He should have tabled an offer of c£3-4m along with the delist. Only a few weeks ago he publicly stated it was worth far in excess of £4m. I honestly think it is worth more than this but he has the lost the ability to connect with the markets and is behaving irrationally. Why gone on Malcy for an interview to drum up interest when he could have gone on Proactive, IG and so on which would have been far more professional received. We expect Atome offtake in a matter of weeks followed by debt finance and FID which should increase its value and MEN. This increase would likely increase interest from value investors in MEN. There is no immediate need or reason to delist now, we have cash at bank, interco is being repaid, we receive £2m in Sept this year and we will keep receiving income for 5 years from Argentina sale. He could have delayed GHC IPO for a year while he it’s tech matured and/or looked at the NASDAQ. He has chosen to delist now as he is embarrassed the GHC IPO did not go as planned and he will appear a failure. It just doesn’t make sense what he is doing.
I sent a secure message and got a response with the report attached following day. Do the same tell them other shareholders have been provided with the report.
Received direct from HL
WestHam HL have the report I received a copy last week. You might need to request it.
Make no mistake there is plenty of value in Molecular it’s just PL is doing everything wrong in the short term and stopping the Company from flourishing. He’s completely arrogant. To be fair he’s thinking 10 years down the line which is longer than most investment horizon.
Atome Off-take is expected shortly which opens the door to debt finance and FID. This should see a sizeable rerate of Atome, would then be a viable business with would be customers, and obviously increase in value MEN holding of 18.8%. Small change in Atome could see big change in MEN at current levels. PL would know this and should have waited why the rush. If he has done the right thing he will have timed the delist to take place after this event. Unsure if this is likely.
The planned IPO of GHC was not well received. Rather than just put it back or cancel although he took the route of delist to cover his tracks and save face. Absolute disgrace sitting in his ivory tower shafting the small PI’s.
We will get more for our money if we stay public. Atome will reach offtake agreement and FID in not too distant future. This reminds me of the Argentine asset sale rushed through before elections which low and behold would have let to a significant increase in value.
I did ask what would happen if remedial work did not go as planned and have been told the likely next step would be a new side track to same well reaffirming this is a single well issue. Would obviously be cheaper than new well so potential placing not as bad as could be. Presume this is still the case.
Below is an extract from interim accounts June 23. As far as I am aware this remains untapped. Unsure why they haven’t as an immediate gain.
“Additional financial support is available to the Group in the form of an Unconditional Standby Equity Facility Agreement whereby Peter Levine, Chairman and one of his investment vehicles, PLLG Investments Limited, have agreed to subscribe for shares at the placing price of 80p per share at the call option of the Company at no cost and at any time during the period to end June 2024. This provides an additional £3.0 million facility to the Group should it so require after considering other forms of financing available”
It’s obviously a time where we are questioning everything that is taking place, quite rightly so.
My take from the comms I have had, from an Individual who in all honesty did not need to is we are all in the same boat, SN included.
We either do well together or not and that includes SN.
The Company has been very open that there is a low chance of finding commercial oil so assume failure is priced in.
What I can gather is the Company could have sold ATOME shares for the c£500k required but considers these to be highly prospective and feel more value holding on to them. Also ATOME is currently involved in sensitive financing negotiations and this may have sent out wrong signals. Discount was so low as no liquidity in MEN shares.
GHC IPO still on track and update is due soon..
There is value here facts are onshore discovery fully piped in best case 7.24mmbls NPV $140m+ just appears to be having a well issue that they are fully funding to try and fix.
I asked for clarification if the Company believed this was just a local well issue or could be a wider problem and got the below response.
“To confirm, the technical thinking is that this issue is solely related to the well rather than the wider field - hence the frustration but also the reiteration that the results of the actual well provide much optimism for wider field development.”
Even worst case you could sell the field for far more than current mkt cap.
Received 18 December 23
Thank you for your message. Our lengthy legal clean-up process continues to advance, and we are making steady progress on that front. We are trying to dispense with a few outstanding matters, while we continue to advance our interests in Georgia. All of it has taken longer than any of us would wish, but Mr. Nicandros and the new management team continue to make steady progress.
Of course, once we are able to share more detail, we will do so, but the still pending cases continue to hinder our ability to do so now.
Best wishes to you for a happy holiday season,
Cheers Looed. I have sent it to FSHG.
It is genuine happy to have it verified if anyone wants.
Thank you for your message. Our lengthy legal clean-up process continues to advance, and we are making steady progress on that front. We are trying to dispense with a few outstanding matters, while we continue to advance our interests in Georgia. All of it has taken longer than any of us would wish, but Mr. Nicandros and the new management team continue to make steady progress.
Of course, once we are able to share more detail, we will do so, but the still pending cases continue to hinder our ability to do so now.
Best wishes to you for a happy holiday season,