Member Info for ocelot

From about 01:08:

"The Greenland assets are currently undervalued, materially undervalued, in our view, in the Alba portfolio and they should be trading at a much higher value and that value should be reflected in Alba's share price and market cap".

Stand up for your shareholder rights, by all means, but I'm not convinced it's very clever to force AIM-listed small and micro caps to undertake open offers.

Open offers take time (about a month), so, to be successful, they need a stable or rising share price as a backdrop.

But, almost by definition, the share prices of AIM-listed small caps tend to be volatile, even more so if they are in the oil sector.

Cardinal3,

Agreed, it's a wake-up call but it's a wider phenomenon than UKOG alone, because I came across posts arguing to vote against the disapplication of pre-emption rights on another board this morning.

It's part of a movement of shareholder activism.

Penguins,
1 agreed
2 they need to get a placing away, a part of their authority is probably a margin for potential use further down the line, the withdrawal of resolution 6 obliges them to undertake an open offer but they have no idea what the percentage take-up will be
3 each poster can come to his/her own conclusion

2 The new resolutions have a much much higher limit
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cyan2,

Of course the new resolutions have a much higher limit, it's no longer a question of a placing but of a placing AND an open offer.

The cap is $5m, so about £3.55m at, say, $1.41, of which £2.2m was raised in the last placing of 02/02/20.

We can argue all day about how much they will seek to raise, but we should know soon, following the GM of 07/06.

There are 6.2bn shares. I don't know how many shareholders there are but, with an open offer, they will all have to be informed of the details of the offer.

I don't know the costs of a placing and an open offer by comparison to a placing alone, but little in the financial world comes free.

I suspect one of the effects of voting against the disapplication of pre-emption rights in the case of a small cap company will be to push it to make a larger fundraise, in order to spread the increased costs over a larger amount.

Your vote matters. Please vote your shares by appointing the Chairman of the Company
as your proxy.

Gave my instructions re the General Meeting to my broker this afternoon.

At about 1:59, listing of the advantages to Alba of the spin-out:

"Alba won't have any of the funding obligations (of the Greenland assets)".

That is such a weight removed from Alba's shoulders, that alone should be transformative for the share price.

Production at Clogau asap, full steam ahead for the spin-out of the Greenland portfolio, Alba are in quite a hurry.

Hear, hear, scotalba!

All advisors appointed, full steam ahead.

Open offers take about a month to complete.

It's possible, on this occasion, the open offer will have quite a big percentage take-up because the price will be fixed at the beginning of the offer and work at Basur-3 will be continuing while it remains open.

ocelot
And like I said there has never been any shareholder participation in any fundraising previously so why should this year be any different.
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Ibug, you need to ask that question to the shareholders who failed to vote for resolution 6 at the AGM.

Shareholder activism is in the wind, I've seen calls not to vote for the disapplication of pre-emption rights on another of the boards I follow this morning.

Anglesey,

A lower price per share, perhaps, because open offers take time, so the company will be tempted to offer a larger discount
in order to get the offer away over time.

Precisely, again, Ibug.

It's because there was no talk of shareholder participation in any fundraising at the AGM that resolution 6 failed and the General Meeting is being called (that is the entirely reasonable assumption being made, at least).

So when have shareholders in UKOG shares ever been openly been given the opportunity to participate in a placing FFS. Do you just make this **** up?
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Ibug, haven't you read the proposed resolutions for the General Meeting?

OMG, what utter *******s. There was no mention at the AGM of shareholders participating in any fundraising .
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Precisely, Ibug, hence the the proposal of a placing and open offer at the General Meeting.

Anglesey,

UKOG provides an example of what can happen when insufficient votes are cast in favour of the disapplication of pre-emption rights.

It creates uncertainty and leads to a General Meeting being called, in the case of UKOG, to authorise a placing and open offer.

What are the additional costs to shareholders of an open offer vis-a-vis a placing alone?