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.

Mosman Oil and Gas; a creditable change of plan?

By Ben Turney

24 July 2014 13:42

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Yesterday, Mosman Oil and Gas (MSMN) gave the market an update on its acquisition of the privately held Trident Energy. The critical message shareholders were probably meant to pick up was that Mosman’s board has waived Condition 2 of the transaction i.e. for Mosman to “complete an equity capital raising of at least A$2million”. In its accompanying statement, Mosman’s board claimed it waived this condition, as a result of “the success of the recent fund raisings”, but how creditable is this assertion?

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Comments

David G

24 July 2014, 15:01

I did question the 2m with Mosman on the 3rd July and John Barr confirmed it was in addition to the fundraising. Looks like Trident have since relaxed the requirement. That said, few AIM companies are truly fully-funded so it’s a given that there will be a cash call at some point. All depends whether the current wells are productive and profitable- jury is out at the moment.
Ben Turney

24 July 2014, 15:25

@David – I agree. The threat of imminent dilution seems fairly minimal now, so there is a chance for the share price to go on another run, even before the final results of the last two wells are known. Not one for me, but I expect it will be for others