The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Somm,
so a major company spent $750k then added another $250k just to see what cards Potter was holding?
Spike,
If BPC in last chance saloon, why not reach an agreement with the major on whatever terms?
In order to facilitate the company and the major to find agreement.
Sorry Kapkina,
that isn't right. The licences have been renewed previously and continuing with them is merely administrative.
The government, BPC and the oil major won't have come so far to then simply scrap everything. This looks like another phase of final negotiations.
Somm,
the data room has been open for years, it didn't require an exclusivity agreement to view the data.
Any chance we could stick to just BPC on this forum?
If they didn't think the oil was there they wouldn't have spent 4 months in talks about a deal.
Spike, I think that BPC would have to release the RNS on receipt of the notice to end exclusivity; that wouldn't be the company's choice. And why, if BPC no that the deal is dead, didn't Simon Potter go into detail to offset the obvious impact this news would have on SP? It is speculation as you say, but I can;t imagine that BPC / Macquarie got close to a deal and to then let it slip past and go back to square one with someone else.
Spike, if a deal was offered and it was wholly unacceptable, the major would have walked away ages ago. If they've spent time negotiating and found that they can't agree, then there is still a potential compromise to be had. So BPC / Macquarie would still have the option to offer a new deal.
No problem Spike, you could be right; but if the major got involved 4 months ago they clearly saw it as good potential. So why stick around 4 months negotiating? Maybe they have walked away or maybe this is the endgame in negotiations. They end exclusivity and Potter says we're free to talk to others? Maybe it's case of who blinks first?
BPC cannot through an RNS say they are in a strong position or not. It simply stated a fact that exclusivity period won't be extended. By adding that they are free to talk to others again is merely stating a fact. I think that a deal is on the table and the major is taking a last few days of consideration. If the deal wasn't good,why extend after the initial 3-month period?
Now that the initial shock reaction is beginning go subside the SP is stabilising. Simon Potter didn't say be was disappointed, the RNS merely updated the market as required. Not paying another $250,000 for another month exclusivity doesn't mean no deal.
True Neptunes $1m isn't much to a major; but they must've liked the prospects to get involved?
MMs just taking advantage of the knee-jerk reaction to the RNS. Fundamentals of the company haven't changed. Whoever paid $1m obviously really liked BPC's chances. That they couldn't agree a deal is a shame but maybe they wanted too much.
What we definitively know now is that the posters on here yesterday saying that it was definitely Shell who were going to do a deal are idiots with no knowledge of anything.