focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
I agree. I wish to participate in any equity issuance. After 20 years, I don't want to be locked out of participating and diluted by a newcomer, or indeed the chairman at cheap prices.
That is a very good idea, I am a large shareholder and am happy to disclose my position to you privately.
Thank you for that. It's quite intriguing to see the foundations of the Falklands oil industry being laid.
Absolutely. I voted against the waiving of preemption rights (and bought more shares at 1.92). Some have argued that because the share price crashed, it was an opportunity to buy at near that level, its an odd argument, usually shareholders are pleased when their shares rise. The small army of long term private investors let the Chairman and new friends buy at a huge discount to fair value, without letting them participate through a rights issue. The last rights issue was 3x subscribed, there was huge demand from existing shareholders. Not only has fair value been diluted by 20pc, there is now the risk of a coordinated low ball take over.
Yep, an outrageous low ball consortium bid would not surprise me at all. Shareholders once again allowed the Chairman and friends to buy shares in a deeply discounted placing by waiving their preemption rights. Preemption rights enshrine the right to offer fund raising to shareholders first, not to offer a cheap entry to newcomers after 10 years of share price erosion due to the Boards strategic failure.
Gus, the point is to send a message that preemption rights are important. Waiving them is an indication of a company needing to request something out of the ordinary. ie preemption rights are in the company constitution for a reason. Why did the previous broker resign? The Chairman is not diluted as he is the the recipient of the 40pc discounted placing shares which are the reason for needing to waive preemption rights. I am sure the company already raised enough capital to satisfy the FIG without him been granted the cheap shares. BTW I find your contributions on this board very useful, specifically the valuations that you sketch out. I have held for 15 years and believe that we should soon see the 50p that reflects my view of the value available here.
If you agree with the following, use your votes at the General Meeting on 4th Jan (last date for proxy receipt 2nd Jan) to vote against the waiving of preemption rights that grant 40 pc discounted shares to the Chairman. The last rights issue was 3x subscribed indicating strong shareholder support. Shareholders have been diluted by 20 pc with shares granted to outsiders (via waiving of preemption rights). They were not given the opportunity to support their company via a rights issue. It is not relevant the the shares are now near to the placing level. The cavalier allocation of deeply discounted equity to outside parties is expensive and WHY the shares are at this level. Hargreaves Lansdown take proxy votes via secure message.
If there was any update then the Chairman would know. If the Chairman knows anything substantial then he would be considered an insider, in which case, he would not have been able buy shares at such a huge discount to the market price. Maybe some "new information" will be released after he has secured his shares post the General Meeting. Wouldn't that be a coincidence......
I agree, and will vote against the resolutions with my large shareholding. The previous rights issue was 3x subscribed demonstrating huge support from the shareholders, many long standing and long suffering. There was no reason to allocate these deeply discounted placing shares to the Chairman and friends waiving the shareholders preemtion rights.
Joined you at 1.92....
Looks like cheap shares for the boys, why does the Chairman consistently contrive to allocate discounted shares to himself? I will not vote to waive my pre-emptive rights as I would have subscribed at that price if asked. Why are the supportive small shareholders diluted?