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.

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

By Ben Turney

11 June 2015 04:25

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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.

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Comments

DUCK AND DIVE

11 June 2015, 04:58

This was the outcome I posited 38 days ago but Uncle Tom put me straight…

http://www.shareprophets.com/views/11975/new-world-oil-and-gas-who-is-regulating-this-omnishambles

Anyway, let’s hope they can get these shares produced before the Jersey Fraud Squad turns up.
VINES

11 June 2015, 05:21

‘‘After an extensive placing exercise failed to generate sufficient interest in investing in the Company’s shares, the Board was approached by Cornhill and as a result entered into the Placing. At that time there was no indication that there was any substantial interest in the Company’s shares let alone sufficient to consider an open offer’‘

the best line. ok we admit it cornhill are sellers not investors they trade the discount
drunken sailor

11 June 2015, 10:17

Ben,

There are quite a few PIs out there who could probably do with some sound advice.

How are they going to know if they are eligible for the open offer or not? Ie would the company with the cash be worth having shares in at that price.

If they are eligible then should they dig deep and try to take up the offer in whole or in part?

If they are not eligible because their shares have not settled, then can they say the trade was not settled you have not delivered your side of the contract, I would be materially affected by not being able to average down through the open offer cancel the trade and give me my money back? – anybody who bought above 0.09p would be well advised to do that as there will be no resumption of trading until the settlement situation has resolved, therefore it would seem unlikely that they would be able to sell much above 0.09p. There is also the risk that the settlement situation still cannot be resolved and trading never recommences and the firm goes bust.
Mr_Ochs

12 June 2015, 01:41

Drunken Sailor – My understanding is those with unsettled buys will still be eligible for the Open Offer.