Member Info for partridge

From RNS dated 2nd October 2019:

" Following the sale of debt, the Company has granted C4 loan notes of £10,000 denomination, which will be freely transferable, which sets the loan balance at £2.5 million (the "Loan Notes"). The Loan Notes are unsecured, interest free with a five-year term, with repayment due at the end of term. Subject to approval of the Company's shareholders at a general meeting to be convened (the "General Meeting"), the Loan Notes will also have conversion rights, at the option of the lender at any time, at a price of 0.05 pence per ordinary share, with C4 agreeing to a cap of 29.9% of the issued ordinary share capital at any point in time".

Do the sums. £2,500,000 at 0.05p/share equates to 5,000,000,000 shares. If this is to be 29.9% of the company share issue it would suggest a total of 16,700,000,000. After today's raise there are 2,500,000,000 shares in issue. That would mean 14,000,000,000 shares to be issued. How many 20% falls would that entail? Scary.

I knew on Thursday and Friday, during the pump and dump, that this raise was going to happen.

A massive cash raise. New shares swamp the old, 82% to 18%. Brand new management. Corporate rebranding. What's not to like?

Well quite a lot really. Where are the institutional investors? They are more knowledgeable and better able to protect themselves than small investors so why aren't they here? Perhaps they see what's going on and steer well clear. They know how this is going to end. The larger shareholders at RGM are private investors who have accrued too many shares and need to offload. One such sold 900,000 on Tuesday. That sale can't be deleted. Delayed but not deleted. That's 90,000,000 in old money. And had to go right down towards the latest issue price, 2.75p. Plenty more going that way. The trend is your friend.

We've had the short squeeze. It occurs when people with shares to sell try to convince the naive investor that the share price will rise because more shares have been sold than actually exist. A mad scramble will happen where shares will be ripped from your hands at unimaginable prices to rectify the mistake. It didn't happen. Grrrrrrh.

Now, let me introduce you to the long squeeze. It occurs when a share is drowned by wave after wave of issued shares which no one wants. With RGM that means 1,700,000,000 shares were increased to 8,700,000,000. There are more shares issues to come. It will mean everyone has a surfeit of shares and a lack of buyers around. Loosely held. Those shares bought for 0.0275p will be sold for a profit, however small. But the base price is not 0.0275p. It's lower. Debt and money owed had already been written off. Anything in return is a bonus. A share price below 0.0275p is acceptable. It is still profit. The long squeeze is in play. The share price will be pushed lower by over supply and lack of interest. There is still the court case to sort out.

" the partner had already initiated legal proceedings against the Company which resulted in the Company receiving a letter late on 20th December informing it of the proceedings".

I wonder, when the dust has settled, if the partner is going to be so silly as to accept RGM shares in lieu of their claim. RGM, I think, will have to throw the towel in at Membare or raise cash by issuing even more shares. Further dilution to come in weeks rather than months

The only asset in RGM is the cash element. But remember the world class CEO will need paying. At Sound Energy his remuneration was about £3,000 a day. Tick tock. Investors might realise that the cash element at RGM is going to be used for salary. It is a mirage. There are no assets. There are only liabilities here. There is a need for your money to raise the share price. Don't be fooled.

Mr utilitiesman, this time last year when you posted the share price was 15p. It is now 2p. I can understand why you consider a job to be important.

" unless they make a Success of Nuog they lose their money loans investment it’s as simple as that". If only. The loans will be paid back. On the backs of current shareholders or those that are suckered in, sometimes by people of your ilk. They will take out money via high salaries and share options, RSU's etc. Their interests are not necessarily aligned with that of shareholders.

This share is now in the hands of C4Energy. The two new people parachuted in are shareholders in C4Energy. How does C4Energy earn its money? It is not a charity. C4Energy is controlled by James Parsons and Marco Fumagalli. Control is the operative word. Why would they give a share to the two new directors at Nuog? What do they expect in return? Are the people at the top working for Nuog shareholders or someone else? Be careful with your money whilst it remains yours and not theirs. Then, it may be too late.

Sorry for my mistake.

I agree Mr Zumore. I saw those tweets. Disgraceful. Didn't Doctor Holiday tell everyone that C4Energy/Mr Parsons was taking charge at RGM before the RNS announcement. It was posted on LSE. Now that would constitute inside information. No condemnation from Mr Pearse that I can recall. That type of inside information must be allowable.

" the partner had already initiated legal proceedings against the Company which resulted in the Company receiving a letter late on 20th December informing it of the proceedings". I thought it was all sugar and spice here. I think Mr Parsons is trying to big up the flagship Membare because he wants it to sail away into the hands of the JV partner.

#1 Buyout of JV partner - complete
#2 MOU with ION Ventures - complete
#3 Pay new CEO high salary
#4 Issue more shares
#5 Increase debt via C4Energy
#6 Issue billions more shares
#7 Pretend a mythical short squeeze will raise share price
#8 Drag in unsuspecting small shareholders so your shares can be dumped on them
#9 Buy mediocre assets
#10 Issue billions of new shares

Can't wait for # 11,12 and13
#14 Issue more shares.

Ha! A MOU. Mr Parsons favourite. Not legally binding. An agreement about agreeing. Dangling a carrot. Sheer contempt for investors. The carrot for donkeys. An agreement today to pay in shares. More shares. Many more shares. In exchange for your money. How many times can a person be fooled? There are billions of these shares waiting to be issued.

What has the investor received for the £1.5 million placing? 6.5% of Sound Energy that's what. On partial consideration of the proposed deal Sound would receive $29.8 million or £22.9 million. And guess what - 6.5% of £22.9 million is £1.5 million. If, in the dream world of certain people on this board in the last few weeks, that $ 29.8 million was converted to dividends, the investor would get his money returned to his bank immediately. And still have his 6.5% stake. It shows the potential in the share price at the moment. Outrageous. The investor might be gambling or perhaps knows something. Who knows? Who cares?

I don't suppose you recognise the irony in your post do you?

Ouch!

Mr Wizard, not a financial advisor or chartered accountant and probably much, much sadder than you can imagine. Thanks for the advice. Are you a medical prctitioner?

75 million shares will be 6.5%.

Sarah, will there be a TR-1 notice for the issuance of the new shares as it is over 3%.

Yes there will be – please note that this occurs only once the shares are issued.

" Following the year end, the joint venture has been active, performing line-cutting activities in anticipation of a ground penetrating radar programme, which is expected to finish in early 2020" .

That sounds like it hasn't started. That's why no finish date can be given. Only vagaries.