UK 00:03 Tuesday, 22 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
New World Oil & Gas (NEW) issued this RNS announcement this morning, in response to the omnishambles it now finds itself in. Crucially, New World did not deny the “Internet Commentary” it referred to, all but confirming that its unconfirmed placement has been legitimately and excessively forward sold. As of writing 460million shares have traded hands in New World stock (nearly half the issued share capital) and the price is off slightly at 0.08p. My personal view is that there are some incredibly lucky forward sellers out there who are covering their positions, but the epic mess is still a long way from resolution. As for the message circulating, that the Rights Issue is going to solve the problem, it seems that people just have not thought this through properly. Here’s why.
Already a member? Sign in
• All premium articles
• Tom Winnifrith’s Bearcast
• Access to all the entire nearly 13 year archive
• ShareProphets Daily Newsletter
Cancel any time
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments
Catempire
Completely agree Ben there are to many unknowns..
Who will want to take up the rights issue knowing they could be throwing good money after bad? The blame will lie with the brokers and the shorter not the BOD they won’t want to be piling more money in to get out of this mess.. there is no way any half decent outfit is going to underwrite the stock of NEW, their is not really worthy of investment. I just don’t buy it!!
Currently we are looking at a mexican standoff… eventually the buying will get heavy again when folk realised what the true odd’s could be!!
DUCK AND DIVE
But an open offer doesn’t have to be underwritten.
Barford
This case has got so complicated….we own shares from prior last week and are holding to see what happens, but what happens if I click on the buy to acquire more today or tmoro for sure they will be added to my account by the broker but are they real shares!! If their is a float as such of unissued shares about no one can be certain.
Perhaps some outstanding warrants can be exercised or an open offer underwritten by the nomad (to cover his arse) to materialise more real shares to trade….
Ben Turney
@catempire – my personal view is very similar to yours
@Duck and Dive – yes an open offer wouldn’t have to be underwritten, but I didn’t say it did above!
Catempire
Duck – No but someone will need to be taking it up.. for a company worth £700k that’s a big ask and not one i’d want to bet on not to mention they need the rights issue to be taken for 400% of current shares in issue or we still see a slight squeeze all before the EGM or T20 expiry date….. If I were short I would not be risking my livelihood and net worth, I would be covering!!
Woody44
Ben, a rights issue need not be underwritten either; in fact, on AIM, they seldom are and you will find few Nomad / brokers with licences or balance sheets to underwrite.