Member Info for SocialistB

Hi Lazysail.

Personally I am very interested in Fastbase, as since that agreement was posted back in February, I have bought up in Gunsynd on pretty much a monthly basis.
Even if only a quarter of their expectations come through, I think it will be a game changer for Gunsynd.

It is correct that Gunsynd has not invested directly in Fastbase, but our board has charged our company a huge salary this year compared to years past.
I assume this is because of all the work, they have been doing for Fastbase and I consider it fair enough, nobody should work for free, or peanuts for that matter.
So I want the IPO to go forward and are interested in hearing everything that comes out about the company.

This December it is Fastbase that is talked about a lot. Last December it was Oyster Oil.
Next December it might be Human Brand.

As to why the price is so low, well this is the price the market is willing to pay at the moment.
I use the opportunity to top up as often as I can.

But beware, another 7 billion shares might be issued, so the share price might be half of what it is now, sometime in the future.

Good morning Optimist13.

Last week you mentioned, that you thought a Pre-IPO of 10 million was a high amount to raise in such a case.

I have no idea as to what the most common sum to raise in such a case is!

What range would you consider to be a normal sum to raise for a Pre-IPO?

What does Fastbase look like and how does it work?

There is unfortunately not much present on Youtube.
But feel free to click on following link, even for non speaking Spanish people it becomes interesting 2 minutes in.

https://www.youtube.com/watch?v=Z55U_UA5uHE

I would wish Fastbase them self would put out a similar video and introduce their product to the world.
(and hopefully get a bit of a hype started about the forthcoming IPO)

So all the resolutions was accepted and the AGM finished in less then an hour, judging by how fast the RNS came out.

I see this as a positive, as there can't have been much bickering going on from disgruntled investors.

Speaking of whom, did any of the members of this board have a change to participate in today's AGM?

If yes, can you shed some light on what the board is planning on doing with the money they raise from the sale of new shares.

Did they say anything in regard to Oyster Oil? What they perceive to have gone wrong in the company, what their future plans are?

Any update on Fastbase and Human Brand?

So what now?

Yesterday was the last day to vote for the AGM, unless you have the opportunity to show up in person tomorrow.

I have argued for a NO vote to resolution 5 and 6, partly based on the lack of information out in the public domain. I am however pessimistic by nature, and assume that it has not gone the way I have campaigned for.

So for arguments sake, lets assume it is 6 straight Yes’es, that's the outcome of tomorrows AGM.

Our number of shares will unfortunately have more then doubled, but on the bright side, we will get some money in the coffers. My estimate is a wide ranging one, from the minimum of £700000 to the unlikely high sum of £3,500,000.

We can of cause use this sum of money to buy up discounted shares in Fastbase and Human Brand when they list, and a bit in UKOG would not go amiss either if you ask me or maybe Alba would be a better bet, as they have their fingers in so many pies.

But my real desire, should we get money in the top range of my estimate, would be to buy up in Oyster Oil.

Contact Polemos and see what deal can be arranged with them regarding their investments in Oyster Oil.

I assume there has been a default on our loan note, can this be used to our advantage to negotiate shares at today’s low prices.

The AIM, would be to either buy Oyster Oil outright or get a vast majority holding in the company and then monetize on the asset.

My thinking goes something alike mirroring the set up from Horse Hill with regard to ownership structure.
Team up with a company like Tullow oil for instance. They do all the drilling and exploring, extracting the sweet stuff from down below.
And in return we will be so kind and only charge 30-40% of the BOPD.
Now if such a deal could be struck, that would be a long term investment worth holding onto.

Hi Schaali

You need to get in touch with your broker and ask them how you can vote through them.
I assume they are holding your shares in their nominee account.

They might be able to certify that you are the owner of xxxxx shares if you want to show up at the meeting on Thursday.

Or maybe it is enough that you send them an email through their secure chanel stating following:

Resolution 1: Yes

Resolution 2: Yes

Resolution 3: Yes

Resolution 4: Yes

Resolution 5: NO

Resolution 6: NO

Sorry, could help but to suggest how to vote (-:

But you gotta hurry, time is almost up.

Don’t sleepwalk into submission.

UKOG

Shares in issue
5,207,240,526 Ordinary Shares of 0.01p each.

Mkt cap 106.05M

Gunsynd (from our webpage)

Number of securities in issue
The Company currently has 4,882,924,490 Ordinary Shares of 0.01p each in issue.
The percentage of securities not in public hands is 26.20%
The percentage of securities in public hands is 73.80%
Mkt cap 1.62M

Issued shares are roughly on the same level (give or take 3-400 million)

If resolution 5 and 6 are accepted there will be added more then 7 BILLION shares to our company.

In total we will have more then 12 BILLION shares floating around and the 73% of securities in public hands could be more then halved.

With 7 Billion extra added shares the price could also take a potential severe nosedive.

Mkt cap wise we are so far off from UKOG’s 106 million.
We have a Mkt cap of 1.6 million.
+ the fees we will receive from Fastbase and Human Brand within the next year or so.
However these fee’s will bring us nowhere close to UKOG’s value, but we will have doubled our securities in issue.
To me, that does not look good.

I urge everyone to vote NO to resolution 5 and 6, based on the lack of available information in the public domain.

There must be other way’s that we can raise money to buy into our investments at a good discount.

Permanent Interest Bearing Shares to existing shareholders is my favourite option.

6% would be a nice dividend for us to receive and would also be affordable for the company.

So let’s not sleepwalk into the unknown and risk giving up control of the company by significantly reducing the 73% of securities that are available in public hands.

VOTE NO TO RESOLUTION 5 AND 6.

Today, if you hold 10,000,000 shares in Gunsynd, then you roughly own a 1:480th of the company.
If on the other hand, the dilution goes ahead, and an additional 7 BILLION shares are added to our books then that same amount of shares means you now only own a 1:1200th part of the company.

This is a serious dilution, and for what reason?
Well we don’t know, because we have not been told. There is no information about a fantastic deal right around the corner.

But what makes it even worse is, we don't know what rate these shares are gonna be sold at.
What we do know is that just short of 5 BILLION shares can be sold at the directors discretion to what some fears would be a Mates Rate.

For arguments sake, lets just say it was all 7 BILLION additional shares that the directors had discretion over, and they sold them at one of the 2 following prices:

If shares are sold at 0.01 = £732,438.67
If shares are sold at 0.05 = £3,662,193.35

The £700,000 version would definitely be the Mates Rate, as some fears.
The 3 million version would be one with a significant premium to today’s price, and therefore highly unlikely.

So in theory, someone who today owns a 1:480th part of the company can end up only owning a 1:1200th part of the company, while all Gunsynd gain’s are in the £700,000 range.

Truth be told, I doubt neither of the scenarios would be head on, and believe that the amount raised it going to be somewhere in between.

But again, what for.
We got cash in the bank and we now got one liquid asset in UKOG.

If we need cash to buy shares in some of our upcoming investments at a good discount then I am sure we can either borrow the money short term or get them in a different way, that would not lead to such a massive dilution.

Permanent interest bearing shares at 65 interest for existing share holders is still my preferred option.

Another issue is that with a 150% increase in share volume, we could easily loose control of the company and be taken over.
Could this be some kind of a RTO?

Based on the current information in public domain, please vote NO to resolution 5 and 6.

Please also vote no to resolution 5.

We do not need such a huge dilution of our shares.

There must be other way's to acquire working capital in the short run.

Again PERMANENT INTEREST BEARING SHARES to existing shareholders are high on my list over preferred options.
At 6% it is affordable for the company and a good return to us long time holders.
And the dilution could be held at a minimum.
7 BILLION extra shares at today price is not a good deal for us shareholders.
More information is needed from the board, before I'd change my mind on that issue.
Please vote NO to resolution 5 and 6 and let us kick start a debate about alternative funding solutions.

Sorry for the typo in part 1. Last line was meant to say:

I recommend all to vote NO to resolution 5 and 6.

And to be open to an alternative funding solution (read between the lines, permanent interest bearing shares)

Does anyone else have other suggestions for potential funding methods that would have none or just a small effect on existing shareholders?

On the Angus Energy board on this site a fellow member has pinpointed an occurrence very well.

Tuesday Morning xxxyyyzzz wrote:

xxxyyyzzz
Posts: 72
Opinion:
No Opinion
Price:
11.10
5.8% v 17.8%
Today 08:32
As I mentioned yesterday. The sp dropped 17 .8% when the placing only increased the mkt cap by 5.8% so the
drop should have only been 5.8% to maintain the same mkt cap meaning yesterday's fall was overdone.

5.8% extra shares, 17.8% drop:

05.11.2018.....381,721,986 shares in issue.
22.11.2018.....22,222,222 shares issued at 9p (only 5.8% extra)
22.11.2018.....403,944,208 shares in issue.

In this case a 5% increase of shares lead to a temporary 17% drop.
Gunsynd is contemplating a 150% increase of shares (more then 7 BILLION) and my fears are that with such a huge amount added to our already significant amount of shares, (almost 5 BILLION) we will see a much bigger drop in our low share price and who knows when it is going to rise again.

Tuesday evening, Spirits Time International, Inc. is selling on OTC at 3.00, previous close was 3.50, OTC shows it’s down by 14.29%
So unfortunately not the rocket I had hoped for so far.

If the money that the board is trying to raise is intended to buy shares in Spirits Time International, Inc. Human Brand Inc. or Fastbase at a discount I am very pleased. There should be a good change of a relative quick profit and a long term huge growth.
It certainly sounds very sensible to me (although I would really like to Gunsynd to buy up Oyster Oil at the current price and become the main or sole shareholder)

I don’t question that we need to raise money now or in the future, for investment opportunities.
But I do question if adding more then 7 BILLION shares is the right way forward.

Again, like the other day, I would raise my voice for an alternative funding like permanent interest bearing shares allocated first and foremost to existing shareholders so they could receive a payout that would kind of resemble a dividend. (see my last 2 post’s for more details)

If permanent interest bearing shares is not the right answer then, maybe Bonds in some form or a conventional loan. (or unconventional)
I do not think additional shares should be issued while our share price is as low as it is. As to many shares has to be issued to amount to a sum of money we can use to something.

I expect some of our investments to come through during the next year or less and hopefully that will show in the share price.

When the share price is higher, then fewer shares would have to be issued, and we existing shareholders would see a smaller dilution of our share percentage.
And then I would be more inclined to vote in favour.

But I do say inclined, as at the moment I feel very much left in the dark.

I would like to know more about what the Boards plans are, and I would like to know it soon as I will have to post my votes in the next couple of days.

I recommend all to vote

So this leaves the question, should there be a conversion rate or none?

Can you buy one PIBS for every 10 – 100 – 1000 - 10000 – 100000 of shares you hold in Gunsynd?

If we manage to raise £950,000 (on 1,000,000 shares) then the yearly interest would cost us £60,000
If we manage to raise £1,900,000 (on 2,000,000 shares) then the yearly interest would cost us £120,000
Admitted this is a lot of money, but we will have the cash from the money we have raised, alternatively we now have a liquid asset that can be sold out of (UKOG)
Other possible solutions could be BONDS instead of PIBS or just a conventional loan.
But I would favour PIBS to existing shareholders.

For me, to accept resolution 5 and 6, I’ll need more information from the directors.
I feel I am to much in the dark.
Especially when there are other alternatives available, as mentioned above (at least in theory)

If Gunsynd was to put an additional 7.3 billion shares on the market, of which almost 5 billion can be sold to whom the directors see best fit, I wanna know what the plan is.
Are we talking about some kind of a reverse RTO with Fastbase or Human Brand or a 3rd company?
If not, then I am not keen on expanding the shares with the likes of 7.3 billion or 150% of our existing issued shares.

Anyone else got any other good suggestions?

I have finally had time to read through the AGM proposals and to some degree I share Optimist13’s dismay for resolution number 6.
And I am considering to go even further, I’ll recommend every one to reject resolution number 5 as well.
This appeal is based on the lack of information we have currently.

If I have read the 2 resolutions correctly, resolution 5 adds 7 billion (7,324,386,735)shares to our already existing 4,882,924,490 shares (a total of 12,207,311,225)
Please allow me to emphasize this.
This would mean that little Gunsynd, would then have more then 12.2 billion shares issued.

I fear the market will become saturated way too fast, when investors start to sell out of their holdings.
Not to mention the potential huge depreciation of our already existing shares.

Resolution 5 allows the directors to issue 7,324,386,735 shares. This would result in an aggregate nominal amount of £732,438.67 (assuming aggregate nominal amount means 0.01)
Following amount should be in our coffers (- expenses) if the shares are sold in full at following prices:
If shares are sold at 0.01 = £732,438.67
If shares are sold at 0.03 = £2,197,316.01
If shares are sold at 0.04 = £2,929,754.68
If shares are sold at 0.05 = £3,662,193.35

Above prices are all (except 0.01) at a level we have seen here in 2018 and if I am not mistaken then the directors have (or had) options they can exercise at 0.05

Potential 2 to 3.5 million pounds in the coffer.

Going against this will unfortunately mean we have not raised any funds for further expansion and I recognize that as a problem. And I also acknowledge that we have to raise funds.
But I think there is an alternative method to raise capital.

I would prefer we borrow the money.

Permanent interest bearing shares.

Permanent interest bearing shares (PIBS), face value 100p at 6%, sold at 95p. Could be set to expire in 5 years or can be paid out in pari (passu) at anytime before that, whatever works best for the company. Effective interest would be 6.3%. (6 / 95 x 100)
Interest to be paid 2 x annually (maybe even 4 times, if the expenses are not to high for doing so)

These Permanent interest bearing shares should be offered to existing shareholders first and foremost. If we fail to raise all the money hoped for through existing shareholders, the remaining can be sold on the open market or we will have to make do with what we have raised.

The advantage point I see from this, is that we as shareholders, who have not seen any dividends at all so far, would now receive a pay out.
Getting 2 - 4 yearly pay outs would kind of be like receiving a dividend.
And Gunsynd would still have the cash they need and wish to raise the other way around.

And with a bit of luck, when it gets out there that you can get 6.3% on PIBS (Permanent interest bearing shares) from Gunsynd if you are a shareholder, hopefully demand for the shares will rise, and so our share price too.

I find that with almost 5 billion shares at issue, Gunsynd has way too many shares on the market and fear that when we longtime investors starts to sell our holdings, either in part or full, the market will quickly become saturated.
I would therefore like to hear what other investors' opinions are on reducing the number of available shares.
Long term, I would like to land between 50 to 100 million shares in the company.
I suggest a first divide by 10, so we land at just below 500 million shares if this goes well, I.e. the share price does not loose to much in value, then an additional divide by 10 so we land at just below 50 million (maybe wait awhile, or should it be quick?)
Then new shares can be issued up to a maximum of 100 million available in total. For future investment possibilities.
While we hold on to the good stuff we got.
I hope for some sincere inputs and a good discussion.
Do you prefer a number close to almost 5 billion, maybe even higher if more shares are to be issued. Or would you like a lower number and in that case, what is your preferred number of issued shares?