Cadogan Energy Solutions Share Discussion Threads

[targatarga] 22/12/2020 19:08

It was strange how Fady managed to get such a large percentage when Michelotti was ousted.

[researchcentre123] 22/12/2020 16:44

Makes sense. It's a shame they didn't put in some management who had a better track record but they still have to be an improvement, although the new MD did exactly nothing for the share price at his last company over 9 years.

[targatarga] 22/12/2020 16:35

I'm thinking that Michelotti weeded Cadogans cash for Proger. Cadogans main holders smelt a rat and did an oust. Michelotti then left Proger for fresh pasture. Maybe fruit shall be harvested but it could take time. Imho

[researchcentre123] 22/12/2020 08:50

As far as I can make out the only asset of the shell they've lent to is shares in the main Proger company, so its only way of repaying the loan is selling some shares. I have no idea what they are worth, given it's unlisted and not publishing accounts. However Cadogan would be foolish to accept the original share purchase agreement. I suppose there could have been tax advantages for progers shateholders doing it like this but if it were the case then Cadogan would presumably have made more of the matter and ensured they had accounts to show their small shareholders. I can't really see the value in a listed company owning a minority share in unlisted shares as they become completely at the mercy of that other company. So here at Cadogan minority shareholders are at the mercy of the majority who are in turn at the mercy of the majority at proger if they buy in

[russman] 21/12/2020 16:49

But what would the 33% minority stake be worth now in the current circumstances.
Does this "shell" company still have the stake or the ability to repay the loan on time.
I suspect the stake is secured to the loan; was the cash just bridging for tax purposes.

[researchcentre123] 21/12/2020 16:21

Well the whole business was dirty. Proger after all is unlisted so who would lend money to invest money in an unlisted company that can only be repaid by reselling those shares? Imagine Cadogan is unlisted. I lend you 2 million to buy some shares in it. How are you going to repay? Just hope you can find a buyer who wants a minority stake I suppose but that is very difficult. My guess is they'll demand repayment and if they don't get it demand a lot more shares than originally agreed.

[targatarga] 21/12/2020 15:04

I'm wondering if Proger is thinking of playing dirty. Cadogan have been lucky in the courts so far! Imho.

[thordon] 20/12/2020 21:27

The Terms are that a member of CAD was to join the board of Proger ( this did not happen )
The 2019 - 2020 accounts not released , but data has been submitted to CAD directors to be annualised.
If CAD do not use the option to purchase shares in Proger , then Proger must repay the amount plus 5% compounded just short of $16 million return to CAD.
Which ever the directors will act to the best interest of the company , Broker estimated that the stake in shares was worth $20 million.

For me both options are good and company has a undervaluation , as the fact that this is dominated by large shareholders there's is no one share holder over 21%

[thordon] 20/12/2020 21:27

The Terms are that a member of CAD was to join the board of Proger ( this did not happen )
The 2019 - 2020 accounts not released , but data has been submitted to CAD directors to be annualised.
If CAD do not use the option to purchase shares in Proger , then Proger must repay the amount plus 5% compounded just short of $16 million return to CAD.
Which ever the directors will act to the best interest of the company , Broker estimated that the stake in shares was worth $20 million.

For me both options are good and company has a undervaluation , as the fact that this is dominated by large shareholders there's is no one share holder over 21%

[russman] 20/12/2020 21:18

Depends on the terms of the loan agreement. If CAD do not own a share in Proger, they are not entitled to the Accounts.

[targatarga] 20/12/2020 20:44

So Proger was Micholottis poison pill! Interesting....

[researchcentre123] 20/12/2020 15:50

Proger isn't public. I don't know how they work in relation to their shareholders, other than getting money in as capital rather than debt which is to their benefit and Cadogan's detriment. Clearly though Cadogan don't care about small investors as the majority shareholders have total control so can do whatever they want with the company's money and keep control without fear of being voted out. So I imagine there is not much interest in keeping small investors informed.

[targatarga] 17/12/2020 19:36

Researchcentre123 - So your saying Progers board, are treating Cadogans board in a similar way as to how Cadogans board deals with its own small shareholders!

[russman] 17/12/2020 08:50

Cannot tell without any figures so have to wait for info.
Might be a long wait.

[researchcentre123] 16/12/2020 21:45

The question is where they would get the money from to pay back the loan, seeing as they've converted it to shares. The small shareholders have been totally screwed here. I think if they were intending paying they'd have been more cooperative. Still we see.

[thordon] 16/12/2020 21:45

Cad still have option of repayment date from Proger

[russman] 16/12/2020 20:43

cannot find any up to date figures for Proger so difficult to vale their equity.

[researchcentre123] 16/12/2020 08:20

I don't really see how this loan could ever have been repaid on time. The money has been lent to one company then converted directly into the share capital of another. Unless that other company redeems the shares, then I doubt CAD'll be getting their money back this February. It's not a normal loan in that a bank would have checked how repayment could be made but somehow I doubt that CAD management at the time ever intended getting repaid on time. I wish I had a friend who'd lend me 13m to speculate on unlisted shares with.

[russman] 16/12/2020 08:06

So we do not know how Proger is faring in financial terms.
Not sure CAD is entitled to this info under the loan agreement.
Pretty difficult to judge the value of its potential minority Proger equity investment.
Or whether the loan could be repaid on time.

[researchcentre123] 15/12/2020 21:56

There's nothing on the CAD website. This is far from a normal loan as effectively it's non- recourse against the company - it's to a company whose assets are the shares in another company so it can only claim the shares. I'm not surprised the Salik family got worked up. Would have been nice though if they replaced the board with one who had achieved something before though rather than one that over 9 years didn't enhance the value of Futuren at all. Lost opportunity.

[russman] 15/12/2020 20:54

Thought there had been a breakdown in communication with Proger. were their last accounts ever provided to CAD.

[researchcentre123] 15/12/2020 16:45

Well main holders are same as those of Futuren which delisted under Fady after a buyout. The main holders are very old - I can't really see the advantage of delisting unless there's another buyout

[1hughb] 14/12/2020 22:07

Is your view they should convert the loan to shares? Do they need cash as well?

[brumbrum79] 14/12/2020 18:59

Proger spa - another good news:

14.12.2020
Framework Agreement with EDP Renewables Europe

Proger has signed a framework agreement with EDP Renewables Europe – the fourth largest wind energy producer globally – for the provision of technical assistance services and supervision of works related to the development of wind farms, photovoltaic systems and associated infrastructures.

The agreement confirms and consolidates Proger’s experience in the Green Energy field which, thanks to its team of professionals with over ten years of experience in the renewable energy sector, will guarantee the overall success of the construction and commissioning process of the works by actively participating in all phases, from design to final checks, with particular attention to quality management, compliance with schedules, cost control and project reporting.

The agreement will last two years.

Link news:
hxxp://www.proger.it/en/accordo-quadro-con-edp-renewables-europe/

ByeBye

BrumBrum