The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Yes, Clued, divided we are weak . I suppose that is the nature of the PI in the scheme of life. I am hoping they will make changes before the circular comes out on the 28 April .Maybe in the excess facility so that all pi can invest as much or as little as they wish but that they are given the full opportunity
Anyway, I was mulling about what is their sales spiel to the new institutional investor.
The potential investor will no doubt ask
Are guaranteed the licence to be renewed ? No
Is it a production or appraisal well you want me to help finance . NO, just an appraisal well.
Other major investors will be able to convert their investments into equity and basically end up with 83% but I don’t have that option . No, you don’t
Ok, (leaving cert maths ) Mr Curran and Mr Christie, if I take up the whole placing , it will cost me overall after warrants €12m for 10% of Bey or 6.4% of the barryroe licence .
If I invest say €1m in the placing , I will end with 0.64% of the barryroe licence . Yes, that sounds about right.
Ok, Mr Curran, but wouldn’t it be better for me to try and buy £1m shares in LOGP which currently would give some 25% of the stock and thus 5% of the barryroe licence .
Of course, this will be diluted in a fund raise but I have the difference between 5% of the barryroe licence and O.64% of the barryroe licence from your investment option and I am more in control with my LOGP investment.
I don’t see the attraction of this investment to the institutional investors as it is unless they are been told more than we are . Is the licence update on the way.
What’s the extra money for ? After the recent warrants purchased, isn’t their about €3m+ in the bank while we wait for licence news.
Questions, questions, nothing but efffen questions !!!!,
Can anybody with greater knowledge than me in this area of finance explain the following
One of the biggest problems this company has faced is raising money yet in this proposal , it is the private investor who is limited in what they can invest with a 1 in 6 allocation and no doubt the excess facility limited.
What is the problem with raising as much as possible from the existing investors?
why are they been penalised especially in relation to the new investors .
But most importantly Why are they not been given the same opportunity to avoid dilution
Am I missing something here.
You would wonder if there was a bit of kite flying in this. They are gauging the reaction of small shareholders before full circular comes out .
Thanks to the work of NAH and others it is clear on deeper analysis we are been screwed.
We are , obviously as small shareholders too stupid to be allowed the same terms as “ qualified investors “
Let’s safeguard them by limiting them to 1 in 6
I will admit, I was wrong . I thought the CLN was a stopgap. Maybe it was in the beginning but greed took over.
The macros for oil have changed completely in the last few years . Prices look like they will be 75-90 usd for years but it’s the security of supply which I think we dominate the next decade with the Russians, Chinese and Saudi getting together.
Barryroe is very valuable resource in this new environment and if we the small shareholders don’t make an almighty stand, we will be walked over.
The minimum requirement should be we get the same rights as those in the placing .
1 for 1 with warrants. If they aren’t all taken up , then goodman and his pals can grab the balance. But the small shareholders, who have been here for years must be given the same rights as others or else it is going to be one stormy egm .
The message needs to be clear to Curran, the new financial controller and Larry’s gang that if we are taken out by not been given equal opportunity, then we will help bring the whole thing down . You don’t field a junior team against a senior hurling team .
NAH, thanks for that . Will be interesting going through it .
I am wondering why these “ professional investors “ would get involved in the placing with the CLN in the background.
Normally these investors are lined up in advanced but why invest , when the possibility of dilution is so great .
We are always been told by the board it’s very difficult to raise money. Yet it seems they don’t really want to raise money from the small shareholder( only 1 share for 6 ) why not 1 for 1.
Are they afraid they might raise too much money from the small shareholders. Why deny them the opportunity?
Interesting to see their answer to that at the EGM. Their one legal duty is to protect shareholders interests -All shareholders not just Some of them or else they will find themselves in tricky legal ground and Nobody will get any of the cake even LG .
Is our €1 not the same value as €1 from very LG. Why are we not been given the opportunity.
I think the management need to go back to the drawing board and give small shareholders more before the circular is distributed.
Lansdowne can sit back now . Once or if the lease is updated , their 20% stake becomes even more valuable . Theoretically based on the placing been planned , it would be worth 20% of €120, €24m - 6 times its current capitization.
They could even get a free ride by paying their costs out of future income or else they could put obstacles in front of Larry’s and his mates way.
Irish times online report
Barryroe Offshore Energy said on Thursday it plans to raise up to €20 million through a share sale in order to put itself on “a solid financial footing for the foreseeable future”, as it continues to wait for Government approval to progress its key project off the Cork coast.
The share sale will be by way of a proposed placing and open offer to investors who did not participate in a recent €40 million convertible loan note fundraising.
“Taken together, both fundraisings will place the company on a solid financial footing for the foreseeable future,” said Barryroe chief executive Alan Curran. “We now look forward to progressing the Barryroe project, especially to the grant of the lease undertaking by the Minister, so that we can expedite the necessary appraisal well preparations.”
Barryroe, formerly known as Providence Resources, filed an application with Minister for the Environment Eamon Ryan’s department two years ago for a lease undertaking to progress its Barryroe oil and gas prospect, 50 kilometres off the coast of Cork. The site was found a decade ago to have more than 300 million barrels of recoverable oil.
Major company shareholder Larry Goodman agreed to provide a €40 million funding backstop by way of loan notes that can be converted into shares in two years, to address department concerns that Barryroe did not have the financial capacity to progress work on the site by drilling necessary appraisal wells.
Barryroe confirmed last week that Mr Goodman’s Vevan investment vehicle had agreed to share the €40 million funding line with other major shareholders.
It is believed that businessman Nick Furlong and his Pageant Holdings vehicle, which combined own about 12.7 per cent of Barryroe, and London-based hedge fund Kite Lake Capital Management, which holds a 10.2 per cent stake, are among major shareholders that have signed up to participate in the funding line, by way of loan notes that are ultimately convertible into equity.
Barryroe said that it will issue a circular on April 28th, giving more details on the fundraisings in advance of an extraordinary general meeting on May 25th.
The new shares will be offered at 1.5 cent each, the same price at which holders of the convertible notes will be able to swap their securities for ordinary shares in the future.
A placing of as much as €12 million of shares will be open to so-called qualifying professional investors who did not participate in the convertible loan note deal.
The remaining €8 million to be raised through an open offer to all other current shareholders who hold their stock in electronic form.
Thanks Donald, it was a rhetorical reply question. Looks like some new private investors have been lined up. Would have liked option to invest more but the excess facility is there if capacity not reached.
Please explain??
Excellent to see All shareholders been given opportunity to participate in the funding .
Yes, NAH, really interesting posts .
On the tax loses , I know you talk about theoretical value but in real terms :
€281m loses x Irish tax rate of 12.5% , means they save €35 million in taxes and then divide this by shares , means it’s worth 0.03 cents per share
So the pi have to wait longer to see if they are to be had over .
LG should do the same
Am I correct in thinking this is just Merseyside following the rules and notifying their diluted shareholding after the conversion of warrants as the other bey share chat in advn seem to think this is a buy.
Appreciate you clarifying that .
That’s great but can you clarify the jump to 28%.
He can, with shareholders approval get 107m + 6 1/2m shares so that’s 113.7m shares and that as a % of the new 1,146,096,598 Ordinary Shares is 10% , bringing his total stake to 31.5% or am I missing something ?
Surly then the takeover panel would have to adjudicate on this ??
Also you would assume there should be a rns informing us of new shareholders %, but I won’t hold me breath .
Maybe you are right but my own recollection ,it was this fundraiser that was LG initial substantial holding and then his purchase of M & G brought it into the high teens. Pageant shareholding, again from memory has been pretty stable for the last few years and I don’t remember it rising substantially after last June fundraiser . The warrants rights were attached to the shares issued.
Its not clear from the rns quote in my previous message , if only the extra 6,594,076 shares require approval from shareholders.
But I assume shareholders approval is also required for his right to acquire the 107m shares for €113k otherwise why not do that instead of paying €1.1m in warrants .
From the last year funding rns.
The Company has agreed to grant Vevan the right to subscribe in cash at a consideration per share equal to the nominal value thereof (being €0.001 per ordinary share) for 107,186,000 ordinary shares (representing approximately 10% of the issued share capital of the Company) and, subject to shareholder approval, to grant Vevan the right to subscribe for a further 6,594,076 ordinary shares at a consideration per share equal to the nominal value thereof”
So with this and if LG exercised those warrants, which seems most likely , it puts him potentially with over that pivotable figure, over 30% of the company. Is he going to take it over, and flip it when lease is updated . Was Varadkar giving him a message in the dail last week
Surly it’s more likely those warrants were exercised by LG. That 96 million share and 1 warrant per share fundraiser last June seem to have been predominantly LG as pagent shareholder % went virtually unchanged.
And if it was LG, what is Goodman equity % now .
Didn’t he also get a few % for agreeing the convertible note last nov.