RE: Biggest volume stock on 01/06 ahead of news:5 Jun 2022 13:51
nomlungu
Maybe it is not apparent but I do have some of the same concerns as you and likely many more shareholders.
I firstly have to say that I am pleased to see a number of changes in the management and administration of UKOG from last year and also that shareholders will now be given the opportunity to buy shares in fund raises on the same terms as new investors. I wish that dilution was not necessary or there was some benefit long term for long term holders who have supported the company to get to where it is today, many of whom are in at much higher share prices than today and would like to see a return on there investments or have the confidence that it will come.
I also have to consider that UKOG is only a small company who has experienced many delays in cases during planning and the courts, while looking to grow its asset base it only has a handful of permanent employees. While using the necessary outsourcing of servicing though specialist companies like Zetland for it's planning and solicitors and barristers for legal issues.
As I said yesterday maybe not as clearly as I would have liked 9.8 billion shares is a great many and over an additional 60% of the share capital for one year. The key questions are? Is this all to be used in one go or is it to be spread over a number of raises? and how best the BOD could utilize the fund raising to best effect for shareholders and the company to minimize dilution while providing confidence to shareholders and the market?
How could this be best achieved, maybe a general meetings for projects as we go along so it is clear to investors what the funds are for and the benefits that can be achieved providing cost, benefits and result reports. The problem with such large raises as we have had in the past and what is now being requested now is that it seems like a black whole, money gone. While no tangible results or benefits for investees are perceived leaving angry and disalusioned shareholders.
This may or may not be the case as despite all claims of UKOG going bust it defies gravity and each individual project is managed though a different individual company linked into the parent company which likely means the parent company does not go bust even if a individual project was to fail but shares the benefits and loses through the parent company.
What we also have to take into account is that it is early days and as success comes the projects and benefits will likely increase but the company has a long term outlook not a short term outlook and it's projects take time and money to bring into fruition but it should also have long term benefits while many of the costs have been paid upfront.
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