Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

IGas Energy –Andrew Austin is a goddamned liar

By Ben Turney

29 December 2015 07:25

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Nigel Somerville, the Deputy Sheriff of AIM, has been far too kind to IGas Energy (IGAS) CEO Andrew Austin. In a devastating series of revelations, Nigel exposed three material breaches by Mr Austin of IGas’ Scheme Implementation Agreement (SIA), which governed the takeover of Dart Energy. Any one of these breaches could have been grounds for termination of the takeover, but Nigel stopped short of saying one thing. He didn’t call Mr Austin a goddamned liar.

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Comments

IGAS_4EVR

31 December 2014, 08:39

The Nov Statement re Finance Facility RNS states: “The economic risks and benefits in respect of the shares remain with Mr Austin (including the right to receive payments equivalent to any dividends paid on the shares whilst the agreement remains in place).”

So if Mr Austin is legally able to receive dividend payments on the shares then the shares cannot be considered to be sold but merely loaned. Why would Equity First consider paying a dividend to a third party on a share that they wholey own? It would be like me buying your car off you and then on top of that paying you a fee for a car that is supposedly mine.

All this suggests to me is that you are wrongly assuming that the Quindell ‘loan’ agreements with EFH were the same as the Igas loan agreement. From the “right to receive payments” statement I would suggest they are not.
Ben Turney

31 December 2014, 10:14

@igas4ever – I’m afraid you’ve been tricked by the smokescreen.

under the terms of the other EFH deals cumulative dividends are paid at the end of the deal AFTER the “borrower” has re bought his stock.

Austin has definitely sold his stock. Whether or not he buys it back is entirely a different matter…