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This is often a precursor to a placing. Sufficient finance for "planned 2019/2020 work programme".

If debts exceed cash balances, then the BOD will have to address that smartish. Investec sold, imo, a sufficient amount of their holding to generate funds for their share of the forthcoming placing (similar tactic by Lombard Odier at FUM). I doubt if they will raise more than £10 million. They will be lucky to get the placing a way at 10p but it may be as low as 7.5p. Two problems, will AMP subscribe, or will it forfeit its holding? It would be nice to see a small UK co get across the line with FDA. Like most on here, I thought approval was a formality.

@markthemango1
Hopefully, either a buyout or the funding from rights of the topical pain relief will see us over the line. On selling shares at a profit, one has to remember that LO lost a packet on their original holding. The average cost of their purchases up to 2016 was around 42p. In 2016 they subscribed to a placing at 57p. In 2018 they made disposals at 36p, 17p, and 8p! Why they disposed of 6 million shares in early November at around 8p I do not know. Beancounters may look at this differently, but in terms of cash, if LO were to sell their holding of 38 million shares today, they would be out of pocket. Now their exposure is below £10 million, and their holding is back to 18% odd of shares in issue, I expect the selling to abate. Also the newsflow for the next few weeks may be thin.

I have watched most of the presentation from yesterday. I note that this is unlikely to go commercial before 2021, so further financing will be necessary. About six months ago we were looking at sometime in 2020, so another year has gone by. Someone mentions LO selling shares at a profit. I have looked at all the RNS for LO since 2014, noted their sales and purchases and attempted to calculate an approximate selling price. The net carrying cost (purchases less net proceeds divided by number of shares they are holding) is currently around 26p. They are clearly selling at the moment but they are not making a profit. The decision to sell is driven by two things: provide liquidity to the market and reduce, probably for risk management purposes, their investment in FUM to less than £10 million.

Opportunity for LO to drop another 1 million shares, perhaps?

I base my forecast, and it is just that, on their percentage holding before the stock fell out of bed last year.

Another 1% reduction. Expect they will continue to reduce in an orderly manner until their holding is around 18%.

The last time the price visited 45p, was it a week away from a major announcement? The price in this case is driven much more by today's situation rather than reference to market activity several months back.

There's a report in the Sunday Telegraph that Total are close to selling US$1Bn of assets in North Sea.

On Level 2, it's all buys, and yet the price is not moving. RNS re Lombard Odier must be on its way.

Yup, another million gone. Bought at 7 sold around 13, 13.5. Clearly they will sell in stages into any significant move upwards.

Schroders up their stake. Good news.

In sept 2016 there was an announcement of the efficacy. This time it's either someone in eastern Europe who has discovered that it works and has disclosed the fact, possible talks or just short-term traders.

Nice. What level of increase is required before Management have to issue a RNS stating that they know of no reason why the price is rising etc?

It would appear that the overdraft was not recorded in the accounting records. Absolutely right that items recorded on bank reconciliation (of the account that was disclosed) between bank statement and accounting records should be checked by auditors with post year-end statements to see that they were cleared.
The overdraft must have been opened in a fraudulent manner, I guess he forged the second signature on the documentation and minutes required to open the account, and presumably on the cheques. Then there is the issue of how he booked the transactions. Possibly both sales and purchases were being inflated. Hope that they can find a jury to understand all this.

Clearly the internal controls were non-existent. The guy must have been cooking the books like Bernie Madoff did for clients' statements over ten years ago.

He mentioned institutional support in the placing. I can only assume that there are other institutions below the threshold for disclosure. I don't think the interview was helpful. Generally he makes interviews after a RNS on an operational update.

is I understand a gas field with a large oil rim. What happens if we hit gas instead of oil? Does AAOG have the infrastructure to handle gas?

It's surprising that DS has not been able to get an instituton onboard. Institutions were falling over themselves to put money into CERP. And where is CERP now?
Maybe TW has been duped. Cannot see the logic of doing a raise at this price if DS is confident of Djeno.

They have. It's not showing here. I am sure there will be a statement rubbishing the offer later in the day. I'll be surprised if DNO win this at £1.60.