By Tom Winnifrith, The Sheriff of AIM | Saturday 22 May 2021
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.
As at 9 AM yesterday, 68 shareholders in UK Oil & Gas (UKOG), owning 1.87% of the equity, had pledged to sack grossly overpaid, value-destroying CEO Lyin’ Steve Sanderson if a GM is called. Rebels need just 5% to call a GM and with such a diffuse shareholder list with no institutions on board and the directors owning sod all stock, just 5% support might be enough to swing a vote. Lyin’ Steve knows that and so he has a cunning plan.
At no one is watching O’Clock, UK Oil & Gas announced that just nine days after its AGM it was holding a new GM, so please do not tell me that this was the result of strategic long term planning. It says the reason:
The Directors therefore seek specific shareholder approval for authority to issue shares and dis-apply pre-emption rights in respect of those shares in order that the Company can raise money for its working capital obligations.
So how soon does it need the cash?
In order to deliver the Company’s stated strategy and growth objectives, it will require further funds in the near future for, amongst other things, its funding obligations under the agreed work programme for the Resan Licence and any of the new Application Blocks should they be awarded to the Company and its partner.
Hmmmm. The phrase “among other things” implies that maybe cash is needed just to keep the lights on and to pay Lyin’ Steve’s bloated salary.
The sort of shareholder likely to vote against Lyin’ Steve is the sort who will not take up rights in any open offer accompanying a bucket shop placing so if shareholders support Lyin’ Steve’s GM ruse, his grotesquely overpaid job at which he is patently useless will be that much more secure.
All shareholders should thus lodge proxy votes against the GM resolutions which, if defeated, could be put to a second GM which could also vote on ousting Lyin’ Steve.
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