By Nigel Somerville, the Deputy Sheriff of AIM | Monday 24 October 2016
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.
In a corporate update released at 4.03pm this afternoon, AIM-listed (pro tem) New World Oil and Gas has announced the bad news that its Nomad, the disgraced Roland “Fatty” Cornish at Beaumont Cornish is to walk as at the close of play today. It also announced that its scheduled AIM execution under AIM Rule 41 is on 10 Nov, not 9 Nov as previously advised. One last hurrah for checking and verifying RNS announcements for the now ex-Nomad to the company. How fitting.
With the company in all sorts of bother following the collapse of its RTO with Big Sofa amid the emergence of allegations that the company had become embroiled in a money laundering scandal under the previous management which could potentially see the company facing a $4.8 million hole in its balance sheet, it would appear unlikely that any other Nomad in town will want to touch this with a bargepole (let alone one soiled with splashes of third helpings of spotted dick with extra lashings of custard).
It also seems that the AIM authorities have come to the conclusion that allowing the AIM Rule 41 clock to be reset upon a change in the grounds for suspension change is wrong. A pity this was not realised sooner, as it could have avoided the embarrassment of LED International Holdings (LED) overstaying its welcome on AIM by a good while.
The previous RNS had indicated that a parting of the ways with Beaumont Cornish was planned for today, but had left the door open for an extension with London’s worst Nomad to be arranged – indeed I hear that this was put on the table by the company but Beaumont Cornish bottled it.
As things stand, shareholders now face owning stock in an unlisted investment vehicle. Normally one would not see that as a positive development, but the benefits of being on AIM – such as the oversight of a Nomad so as to ensure orderly conduct seems to have been rather absent.
We will have to await developments, but with Adam Reynolds and Nick Lee still there and, I would imagine, still licking reputational wounds, one might hope that something can be made of the cash assets which remain – assuming, of course, they don’t all simply get handed over to settle outstanding historical issues. There is a long, hard road ahead, but one would hope for Messrs Reynolds and Lee to try to get a return for shareholders in the end. It would be a remarkable turn of fortune if it were to be pulled off, but with the captain of the ship still aboard you would expect a major effort to be made. Let’s see.
The biggest losers here are the shareholders. Roland “Fatty” Cornish has much to be thanked for as he slinks off back to his spotted dick and (cowardly) custard.
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