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.

NWOGaction; why I am voting against New World’s placement

By Ben Turney

2 May 2015 05:13

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As co-founder of NWOGaction (www.nwogaction.co.uk) I intend to vote against New World Oil & Gas’ (NEW) placement at the forthcoming EGM on May 19^th. After an extremely intense 72 hours, I have given this a great deal of thought and explain below my rationale.

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Comments

catempire

2 May 2015, 06:41

Sat on almost 2% of the company all bought at 0.067… I am loving the sound of this : )
drunken sailor

2 May 2015, 07:19

Ben,

Are they ordinary resolutions (over 50% needed to pass) or Specials (Over 75% to pass). Normally disapplication of pre-emption rights is a special. The RNS does not say. The resolution looks to be outrageous as they are asking for authority to raise £6m ie do loads more placings with pre-emption rights disapplied. The discount on this one is bad enough but what will be the price of future placings!

I note Metal Tiger took a 6% (soon to be diluted back to just over 3% if the placing goes through) stake in NEW earlier in the week. What do you make of that?

Anyway best of luck, it would be good to see the board get a bloody nose on this one and if it is a special resolution then you stand a reasonable chance if you can motivate enough people to actually vote their shares against. Sadly most PI shareholders are either too apathetic or do not know how to vote their shares or their nominee account provider does not let them.
Yuff

2 May 2015, 07:59

The placement has already been done, the vote on the 19th is for a further £6m. The shares sold, this week, will hit the market
catempire

2 May 2015, 09:21

Yuff – Despite wording on the RNS as if this has already been done they need the resolutions to be passed.

I agree with TW and Ben that this could work out in favor of the little man, win win situation.. hopefully no suspenders in the mean time.