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New World Oil & Gas burning cash to pay salaries

By Ben Turney | Friday 4 April 2014


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.


On Tuesday, New World Oil & Gas (NEW) announced yet another failure to close its elusive deal with the mysterious and privately held Niel Petroleum. The new deadline is April 30th and once again I will not hold my breath. Today, I’d like to remind you about the $1million in loans New World’s executive team took out to pay for their participation in the $10million placement, just over a year ago. Yes that’s right, the company further diluted its shareholders to lend money to its executive directors, to buy shares in the business. What a wonderful use of working capital!

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