Tethys Share Discussion Threads

[casual47] 04/12/2016 13:14

I think the answer may be: as the Kumars are regarded as non-related parties they will only have up to 20% shareholding each. Which may be the reason why they don't trigger any restrictions?

Still doesn't explain why they chose to give them such an extraordinary amount of warrants.

[casual47] 04/12/2016 12:49

The Olisol deal was contingent on Kaz approval, also, at least 20% of the to be issued Olisol shares had to be listed on Kaz stock exchange.

I don't know why the Olisol deal was subject to such restrictions but I wonder if the warrants are a way to circumvent these restrictions?

Anyone with actual knowledge rather than wishful thinking got any feedback on this?

[naimanka74] 04/12/2016 12:36

It takes about 4 weeks for a PIF, so by the EGM it will ok for them to convert the lot, I expect they will baring any surprises. I see "by coincidence" they are both using the same lawyers, how convenient.


I know exactly what I would do, however I think not for here.


Sell on Monday....common sense says yes but....I am not sure....in a strange way I am tempted to buy more, will see a shrink Monday !

[hguess16] 04/12/2016 09:10

As I see it, there is no alternative but to grit one's teeth and face up to the critical financial position that Tethys is faced with.
The company, faced with short term debts and serious local difficulties,had no alternative but to accept a dollop of cash from the Kumars which would provide it with some respite.
As the current share price was ridiculously low, the Kumars stepped in when no one else was willing to come forward.
ICA and EGG, who are currently the only customers for Tethys products, decide to go on strike for spurious reasons at the instigation of Abramov, who has failed to capture Tethys, his trophy, and hence put Tethys in a bind in the short term.
In come the Kumars, who see a great opportunity to team up with the new team, Wells and May. In the final negotiations, the Kumars realise that more cash would be welcome by Tethys, which is in the emergency ward right now !.
So they double up on their bet and agree to subscribe 96m each rather than 44m of the warraants at the same 3.1p.
This provides Tethys with much needed cash of $7.4m (1.4m + 5.9) which could be a backstop used to pay off the amounts due to Oliosl ( W/C) if necessary and the Kumar assisted bank loan ( assumed $10m) could be used to pay Cayman with some left over to start drilling the shallow gas wells.
I am hoping that EGG and ICA will come back soon as consumers for Tethys oil and gas products.
The Kumars ( IMO) have decided invest in Tethys and its new team because they see an excellent opportunity to align its interests with Wells and his team and hopefully make a bundle in the process.
I do hope things do not go pear shaped. I am staying on for the ride as there is no alternative!.

[1399peter] 04/12/2016 07:25

Casual

I appreciate that but doesn't this vote only allow them to exercise the 12m and isn't it saying approval will need to be gained each time and only allow more if they don't cross the 10% threshold, or am I missing something here.

Edit: Mind you I also think it's a ridiculous amount of warrants, and potentially something that could drag on the share price if things ever get going in the right direction.

[hguess16] 03/12/2016 19:39

Casual,
Let me remind you that the reason why the Tethys share price failed to pick up on the Oilosl deal was because they kept on delaying the take-up and it became clear that they lacked the cash to complete or they deliberately prevaricated hoping to take control via the back door. Abramov,as Chairman at the May 15 AGm, agreed to abide by the resolutions and then welched on the deal by trying to use working capital to contribute to the 181m shares. Skripka, the disciple, who committed to arranging the
bank loan then failed to deliver !.
Somehow, I feel that the Kumars are more confident about keeping their promise.
Hence their wish to more than double their warrants entitlement.
Anyway, the proof of the pudding is in its consumption.
As regards your concern about the Cayman loan, I am hoping that the Kumars help in
restructuring the finances of Tethys should help to solve that issue.

[neilyb675] 03/12/2016 19:34

expensive life support BUT if it means TPL survival then surely that is better than going to the wall ?

What is the alternative ?

For sure the Kumars have been in the background for some time - and no doubt Olisol were aware of them, prior to the dirty tricks campaign. The trigger for the DT campaign was when the Kumars came to the forefront of the funding circle.

[casual47] 03/12/2016 17:45

Of course, if the BOD has already agreed with the Kumars to massively dilute the company then the 180m warrants suddenly become much more like the typical cherry on top.......

[temporarily insane] 03/12/2016 17:38

Thank you Casual47.

[casual47] 03/12/2016 17:33

Peter, yes, that's why there is an EGM 27th January. To allow them to do it.

TI, warrants are meant to be just a sweetener, to mollify the investor and convince them to invest. They are just the cherry on top, if you like. Typically the investor would only take up warrants when the share price is much higher than the warrant exercise price so they make a profit. On paper at least.

Also, who has ever heard of warrants representing nearly a third of the company? It is completely bonkers.

[1399peter] 03/12/2016 17:27

If both Investors were to exercise all of the Warrants granted to
them, each Investor would own approximately 19.9% of the ordinary shares
of the enlarged share capital of the Company. Neither Investor may
exercise any warrants if after such exercise, the Investor would become
a 10% shareholder of the Company until such time as the Toronto Stock
Exchange ("TSX") has approved a personal information form (a "PIF") to
be submitted by such Investor. Further, the Investors may not exercise
more than an aggregate of 12,097,816 warrants unless shareholder
approval has been obtained for such exercise.

[temporarily insane] 03/12/2016 17:00

casual47 why would the Kumars taking up all their warrant prove this whole thing is a stitch up?

[casual47] 03/12/2016 16:53

Also, while I assume that the Kumars WILL immediately take up their warrants, and that would prove this whole thing is a stitch up, there is no guarantee that they will as the warrants remain exercisable for three years.

[casual47] 03/12/2016 16:39

Hguess, why would the share price go up? Olisol had paid 10 US cents for their shares and were going to add more at 3 pence. Yet the share price remained below 2p for months.

Also, I have close to 2 million shares. With TPL being so illiquid there is no chance I can offload that amount at a reasonable price.

The EGM is 27th January. The 8 million USD + interest Cayman loan is due a month later.

[hguess16] 03/12/2016 16:32

Casual, You seem to have got Naim on steroids with your post !.
If you look at the numbers, you will notice that the Kumars are paying over 2p for their total allocation of 280.2m shares incl the warrants.
You said in an earlier post that you would exit if the price gets to 2p.
So you have the option to exit when the Kumars enter the Tethys stage and help grow the company !.

[temporarily insane] 03/12/2016 16:31

Ok naimanka74, you complain more than me!!!! ;-)


I put this question to you. How would you do it????? Or are you selling first thing Monday morning.


Everybody seems to be an expert but nobody wants to say how to make all this right. All quite easy when behind a keyboard.

[temporarily insane] 03/12/2016 16:02

Looking forward to the new directors achieving great things.

[hguess16] 03/12/2016 15:49

Casual,
If the Kumars exercise all the warrants, they would hold 280.2m of the total of the enlarged 687.3m Tethys Shares, ie 40.76% of thge total.
PAM/ALR would hold 76m shares incl 12m additional shares acquired for $168k after converting debt into equity. PAM would therefore hold 11.06%.
The Kumars and PAM would therefore own 51.8% of Tethys shares and as the Kumars have agreed to vote with PAM, they would control Tethys at Board level.
The grant of additional warrants to the Kumars could be positive for the following:
1. The Kumars have decided to commit totally to the development of Tethys with PAM and the new Team. They have expressed their confidence in Bill Wells and Ken May.

2. The price of conversion of the warrants remains at 3.1 cents or 2.48p compared to the current market price of 1.25p.

So, if we think the Kumars are reliable and capable, compared to " you know who", then 2.48p is better than nothing !.

[casual47] 03/12/2016 15:41

I think we're all battle weary

I presume also the Kumars getting 40% won't trigger the takeover code either, as they are deemed to be independent of each other........but who believes that?

If the Kumars immediately take up the warrants it is basically a cheaper, dodgier, quicker version of the BOD's Olisol deal except through the backdoor as there is no contract ("Investment agreement").

[temporarily insane] 03/12/2016 15:30

Casual47, well noted on the amount of shares. I hadnt noticed that. I think to be honest Im a bit battle weary due to everything that has gone on.

[casual47] 03/12/2016 14:13

TI, a bad deal is a bad deal. The fact that the company, through its own actions, ended up on its knees and with a gun to its head having to accept a bad deal doesn't excuse the situation. If they had any confidence in their business the placing price and the warrant price would have been higher. There is no reason at all to give that many warrants to the Kumars either.

Also, I don't know if you noticed, but the number of warrants more than doubled from the first announcement of the Kumars deal to the actual deal. Maybe this was part of the reason for the delay, the Kumars smelled blood and got greedy.

RNS 7th November: "The Company would grant each Investor share purchase warrants giving each Investor the right to acquire up to 43,951,698 ordinary shares of Tethys for a period of three years from the grant date. The exercise price for the warrants would be US$0.031"

RNS 29th November: "The Company has granted each Investor share purchase warrants giving each Investor the right to acquire up to 96,150,000 ordinary shares of Tethys for a period of three years from the grant date. The exercise price for the warrants is US$0.031"

Note that 2 x 96,150,000 would be nearly 30% of the company.....So the Kumars would end up owning 40.48% of the company having only spent 7.3 million USD...which is almost what Olisol paid to get 63 million shares (then 15% of the company).

My ~2m shares won't make much difference. But it's important for me that at least this PI's voice is heard.

[temporarily insane] 03/12/2016 13:42

Casual47, how would you have sorted Tethys out if you had to take over the reigns from just before the Kumars got interested at near all time lows?

[casual47] 03/12/2016 12:42

I'll be voting AGAINST. I voted against Olisol being given 40% of the company for peanuts and the Kumar deal is even worse.

[temporarily insane] 03/12/2016 12:19

Dorset64, its the management of Tethys Petroleum, they have to make everything as difficult as possible!!!

LOL

Hguess16 thank you for replying.