By Tom Winnifrith, The Sheriff of AIM | Friday 4 June 2021
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.
With management owning just 0.07% of the equity and no institutions on the register, rebel investors in UK Oil & Gas (UKOG) seeking to oust fat cat boss Lyin’ Steve Sanderson, FD Kiran Morzaria and Chairman Allen Howard speak, as at 9 AM yesterday, for 4.58% of the equity. But…
The rebels have now been advised that they need 10%, not 5%, of the shares in issue to call a GM to oust this overpaid and underperforming board so there may be 96 shareholders onside but a lot more need to rally to the cause. If the rebels get to 10% and call a GM, there is no doubt at all that they would prevail since most shareholders just will not vote and it is hard to see why those that do would back a management team that has seen the shares crash from 7.43p to just 0.21p in less than four years! That is value destruction on an industrial scale.
Moreover, UK Oil & Gas is, itself, calling a GM to allow directors to issue yet more shares to add to the 12 billion already in issue. Investors have until 11 AM tomorrow to lodge a proxy vote for that meeting next week. We urge all shareholders to lodge a proxy vote AGAINST the resolutions so preventing Lyin’ Steve from diluting the rebels with a bucket shop placing.
Lyin’ Steve admits that the company needs cash urgently but it can wait a few weeks more. If dilution can be avoided then when the rebels get to 10% they can call a new GM to both remove the current directors and to allow a new board to issue equity. Both would surely pass.
So, if you are dumb enough to have ignored years of my warnings on this website and still own shares in this company:
a) Lodge a proxy vote against all resolutions at next week’s GM by 11 AM tomorrow
b) Sign up to back the rebels HERE
Become a member starting at £6.99 per month for all articles, the Bearcast, and our seven year archive.
Filed under:
Thursday »
Wednesday »
Tuesday »
Monday »
Sunday »
Saturday »
Friday »
Thursday »
Wednesday »
Tuesday »
Monday »
Sunday »
Saturday »
Thursday »
Wednesday »
Tuesday »
Monday »
Sunday »
Saturday »
Friday »
Thursday »
Wednesday »
Tuesday »
Monday »
Sunday »
Saturday »
Friday »
Thursday »
Wednesday »
Tuesday »
Time left: 13:27:39