.65p, I would anticipate, with all the recent pro-coal political talk, that there would be considerable demand for the shares on coming out of suspension tomorrow. However, with the prospect of a dilution of a huge number of shares bought at 1p being allocated then this enthusiasm will be drastically curbed. Why not wait for the share price to settle and then allocate a share price?
It seems that attempts are being made to stop any substantial gain in the share price, to the detriment of the vast majority of shareholders. This has to be stopped..........
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