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I don't believe RM is an "if."

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castaways   Tuesday, 08/14/18 11:56:44 PM
Re: Big Knox post# 29051
Post # of 33713 
I don't believe RM is an "if." I'm convinced it is a "when," for the reasons listed below.

* Delfin is the major/controlling shareholder in TGLO with at least 70.9% of the float. They have hundreds of millions of shares invested in this shell, and are continuing to fully fund its operations per the latest 10Q. It is NOT in Delfin's interest for those shares to become worthless - forget the lead balloon. They have skin in the game, just as we do.

* It seems that Delfin is contemplating either (1) going public through a RM with TGLO to raise capital, and/or (2) using TGLO's considerable NOLS to help with tax write-offs. EITHER of those actions would be in the service of their DeepWater Project, which has a promised FID by the end of 2018. BOTH of those actions would require RM with TGLO - because as long as we are two separate entities, the value of TGLO (raising capital or tax relief) is not accessible to Delfin; they can only buy penny-stock shares like we do.

* Fred Jones is CEO of a multi-billion dollar company (Fairwood) of which Delfin is a subsidiary. He is also the newly appointed CEO and sole Board Member of TGLO. Mr. Jones is a renowned veteran of the oil/gas industry for decades, and a major architect of the FLNG project. This project is reportedly his dream...perhaps even his swan song, as he is well into his seventies.

* Delfin has hired top-notch firms and expert collaborators to help bring this project to fruition, and has signed MOUs with several countries to begin delivering LNG within a few years. They are professional and serious in all public disclosures, have the myriad of permits in place to proceed, and appear to be taking the right steps in the right order to launch this project. As their website states, the DeepWater project is "shovel-ready."

* Since Delfin became the major shareholder of TGLO in Dec 2017 there has been, and continues to be considerable turbulence surrounding LNG: export permits, facility/vessel costs, global supply and demand, trade tariff wars, and political/monetary unrest in numerous countries that impact the funding of projects related to the industry. Delfin is undoubtedly monitoring that carefully, as they need to assess whether their project can be profitable over the next decade and beyond. LNG is very much in the headlines and in flux, which undoubtably cautions their expert team not to jump too quickly.

* It does seem probable that there will be a reverse split when the RM occurs. The latest 10Q hints again at that, and we have had numerous Ihub discussions over the months about that possibility. Given that TGLO shares will move from pennies to dollars very quickly (a requirement for Nasdaq listing), investors need to gauge whether that risk is acceptable.

* My argument, then, is that TGLO is not simply a "typical" 4-6 month RM decision for Delfin, but rather a piece in a much larger puzzle that takes time and corporate know-how to evaluate. TGLO investors can wait for them to make those decisions, or move on to other stocks. I choose to wait.

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