By Ben Turney | Thursday 23 July 2015
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.
Last night, NWOGaction set the date for relaunching itself as the formal New World Oil & Gas (NEW) shareholder action group; tomorrow. Early indications are that the new action group will receive confirmed support from 4.11% of New World’s shareholders. This number is expected to grow in the coming weeks. The full statement can be read below.
This Friday, NWOGaction will relaunch as a formal shareholder action group. The founding principle of NWOGaction was to give ordinary shareholders of New World Oil & Gas (New World) a voice. This is now more important than ever. Although we failed to stop the open offer, we did prove at the EGM how effective we can be if we act as one. We now hope to channel this energy to positive effect.
Thanks to its new cash pile, New World has an opportunity to deliver genuine shareholder value, so long as the company embraces a new direction. In this context, the co-founders of NWOGaction will not personally seek positions on New World’s board. However, it remains a goal of NWOGaction’s to achieve formal shareholder representation, through the appointment of an independent, credible non-executive director.
The last three months have been extremely difficult for all concerned. As hard as it will be to put New World’s troubled past behind us, if we are ever to see a return on our investments we must at least try to work constructively with all stakeholders in the business. This won’t be easy, but the alternative is to maintain a confrontational stance of mutually assured destruction. This is in no-one’s interests.
While we must continue to marshal our collective strength, it is also time to strike a more conciliatory tone. NWOGaction still aims to recruit shareholder members, who own at least 10% of the company’s issued share capital, but it is not currently the intention to force an EGM.
New World is almost certainly too weak to survive a protracted and confrontational shareholder action. If possible, we would like to avoid this. We hope New World’s other stakeholders will reciprocate our attempt to establish a more collaborative dialogue.
Over the last week we have received encouraging informal pledges of support from existing New World shareholders. On Friday, we will announce how shareholders can formally join the new action group, as well as information about the conditions of membership and what proof of holding is required. At this stage it will not be necessary to hold shares in certificated form to be a member of the group.
If you have any questions please email [email protected].
We will provide a further update on Friday.
Thank you all for your continued efforts and trust,
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