RE: Death Spiral rubbish27 Sep 2019 19:59
Funding is what companies are on AIM for. It only becomes a "death spiral" when funds are given in exchange for shares when there are no tangible assets or earnings.
In UKOGs case the funds were to purchase a larger share of an already proven asset, and that larger share is already directly contributing to an increase in actual earnings. As the assets are developed, and when the CPR is released, that investment will bear fruit in that whatever we had hoped for revenue from HH, we will get a bigger slice of it. Once YA have had all their shares, and sold them for their meagre profit, it will be done.
We won't be going back for more, we have revenue building up. So one essential part of a "spiral" - going back for more and having to issue relatively more shares because the SP was diminished by selling on the last lot - just isn't going to happen. One, because the SP will rise as soon as they stop selling, and two, because UKOG have no need of any other additional funding.