heading for zero24 Aug 2019 19:38
i think this company is heading down to a total loss, zero pence worth.
not sure how long that will take (9 mo/1 yr?) but jmo where it is heading.
they have one asset, which simply has not performed as well as was initially
hoped, & the costs to extract, lift & ship have turned out way higher too. in
the meantime, the wages and expenses for the BoD in particular have been
v. exorbitant, with several hundred thousand quid disappearing into those
pockets every half year, so the recent placing money (after placing expenses)
will only pay BoD wages until Xmas, with nothing left over for anything else
at all. + they told their auditors that they would repay the £650,000 still owed
for their failed grenada plans by issuing even more shares. b***** all chance
of doing that now! - given how much money the pis who bought into the 16p
placing have lost, and then also how many additional pis have ended up so
badly underwater from buying into the falling share without realising that
the sheikh had sold a million pounds worth of adme sharest that morning
(with shedloads of 4p warrants still also overhanging this share). at this stage,
adme simply does not have the cash it needs to develop new wells to tap the
oil as these existing ones are run down, let alone pay their share of the costs
that would be needed to develop the field more fully. and if adme cannot pay
their share, they stand to default their share of the asset to the other partners.
... i've seen some posters rely on the idea that field development money
will be 'raised at the project level' --> that does *not* mean that there will
be a magic money tree for adme, where the other partners just raise the
money and let poor little adme have a free ride ... everybody & his dog
in the market knows crystal clear that adme doesn't have cash, but *must*
raise lots of cash just to stay in the game. oh dear. a few months ago, they
were saved from going bust only by giving a third of the company to sheikh
for a pittance, cash that just paid wages bill for half a year. they had to do
that as no-one else would stump up. now far less chance of new finance.
heading for a big fat zero, imv, but lots of recently trapped longs
who will be desperate to sucker in someone else to be left holding
the baby, in the limited time left before this one goes to the wall.
so the ramping on here & twitter will get more desperate.
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