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Argus1, "Only a couple of trading days ago a poster pretending to be a complete "Newbie" said,
"As a newbie to this investing lark can anyone tell me what the death spiral finance is..." 20 Aug 2020 10:50"
Do you think it possible that the newbie, having not received an answer to his question, had to go off and do some research. Having done that research via Wikipedia and a a whole plethora of investment advice web sites. The newbie probably had a look through UKOG's RNSs to see what price the shares were converted at ast time it happened and whether the process caused the SP to fall or rise. Further what effect a falling SP had on the number of shares issued.
Where in the newbie's post did they claim to be be an expert?
What was said has obviously touched a nerve with you so what is the problem? Are you saying that Turkey, Loxley and HH will not cost millions in the future? Or are you saying that they will cost millions but that UKOG have a souce of funding other than CLNs. If you have such knowledge I am sure the newbie would love to hear it and would apologise for any errors in his post.
It is good to get a rise here today and let us hope it is sustained through to the upcoming planning meeting. This is important because as everyone knows millions of pounds will be rquired to participate in Turkey, progress Loxley in the event of planning being passed and solve the water problems at HH.
The only way to raise these sort of sums is with a convertible loan note and a sustained rise in the SP will significantly reduce the number of shares that will need to be issued.
On the subject of Turkey are we not due some news about the submission of the paperwork to the Turkish government?
Masterbaker, I can't see any posts for Pericles2 but people seem to be saying that whoever that they were raising the same concerns as myself. I consider myself to be very sceptical of the claims being made about UKOG at the current time.
As for Morfondle, apart from what appears to be a serious dislike of environmentalists, their posts seem to be supportive of UKOG.
If these two posters were the same person does that not seem very strange and what would be the point?
argus1 when you say :
"Pericle2 banned yesterday after being exposed for multiple identities.
Immediately Troll_Finder appears spouting the same agenda, after not posting under that identity for almost four years."
Are you seriously saying that you think I set up an account in case I was banned 4 years later? If you are into conspiracy theories I suggest you have a look at the Kennedy assassination or the supposed CIA involvement in the World Trade Center atrocity LOL.
Why is it that my asking about the funding for future projects provokes such a response? The more I learn about Convertable Loan Notes (CLNs) the more I am put off. Is it that because people know that even if the company gets their projects up and running the CLNs will keep the SP depressed for months and probably years.
If there is a plausible way to raise the millions of pounds that will be required for Turkey without resorting to CLNs I would certainly be interested. It may seem silly but after my losses in 2016 I feel that UKOG owes me something. People say you shouldn't get emotionally invested in a share but if I thought there was a chance that the French brothers pump n' dump could be repeated I would be prepared to dabble in UKOG once more. However, I think I have learnt my lesson from last time and would certainly take profits on the way up. That is working well for me with UJO at the moment.
This is from the Hertfordshire CC website, "Before submitting a planning application, you can apply for a Screening Opinion Request to see if a development should be subject to an Environmental Impact Assessment (EIA).
The aim of this is to identify projects that might have significant effects on the environment. A screening opinion helps developers get an idea of how likely an EIA will be needed before a formal application is submitted."
Isn't this a good thing? Finding out what hoops the company has to jump through before embarking on planning permission. Surely this can't be the reason for tody's drop in the SP. Is something else going on or is it just a bit of profit-taking?
Crocqman I do like your comparison of UKOG and UJO, "Management and Communcation (sic) are like chalk and cheese, though."
Unfortunately, the attitude to communication seems to have affected this BB. It seems that I mentioned the elephant in the room when I asked about how the funds will be raised. Prompting abuse but no answers.
More knowledgeable posters than myself have said that millions of pounds will be required for Turkey alone. How many wells will be needed at HH to fund that? Other people have pointed out that convertible loans are the only way to raise this money in the absence of multi wells at HH?
Surely it is better to acknowledge this dichotomy so that if people do load up at this price, as they are being encouraged to do by some here, they are not unduly disappointed when billions of shares are issued at a discount and are then drip-fed into the market keeping the SP depressed.
ocelot and Mirasol thank you for your replies to my question about why a company would have to resort to death spiral finance. I have obviously touched a nerve with some posters and your replies have helped me understand why they wouldn't want this subject mentioned.
Skwizz, yes and how many posts do I have in those four years since I became a member? I got my fingers burnt with the French Brothers Pump 'n Dump so I stayed away from the markets only coming back two months ago with a nice little dabble in UJO on the recommendation of a friend. However, I have been watching the BBs and it would seem that the people over a UJO are a lot friendlier and more informative than here.
They stress that UJO is fully funded, the reason I was tempted to invest there, while there would appear to be a need for some sort of fundraising here. Or are they wrong and will HH fund UKOG's future plans?
DavidWK a few days ago someone was talking about it and then the posts disappeared. Then people were boasting about getting him or her banned. How does that work?
DavidWK, yes I am a newbie in investing terms which was why I was asking for help over death spiral financing which seems to be mentioned a lot on this BB.
Since neither, you or anyone else was prepared to help I did what I should have done in the first place and Googled it. Here is a useful link that I found that explains the process. https://en.wikipedia.org/wiki/Death_spiral_financing
What it doesn't explain is why UKOG would resort to this. Why not just offer the shares to existing shareholders and the public.
As a newbie to this investing lark can anyone tell me what the death spiral finance is when they talk about Turkey?