By Tom Winnifrith, The Sheriff of AIM | Monday 17 October 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.
This needs to be the day when London's worst Nomad Roland "Fatty" Cornish is drummed out of the City of London for good. This will shock you. New World Oil & Gas (NEW) has abandoned the RTO with Big Sofa but has not said specifically why. So let me assist.
New has stated:
The Company announces that an issue has arisen in connection with a transaction previously carried out by the Company which may have a material impact on its financial condition. This situation is currently being investigated by the Company. Unfortunately, as a consequence of this, the Company has been informed by Big Sofa Limited that due to the current uncertainty surrounding this legacy issue, it has decided to terminate discussions with the Company regarding a possible reverse transaction and listing on AIM. A further update will be provided in due course once the situation can be clarified, pending which trading in the Company's shares will remain suspended.
So, I understand that, Big Sofa will reverse into another Adam Reynolds shell this RTO and a well advanced funding has been pulled. The reason is that New faces a $4.8 million liability to do with a payment received from shady Niel Petroleum back in 2014 as a result of Niel NOT doing a transaction. There was no apparent rhyme of reason for this deal - it now seems to be clear cut money laundering. Whatever.
New World director Peter Sztyk was implicated at a later date in a Kazakh bank fraud where c $4 billion went AWOL. There has been an arrest warrant out for his Mrs , a director of the bank for a good while as we revealed in May 2015 HERE.
When taking charge of New World, earlier this year, Adam Reynolds was presented with suggestions that the Niel cash was in fact recycled stolen funds from the bank. Reynolds confronted the remaining old era directors including a respected lawyer and Sztyk's dad and also the Nomad Roland "fatty" Cornish in a board meeting that was minuted. They all explicitly stated that this was NOT the case. They did not say " we do not know" or "we cant be sure" they stated that it was not true.
In recent weeks evidence has come to light linking Peter Szytk and others to both the bank and to Niel and, last week, lawyers seeking to track down the $4 billion confirmed to New World that it was "on the radar". As such it became impossible to do a fund raise or RTO with a contingent liability of $4.8 million now appearing.
It may be possible to pay out a lot less to settle and to do something with New. But with cash and equivalents of c$2.5 million now shareholders should not bet on a return. The shares remain suspended as this is sorted out.
Meanwhile the former directors of New are clearly not fit for purpose bit the real questions are for Roland Fatty Cornish who signed off on the Niel transactions and also on the Fake Sheikh deal which saw $1.75 million ( of Niel cash recycled and now clean) and then disappear and also on an IPO prospectus which failed to mention the debts, court judgements and flight risk status of the then CEO Bill Kelleher. And to top it all Fatty told Reynolds there was no issue with the Niel cash.
On another dark day for the "World's most successful growth market" AIM Regulation needs to draw a line and withdraw the Nomad license of Roland Fatty Cornish at once. If he is "fit and proper" I am a banana.
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