New World – A case study in catastrophic shareholder value destruction on AIM

In my last piece on the latest twists in the ongoing shambles I looked at the apparent mis-match between what New World Oil and Gas (NEW) was saying, and the Market Notice issued by the London Stock Exchange. Ben Turney has since published this incredible article – I hope that he made sure that the board of New World had been offered a chat with the Priest and blindfolds all round before releasing the trap door. And if that was not enough, there are today’s revelations that placees of the failed placing were not informed of the required shareholders approvals. Meanwhile, a look at shareholder value.

Exclusive: New World Oil and Gas – the smoking gun

Deputy Sheriff Towers is in receipt of an astonishing document - a Placing Letter sent out by Cornhill Capital pursuant to the abortive fund-raising announced by New World Oil and Gas (NEW) at the end of April. The placing was, of course, conditional on the passing of resolutions at an EGM, which shareholders blocked. But here is the thing: I see absolutely no reference to that requirement in the Placing Letter- indeed, the acceptance form describes the transaction to buy stock ‘Placed Firm’. Who will be first up to the gallows?

Has New World Oil & Gas made a catastrophic error in its open offer?

By Friday afternoon it looked like New World Oil & Gas’ (NEW) board and its hapless regulated advisors had made yet another catastrophic error. Even by this group’s sheer rank incompetence over the last seven weeks, the latest blunder could be the worst. Not content to forward sell an unconfirmed placement, trample over shareholders’ lawful rights, ignore market rules, waste the company’s dwindling cash on an unjustifiable battle to save its advisors to the detriment of shareholders and try to force through an abysmally mispriced open offer, New World and its grossly inept advisors appear now to have broken the law.

New World Oil & Gas – an Omnishambles with bells on. Alarm bells.

Back at the start of May I asked who was regulating the omnishambles that is New World Oil and Gas (NEW) on the back of what appeared to me to be quite obviously a disorderly market. It looked as though there had been rampant forward selling of a conditional Placing which was, in the event, scuppered by shareholders. I was not the only one making noises about a disorderly market – see HERE and HERE from my more esteemed colleagues, yet the LSE allowed trading to continue for another couple of weeks before the stock was suspended due to a deteriorating settlement situation - ie a disorderly market. Now we have a monster of an open offer, backed by a placing which effectively underwrites the offer. Will it cure the settlement problem? And what other issues are thrown up by the new proposals?

Could the New World & Gas naked shorters really make £5million from the havoc they caused?

If New World Oil & Gas’ (NEW) board of directors gets its way and saves the skin of the naked shorters, then this group could stand to make at least £5million from this fiasco. As disgusting as this figure it, what is most troubling about it is that the group of naked shorters must include a number of regulated firms, who have acted incredibly recklessly and irresponsibly. Will the London Stock Exchange and Financial Conduct Authority stand by and allow this to happen?

Why is New World’s board so determined to save the naked shorts?

Thursday’s announcement from New World Oil & Gas (NEW) made one thing crystal clear. New World’s board is determined to do whatever it can to let the naked shorts off the hook.

RNS Translation Service on behalf of New World Oil & Gas' 0.09p open offer

So New World Oil & Gas’ (NEW) board has announced its long-heralded 0.09p open offer. Nigel is off today, so it falls on my to run today’s RNS Translation Service. There is so much to say about New World’s deeply flawed plan, but for now let’s just take a look at the not so hidden meaning of board’s conclusions.

New World Oil Gas (#NEW) - drives a full petrol tanker into the inferno: placing announced

Exclusive: Cornhill Capital’s damning placement agreement - ref New World Oil & Gas

I’ve been passed a copy of Cornhill Capital’s standard placement agreement template. Normally this wouldn’t be remotely interesting, but in light of the broker’s role in the New World Oil & Gas (NEW) fiasco it makes for fascinating reading. In particular, the document I now have appears to blow out of the water any notion that Cornhill could have “accidentally” enabled the forward selling of New World’s conditional placement. This now leaves one question. Has Cornhill Capital totally lost control?

ShareProphets Translation Service – New World’s extraordinary after-hours RNSs last night

The New World Oil and Gas (NEW) farce took another bizarre twist yesterday with not one, but two extraordinary after-hours RNSs. We have never before seen a holdings in company RNS which contains not only a cautionary statement, but also references to media commentary. These RNSs ought to come under Red Flags at Night, but the ShareProphets RNS Translation Service got in first. First up, at 6.18pm……

Why has New World Oil & Gas not sacked Cornhill Capital?

There are grave concerns about the conduct and behaviour of New World Oil & Gas’ (NEW) board of directors, in response to the forward selling fiasco embroiling the company. Specifically New World’s private shareholders worry whether or not the directors are acting in their interests or rather are acting to save the company’s regulated advisors from the financial consequences of their incredibly reckless actions. Until New World’s board engages with its ordinary shareholders these fears will not go away, but there is one much more pertinent question that no-one seems to have asked. Why has New World not sacked Cornhill Capital?

New World Oil & Gas (#NEW) - we've never seen a holdings RNS like this before!

Exclusive: Evil Knievil’s take on Room Service ref. New World Oil & Gas

About thirteen years ago, there was a tiddly company, quoted on AIM, called Room Service. Room Service was in serious trouble with its business and more than a few entirely reasonable people reckoned that not merely did it need to raise cash quickly, but there wasn't much point since it was a useless, shortly to be insolvent, business.

New World Oil & Gas; how large is the naked short?

Various parties involved in the New World Oil & Gas (NEW) fiasco seem determined to spread false information about the current size of the naked short position. At the EGM, one of Cornhill’s representatives laughably tried to claim that the volume in the first three days of trading wasn’t so spectacular and “at least 650million of the shares traded were done over two transactions, which were ‘bed & ISAs’”. That was an interesting enough revelation, but what is the true state of play?

Exclusive:New World Oil & Gas - RNS due Monday about new action group

There is only one legitimate way that the New World Oil & Gas (NEW) fiasco can be resolved and that is to involve the company’s rightful owners. I understand that this week New World’s board and reckless advisors have spent a lot of time trying to persuade the London Stock Exchange (LSE) to accept an open offer at 0.09p. This has been a complete waste of time. Even if the architects of this scandal somehow manage to fool the LSE that this is a viable solution to the settlement mess, it will not be the end of this matter. Does anyone really believe that New World’s shareholders will accept the heavy financial penalty such an open offer would inflict?

Open letter to AIM Regulation – time to act on Beaumont Cornish re New World Oil

On publishing this piece, I will send the following letter to ask formally for an investigation into the professional conduct of New World Oil & Gas’ (NEW) nominated advisor, Beaumont Cornish. Regular readers will be aware of Beaumont Cornish’s abysmal track record in discharging its duties as far as New World is concerned. It is high time the authorities investigated, so feel free to send a copy of the letter to the email address I give below.

The must-read final Room Service ruling – New World Oil & Gas

For anyone still interested in the New World Oil & Gas (NEW) forward selling fiasco, the old FSA’s final notice concerning the Room Service scandal makes for compelling reading. It turns out that there is a very clear precedent for how the New World omnishambles can be resolved. And it doesn’t end with happy smiles for those poor old “innocent” forward sellers.

New World Oil & Gas (#NEW) - Metals Tiger confirms that very few of its trades have settled - has appointed legal counsel

London Stock Exchange – China Frauds and New World: how many more failures will it take? Heads must roll

Xavier Rolet thinks he is delivering great things to all people on his watch as CEO of London Stock Exchange plc. His board would have us believe that. Marcus Stuttard thinks he is the sheriff of AIM. They extol the virtues of London’s junior market. We are told of how they have raised billions for smaller companies, and how this has added billions to GDP. Well that is just rubbish: what about the billions of pounds that investors have lost on AIM? AIM is a failure.

Bulletin Board Moron of the Week Contest #21 - In honour of market abuser @ChrisOil

On the very day that market abuser Chris Oil started selling 96 million shares in Sefton Resources (SER) he tweeted out that the stock was a buy to those who follow him. There were other ramps to follow as Oil cleared his position which were so blatant that the FCA is now investigating him. To be so blatant with your market abuse surely makes you a Bulletin Board Moron but perhaps you have spotted someone tweeting or posting something even more stupid. we suggest that boards for New World, Sefton and Worthington will once again throw up some examples.