Member Info for shareaction

AIMf,
Yes, an option to BUY new shares from Polo at a price of 4.5p per share.

one third of the options exerciseable from 1 July 2018,
one third from 1 July 2019,
one third from 1 July 2020.

For every penny the share price is above 4.5p in the future Tang will profit £200,000 from these 20m options.

Stock options in normal companies cannot be exercised for typically 3 years and longer, but polo is everything but normal. Tang could start exercising these in a few days if the share price rises a bit.

"admission document and circular to Shareholders is expected to be published by not later than 7.00am on 29 June 2018" ?

I thought this transaction was subject to EGM approval. In that case we should know on Friday already what effect this purchase will have on the share price! Good news!

Have I missed to notice any shareholder-approved stock option program in Polo? The fact that Tang was actually attempting to "run" Polo without share options was one of the few, I mean the only, good feature of this company.

A reckless 9% (!!!) dilution of other shareholders without AGM approval nomad Allenby says is fair and reasonable?

Ragnar, yes, if not a rights issue, DGOC should after the placement instead issue on a pro rata basis subscription warrants for a "repair offering" at the same price as the placing to those of the shareholders who were not invited to participate in the placing, which would NOT require expensive underwriting. These warrants should be listed on AIM in the subscription period so that the shareholders who don't want to participate can sell their warrants in the market to those who want to buy more new shares than allocated. That is normal practice and in my view only common decency for such a large capital increase as this is.

For this capital increase, $225millions worth of shares, which at today's share price is 50 - 60% increase of share numbers, they should really use rights issue to existing shareholders with quoted/listed subscription rights, underwritten by some hungry funds, the whole package, rather than the usual private placing to institutional vultures at discounted price. There is no desperate urgency in the financing, plenty of time to organise this. After all, rights issue is the default capital raising method for all limited companies. I honestly believe we deserve that for this transaction. In other countries and markets I experience that rights issues are the first choice standard method even for small companies and it works very well so why not on London Stock Exchange AIM list?

I've said it before, what a superb business model and strategy execution! Glad I loaded more DGOC earlier this year, this time right up to the gunwales. Their $600m facility is set to be increased to $1bn! Although they said they could expand without a placing, this proposed deal is simply too big without a placing so no complaints there! Hope the deal materializes but knowing Rusty & Co, it will! And very soon!!

No sign of any loan repayment of SGD5mill to Polo. Why? Pan Asia's sale of TCM has been given a new, later deadline, 15 August 2018. https://imgur.com/a/khOMDVD No explanation given.

New, Share price normally reacts the day after ex-div date which was 10th May. By the way, I still have not received any dividends into my accounts and it is 1 June. A bit slow.

Unless we hear anything else, Pan Asia's sale of the TCM shares to the Chinese GM Ltd will complete on 31 May. And one of GM's conditions of completion is that Polo's charge over the shares is lifted, but it will only be lifted if Polo's SG$5m loan to Universal is repaid, or a better security is put in place. Guess what? I don't think the amount will be repaid. Polo will accept a new security and deferred repayment for another two three years... There is a consistent pattern of poor, unexplained decisions coming from Polo and the handling of these SGD5mill is a good example. https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01975429 (pdf)

"Legal actions continue in the Tunisian courts."... Why does this news release give me the impression that Celamin may have wasted 2 years on international arbitration instead of going straight to the Tunisian courts?

I see that in the chairman's report that the company explicitly admits that higher oil/gas prices do NOT favour their business model (which was a concern I voiced some time ago): "..should commodity prices rise prompting some E&Ps to reduce the pace of asset divestitures, our large, stable production base will increase our ability to focus on organic growth across our vast acreage position and proven reserve base." Instead they would have to start drilling ("organic growth") on a big scale like all the rest of them which is not what their business is about.

I believe this is a steady growth, cash generative, high dividends money machine and have lined my sipp and isa with this share. DGOC's business model is simple and effective!

Quarterly update published by Pan Asia (who has pledged the coal shares to Polo) today. https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01975429 As the update is for 1Q2018 ending 31 March it is only a repeat of what has been said before.

Very true, herb. But what I cannot understand is why UCR haven't repaid the loan to Polo, or as much of the loan as possible, a long time ago as it has been clear for a long time that they have not been able to arrange the listing of the coal resource company on Singapore Stock Exchange, which was their sole mission in this transaction. After all they are incurring a weekly interest charge by Polo of more than �8000 including compound interest (15% p.a). Since they failed to list the company what have they spent the SGD 5 mill loan proceeds on?

Progress is being made in the Universal Coal Resources SGD 5 mill OVERDUE loan. https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01967585 (pdf file download) Pan Asia has signed an agreement to sell TCM to Glory Merry and undertake, amongst other things, that the shares in TCM will be free from any encumbrance (INCLUDING, OF COURSE, POLO'S CHARGE ON THESE SHARES) by 31 May 2018. Since this charge is the security for the SGD5m loan plus accrued interest there is no way Polo will release this charge unless the loan is repaid or replaced by an even stronger security and better terms. https://ibb.co/gjb2Bc Pan Asia need to put their skates on.

According to accounts released today no progress has been made on the repayment of the loan to Universal Coal resources. https://www.asx.com.au/asxpdf/20180314/pdf/43sfh335nd2j0n.pdf Grim details on pp. 3 and 11, The holder of the shares pledged to Polo, Pan Asia Corp, are technically insolvent due to net asset deficiency of AU$5,044,847 at 31 December 2017, due to amongst other things a loan from Kopex Mining of USD$2,767,500 connected to the same deal as Polo is entangled in. What an utter mess!

"Elon Musk's SpaceX launches the first of nearly 12,000 "Starlink" satellites that could bring super-fast internet to billions of people" (DM today) any idea what this could mean to SAT's business?

And a gigantic credit facility which enables more expansion without further share dilution. DGOC never stop impressing me!

Polo was down to only around US$4m cash last summer but that is besides the point. Why should Blackham be at the top of Polo's list of investements to plough money into? To already own loads of shares in the company is no reason whatsoever to buy more, especially after Blackham ran out of funds and needed a rescue placing. I really hope Polo haven't participated.

http://www.digitaljournal.com/pr/3654970 89.5p ATH today. What we have known for a long time about DGOC's production is now beginning to spread slowly...