RE: Kool25 Jan 2016 20:49
This was the last communication from Clem C
CEO’s Statement Sefton is now a private company and this AGM statement is an attempt to bring shareholders up to date with the situation. First a little background. Sefton had $1.1 in the bank a 31 July 2015 By 23 October 2015 the company had $461,169 having received $436,574 back from its UTAS deal That is to say Sefton, under the previous board and advisers burnt through roughly $1 million in that 11 week period. I reiterate $1 million dollars in 11 weeks. As our resigning non-exec director Tom Milne put it in an email to the past directors “by October all the money is gone.” I’d like shareholders to reflect on that for a minute because that is proof we did the right thing to step in and try to stop the company from obliteration by the previous management. I must inform you that this $1 million dollars was frittered away in a riot of self dealing and waste on the lead up to us coming on board. Since I stepped down as a NED early in the year, the record shows that Sefton has never been on the verge of any transformational deal. What value its assets had, and that is questionable, has been destroyed by management actions and of course the collapse of the oil price. Shareholders have been fed a series of false hopes. Not only has cash been dissipated so have assets. Where viable we will be taking action to redress as much of this as possible. However we must also look forward. Sefton has three assets. Cash, US licenses and its shareholder base. Cash, currently stands at £275,945.86 pounds. There are creditors to deal with, so this balance will fall, but the balance should be enough to keep the company alive for an extended period. With the huge overheads of listing-costs gone, the company can afford to tick over in a way that a listed company cannot. The cash balance will suffice. The US assets may as well be called liabilities as assets with no party currently prepared to buy them for more than $1. Key licenses were allowed to expire while others less attractive ones were retained. This mystery is on par with actions we have seen elsewhere and shareholders are invited to come to their own conclusions as to what went on. Sefton will sell its “Kansas assets” to anyone, including shareholders, via an open auction which I now declare ongoing. The starting bid is $5000. We will close the auction on the 5th of January. Anyone interested should contact me for details at clemc@advfn.com. If a buyer is not found, Sefton will explore the most cost effective way possible to resolve this issue. The Shareholder base is Sefton’s hidden asset. With its cash and its shareholder group, Sefton is in a position to look for opportunities amongst the fall out of the oil price crash and it will spend 2016 in a search for deals. Sefton can bring a company, a broad and active base of shareholders and with its cash balance, inject some capital. We believe this will be an attractiv
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