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By Tom Winnifrith | Tuesday 5 December 2017
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.
Well, the trend is his friend. The shares are now just 3.6p to sell having been c5p when the company announced it was entering into a £10 million death spiral. But Shakoor reckons the bad news is only just starting. Last night he tweeted:
I think #UKOG will end up back below 0.6p eventually. I’d like to take the credit, obviously, but management there are the ones with the share printing press. They’ll do the real damage - I can’t sign up for death spiral financing like they did...
And that death spiral is hurting and remember it is only just starting with only £1 million of £10 million loan notes converted into shares to be flogged. Waseem pointed out how much of a drag the spiral is becoming with an other tweet yesterday:
#UKOG VWAP 3.68p today, a new low.
YA can convert at 3.31p now, at any point in next five days.
They will sell into any rise, or use new VWAP lows to get even cheaper shares.
This is illegal in the US, but not here.
If YA does exercise the shares will be 3.3p before you know it. Then with 3 of 20 tranches done the process will repeat again. As the share price tanks and the market cap and liquidity evaporate the process will become ev er more painful and share price destroying. It will become an ever more vicious circle.
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