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By Tom Winnifrith | Thursday 25 October 2018
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.
The Deloro affair should have seen more heads roll at Mayan Energy (MYN). That it has not just shows what a regulatory joke the AIM Casino has become. Over to the City’s No 1 oil analyst Zac “the knife” Phillips of shamed Nomad SP Angel of MySquar (FRAUD) infamy. Zac, who may be shite at Latin but knows his oil, opines:
Mayan Energy (0.25p) – Que (sic) Bono?
While Mayan shareholders should be pleased with today’s windfall of c$631,000 in shares and warrants for its 17.3% interest, what should really anger shareholders is that Gonzales (16.8% interest as at 3Q’17) and Wood (16.8%), the current CEO (shares are held via his wife), both Deloro founder shareholders as at 3Q’17, will receive c$612,000 too. It may be a surprise Mayan shareholders to learn that as at 3Q’17 they had not made any contribution to Deloro.
Deloro sold the 350 shares to Mayan Energy in 3Q’17 to Mayan (of whom they were directors) for $4,300 per share, thus electing to utilise Mayan shareholders to fund an investment that should have been executed under the auspices of the Mayan corporate entity in its entirety in the first place. If they had shareholder value so high in their minds when they did the deal, then (i) Gonzalez & Wood would have conducted the Deloro investment exclusively through Mayan Energy, giving the Company a minimum of 50.9% ($1,857m distribution); or (ii) given Mayan Energy the opportunity to invest at c$595 a share in the seed round, instead of $4,300 per share in round one.
If Mayan Energy had the same opportunity as even the seed funders ($595/share), then its $1.505 million contribution would have equated to 2,529 shares, or 60.7% of the enlarged share capital, which would have yielded $2,215 million, which is considerably more. So when we ask who benefits, or in legal parlance “Que (sic) Bono,” it’s clear to see that it’s not Mayan Energy’s shareholders, who have taken all the risk on behalf of Gonzalez and Wood.
It is inconceivable that the seed investors were not addressing the question of further funding, as all were are at least aware the UK market and Mayan Energy’s position within it, if not intimately familiar with it.
We believe that this demonstrates a flagrant disregard by the Directors of their fiduciary responsibility to the owners of the Company, and if we were shareholders in the Company, we would be seeking to explore our legal options. With regards to those seed investors that are directly connected to the Company, we believe that their role vis-à-vis the market, it raises important questions that need to be answered.
Note from TW. Gonzalez has been made the scapegoat here and has been “resigned” – the position of Wood is surely untenable.
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