The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
In the deal with Energean . If you calculate that the deal is ~950m or so (excluding renewables etc), assuming the onshore drilling and offshore verification are successful, then with ~1.027b shares in issue the SP could be 0.88p Energean waits until the onshore and off shore work is complete and they offer 1/3 cash, 2/3 their shares, for the whole company. 1/3 cash, would be (0.88 x 33.3% = 0.29p the balance is thier stock. Would SH accept that after all this time, or should it be 50:50 Just sayin.......
Thanks Jimmy,
Pity the management couldn´t be this sussinct.
I have full boots, and my feet are wrinkly from walking around in them for too long. The market hates us being thrown another year out, and subject to another well. Whomever pays for it. I too have thought whether the cost is worth selling and getting in again later. Too late now. I agree with you, it should start moving back up now, and hopefully the buyers might include Energean in the market, or their insiders, advisors brokers or partners....wink
Unless the price stabilizes and starts moving back upwards towards real value, an argument might be made for EnerGean to try and take over the company alltogether. Shares must be close to a value that would be cheaper that ints committments under the deal? If that (and broker values hold true) what value cash would they have to pay ps? 0.40-0.60p? Plus Energean shares? Again, speculating like other posters here....
I agree but show us the Maths?
So, case in point re PR.
Not Neccessarily a bad partner. However, its clear the market is having as much trouble figuring out the economics as me. I think (like me) SH are trying to understand why this is a good stock to continue to hold longer term. They are trying to understand why the structure of this transactions isn´t just pushing SH value add down the road...AGAIN.
Be great if an analyst or broker could quickly come up with a new RS note, explaining why this now means the shares are as they reiterate, worth 56p?
It might read something like; To develop this alone we need ~US$400m or whatever that number was. C don´t have the expertise or capital to do it alone. This agreement accelerates development because, Energean pay C cash now (for ongoing Green whatever...) and a heafty addtional payment if they want more equity. Maybe it even positions C as a takeover target in the US$1-1.5bn range or £0.6 - 1.0 a share range(?) Energean have the expertise and cashflow and have committed to drill further discovery wells offshore (which C now don´t have to fund) and they are incentivised to get cashflowing asap as a hedge to their activities offshore the Israeli war zone.
Anything that makes the case that shares that are already ~-25% YTD should be held now.
Shares are a pretty dull hold. The worrying thing is, even if they announce a strong development agreement with a strong partner any upside in the price will be the last until onshore drilling results or cashflow. Yawn. The managment are too beholden to the majority shareholder. The way news is released is somewhat amateruish and a bit like ground hog day.
First time on here. The Man team really need to notify the market of long anticipated development partnerships. Or at least publish some economics from the Debt work. Without momentum to CF the stock is a bore.