Member Info for itisagame

£300k by Jub buying Riverforts half of the ISA.
30m new shares to raise £300k, + a potential future ?£900k? from ?60m? warrants at 1.5p (a number of warrants attached)?
$5m loan backed by Congo assets.
Share price increase should underpin YAs remaining ISA sales to atleast the money from Jub over time.

much better than i expected, much better than Zen deal, much better than a cash shell, thank you Align and all involved.

Fingers crossed this encourages SNPC to make a payment too.

should be above, Jub wants to buy 10% of the company at 1p from Riverfort.

Nice, $5m should see the company through.

They need to place under the current 5p nominal value. Which they cannot “technically”do.
To get around it they need to rebase the shares to achieve a lower nominal value.
Both plans zen or align require the need to place under the current nominal value.

So say £750k placing at 0.75p = ~100m shares issued, (ill say £750k as they were aiming for £1m and would have said if they had £1m, but could be between £501-£999k)
+£300k to AAOG for the already existing Riverfort isa shares.

Then We are at 500m shares in issue at 0.75p / £3.75m Mcap.
With ~£1m in the bank (placing + atog payments + Riverfort isa purchase)
With potential $5m debt backing
With directors who have aligned interests.
YA still have half the ISA (which might return more cash to shareholders if the share price rises, so the returns are hedged both ways I guess).

“ . The termination of the Equity Share Agreement with Riverfort and the taking out of this stock overhang also at the same price as the proposed placing – at a significant premium to the current stock price & estimated to raise approx £300k for the company”

The Riverfort isa shares? Assuming they have around 40m still then that would be at around 0.75p
300k / 40m = 0.75p

http://www.alignresearch.co.uk/anglo-african-oil-gas/statement-anglo-african-oil-gas-shareholders/

such a grey area of “technically there were issued above 5p” but from a legal point but Im surprised the ISA deal was ever allowed to contractually permit selling of shares below the nominal 5p. It’s the first case that I have seen.

I think if the ISA deal did not exist and it didn't currently hold the ~22% of total shares issued currently then aligns plan would struggle.
The fact that is does exist is what gives their idea traction at the current share price without an "excessive" net dilution.

I expect that we could still be looking at ~500m shares in issue afterward, probably backed up by warrants or a loan note bonded to the SNPC payments or something.

Still better than a shell, or in what would be a very strange twist to complete the act - a shell that buys / RTOs into the ATOG assets...

Mad Chatter This is different to PSL, this is basically a company that will supply and install LED lighting then lease these lighting units to the companies at a cost difference comparable to what they pay in electric for using the older inefficient lighting units until they have been paid for in full, they will then have the option to continue service and repair agreements.

PSL was a LED lighting manufacturer trying to manufacture LED panels in the UK where the high costs involved made it unviable instead of moving production to the far east like every other manufacturer. That combined with their expenses in development is what made the company fail.

This is more like a car finance company that supplies you the car, just for lighting.

This is a basic and simple business model, tax incentive service and "green" for the customer, which in reality comes at close to no extra monthly cost to the customer.

Im sure they will also upsell all necessary components and services to meet all the newer regulations for building and fire regs aswell, I.E. emergency lighting and testing, fire ******ant enclosures, servicing, the lot.

Most of the money raised at ipo will go out to finance the new work done by the company, which will in turn generate a return over time, this is why the company is floating.

Aslong as director and management pay doesn't eat in to the profits to much and they can keep finding new customers this will work, Unlike a car finance company it has a finite lifespan, you can only upgrade so many commercial buildings, there is a finite number of buildings requiring this service. So i would hope that the company decides to pays dividends to shareholders in the boom years before relying on servicing alone, shareholders are after all the alternative to conventional private funding that elight has chosen to use.

Not in AXM, but am fascinated by the prospects of Elight, and will be keeping an eye on it, it was one of the business models that i hoped PSL would have moved to when it sold the factory, it can be a very profitable sector.

Good luck.

Short term i think aligns attempt with their intentions of removing the ISA deal, replacing it with an alternative £1m of direct funding, and different leadership (whom hopefully they cost less in the short term, but will be worth their weight in gold if all works out long term!) will put AAOG in a much better position to at least negotiate a deal, while the new team go over the books, wait for SNPC to make another payment(s) and resolve SMP.

Long term overall either way compared to 6 months ago everyone has lost, unless the well produces at the higher end of the indicated expectations and AAOG are still involved - the shell idea is rubbish, AAOG have potentially good assets and a play already.

Half year notes : “ These funds, alongside continued anticipated receipts from our partner Société Nationale des Pétroles du Congo ('SNPC'), the Congolese national oil company, are expected to enable the Company to re-enter the TLP-103C well at Tilapia with a view to producing oil from the Djeno horizon. Although AAOG has historically had to finance the majority of the partnership's total expenditure, SNPC has now been making regular cash-call payments since March 2019, with nearly US$4.0 million received by the date of this report.”

also noticed that they already booked an impairment provision of £2.5m on the SNPC debt so they already planned at worse case to only get £1.5m of the £4m ($5.3m), so by that logic £1.5m sees them through all their planned drilling.

It was probably bull****. AAOG would only have had the funds if SNPC paid them.

Unless I have the wrong end of the stick - He was relying on SNPC to pay AAOG back some of the $5.3m to fund the new round of both AAOGs 56% and SNPCs 44%, then SNPC would have had their 44% share of cost added back to the debt owed to AAOG.

Eg If they paid a $1,000,000 their debt would be reduce to $4,300,000, then if $1m was spent on the drill SNPCs new debt would be $4.3m + (44% of $1m) = $4.74m?
Is that how the arrangement works?

As it stands it’s down to shareholders AAOG or otherwise to fund all of the drilling, and worse case (long term on a positive result) contra SNPCs debt against production.

If it’s inter company isn’t the net effect while AAOG owns 100% £0, zero problem, can be repaid with no tax problems in as and when if ever possible?

If ZEN take 80% could they then chase the debt and effectively force the subsidiary into liquidation?

From ZENs RNS “ As at June 30, 2019, the unaudited balance of the intercompany debt owing to the Company by AAOG Congo was approximately £12.47 million at the GBP/USD exchange rate on that date”

Definition: Intercompany Debt means indebtedness owed by the Company or any Subsidiary solely to the Company or any Subsidiary.

What other external debts do AAOG actually have apart from $650k SMP?

In theory if the directors pay was frozen until accounts audited and SNPC resolved wouldn’t they have enough cash for around a year on as a company on ‘standby’?

Where there is smoke there is fire.

as the 87m remaining ISA shares (call it 80m left after the sales this month) cannot be used to vote with either way needs a maximum of around 160m shares to win the >50% majority.

Milton potentially have nearly 1/3 of whatever side they vote for.

director salary is why most aim companies fail, they should be capped as a basic wage for developing companies that have no income and rely 100% of shareholder funds or debts.
Topped up With bonuses in shares priced at the ipo price of the share, and capped to a fixed agreed total.

By a basic wage I mean <£50k. And Defiantly should not be able to be on boards at multiple companies at the same time,
Sefton for example is showing as active on 5 director positions, just on UK companies house.
What on earth justifies the wages extracted for the few hours of time physically possible to spend between each one.

Once the companies are making money fine earn all the money your shareholders are willing to approve. And I have no problem with legitimate expenses at all stages.

My little rant over but overly generous director pay kills so many shares small and large, some people do the right thing, and opt to defer / reduce pay / take in shares or work for free for a period BEFORE the company is in trouble, they are normally the good guy that have genuine interests in success. They do exist, but they are few.

Seems another simple thing the company has got incorrect Zzippy.

9-1-2020 is when the votes need to be sent in by post to “shareholders register”

13-1-2020 is the meeting at fincap

“ Notice of a General Meeting of Anglo African Oil & Gas plc to be held at the offices of finnCap Limited at 11.00 a.m. on 13 January 2020 is set out at the end of this Circular. The enclosed Form of Proxy should, to be valid, be completed and returned in accordance with the instructions printed on it to Share Registrars Limited, The Courtyard, 17 West Street, Farnham, GU9 7DR so as to be received no later than 11.00 a.m. on 9 January 2020 or 48 hours (excluding any part of a day that is not a working day) before any adjourned meeting. Completion and return of the Form of Proxy will not preclude a Shareholder from attending in person and voting at the General Meeting.”

“ Notice of a General Meeting of Anglo African Oil & Gas plc to be held at the offices of finnCap Limited at 11.00 a.m. on 13 January 2020 is set out at the end of this Circular.”

I’m not putting my train fair on it, I’ll vote by post, the people who screwed everyone have already left, just the messengers will be there now.

http://www.aaog.com/content/investors/shareholder-information.asp#Circulars

link to circular / proxy forms

You Should be able to contact Halifax (I assume share dealing services) and get them to log your vote.

I’ve had to ring them beforehand, don’t always get a corporate action notification from them