Member Info for pyrotech

i get the frustration
However, asking like that by email will not get a reply

diplomatic email, i find, is the best way to get answers u seek

I have sent following email to a few places to try to get answers.
I have found historically that they do respond and on one of many platforms

We can but try
Hi all

As you can imagine much speculation evolves around the circumstances of the YA fiasco.
Many shorters are able to take advantage of situations like this and speculation runs wild.

Two RNS still do not clarify the situation fully

What we request is shared

1.Have cash payments been made to YA in full each month when due.
2.Has FRR agreed for August or September for YA to take shares
3.How many cash payments have been completed and when?
4.Is the current disagreement about YA taking shares completely, about just taking for September, or is it the amount they decided were converted into.
5.What is the agreed date each month for either payment or Convertible shares.

Please can you clarify the above points for us either in RNS, Via twitter or reply by email.
I do not believe this is price sensitive info as in some form already disclosed.

The bit for me is this
They asked for 241 shares on 28th August for August
Does that mean we did not pay for August

Then 5 days later they ask for additional 241 shares for September

On 28 August 2018, the Company received a conversion notice from YA II PN, Ltd. in respect of 241 of its Series A Preferred Convertible Shares ("Preferred Shares") in lieu of respective cash payment for the month of August.
That was for 82,077,412 converted shares

Then

On 3 September 2018, YA II PN, Ltd. purported to issue a further conversion notice (together with the 28 August 2018 notice, the "Conversion Notices") in respect of a further 241 Preferred Shares, to be converted into 93,784,120 Ordinary Shares, in lieu of respective cash payment for the month of September.

So two tranches in a few days and 11m more shares for second lot.
Did FRR agree to pay August in shares, due to cashflow?

Is the disagreement with the amount of shares for September, or both
Did FRR agree to pay in shares, are we late with payments?

Did YA decide to take any payments from the loan,and reduce debt but also decide until re-payed completely will also take each months share allocation of shares - playing slyly
Really so much needs to be clarified here, the waters are so muddy we can not see anything at all

Two RNS and nothing has been fully disclosed.

I will try to find the facts for myself and post here.

On 28 August 2018, the Company received a conversion notice from YA II PN, Ltd. in respect of 241 of its Series A Preferred Convertible Shares ("Preferred Shares") in lieu of respective cash payment for the month of August. That conversion notice stipulated that the number of Ordinary Shares to be issued following conversion was 82,077,412. On 3 September 2018, YA II PN, Ltd. purported to issue a further conversion notice (together with the 28 August 2018 notice, the "Conversion Notices") in respect of a further 241 Preferred Shares, to be converted into 93,784,120 Ordinary Shares, in lieu of respective cash payment for the month of September..

If there is disagreement about shares or cash by YA
That means we have been and want to pay in cash now and future

That means we have to be making revenue with oil sales
Which
means we have to have oil flowing at reasonable flow rates

There is . don't forget a 45 day wait between oil reaching port and payment
So we load oil in storage tanks, onto train and then rail it to port
Possibly condensate cleaning also

So ask your self
How good do flow rates need to be to pay monthly costs plus the loan

Now i agree maybe something happened to August that means payment delayed ( a possibility but according to YJ it was paid)
However even if the case FRR have to be maintaining pretty good flow rates to consider the payments as cash, now if that was not the case i would expect FRR to pay by shares and certainly not upset the lender.

This all looks like someone trying to put a spanner in the works along with YA trying to make more profit on top of their margins.

I am slightly worried about this as its always out of our hands, but look deeper and what its telling you is how good the news is that has not been released.
I feel Zaza wants YA out to let the sp rise in a sustained manner, their short selling and use of imaginary shares has held us back years . I was here on previous good news where the SP spiked at 8am but by 9 am YA were selling it down quickly from 1.4+

Two majors with NDA
arbitration - you don't fight over empty box
Ability to pay in cash - flow rates good

Firstly i find it rather unusual to see some one appear on here and suddenly burst into life on a BB. All your posts are in a short period of time and with just one company.
Intriguing also is the fact you also delete many of your own posts afterwards.
Something to hide?

Anyway back to FRR and YA
Looking at it from a FRR perspective and what do we get

Lets say FRR could not make latest payment
Then of course FRR had option to allow YA to convert shares.
So one way or other FRR had ability to pay this debt.
CORRECT?

So lets just assume, cash payment was not available, perhaps because awaiting latest payment for oil ( some delay)

We need remember payment for oil is 45 days after delivery.

So even if YA were acting without integrity, if we had no means to pay / defaulted, then FRR would allow them to take shares.
Now i get the fact that maybe YA have been clever with conversions, but so they have historically too, this is nothing new with these. forward selling has been going on for over a year with these, so why did FRR question it now.

So we can only assume, that FRR had funds, no payment was late and that YA were wrong doing.
If not surely we would have just let them do it and then make sure could always afford payments in future.
I.E the last bit of action by YA

So for us not to have just allowed them to take shares, we must be in a strong position.
I mean, how could we defend this if it could be proved we were unable to pay from funds.

The company had many options
pay with shares
pay cash from revenue
Primary bid fund raise - for the month

The other option of course is that FRR set a trap for YA having internally investigated historic trading.

Frr had at least 2 of the options above for making payment, Primary bid and Shares.
Quite possibly the 3rd too Payment from revenue and possibly paid too.

Does anyone know the due date for each payment?
I think its around 3rd. Did YA presell and then we made cash payment on 3rd where they were expecting shares?

Lets face it, FRR would have made payment in shares rather than risk default on the loan, so they must at least believe they are in strong position. Some shorts closing will of course cause some volatility in the price short term.

What a ride

Well many months ago i said you do not fight over an empty box.
That of course was about arbitration

Lots more fighting since

Anyway, the FCA have been asked to investigate by myself and others the possible abuse by YA Global.
YJ confirmed payments made on time - which payments made and whether one was due soon and not payed as not due was not confirmed.

I would be surprised if YA have done something they believe they could not get away with. They have to believe they were in the right to do it. It would be crazy to do something illegal and against rules if not.

Was the latest payment, going to be late? Was there as disagreement on number of shares? Did YA say Fxxx you to FRR and get greedy saying thats conversion and we will sell that amount. Frr possibly waiting for payment from oil, 45 days after delivery, so needing more time to pay.
So for one month decided can issue shares - but YA forced price down and then of course get more shares making FRR unhappy.
FRR confronted YA with that and a disagreement ensued.
Ya then decided that they could and should get conversion at that price and presold.

This of course would tie in with RNS
The shares would not be authorised as FRR not agreed price for conversion.
The pre selling is interesting, not sure if market abuse but ya been doing it for years

In my eyes this is just market abuse, YA selling shares not in circulation, to get price down to receive those shares and more at lower price.
The contract for shares will be very interesting between both parties. Also we do not know if latest / next payment was due or when. have FRR asked for more time? Where we requesting they take shares this month but conversion not agreed. What do we have in bank? What oil flows do we have? What revenue has been paid or due and if due when?

We only know some of the facts - FRR seem very keen to believe YA are in the wrong. However it appears that YA believe they are in the right.
Really would be interesting to find out if YA are buying back those shares

Also what happens now? Do we pay in cash or do we stop paying completely until resolved.
Can YA instigate liquidation due to breach of contract? Can they demand the £2.5 m owed in full or apply for insolvency?
Its for this very scenario that i asked Zaza in last meeting what his plans were with YA - as they play some dirty tricks


Now if YA have brought shares back, then that would indicate they were wrong, but have they?

Another question is
YA knew prior to 7th June about being paid in cash

Company says payments have been made

The Company and YA have now agreed that the redemption of the remaining 2,891 Series A shares will take place over 12-month period, on a monthly basis, for which the Company will be making cash redemption payments to YA of US$265,000 per month. Once so redeemed, the Series A shares will be cancelled. The Company has also the right to convert redeemable Series A shares into ordinary shares, at its option. Â The Company will also have the right to pay down in cash the entire redemption amount for the outstanding number of Series A shares at any point.

To be honest this can be resolved
Firstly reading Malcys blog today it seems YA believe they have right to shares, FRR believe they have right to pay in cash or convert shares
Lawyers will sort it out

However, FRR could decide to overcome this dilution by buying back the shares and so limit dilution. the biggest issue would be the hang over whilst YA are continuously taking shares months after months.

Here is the question we should be asking
WHY is YA interested in shares rather than cash? Your repayment is same in both cases. Unless of course your dillution keeps price low and you buy back those shares as YA who i am reliably informed have a dept that does HOLD shares.
That would suggest they see some honey in the pot, they want shares that not only pay beck the debt, but they can hold and profit on later.

With holding any shares there is always the chance of price falling, so normally they get rid of shares and get back in cash. they also have in this case option to take non risked cash. Instead they want to take the risk with shares.

I can only think YA have some knowledge of what is coming, that would be quite normal as they would do due dilligence prior to loaning money to ensure company could repay.

This seems like a greedy loan shark situation, the question is are they allowed to refuse cash and insist on shares, or are FRR right where shares converted of one of many options.
On top of that , if many options, who has the right to insist on payment type. Either, both, FRR or YA
I suspect lawyers both side are scrutinising the paperwork now.

I suspect as in most legal paper work its unambiguous and down to interpretation.
i.e states payment in cash or shares - but not clear who has the say on which option and obviously YA are preferring shares right now.
Well timed thou, this could hold up any future deals with majors if not sorted and i am sure YA know that.

It needs an update Coggy, does not need kodi, i will update for u
bring remote and stick only

Thank You for that
great news
See you there

Hi Mole
Except that YJ confirm payment had been made to YA

That adds another dimention
If paid why did they try a conversion also?

I am starting to believe YA want shares and entity 2 of YA are holding shares converted by Entity 1

if you remember we had a long spell of what seemed to be a manipulated transfer of shares from YA to someone and i believe its the part of YA who hold shares. They do have a department that do that.

Do YA believe they are better with shares and see a huge upside and trying every dirty trick that loan sharks do to get them?

Yellowjersey
Thank you for that clarification
That makes me feel quite a bit more relaxed

can i ask, is there a planned meeting in London, if so when or when are we likely to be given notice.

As you can imagine, sat on this rollercoaster, many of us are unsure if we should be smiling and enjoying the ride, or screaming on each rise and fall this coaster takes us on, Someone has turned off the lights so the next part of the journey is hidden from view and with people on twitter telling us the track ahead is broken it add to the fear factor.

If i make a million i will design a super coaster and name it Frontera. - ONE HELL OF A RIDE.

It would be good if company confirm on twitter that all payments due have been made in full to YA
Not just payment made, all due payments completed, if not reason why not i.e YA refused to except it etc

Thank you for coming here and sharing what you have so far

Just my thoughts and the questions that each answer leads too

Firstly YA probably would prefer shares than payment, Ya has two areas and i am fairly sure they are accumulating shares in their second group, since last year.

That works quite well for them, they have millions of shares issued that they sell and get their money. they then sell those shares to the other part of their company and in fact accumulate at an even better price due to the sudden influx of shares. For that to be true it would mean YA know that those shares will be worth much more in future.

So question is why did YA go for the shares
2 options here, 1st being that they want the shares and unhappy with cash settlements. Now remember that YA never lose, cash or shares they will always make a big profit on what they have loaned a company. The only reasons to want one over the other, are either point 2 (next) or because with shares they will in medium term make an awful lot more money. taking account of risk, cash having little to no risk and shares you can never completely rule out the unexpected, then you would have to think that any mark up they expect to be significant to justify risk .

Now option 2 would be that FRR did not make first payment on time. Forcing YA to take shares. This would be sensitive news that has financial implications and so if we failed has to be RNS. That does not mean FRR have obliged and not broken rules, but the truth is ..IF .. and its a big if , this happened we should have been told by RNS that company unable to make first payment and YA will convert shares.

Now thats what we need to know and fast
reason is, if FRR have not complied with cash payment and failed to to convert shares, then we will have triggered payment in full. That could mean Liquidation if was the case.
The options would have been for company to comply one way or other, They have option to convert shares to YA, To do a funding in any of the various ways to get cash in full to pay a monthly instalment, with brief explanation to us whilst fund raising. So in a way it seems unlikely FRR will have been at fault. (God i hope we are more savvy than that)

Mole and others please pull this apart and see what we come up with between us.

July 18, 2018
The meeting of experts of experts and energy community was held in the corporation
The Georgian Oil and Gas Corporation is actively involved in the discussion of the new Energy Law and its related legislative acts.

For this purpose, on July 18, the meeting was held between the Energy Community and the Expert Specialists of the Company. The project of the concept of arrangement of natural gas market was discussed at the meeting. Some of the proposed amendments will be introduced in the presented project.

The law aims at implementing principal provisions of the European Energy and Energy Gas Package in Georgia, in the energy and natural gas markets of Georgia. As a result of the arrangement of the natural gas market, the country will be less dependent on foreign dominant suppliers. Enhanced energy security will be developed by competitive market with transparent, fair and affordable prices.
We know of a NDA between FRR and two majors
Meanwhile traders and the impatient will effect sp
We could have a accumulator with sp being held lower by manipulation
But things started to happen in July

The energy bill is prepared by financing the energy community in accordance with the obligations under the Association Agreement with the European Union.

According to the provisions envisaged by the Law on Energy, the establishment of a natural gas market will be gradually implemented in 2018-2023.

Any of these doing a deal with FRR would catapult the value
It does not have to be BP or EXXON .
If you look at Schlumberger, we have many companies between them and the biggest super major Saudi Aramco.

Country Company name Revenue 2017 (US$ billion)

Saudi Arabia Saudi Aramco 455.49
China Sinopec Group 448.00
China China National Petroleum Corporation 428.62
United States Exxon Mobil 268.9
Netherlands United Kingdom Royal Dutch Shell 265
Kuwait Kuwait Petroleum Corporation 251.94
United Kingdom BP 222.8
France Total SA 212
Russia Lukoil 144.17
Italy Eni 131.82
United States Valero Energy 130.84
United States Chevron Corporation 129.9
Venezuela PDVSA 128.44
Mexico Pemex 117.50
Iran National Iranian Oil Company 110.00**
Russia Gazprom 106.3
Malaysia Petronas 100.74
China China National Offshore Oil 98.53
United States Marathon Petroleum 97.81
Thailand PTT 93.55
Russia Rosneft 91.72
Japan JX Holdings 90.67
France Engie 89.64
Brazil Petrobras 88.8
Norway Equinor 82.48
India Indian Oil Corporation 81.55
Algeria Sonatrach 76.10**
India Reliance Industries 73.10
Indonesia Pertamina 70.65
United States Conoco Phillips 55.52
Azerbaijan SOCAR 54.79
South Korea GS Caltex 50.26
United States Enterprise Products 47.95
Spain Repsol 47.29
United Kingdom Centrica 45.29
India Bharat Petroleum 43.46
Austria OMV Group 43.09
Japan Idemitsu Kosan 38.58
India Hindustan Petroleum 37.85
Poland PKN Orlen 36.1
France Schlumberger 35.47
Canada Suncor Energy 34.66
Greece Hellenic Petroleum 31.28
Greece Motor Oil Hellas 28.98
Colombia Ecopetrol 26.99
Spain CEPSA 26.90
India ONGC 22.00

If you'r'e wondering how long he deals can take i can help you.

Currently selling a house. In June it was Sold ( under offer or subject to contract)

3 times its got that far, where something has gone wrong. The house not meeting morgage company requirements, or buyer unable to get mortgage.
Thats on a 3 bed semi with double garage in UK.

Now change that value by millions plus, then instead of bricks and mortar that you can see, its data on oil and gas underground and then the political minefield (in selling a house this would be searches, land registry. planning dept and surveyors.
My wife has told me to stop saying when we have a buyer as she thinks it brings bad luck, just say when its sold

Perhaps now we can see what FRR have been going through and that the timescales can vary hugely on contracts.

I found this period to be best filled by limiting my time on here, as it was obvious some would sew the seeds of doubt.

Good luck long term holders here,we deserve to have this come good . Anyone new, welcome to what is a rollercoaster ride, be prepared for extending your timeframes but the possibility of waking up one day to see a rerate of huge proportions. gotta be in it to win it

Which is why i suggested October for meeting - up to 2 months from now

Thats AMCHAM
It looks like Amcham organised an outdoor food event and of course this was Govt and companies rubbing shoulders and shaking hands.
It looks like a number of American Companies sponsored the event
Including FRR and Visa to name but two.

So we have made a donation and got advertising - probably more important a reminder that the Company has strong USA links and is part of the regional development.

This is not a thank you from Georgian Govt thou, but still good.
It should mean we have spare cash to sponsor such event !

been reading daily
Just letting you all know im still here, just nothing much to say at this time.
Its always a worry watching SP drip down daily and needing over a 100% rise to get back to where it was.

I do wonder if the next meeting will be in October, as at some stage Zaza has to come here and face us with good news or not.

I would have thought they would clarify if they are going for deeper zone or not, so a little surprised not had a intermediate RNS.
Communications have dropped significantly over the summer if consider twitter and it does cause some questioning.
Many theories ..from ... Arbitration / Govt - Farm in partner - nothing to say
Twitter was easy as just the odd picture would at least keep some happy. Even thou it told us nothing financially. Rig up rig moved etc

with the gas at lower levels being drawn up, the delay could be about getting someone to finance infrastructure to capture and transport that gas.

Often i do find that a falling SP is due to those in the know, GKP for instance. However with FRR its often more to do with PI's moving on due to the falling price, no expected news etc and then looking for something more imminent for profit. The issue thou, is FRR moves very quickly upwards on news, so i am just sitting it out and hope Zaza is not doing a TK on us. (Highly unlikely by the way)

In addition Stellar are currently conducting several confidential divestment mandates in Africa and Europe. Please contact us for more information.

Twitter
I believe it was our friends at YJ that posted on twitter about the company - our public relations dept who update shareholders.
They had photos etc sent to them by FRR and then tweeted them onwards, ensuring anything tweeted was consistant with rules.

Now it could be as simple as annual leave for a drop in tweets, Main instigators at FRR on leave for 3 weeks and not sending info out, then YJ going on leave and so a lot just gets missed.
Mean while just post the odd bit of news about Georgia.

Its obvious meanwhile that nothing significant has happened, if it had it would have been RNS.
The tweets we are missing are just Rig down 80% and rig moved 10% kind of stuff. Plus photos that show activity but nothing that adds value. So not crucial and danger would be that someone not completely understanding FRR could release a photo that gives something away that they should not, like a guy in a Exxon jacket. So probably whilst leave is ongoing they stick to crucial stuff and normal service resumes in September.

i suggest a early tweet or post on here from YJ will be about a meeting in London for October.

Don't read too much in to lack of tweets July and August