By Tom Winnifrith, The Sheriff of AIM | Saturday 6 February 2016
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.
It is good to see that the comedy show at Worthington (WRN) continues and now that must read publication, The Arctic Journal is on the case, exposing the latest problems for this worthless company.
The Article reads: NunaMinerals - Payback’s a glitch
Despite a missing a deadline, a British investor still has Greenland’s confidence that it can bail out a bankrupt mining firm. For now Once all the formalities are done, Greenland Mining Management, a British-registered firm, will own nearly 90% of the shares of NunaMinerals, Greenland’s nationally controlled exploration firm that went belly up last year.
Getting those final details into place is taking longer than most had expected. Under the terms of a deal struck in November, GMM will be given control of the company once it makes a payment of 4.5 million kroner ($640,000), the amount of a loan made by Naalakkersuisut, the elected government, at the end of 2014 in one final effort to keep the firm afloat.
The deadline for repayment had been January 5, a date set by GMM itself. The deadline has now been pushed back to February 29, according to stock-market announcements filed by NunaMinerals at the end of January.
This is the sixth extension granted by the courts in Greenland since June 2015, when Naalakkersuisut gave up on NunaMinerals’ ability to repay the money on its own. This extension, however, is the first after the agreement with GMM.
Lawyers supervising the bankruptcy proceedings approved GMM’s request, but questioned why it was necessary, noting that they had agreed to the deal because it had been informed by the NunaMinerals management that GMM and its backers had the funds necessary to complete the takeover.
“The supervisors are therefore surprised to learn than the funding has been further delayed, considering in particular the relatively long suspension of payments period,” representatives from the two law firms wrote in their statement to the court.
Nevertheless, the supervisors said they accepted the extension, given that the new management appeared to believe that funding was likely to be provided, and that other investors involved with the deal had accepted the delay.
It may have also been an acceptance that there was little other choice but to continue with GMM. The missed deadline has raised eyebrows in the the Self-Rule Authority, given that the company itself had set the date, but for now, officials say sticking with the company is the best, if not its only, option.
“The Self-Rule Authority could have chosen to say that we’re not going to wait for the money any longer. That’s not in our best interest though. We have everything to win,” Søren Hald Møller, a spokesperson for the Premier’s Office, told KNR, a broadcaster.
Once the NunaMinerals deal is in place, the next step, according to Patrick Newman, a British entrepreneur who has been involved with over 40 failed businesses, will be to use the firm to purchase Worthington Group, a British firm that describes itself as “an emerging conglomerate which upon completion of its current acquisition programme will have diverse interests in mining, energy, property, litigation, technology, media and entertainment”.
Mr Newman is a minority owner of Worthington Group. On January 8, in connection with the request for the extension, the firm stated it accepted that there was now a chance no buyout offer would be made.
Winding NunaMinerals down may involve more than formalities.
Question 1 - why does Worthington just not buy Nuna possibly via an all-share RTO? Surely the great conglomerate could find the $640,000 needed to seal the deal? er....
No. Worthington has no cash, can't file its accounts to Sept 2014, its operations are a joke, its driving force (Mr Craig Whyte) is er...distracted by certain events underway in Scotland, and the SFO is all over it.
As for the chocoloate teapots round at the LSE why do they not chuck Worthington off the standard list for not filing accounts and for pretending that it is in merger talks with Nuna. It is quite clear from this article that Nuna cannot buy anything. Only if M<r Newman finds cash and GMM buys Nuna can GMM then buy Worthington. Worthington has told the LSE a different tale but what is the problem with another lie between friends.
What is the Danish for "wake up and smell the coffee?" Wakey, wakey Greenland Government the joke is over.
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