Verditek fesses up that there’s been an Italian job but what is the near insolvent company not admitting to?
Just how much do greedy fat cats Julie & Ali at Sosandar need to be motivated? £50,000 becomes £2m as punters get screwed
It is a while since I took a look at AIM-listed Igas Energy (IGAS) – the last big round of coverage followed Andrew Austin and his dodgy deal with Equities First, and the subsequent refinancing which we correctly called as the oil price plummeted. Today, the company revealed its accounts for FY20 and there was a striking similarity……
It is some time since I offered any comment on AIM-listed Igas (IGAS), following the near-demise of the shares long-predicted in these parts. But last night Igas drew attention to itself by offering up an Operational Update well after hours, at 5.43pm. Talk about no-one-is-watching o’clock! You just know it wasn’t good news…..and it wasn’t!
As the sordid story of IGas (IGAS) reaches its conclusion with massive destruction of value for its shareholders, let us not forget a deceitful and misleading chain of events, approved by Sarah Hale then at NOMAD Jeffries and completely unpunished by the AIM regulators.
I never thought I’d be saying this, but it is hats off the to the board which looks to have saved the company. This morning AIM-listed Igas Energy (IGAS) updated on its rescue refinancing and it looks to be a done deal. Shareholders will be feeling the pain, but as we have continually warned as the share price declined this was an inevitable consequence of the financial predicament in which the company found itself, the legacy of the Andrew “Piggy” Austin era.
Having (quite correctly) been an out-and-out bear of AIM-listed and overindebted Igas Energy (IGAS) ever since we exposed the dealings of former trougher-in-chief Andrew “Piggy” Austin (before he was shown to the edge of the plank) the potential demise of the company has been on the radar. Here are ShareProphets we have flagged up the eventual destination of massive dilution for shareholders or just a round of toast and the company duly served up proposals for a refinancing at 4.5p. I’m still not completely convinced the board will pull off this deal but despite the dilution the terms proposed look to be a remarkable achievement by the new board – IF it can get it over the line.
I’ve been saying for an age that AIM-listed Igas Energy (IGAS) was a sell and this morning the denoument has arrived. In the wake of previous boss Andrew “Piggy” Austin and his dealings with Equities First, and his legacy to the new board of a massively overindebted company, this morning came the announcement that a restructuring is being attempted at 4.5p per share. I fear that poor Tom Winnifrth senior may be further deprived of that bottle of Ouzo. Actually, if the new board manages to pull this off I will take my hat off to it but there are some hurdles to overcome first.
And so yesterday shares in AIM-listed and overindebted Igas Energy (IGAS) fell off a cliff, dropping 20% with no news released by the company. Normally one would have expected a statement, but thus far all we’ve had from Igas Towers is silence.
Shares in over-indebted AIM-listed Igas Energy (IGAS) have not been strong of late but this morning they are down by 13% to just 8.7p (last seen) on no news. The silence from the company is deafening, especially as it faces having to redeem some of its bonds after a FY16 underspend on its conventional assets as well as having to deal with a bit of an issue with its net leverage covenants. Then there is an interest payment due on its secured bonds which the company has already indicated will cause a liquidity covenant problem. A statement is needed.
AIM-listed and over-indebted Igas Energy (IGAS) this morning announced that it is to conduct a mandatory redemption of $2.3 million of its secured bonds after investment in its conventional hydrocarbon assets fell short of the required $15 million last year by the aforesaid $2.3 million. It may seem that this is good news in that the company is being prudent, but I suspect that this is bad news on two fronts.
A year ago I made AIM-listed Igas Energy (IGAS) my one suggestion – as a sell - as part of the ShareProphets tipfest for 2016. Without wishing to sound like a broken record, it is still a sell – and the clock is really ticking now especially in the light of this morning’s RNS.
AIM-listed and over-indebted Igas Energy (IGAS) released a “Corporate Update” RNS this morning. It seems to say nothing we don’t already know but the ShareProphets RNS Translation Service has a few observations (original in bold).
AIM-listed and over-indebted Igas Energy (IGAS) equity may still be valued by the equity markets at £36 million but the read-across from the bond market tells a very different story. I'm sure readers don't need reminding that when the equity and bond markets disagree, it is generally the latter which wins out. With the unsecured bonds in Igas now trading all the way down at just 20.94c in the $, the implication on the equity is clear: it is toast.
Yesterday AIM-listed and over-indebted Igas Energy (IGAS) was pleased to announced that Notts County Council had approved a planning application for the development of a hydrocarbon wellsite and the drilling of two wells. This, of course, is with a view to developing a fracking project.
That AIM-listed Igas Energy (IGAS) is in trouble is in little doubt as the company battles with the over-indebtedness legacy of the Andrew “piggy” Austin days. KKR-backed Trans European Oil & Gas is in possession of a blocking holding of the secured bonds and the cash is draining away. But the latest warning sign comes not via the secured bonds, but via the unsecured bonds. The price has crashed from around 54c in the $ to just 28.6c in the $. The implication for the equity is clear.
Yesterday afternoon AIM-listed and over indebted Igas Energy (IGAS) announced that it had sold some of the secured bonds hitherto held in treasury and that this has now shored up its finances such that it now no longer expects a breach of its daily liquidity covenant in 2016. Good news? Er, no – this simply kicks the can down the road (and not very far at that).
Yesterday saw Sky News unmask the mystery buyer of AIM-listed and over-indebted Igas Energy (IGAS) Oslo-traded secured bonds via the recent Dutch Auction conducted at 75c in the dollar – see HERE. We already knew that the previously un-named buyer had acquired a 34% stake in the bonds – enough to block any proposed debt restructuring that it didn’t like.
This website has pointed out that AIM listed IGAS has been a slam dunk sell for more than two years but for a good few months as it warned that it would breach covenants on its bonds any moron could see that the writing was on the wall. Except loyal house broker Cannacord, shamed over the Quindell fraud, its research on this has been laughable. It shows that a buy note from a house broker, especially one as shoddy as Cannacord, is just worthless. You will remember how Canaccord fired heroic Kevin Ashton, the world's number 1 tech analyst, when he refused to write a buy note on the Quindell fraud.
AIM-listed and over-indebted Igas Energy (IGAS) has just announced the result of its bondholder meeting. The unsecured debt voted the proposals through, but the secured debt voted it down. The company says it has not yet breached its bond covenants, but that this is now expected next week.
At time of writing bondholders in AIM-listed over-indebted Igas Energy (IGAS) are meeting in Oslo, having been summoned by the company to consider proposals to waive certain bond covenants while a restructuring of the company’s capital is negotiated. Igas previously indicated that a bond covenant breach was anticipated to occur this very week. Will the bondholders play ball?
The denouement has started – you can’t say you were not warned over and over again here in ShareProphets. AIM-listed and over indebted Igas Energy (IGAS) has gone cap-in-hand to its bondholders to seek a series of waivers and a standstill agreement on its bond covenants while a capital restructuring is negotiated. Shareholders face a bloodbath this side of Christmas, but already the stock is down 11% on the day.
For all the positive news of late regarding permits for the fracking industry (even if its own application for planning permission from Notts County Council saw the decision deferred to next month), AIM-listed drowning-in-debt Igas (IGAS) still has the pressing problem of staying within its bond covenants. The company stated in its interims to June 2016, released on deadline day of 30 Sept, that it was expecting to breach its daily liquidity covenant in the second half of October – that could be as early as next Monday.
Rarely does one find good news in results which are released at the last minute, and in the case of Igas the recent record of fairly prompt reporting suggested that leaving the interims to deadline day would be a bad omen. This morning’s numbers and, more to the point, update on the bond situation reads badly – for all the positive spin applied. The numbers aren’t good, a bond covenant breach is expected in the second half of next month and then there is the question of how long it may be before the cash simply runs out.
When I penned my one and only suggestion in the 2015 ShareProphets Christmas tipfest, AIM-listed Igas Energy (IGAS) shares sat at 18.5p on a market capitalisation of £55.3 million. They have been all over the place since then – up as high as 21p twice and down as low as 10p. They are currently 12p as the last bubble nonsense deflates gently but has anything really changed? Er, no. The company is still drowning in debt which it can’t repay and the lit fuse is now almost ten months shorter. Igas remains a stonking sell.
Shares in overindebted AIM-listed Igas Energy (IGAS) have shot out of the traps this morning on news that Theresa May is in favour of fracking and wants to bribe the locals into letting it happen. There is also a technical matter announced last week that Igas underwent a capital reduction which apparently strengthens the balance sheet......if only. The share price reaction has seen the shares race ahead by as much at 47% (30% last seen) but has anything changed? Er....
Tom Winnifrith has already quite correctly berated the Sunday Telegraph for its piece yesterday on the ongoing travails of AIM-listed Igas Energy (IGAS) and its little debt problem. The sense of desperation which saw this piece of abject puffery in a national newspaper is apparent to anyone who looks at the balance sheet, or read the comments from the company about its expected bond covenant default in the second half of this year (ie any time now). But the article reads like a dodgy RNS aimed at getting the bulletin board morons to pile in while the crony capitalists get out.
Having exposed the appalling goings on at the Daily Telegraph with regards to going bust Avanti Communications (AVN) last week, now it is the turn of the sister paper the Sunday Telegraph which on its from page today has a quite shocking piece on IGAS. This might as well have been dictated by the PR flunky it is so jaw droppingly bad.
As Gulf Keystone (GKP) sputters toward its inevitable fate, the hunt is on to spot the next equity wipeout in this space. There are quite a few runners and riders. I mentioned Xcite (XEL) a while back and Premier Oil (PMO) is also in the frame. My nap however is Igas Plc (IGAS) as the next for the chop.
Shares in AIM-listed and debt-ridden Igas Energy (IGAS) hit a new low point today of just 11.5p per share. They have since recovered to 12.25p (last seen) which is still below anything registered during the slide from the heady days when previous head honcho Andrew "piggy" Austin did his sale-and-repurchase deal with Equities First Holdings LLC. Is the penny starting to drop about how big the debt problems are?
We previously flagged that the "Dutch Auction" tender offer by an un-named client of Pareto Securities for the senior secured bonds of AIM-listed Igas Energy (IGAS) might present a bit of a threat to shareholders. We've now had the result of the tender offer...
Armageddon It. I'm a getting it...maybe the morons are finally getting it as IGAS shares are now firmly on the slide, down 6% at 13.25p to sell at the time of writing. But for we bears the best is yet to come.
I’ve been a bear of Igas Energy (IGAS) ever since previous CEO Andrew “piggy” Austin’s shady dealings with Equities First Holdings LLC (EFH) when he walked away with millions in cash whilst still being able to claim that his interests in the shares were unchanged by the transaction. It ran rings around the disclosure rules. Ever since he walked (or, more likely, was pushed) it has been clear that he left the company drowning in debt and sitting on a ticking time-bomb. Yesterday came a surprise move, but one which could, perhaps, spell the end of the road for equity holders. Quite why the shares spiked (albeit temporarily) on the news is a mystery.
This morning AIM-listed and overindebted Igas Energy (IGAS) released a company update RNS. There was some positive waffle about good progress on its five year shale developments plans, pointing investors to the recent planning permission given to Third Energy for fracking to be employed at a site in Yorkshire. But it is the parlous state of Igas’ finances that this RNS addresses. It looks grim.
Shares in AIM-listed and over-indebted Igas Energy (IGAS) had a good week last week, rising by about a third in value before slipping back again. But its balance sheet problems (well documented on ShareProphets, see HERE) continue to mount and this morning it was announced that Investec has been appointed Nomad and joint Broker, replacing the previous incumbent Jefferies International. Whilst one might wonder if Jefferies jumped or was pushed, the bigger question is when the bail-out re-financing will come and how big the shafting for existing shareholders will be.
This morning AIM-listed and over-indebted Igas Energy (IGAS) released a trading update ahead of its AGM to be held this morning. The elephant in the room is, of course, its outstanding debt in the form of bonds - £103 million worth as at the last accounts – which mature in March 2018, less than two years away.
This morning came an announcement (see HERE) that North Yorkshire County Council has voted to allow the use of hydraulic fracturing to extract shale gas from a site in northern England. It is the first fracking permit in the UK since 2011 and all of a sudden over-indebted Igas Energy (IGAS) shares have leapt 25% on the news. Of course it does nothing to relieve the balance sheet issues facing Igas and as such this seems to be a cracking (or fracking) good shorting opportunity.
AIM-listed Igas Energy (IGAS) is my share tip of the year – as a sell. This morning saw its results for the 9-month period to Dec 2015 which did nothing to make me change my stance. Indeed there was a clear warning that the company is on course to breach its bond covenants during H2. The shares remain a stonking sell.
Andrew “piggy” Austin, the former CEO of AIM-listed Igas (IGAS) and head honcho of newly listed RockRose Energy (RRE) has submitted an interesting TR-1 which was released by Igas yesterday afternoon. It raises a number of questions, not least of which is whether it was erroneous. Surely the Equities First Holdings LLP (EFH) saga is not taking yet another twist, is it?
Shares in AIM-listed Igas (IGAS) have been heading south for almost two years. First we had the oil price coming off sharply. Then we had the Equities First scandal involving the former CEO selling shares when the market was told he was buying. And then the oil price slid some more. In early 2014 the shares peaked at 160p and it has been downhill all the way since then. The Christmas Eve close at 18.5p values the company at £55.3 million (source: ADVFN). But there is much further to go. Here are ten reasons why.
We have noted already - in the wake of dire interims - that AIM-listed Igas Energy (IGAS) has seen its bonds selling off to well below par value, and that Igas has warned on its bond covenants. The sell-off on its bonds has continued. With the shares having headed south before a bounce in the wake of favourable permitting news, shareholders might want to note the latest move in the bond price: it says sell.
Yesterday Nigel Somerville quite correctly flagged up why IGAS (IGAS) is a slam dunk sell. It seems that at least one City broker has picked up on this and joins the attack today. Over to Andrew Monk of VSA who writes:
We noted the other day that AIM-listed Igas Energy (IGAS) had warned on its bond covenants in the dire Interims statement released last week. But it appears that we are not the only ones a tad concerned about Igas’ financial health.
I covered a few cursory matters yesterday (HERE) regarding the stepping down of Andrew Austin as CEO of IGas Energy plc (IGAS) and the diabolical trading statement issued yesterday. We are told that Mr Austin will hang around to ensure a smooth transition – rather reminiscent of the situation at Coms when Dave Brieth stepped down but would hang around for the same reason. Except that in Mr Brieth’s case he was then selling shares in what appeared to be a close period, a bit of a problem but for the fact that he was no longer running the show and, indeed, we gather that he has not been on site since walking the plank. So what of Mr Austin’s holding in IGas – and his disgraceful EFH deal?
Finally, some sixteen months or so after the disgrace of Andrew ‘Piggy’ Austin’s sale of 7,500,000 shares to Equities First Holdings LLC in return for a non-recourse loan when he had been announced by RNS to be buying shares, he has been sent to the Corporate Butchers’ shop. After a period when the IGas (IGAS) share price has fallen from a peak of around 160p to the current 30p or thereabouts (having hit lows of below 20p), and the train-wreck of the deal to buy Dart Energy (at least for Dart’s shareholders) someone had to pay the price.
Following my (unanswered) open letter to Jefferies International (Nomad to IGas) in the wake of having inspected the share register and finding a 10.25 million shareholding registered on 25 Nov 2014 (HERE ), I have now asked AIM Regulation to look into the matter.
Last week's meltdown in the share price at Afren (AFR) shows how devastatingly fast is the transfer of ownership from shareholders to debt holders when a company's loan covenants are breached.
Having already published an open letter to IGas’ (IGAS) Nomad, Jefferies International, asking it to look into a holding of 10.25m shares registered to Bank of New York Nominees on 25 November 2014 (HERE) which exceeds 3% of the issued shares I have been doing some number crunching. The results throw up either the most incredible coincidence, or a demonstration that IGas CEO Andrew Austin has handed over 2.75m more shares to EFH than the 7.5m shares disclosed the very next day after this 10.25m share holding was registered. Here is why.
In the light of the controversy over Andrew "Piggy" Austin’s deal with Equities First Holdings LLC and the questions over margin calls, your intrepid reporter met up with Tom Winnifrith on Tuesday to have a look at the shareholder register in Bristol. If Tom thinks this demonstrates what an exciting life he must lead, mine must be even more so as I had to travel further, to Tom’s home town! What did we find?
In the light of our studies of the rulebook here on ShareProphets and the disgrace that is IGas’ (IGAS) CEO’s lack of transparency over his dealings with Equities First Holdings LLC, I have today written to ask AIM Regulation for clarification on a number of points. I have a nasty feeling that things are simply going to get worse and worse for Andrew “piggy” Austin.
A year and five days ago Andrew “Piggy” Austin announced he was buying shares in Igas (IGAS) at 135p sending the stock up to 147p. Sadly that was untrue he made a net £7 million from selling/loaning shares to dodgy Equities First Holdings LLC at 93p. Such dodgy deals always have a level at which there is a margin call. FFS the shares are now just 30.5p
Andrew Monk, the CEO of broker VSA Resources has this morning suggested that Igas (IGAS) is both a potential bid target but also already in default on its bonds, methinks he overeggs a bit on both counts.
Yesterday I ran a piece saying that IGas (IGAS) was still not complying with DTR 3 of the Disclosure and Transparency Rules in the FCA rule book. It isn’t, but it turns out that DTR 3 does not apply to AIM companies, not that I managed to glean that from the DTR rules, although it can be inferred from the AIM Rules in the Guidance Notes. Mea Culpa, then and I apologise for the error. But AIM Rule 17 contains much the same requirements and so here is a corrected version of that piece. For the record, DTR 5 (rules governing disclosure of holdings greater that 3%) DOES apply to AIM Companies.
Today is the one year anniversary of the first dodgyEquities First Holdings LLC share deal on AIM. It was a year ago that Andrew Piggy Austin of IGAS said he was buying shares when in fact he made £7 million with his EFH loan/sale agreement. Today we will be celebrating that day all day lest Piggy forget.
On 27 Nov 2014, the FCA, as I flagged up earlier today HERE, publicly warned that failure to comply with DTR 3 rules, governing disclosures of share dealings by Person Discharging Managerial Responsibility (PMDRs) would “consider taking public disciplinary action, which could, among other outcomes, Lead to public censure of the relevant party.” IGas (IGAS) has had a month and a half to get its house in order on this with regard to CEO Andrew Austin’s dealings with Equities First Holdings LLC (EFH), and has still failed to do so. But there are bigger sanctions available to the FCA. Let us remind ourselves of what it is that HAS to be disclosed in relation to the share dealings of PMDRs under DTR 3:
ShareProphets broke the story of the Equities First Holdings LLC (EFH) loans scandal back in November 2014. We nailed the EFH six – IGas (IGAS), Quindell (QPP), Optimal Payments (OPAY), Cloudbuy (CBUY), IQE (IQE) and Angle (AGL) for not giving adequate disclosure of the dealings of their directors with regard to deals with EFH. All those companies were in the end (and some rather more reluctantly than others) forced into clarifications. But it turns out that the FCA has also issued a clarification too!
Nigel Somerville, the Deputy Sheriff, has done some sterling work. This morning he revealed the loophole that those clever people at Equities First Holdings exploit to allow directors to sell shares to them (at a whopping discount), without declaring the sales. Unfortunately for IGas Energy (IGAS) CEO Andrew Austin, this revelation leaves him with some explaining to do. It is now clear that Mr Austin sold 7.5million shares to Equities First, who must have sold at least 1.425million of them to comply with the FCA’s disclosure regulations. This makes a mockery of IGas’ AIM Rule 26 disclosure about Mr Austin’s holding and calls further into question Mr Austin’s declarations concerning the Dart Energy takeover. Above all it betrays Mr Austin as the liar he is.
It is a year to the day since Andrew Piggy Austin of Igas ( salary £670,000) told investors he was buying shares when in fact he was dumping a net £7 million worth in his dodgy loan deal with Equities First Holdings LLC. In the 365 days that have followed shares in Igas have crashed from 135p to 35p. So when will Piggy get his much deserved P45?
One year ago, IGas Energy CEO Andrew Austin deceived his shareholders. He issued an RNS claiming to have bought 300,000 of his company’s shares, when in fact he had net sold 7,200,000. After weeks of painstaking research, and on the anniversary of this shameful episode, ShareProphets can exclusively reveal the loophole the like of Mr Austin have sought to exploit to get around the Disclosure and Transparency Rules (DTR) through their dodgy deals with Equities First Holdings LLC (EFH). The explanation is complicated, but the results are both shocking and appalling. Through EFH directors can sell stock and not declare it. The FCA must close this loophole now.
ShareProphets broke the story of the Equities First Holdings LLC (EFH) loans scandal back in November 2014. We nailed the EFH six – IGas (IGAS), Quindell (QPP), Optimal Payments (OPAY), Cloudbuy (CBUY), IQE (IQE) and Angle (AGL) for not giving adequate disclosure of the dealings of their directors with regard to deals with EFH. All those companies were, in the end (and some rather more reluctantly than others), forced into clarifications. But it turns out that the FCA has also issued a clarification too!
In two previous articles HERE and HERE I have identified four material breaches of the ‘Scheme Implementation Agreement’ (SIA) under which AIM listed IGas completed its all-paper takeover of Aussie-listed Dart Energy. Each of those breaches is serious enough to call the whole deal into question. But what of the role of IGas’ Nomad, Jefferies International?
In my last piece on IGas HERE I described in detail how IGas (IGAS) breached the ‘Scheme Implementation Agreement’ (SIA) which governed the conduct of the all-paper deal in which IGas took over Aussie-listed Dart Energy.
Nigel Somerville, the Deputy Sheriff of AIM, has been far too kind to IGas Energy (IGAS) CEO Andrew Austin. In a devastating series of revelations, Nigel exposed three material breaches by Mr Austin of IGas’ Scheme Implementation Agreement (SIA), which governed the takeover of Dart Energy. Any one of these breaches could have been grounds for termination of the takeover, but Nigel stopped short of saying one thing. He didn’t call Mr Austin a goddamned liar.
In my macro themes for 2015 article HERE I stated that I was fundamentally bearish on equities and as such half of my ten tips of the year would be shorts. Another theme for 2015 (as it was for 2014) was an extreme aversion to oil stocks. In that vein I return to Igas (IGAS) which I first suggested shorting at 56p a month or so ago HERE but where I am now halving my target price to 10p making this my second top short for 2015.
I have been looking in detail at the takeover by IGas (IGAS) of Aussie-based Dart Energy over the summer of this year - an all-paper deal which, at time of announcement, offered a substantial premium to the prevailing share price of Dart. Since the deal was first agreed by the two Boards, Igas’ share price has fallen substantially to leave former Dart shareholders nursing hefty losses. But there are skeletons in the closet:
Even by the shocking standards of disclosure on AIM, January 16th’s RNS from IGas Energy (IGAS) takes some beating. Titled “Director Share Purchase and Finance Facility” this has to be one of the most shameful announcements released in recent years.
The behaviour of IGas Energy (IGAS) CEO Andrew Austin is appalling. Director share sales will always cause disquiet among shareholders. However, dumping nearly three quarters of one’s holding and attempting to disguise this as a share purchase is a treacherous and rapacious act. This cannot be an acceptable standard of behaviour for the director of a publicly listed company. Mr Austin has to go.
Thanks to the joys of the internet we have a sample contract for those Equities First Holdings LLP (EFH) so-called loan deals. It makes fascinating reading - you can read it HERE.Note that it is held on the USA’s Securities and Exchange Commission (SEC) website: I think we can assume it is genuine! Given that EFH is a one product company, this contract gives us a solid basis for a model contract with directors the EFH Six (Optimal payments, IGAS, Cloudbuy, IQE, Quenron and Aengle), which we can now test against disclosures made.
IGAS CEO Andrew “piggy” Austin still has not come clean on his shoddy Equities First Holdings LLC loan/share sale deal – FFS at what price is your margin call piggy? But that is the least of his woes. I reckon that the shares are worth 20p at best (see HERE) but now even his own house broker Canaccord ( yes those mothers of Quenron fame) is flagging up a potential gaping balance sheet issue.
Shares in IGAS (IGAS) now trade at a year low of 49.25p. IMHO they are heading a lot lower – 20p is my target as you can see HERE. But even at the current dismal level the question is “when is the margin call on CEO Andrew Austin’s Equities First Holdings LLC share sale (oops I mean loan) set to kick in?
Things are hotting up for AIM Cesspit-listed IGas (IGAS) and its beleaguered CEO Andrew Austin in relation to his ‘loan’ deal with Equities First Holdings LLC. I remind you that this is a one-product finance company, and we have read one of its loan-deal contracts held on the SEC website in the US very carefully. Thus far we have not yet seen a British one, but we think it will be largely the same. Some of the AIM companies caught up in the EFH scandal have been rather more open than others when it has come to clarifying details of the deal. And that brings us back to the issue of margin calls.
IGas (IGAS) has this morning admitted that it got its numbers wrong last week. Yesterday’s piece on today’s RNS HERE on Shareprophets was, er, prophetic.
In the light of yesterday’s piece on boardroom piggery, wrong figures in RNSs, incorrect data given to Dart’s shareholders etc – you can read it HERE I have now checked through all IGas’ share issue announcements and Companies House Filings, with particular regard to the holdings and ‘interests’ of CEO Andrew Austin.
Last week IGas (IGAS) accompanied a dire set of results with another statement regarding the shabby dealings of CEO Andrew Austin with the dodgy American firm Equities First Holdings LLC. As usual it was deceitful and inaccurate.
It is hat-tip time once again to Jason. He’s understandably a bit miffed - he feels that Dart Shareholders were not given full disclosure of the true picture with IGas (IGAS) ahead of the recommended takeover of Dart in relation to the shareholding of IGas CEO Andrew Austin. He thought that Mr Austin actually HELD almost 11m shares in the company offering its own paper to buy Dart, but it seems that in fact he held fewer than 3,500,000 shares, with the rest in the form of an option. I would feel the same in his shoes. And so I thought it time to get to the truth about Mr Austin’s director interests and director holdings.
There are three reasons why IGAS (IGAS) shares are a screaming short at 56p. One is that the shale bubble is set to burst. Greed will turn to revulsion and any company that has used the word shale in release after release to ramp its shares in the good times will now suffer the backlash. The second is Andrew Austin, the CEO. He is still not telling the truth, the whole truth and nothing but the truth on his Equities First Holdings LLC dodgy share trades. That makes the stock uninvestable until he fesses up and quits. It is only a matter of time. The third...
On 4 November IGas (IGAS) Ceo Andrew Austin gave a telephone interview to Proactive Investors. You can watch that video HERE . You know the form: IGAS pays Proactive a fee and it asks really soft questions and pretends that it is objective journalism. In it, when asked about the share price performance, he said ‘it is depressing me’. I wonder if he had forgotten to take his dose of Prozac that day. Or was it more to do with his sale and repurchase ‘loan’ deal with Equities First Holdings LLC?
I read with utter horror Wednesday’s RNS regarding Mr Austin’s Equities First Holdings LLC (EFH) ‘loan’ deal which, ahem, clarified that the previous clarification that the original RNS was all correct was in fact (cough, splutter) unclear. It was wrong. It was misleading. What a total shambles! How any CEO could survive this - and what follows - is beyond me. Gallows at the ready, then.
How stupid does the board of IGas Energy (IGAS) think its shareholders are? This is an interesting question to reflect on this afternoon, after the company released this morning’s disgraceful RNS in pitiful defence of CEO Andrew Austin’s “Sale & Repurchase” agreement with Equities First Holdings LLC. Despite all the evidence to the contrary, IGAS is still desperately trying to portray this arrangement as a bona fide loan. This is madness. It is lying to its shareholders and the statement - coming after fairly dismal interims earlier - is a disgrace. Austin should be sacked at once.
In yesterday’s piece HERE I discussed IGAS and its takeover of Aussie-listed Dart Energy with regard to disclosures not given to Dart’s shareholders about IGAS CEO Andrew Austin’s EFH ‘loan’ deal as announced by RNS on 16 Jan 2014, which had stated that Mr Austin had transferred shares in the company to Equities First Holdings as security for a loan. All the other companies caught up in the EFH scandal have clarified that the deal did involve the handing over of title and voting rights to EFH (i.e. they were disposals) albeit the ‘loan’ deal contains an option to buy the shares back. But IGAS and its Nomad still refuse to concede that Mr Austin’s deal was the same. So now we come to the farm-out deal with Total and its implications, the potential ugliness of which might finally get a full disclosure of the EFH deal out of IGAS and its ostrich of a Nomad.
In January 2014, IGAS (IGAS) announced that its CEO had transferred shares in the company to Equities Frist Holdings LLC as security for a loan. We have asked several times for clarification on this because the EFH contracts we have seen all show that the transfer is of title and voting rights.
Today it was announced that the liar, insider dealer and fraudster Rob Terry was stepping down from Quindell (QPP). But he also announced that:
Forget today’s news that a well has been spudded in some grim Northern welfare addicted hell hole. Let’s deal with the real issue here. On Friday 14th November iGas released a terse announcement: “IGas Energy notes the recent movement in its share price and confirms the detail contained in the statement on 16 January, in respect of Andrew Austin's facility with Energy First Partners LLP, is full and correct disclosure for the purposes of the AIM and Disclosure and Transparency Rules.” But it was not.
IGAS (IGAS) has today tried to clarify share trades made by its CEO Andrew Austen. It has failed abysmally and now needs to clarify its clarification. This is a farce and the advisers - the lamentable Jefferies – should be walking the plank right now.
If I were an IGas (IGAS) shareholder, I would be more than a little miffed. While the truth is being slowly extracted like a painful tooth from NOMADs Cenkos (Quindell} and Westhouse (Cloudbuy) over their clients’ dealings with Equity First Holdings LLC (EFH), Jefferies maintains a deafening and belligerent silence.
Quenron (QPP) is not the first company to do business with Equity First Holdings LLC – step forward IGAS Energy (IGAS) which for reasons I shall explain below may well be the first domino to topple in what is brewing up as a mammoth scandal.
The last call on IGas Energy suggested that while above 95p, the shares should go towards the £1.60 level. As it turned out the low since that call has been 96p, which is either luck or skill depending on your perspective.
Shock, horror we have a down day for IGas Energy shares. The question now is whether after all the media hype, which has been almost universally favourable, the shale Gold Rush play can live up to expectations? From a technical perspective it would appear that it can, after an appropriate period of cooling off and consolidation.
As someone who is realistic about how doomed the environment is, and who would like to see Global Warming take us back towards the levels of the Holocene Climate Optimum, I have no fear of fracking.
It may just be me, but it would appear that much of the battle with AIM stock heroes such as Igas is trying to work out when it is safe to go back into a speculative situation.
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