Having been booted off of AIM and now on the totally illiquid JP Jenkins platform, the company is desperate to screw some more cash out of the mug punters who have been trapped, as they have no way of issuing shares to bucket shops to flip on to new mug punters as they did in the past when running out of cash.
They intend to do this in 2 ways. Firstly with a blind auction for the fractional shares. They claim there were 50,000 new fractional shares ie pre-consolidation 50M shares were fractional and therefore stolen from shareholders by the ridiculous 500,000 to 1 initial consolidation. This is an exceptionally high number (remember they got £30k from people who rounded up their holding) it is also a suspiciously round number. Almost certainly the number of real fractionals is much much lower and they are hoping enough mug punters offer enough for them so they can pocket the rest. They do not pay anything to anyone whose fractionals, less costs, would amount to less than £5.
The second way they hope to squeeze more cash out of existing shareholder is to give them a free warrant for every 4 shares they hold. Existing shareholders can then pay £1 per warrant to convert some or all of them into 1 new share per warrant exercised. If everyone exercised all their warrants this would net the company £367k. The warrants need to be exercised by 31 Jul 15, after which they will just disappear from your account (often warrants can be exercised for a considerable period so you can decide to exercise them when there are real results and you know what the shares you get could be sold for, but they clearly want the money asap – Why?)
The company is desperate for cash and has major debt repayments due in Oct, plus there will be a lot of outstanding bills, including directors fees and related party transactions to pay.
They still have not produced the Annual Report, which was said to be well advanced back in January. Later statements claimed the auditors were due in in May, despite earlier assurances that the Report would be out end of Mar. There is clearly a major problem getting the auditors to sign off – one of them may be not actually having the cash to pay the auditors and that might be the motivation behind the fractionals blind auction. The £1 warrant exercise price is clearly a hint at what sort of price anyone stupid enough to bid at all should bid at.
Remember that this company is now totally unregulated and can say whatever it likes (not that the previous NOMADs did a particularly good job of keeping their lies and false promises in check).
Alpha Prospects pulled a similar warrant issue stunt recently. Alpha shares are totally illiquid on GXG they claim the shares are worth 3p, the recent acquisition by Alpha of EEGC and TXO’s holding of TOG (TXO have not actually announced that they sold their 25% stake for worthless Alpha paper) for Alpha shares valued the Alpha shares at 2.5p, yet the Alpha Warrants were exercisable at 0.5p and, outside of Chris Foster, very few Alpha shareholders took up the opportunity to take advantage of this seeming bargain – I wonder why.
Just a reminder on TOG it had 3 “assets” Plus debts to TXO of over £200k and debt to Alpha of about £40K, which it has absolutely no hope of being able to repay. The “Assets” were:
100% ownership of GSLM – in liquidation and totally worthless 50% stake in the outcome of the Smart Win case – There was no value to come out of the settlement, which although being kept confidential we do know that as a minimum Smart Win got the 32M EEGC shares (worth $250k max, if Smart Win can off load them to mug punters in the US) that were held in escrow as security and no doubt got a load more too. 33,333,333 Alpha shares.
Thus with 25% of TOG TXO had an indirect interest in 8,333,333 Alpha shares.
TXO sold their stake in TOG for 7,691,000 worthless Alpha shares – good deal which proves that even Tim Baldwin admits just how worthless TOG is. No wonder they never bothered to include this little fact in the highly misleading “Empire update”
No doubt when / if the long awaited annual report does come out it will be chock full of promises of great things about to happen.
The Athabasca listing – where has that got to? Nowhere it was never a particularly good scheme when oil was $100+; it won’t even get a look in now and for a listing on AIM the CPR must be less than 6 months old and that 6 months is nearly up.
ORS – had its first strike off notification. I am not sure exactly what they have done to annoy Companies House so much – not late filing of accounts as they are not due until 19 Jun, they did not file the annual return when due in Feb but Strike off notification seems a bit excessive for that and it is so easy to do I can’t believe they would not have just filed it and got the strike off action discontinued..
OTR - clearly a scam with that Panama investment company supposedly buying OTR shares valuing it at 3m Euros about a week after it formed.
And of course GBG, its website still says “Our new website will be coming soon, in the meantime, view the video below to see the approximate look and feel of the MARPOL Hydrocarbon Recovery Plant we have planned for Grand Bahama in 2014”. What happened to that new barge? What happened to the plant that was to be built at a new site? What happened to that $10m contract? - that question is partially answered by this:
Naturally there will also be promises regarding getting a listing somewhere – I would guess if they can scrape the fees together it would be on GXG like Alpha and be just as illiquid as JP Jenkins.
If there are any existing shareholders out there who do not feel they have yet lost enough money on this total dog and want to transfer more of their hard earned cash into Tim Baldwin’s bank account then they should do their own research and make their own investing decision. There are always a few mug punters out there, but I sincerely doubt they will raise anywhere near enough from these wonderful schemes to get them past end of Oct. It will be interesting to see (if we ever do) what the auditors have to say about the company’s ability to remain a going concern. If the report is not filed with Companies House by 30 Jun then they will face a fine and may have strike off action taken against them.
Jordan Belfort in "Wolf of Wall Street": "Rich people don't buy penny stocks. They're too smart."
