Gee, we are #5 on the I-Hub weekend most active boards list. Been a long time since that has happened. Confusion over the basic story? Give me a break!
A larger, privately-held Russian company offers to buy-out a US-publicly-listed Russian-oil assets company at $2.17 per share. The US-publicly-listed Russian-oil assets company had a small stock float, with the vast majority of authorized (and restricted) shares owned by one owner (probably Russian). That majority holder decided instead to agree to a merger of his publicly-traded company with 2 divisions of the larger privately-held Russian company. This merger resulted in a new entity/company (NWOG) in which the authorized stock is expanded to over 600M shares total and divided up 59% to 41% between the privately-held Russian company owners and the US-publicly-listed majority owner (not counting the small float, meaning we investors).
So now there are two entities: (1)The newly-merged company (NWOG) consisting of the assets of ndol and the 2 divisions of the privately-held company; and (2) the same privately-held Russian company, minus the assets of the two divisions now merged into what is company #1 above (NWOG). We investors have no investment in the ongoing, privately-held Russian company, and are a small part of the newly-merged Russian oil assets company. All this activity has resulted in a new majority ownership in the newly-merged company, and under which we constitute an even smaller part of the whole.
Part of the confusion is that the new management is under the selection and control of the privately-held company owners (59% stock ownership) and yet is not part of that other private company anymore directly. The fact that the two remaining, and existing companies basically have the same name also doesn't help. Another source of confusion is that the newly-merged company's management has chosen to not publicly communicate for several months as they no doubt do the corporate restructuring and organization within the joint entity. IMHO they probably have been astonished at the drop in price of the listed stock from the mid $1.50's range down to $0.07/share as of yesterday. Taking their time in "getting their ducks in a row" has allowed short-term trading and negativism to predominate in the trading of the small float of the publicly-listed company. Half-hearted, and sporatic communication has only seemed to decrease the stock's price.
Speculation abounds as to the extent and current status of the shorting of this stock. In sum, it's been a mess!
Friday's pr seems to acknowledge the error of their ways, by setting up a department focussed on simply getting the newly-merged company's message out more clearly, publicly and routinely. Time will tell if they can and will do it. I believe they will try and probably have a lot of information to provide. It is in everyone's interest, except those short this stock, to get the valuation of this company's purported combined oil assets to be more accurately reflected in the listed stock's price. I figured all along they would eventually do an initiative of this sort, but also figured it would be part of the new listing on the london-based AIM market. Perhaps that will prove to be closer than we all now realize.
The only other confusion here is that being sown by some posters here with other agenda's they are not bothering to fully reveal in their postings.
Good night!
eveali
