Member Info for okenia

"Hot air" - really? They've made very material accusations against RW. Employing her son-in-law. Writing a new SC after the GM requisition in order to walk away with a chunk of MAGP's cash if she's sacked. Personally flipping an asset that should arguably have been offered to MAGP. The business ethics of her brother the lawyer acting for the estate that sold her the asset at what was subsequently proven to be firesale values. These aren't hot air, they're tangible and very serious allegations. Time got MAGP to rebutt them if they are false.

Look what happened at Bowleven. Crown Ocean (the activists) were able to communicate with Bowleven shareholders in several way. Since NTOG control the votes of >10% there's no reason why they can't do an RNS "noting the letter to shareholders from Snead" if that's stuck on the web somewhere. However there's also no requirement for him to say anything more at this stage and may not do so.

Suzanne - "protect my own back". There's a massive corporate governance issue here. This is not acceptable behaviour from a CEO, sorry. Magp is owned by its shareholders. RW is paid a salary (a good one) by the company to work for the company (ie the SHs). It's not her company. It's the SHs. A GM requisition falls on her desk and the first thing she does is write a new SC that awards her a bigger payout if she loses. In what way is that additional expenditure in any way, shape or form going to benefit Magp shareholders? What's even more worrying is that rest of the board (did the independent non-execs approve this?) let it be signed. That tells you they also think it's perfectly fine for the board to treat SH with no respect and to view magp as their personal "piggy bank". You HAVE to have a CEO and board that you trust are working in the best interests of SHs. I would suggest that RW's recent actions indicate that she isn't.

Unfortunately things such as Rita's family members, her service contracts, the deals she made - all easy enough to verify. Likewise easy enough to disprove if the facts are actually malicious lies. Facts can be checked. Anyone who is a shareholder can ask to view Rita's service contract at the companies registered address. Drop the company an email and set a time to pop into the London office. Then report back as to whether the substantive allegations are correct (new SC signed after the GM requisition, notice period increased to 12 months, etc). If you're passing thru London it's easy to do and your legal right under CA2006. I would suggest a sensible strategy with any AIM company is have a very sceptical mindset, don't fall in love with people or company, and do some DD legwork to kick the tyres. With the allegations made - which are very serious - that is now essential.

That is priceless. What do you do as a CEO about to get booted out of office at a GM? Answer - write yourself a new service contract that awards yourself a massive payout! Win vote - stay in post on big salary Lose vote - walk away with fat cheque and company holed beneath the waterline Just when you think you've seen it all at AIM companies (and oil and gas are particular notorious in this respect), an even more eye-watering example of corporate greed and placing yourself (and family members) before that of the company and its shareholders raises its head. I did say this sort of this leads to both sides airing their dirty laundry. In this case it looks like MAGP's laundry has been dragged through a sewer first.

Well she's not short of a bob or two, especially after the profits from flipping the assets from that mineral rights thing just posted on SP (c/o her brother the lawyer). If true that story is quite shocking (as an aside).

Have the board got any options? They typically have a lot (usually massively in the money) that would enable them to quickly get a hefty chunk of the share capital. (I guess I could look at the paperwork) Obviously for RW if she gets booted off she gets $350k - if I was in her position I'd be smiling. Win-win! Why on earth would I waste my own cash to buy shares when I'll get a very handsome reward if I lose?

Rita has less than £40k worth of MAGP stock (2.33% according to website). That equivalent to 3 month's salaryand 1/7th of what she would allegedly get as a payout ($350k) if shareholders vote her off. $228kpa salary, $350k exit clause, £40k in actual stock Aligned to retail shareholders...?

"sometimes" - all the time at this end of AIM I would suggest!

I personally think the raise price is too low, forced because of the deadline for the repayment of the Sylvania 15m ZAR (that became due 12 Aug 2017 if my maths are right). The associated warrants, designed to repay that loan, simply don't work in a sliding SP environment. They needed the cash and the brokers have held their feet to the fire, as the *******s always do. Good opportunity to get in, £7.5m mcap at 2p (pre funding) is bonkers for IRON and doesn't even reflect its recent 4.5-5.5p trading range. You guys know the story here better than me but this does seem at face value a great 'special situations' trade. And with the wall of buys it looks like I'm not the only one to think that!

Possible but speculation on two levels - no proposals have been put forward by the requisitioners so its pure guesswork as to their intentions, and the historical idea of MAGP buying his assets is again speculation by the Board of MAGP ("believe"). I'm not saying it won't happen, but your use of language ("his daddy is going to use") suggests a certainty about something that has several layers of speculation at best around it. There's nothing wrong with some speculation and discussion but let's acknowledge it's that as opposed to hard facts.

Ah this bit: "- During a conference call with the Board, Mr. Snead had proposed that Magnolia leave the oil and gas sector and change direction into the computer software business. The rest of the Board rejected his proposal and subsequently believed that Mr. Snead intended to use Magnolia as a vehicle to acquire the interests of his son, Mr R Sterling Snead, one of the requisitioning shareholders, in several ventures in the technology sector. " Interesting speculation but Sterling Snead isn't proposed to be appointed as a director. Apart from being historical I would also note the use of the word "believed" - i.e. MAGP are speculating as well. If there had been a proposal to do that, they would have said. Both sides are flinging mud so we should all take an EXTREMELY large pinch of salt with what they say - both sides. NTOG have started with the nepotism comment (Derec) and MAGP are retaliating with a "belief" (i.e. unsubstantiated mud slinging!) that Snead wanted to use MAGP for assets held by his son in law. This is all very interesting to watch, I almost feel like I need some popcorn.

yes TD are selling at 2.038 as well. Not quite sure why some 2.24p trades are going thru, obv some people need to change brokers! So if the 2.038 are buys, and (fair to assume) the 2.24p trades are buys, then there's been essentially 100% buying here today. How interesting ...

What's the evidence that Snead wants to do that? I don't see his son-in-law on the list of of proposed directors. Have I missed something?

Probably doesn't make much odds then (esp if you can get inside an ISA)

Just so you know, £100k of this placing is being run through the Teathers app. I don't think that's stated in the RNS. It is still open and will stay open until 6pm tomorrow (or until the allocation is taken up) That means if you want to get shares at 2p you can do so via the app (there are no fees to participate).

According to the NTOG RNS, NTOG *will* (future tense) acquire the MAGP shares but not until the end of this month. However it has been agreed that NTOG has *immediate* control over the voting rights of those shares. See 26 May RNS and I direct you to the last sentence in particular "Nostra Terra also has the option to pay the full consideration in cash should it decide. The receipt of the Magnolia Shares and the issue of the Consideration Shares, should the Company not elect to settle the consideration fully in cash, is anticipated to take place on or before 30 June 2017. A further announcement will be made at that time. Until such point, it has been agreed that Nostra Terra has direction over the voting rights of the Magnolia Shares." Ergo, Snead is doing what NTOG tells him w.r.t. the voting. Note also that Snead and family are the EGM requisitioners, not NTOG (since they are the current beneficial holders of those shares). But Snead has agreed to vote in whatever way NTOG instructs.

There's been some speculation that one option might be to combine the oil assets into one vehicle (doesn't really matter which tbh), and leave the second company as a clean shell that can have a different route forward. I can see a merger route whereby all existing MAGP and NTOG shareholders get shares in OilNewCo, plus shares in the shell. [Who runs OilNewCo is a matter for debate] If we step back from the personalities involved, it does seem to make sense to combine two sets of assets under one roof and Board (and reduce the overall headcount accordingly). Both companies have been cash-starved of late so I doubt either is running on 100% management capacity (especially given the roll call of honour that is the MAGP board) As for the shell, this could be a smart move. We've seen one instance with Forte Energy (SP in total free fall these last few years) which is now some software thing called BOS and where the SP is stable and possibly growing a bit. There are times in oil and gas where you just have to accept that $40bbl WTI is going to do nothing other than make you constantly loss-making, and you change tack to something that actually might make money. Now obv the shell would have to have a credible plan and management team. But given the way the oil market seems to be headed by general analyst consensus, this could be a smart move. And everyone would retain their current o&g exposure, albeit hopefully with more attractive cost base.

That doesn't exactly cast Snead in a good light if true. At the end of the day the situation is that this clause is there and is an issue. But it can also be negotiated, everything in life can be negotiated (well except my tax bill!)

The trouble with these situations is both sides end up airing the dirty laundry of the other. Except in this case NTOG know a lot more about MAGP than vice versa because of Snead, who knows where the skeletons are hidden. Not exactly edifying for either side it has to be said. There's a lot to be said for a deal being done in the background to halt the mutual mudslinging.