It does appear there are people out there that don't believe the CLN is in the bag yet and if this is forming the basis of their investment then they are entitled to this view. Technically they are correct by saying we haven't secured the loan yet because as they rightly point out there are conditions which must be met, however, these conditions are mainly those which are required for drilling e.g. acquiring a Rig and Services, if we don't secure these then we aren't going drilling at all. It is all a bit self fulfilling (in either direction).
Everyone has their own risk profile when investing and people may want to see the project de-risked further by confirmation of the Rig, if this is their view they had better be quick onto their broker the second the Rig & Services RNS comes out as there will be a re-rate. This though is simply the premium associated with greater certainty and it must be stomached if one is more risk averse.
Personally i think today's price is a cheap entry point given we already have memorandums of intent in place with the big players required in this project and that we are working towards completing the detailed contracts, contracts that are likely to be in their final stages and very imminent.
I am VERY comfortable now with where we are at as a company and any volatility is simply water off a ducks back. The only thing required now as an investor is a little patience and that is what most holders here have in abundance. One thing is for sure, we will know all there is to know about this company inside approximately 12 weeks (worst case) and we are likely to have very significant news inside of 6 weeks.
As a project moving from A to B to C to D we are on this steady path with every target on this timeline very achievable and all the time while this is happening a Farm-In agreement could drop on any single day.
There is a lot to be excited about with this share now and all this in a very short time frame.
It seems like a lot of people have been a little bamboozled this week why the share price hasn’t exploded and I’d agree in that I thought we’d be a lot closer to 3p.
Having a stagnant share price immediately post a placing has often been the norm for BPC until those shares hit the market and then there’s been a period of soaking these up. The increased number of shares this time from previous issues is obviously presenting some uncertainty for most and people will choose to wait until Tuesday to see the effects.
I don’t think the number of shares is a big concern. A large chunk of these were bought by existing shareholders in the Open Offer and I think these will be mostly sticky hands as people will be protecting themselves from the effects of dilution. The ones taken up by institutions will be a mix of feeding these back into market and some waiting for genuine appreciation, therefore, this placing is unlikely to be hugely different from a keep the lights on placing. There will be no more fund raises this year or into early next year.
The share price will be in a much more healthy position by the end of November I’m predicting.
If the concerns people have around the CLN are that Bizzell won't be good for it, or that they may not be trust worthy, etc. I'd like to point people to the following clause in the CLN terms:
"Board Rights: Effective from subscription of the Conditional Convertible Notes (i.e. only once Convertible Note funds are advanced to BPC) and until such time as the Conditional Convertible Notes are redeemed, the Subscribers will have the right to appoint a maximum of two (2) directors to the Board of BPC (but, for so long as both Simon Potter and Eytan Uliel are members of the Board, the right of appointment shall be reduced to only one (1))."
Bizzell are that confident and close to our board, through previous business ventures, that they choose to waive their right to having their full allocation of board members as long as Simon & Eytan are with BPC. The relationship between Bizzell & BPC is rock solid and they know and trust each other to the core of each company.
There are no doubts around this funding option and as per a previous post of mine the clauses to release the money are simply what is required to go drilling anyway.
Our baseline for drilling is now set, it can only be bettered. Any further talk of funding is only to improve on this baseline e.g. by farm-in, and this is what any responsible company does.
What Oil Boy Jim should add when talking about funding is the following extract from an RNS in relation to the Loan Notes.
“However, given that a number of the conditions are necessary prerequisites to drilling commencing, and given that funds are not actually required until closer to the time that drilling commences, the Directors are confident that the conditions precedent can be satisfied in a timely manner such that funding under the Convertible Note Subscription Agreement will be available when required.”
So, in other words, the conditions for the money require us to: Have a Rig. Have a Well Services provider. Have the required permits. Paid the license fees. Have sufficient operating funds.
These aren’t unusual conditions for going oil drilling, they are the absolute requirements to go oil drilling! They are symbiotic of the whole process. It is the bread & butter of the process!
If he is going to write half a job out of context he shouldn’t write anything at all.
I’m still angry.
What a disgrace this oil man Jim is and it's blindingly obvious from the piece he's bitter about his losses on going short and still worried about his position and the advice he gave out, the boy is embarrassing and an amateur. He isn't man enough to hold his hands up and say he was wrong or even that the companies outlook, according to him, has now changed for the better. People should be very wary of taking advice from someone who can't admit they made a mistake.
Surely he cant be so STUPID and DISINGENUOUS in trying to make a point by latching on to something that is a regulatory requirement for any company, that being they must highlight risk to the market and that they can't make promises everything will be rosy and perfect. Every responsible company places caveats in every RNS when speaking about their future prospects as no one has that crystal ball to guarantee everything will be ok. People should be very wary of companies that aren't so responsible.
If this boy is really a genuine market 'analyst' he would examine the clauses in the loan contract, state whether he thought it was likely, or not, for the Company to satisfy them and then write his article accordingly. With the exception of a windfall or intervention from a wealthy entity how is a company supposed to raise money for a project? BPC have been creative and displayed ingenuity in obtaining this loan. To quote what Malcy said about the loan, the company have demonstrated "some canny upfront financing".
Oil Man Jim, this first well is financed now assuming all the clauses in the loan are met or waived. The detail is there you fool if you care to read it.
If this IDIOT wanted to latch onto a quote from the RNS why didn't he pick these words:
"...the Company's existing financial resources, will provide sufficient working capital for its currently anticipated requirements, including its planned exploration well..."
#F***INGLIAR #EMBARRASSING #DISINGENUOUSOILMANJIM
Not long after the Exclusive major left Malcy did a podcast and he said he knew who the major was and to paraphrase he said something along the lines “...they had a fish on the hook and it was a very big fish indeed” one of the very big ones. He never went on to say but his comments tell me it was common knowledge in the right circles.
The big money houses will have easy access to this knowledge and more, they will have known why the major ceased Exclusively and what it would take to change it.
BPC are making strong noises a big player is in the ‘data room’ still and that a deal is still looking possible, even now after funding is through. And to be clear funding is through, Simon says exactly that in the RNS and all the caveats and conditions are what anyone putting up £10.25m would do. Only a fool puts up an unconditional multimillion loan.
So, maybe the strong appetite for the placing and significant oversubscription has come from the knowledge the farm in is very possible.
Surely people aren't over thinking the CLN and thinking this is a problem? Bizzel have virtually no risk exposure with this. They have a strike price agreed for it at 2.5p, it's just like another placing that is now factored in to the over all share issue. They will in effect only be providing some liquidity as opposed to hard earned cash from their own pocket. Bizzel have a cracking deal with the note, they are getting 75m shares for virtually nothing risked on their behalf.
Not sure about the 24hrs, 48hrs and so on. They have about 2hrs to demonstrate themselves. A lot of people risk getting burner here in both directions. They don’t announce before opening and people will undoubtedly be tempted to sell and risk a fully funded RNS early morning. If they RNS never comes those who didn’t sell will be burnt. These shares should be suspended with this hanging.
Some of the detail in Placing appears to inform there will be no further issue of share equity in the company for the remaining part of the year, protecting any Placee and allowing them to shift their shares. It’s like shooting fish in a barrel for them.
The book runner only has to find 16 high net worth people or entities to each put £200k in, that shouldn’t be a hard thing to do for a well connected company like Shore. That £200k can easily be £300k by Friday if everything gets away. It’s how money goes to money. The rules of engagement for placing are very clear, by invite only and no public.
Open at 3.5p if there’s a 7am RNS confirming everything was placed.
And I’ll eat my hat if that was a level playing field as we approached the last half hour of trading and the Bid moved up to 2.2, then the 2 million sale was executed at 2.21 with the delayed publication, another 600k was sold and then we get the RNS. Hmmmmm.....
PoC, I definitely need to take issue with this being well managed. Even if this is successful tomorrow it has not been a slick operation, far far far from it.
I want the company to succeed and do well but I can’t say they have been a shining example of how to go about raising funds. I honestly think I could have done a better job and I truly mean that. Every time that Eytan gets in front of the camera it’s like he’s being forced to do it by a super rich posh father and he has no real care for who or what he’s dealing with, it’s like he’ll be fine no matter what the result here. His apparent lack of focus and commitment to the cause is evident in his narcissistic Instagram account.
For what it’s worth I think they will get the placing away as I believe it will become too compelling for people wanting to make a quick few pounds as a successful placing will mean 3+p by the end of week.
If it were possible I’d like to have seen a temporary suspension on the shares until the book build is complete as the city is full of parasitic law flaunting cretins who will be privy to inside information which will not be kept secret and therefore some will have an obvious advantage over others until this process is concluded.
No. But i thought it would be a little more take up than 50%. The important point to remember is we were able to take part in this round of funding and we have helped lessen the burden for insti take up. With the Shore & Director money (~£1m in aggregate) the company only need to find around £2.4m from external parties, this is achievable and as people have posted this has been done before with nothing new or firm on offer. The Insti's are going to get a discount/sweeteners - so be it.
Hopefully we will get the RNS before the markets open in the morning and this will minimise impact on sp but we know the markets are fickle and short term so there will be some volatility no doubt.
Once this hurdle is crossed though there will only be one direction for the sp. I still think we will be above our current level come the end of the week.
Hold your nerve, we are very close now.
Grogrations, if you are a genuine poster then apologies. If you are genuine and have followed this board then you will understand why I was keen to nip things in the bud early as we often get trolling accounts set up just as we start to do well.
As for the Open Offer. If successful i think it is probably a done deal that the company will then go on to great things as I believe it unlocks the stalemate situation we find ourself in. Once this situation is unlocked a whole world of possibilities exist.
And for the record, I’m not as confident as everyone appears to be the Open Offer will be successful, I think there’s a reasonable chance it will fall a little short and will require bigger than expected take up from II’s. There should be no reason for this but a lot of retail investors are either lazy or stupid. I say stupid as there has been an opportunity to recycle money even if someone didn’t want to put new money in which should have been taken.
grogrations, welcome to the board. Did you get this info from my post on 22nd August 2019 @ 16:49 titled "24 Months Working Capital Required"? This was posted in relation to some of the details around the CLN.
It was really good of you though to feel the need to urgently set up this new account today and post this vital (old) news in response to a post of mine today. Without this we may have all made a terrible mistake and put our house on the back of this 'banker' of a share. That was a close call - well done for saving us!
If you follow this board even slightly i think you'll find there are a few of us on here that have read every word of every RNS and we have don this for the past however many years, it's good that there is now one more of us though. Takes the pressure off the rest of us a bit. Phew!!!