UK 22:37 Monday, 21 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
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.
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.
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Comments
catempire
Haha… honestly couldn’t make this stuff up.. buch of incompetent ***** .. I really hope bulls take the twa*s to the cleaners!!!
hmmmm
my understanding was that in the event of a share offer – any additional entitlements relating to unsettled long positions created by naked shorts will be ‘made good’ by the shorts via the claim process – as referred to by the LSE in their notice. In effect the shorts go further short by an amount equivalent to the excess long entitlements. The existence of naked shorts and unsettled trades will have no impact on the number of new shares in the Offer. Nor will the company receive any more than the intended offer amount. Either my understanding is incorrect – which is quite possible, OR the Author’s understanding is incorrect, OR the article is meant to mislead. I would be interested in the authors response.
Ben Turney
@hmmmm – Let’s say for a moment that your understanding is correct, what you haven’t addressed is the total amount of money being asked for from the public for transferable securities, as a result of the open offer, well exceeds the €5million prospectus threshold. At the very least New World needs to rewrite its paperwork to reflect that. As things stand how on earth is the public meant to be able to put a total value on what is being asked for or to understand what they are signing up for?
I would love to see an official explanation to an average shareholder.. well, sir/madam, you have bought stock but that is unsettled. You are entitled to make a claim on this open offer, but your money will not go to the company, instead it will go to the counter party that previously sold you stock and failed to deliver it. You will then receive your new shares from the same counter party who failed to deliver stock last time…
It is an absurd situation.
Another major point to consider is the incredible confusion among the retail brokers as to who owns settled and unsettled shares. This further muddies the waters as to who might genuinely participate in the open offer (according to your logic).
As for your interpretation, please give it some more colour, quoting the exact parts, which you feel support your argument. I don’t agree with it.
Wellinever
Ben how can New World be responsible for the open positions. They can only control what has been issued. They will only receive what they issue. This is a balls up from the start and greed as always has taken over. How much New World were involved in this only a few people will know. How Cornhill will come out of this is anyones guess but I would assume the FCA are doing a thorough investigation. Just like Room Service. Be interesting to see who the naked shorts are. Is it just the likes of Winterfloods? If not surely they should be disclosed.
J P Spaghetti
“The horse has already bolted and the stable is on fire.”
The horse boarded the starship Enterprise just before it hit warp 8 and the stables were engulfed by a supernova. What a calamity!