Geong Share Discussion Threads

[davidosh] 28/3/2013 14:48

I think we need to firstly get a lot more detail on this new CULS and establish why as shareholders it is supposedly the best way to solve whatever issue Hanofin had with Geong over the default ?

Personally I think the directors should be here in the UK providing a detailed explanation of the whole sorry saga and that is not just the last three months as this loan has never been used for ANY acquisition so why not just repay it in full.

Secondly why would shareholders want to be in threat of such huge dilution even at 60% above the bombed out share price !? That is still at a massive 85% discount to the tangible assets and for 34% of the company !? Heads should immediately roll if Hanofin ever get their hands on a single share due to this CULS episode

I am just off to buy shares in Hanofin !! LOL

[jtcod] 28/3/2013 14:41

Nor can i Jim.

[jimcar] 28/3/2013 14:37

What if I didn't pay you because i had forgotten my wallet (or to put on my trousers/jacket - this is GNG we are talking about)? I am now in default. Haven't you got me over a barrel legally?

FWIW I can't think of a convincing explanation for GNG's behaviour

[jtcod] 28/3/2013 14:25

jimcar
If you owe me £100 and you have £200 in your pocket. How much leverage can I hold over you? You have the means to pay me in full twice over.

[jimcar] 28/3/2013 14:10

Wouldn't Hanafin have had a lot of leverage over GNG in deciding the terms of the settlement? After all GNG had defaulted on the terms of the CULS.

Also if they accepted 5p conversion it probably means they think they can convert and get 10p at some point in the future. At least GNG shareholders seem to be walking away with something.

[geheimnis2] 28/3/2013 11:34

good post jtcod

something a bit whiffy around here and i am not talking about the contents of ratty's undies..

[jtcod] 28/3/2013 11:31

It will be interesting also to compare the two balance sheets of the time to see how the balance sheet should now have deteriorated so much for the management to conclude that it was advisable to agree 5p conversion rights now (90% discount) rather than settle the whole amount with just a fraction of the cash they say they have in the bank account right now. I accept that business values are also affected by earnings but when you are dealing with this level of value, the balance sheet is also a significant factor.

[mattjos] 28/3/2013 11:28

are their overlaps in terms of stakeholders between Hanafin and Geong? I cant remember if it was deemed a related party transaction in any way at the time?

[jtcod] 28/3/2013 11:16

A cynic would say it's a smart way of taking the company off the market for a pittance. A new financing company set up in March 2011 they lend £2.5m to GNG a few weeks later even though we had £5m in cash at the time and now they stand to pick up 34% of the company for just £1m 22 mths later, which I would anticipate may trigger a bid requirement at what 5-6p perhaps(?) compared to an agreed conversion price of 50p at inception.

All because the Chinese government were slow to sanction a payment (or so we are led to believe) and all the time the company had sufficient balances in cash (or so we are led to believe) a) not to have borrowed in the first place and b) to have cleared the balance at any time.

I would add that the reason given for borrowing in the first place was 'Acquisitions' and here we are almost 2yrs later and none have taken place.

Edit: 34% for £1m not £600k

Lets see if Hanafin Investments exercise their right to convert after they receive the cash payments.

[rivaldo] 28/3/2013 10:27

Agreed davidosh, I too would have liked to have seen more info about receivables/current trading etc.

Nevertheless, it's encouraging that:

- the CULS holders have been prepared to accept the revised timetable
- cash has increased nicely since the last update
- I'm sure that with the directors' large share ownership and tiny remuneration they will want to pay off the CULS without allowing dilution

Above all perhaps, one cloud has been lifted over the shares. Now GNG have to show they can act decisively over receivables. This repayment schedule might just give them a further incentive to do so.

[davidosh] 28/3/2013 10:02

Cash has increased significantly from the last update and there has been the partial CULS settlement in January to include which suggests they are now on the right road re collection of those receivables but more detailed information would have been useful.

[mattjos] 28/3/2013 09:22

my thoughts exactly ed. Quite a positive development i concluded & perhaps from here on they intend to be much more open with the market about cash, debtors & creditors.
Just wondering if there can be many more sellers left now in this after nigh on 6 years of decline

[sefton1] 28/3/2013 09:22

Added this morning.

[edmundshaw] 28/3/2013 09:09

Well at least they are doing something positive. Not like RCG for example...

[sefton1] 28/3/2013 08:34

A positive development. Nice move up already. Glad I got in on Tuesday.

[fft] 28/3/2013 08:25

wow ! part repayment, and the rest extended to mid 2014.

Now, why would that be for a company with lots of cash, and even more receivables that it says it will collect ?

Are the accounts being economical with the truth ?

obviously the original reason given why the whole amount was not repaid is a crock,
"Whilst the Company has adequate resources to make the repayment it will not be able to secure the necessary approvals from SAFE to do so in the short term"

[jwe] 28/3/2013 08:20

It just looks as though the cash that they say they have is not real along with they do not have much faith in getting the accrued income in.The board i`m afraid cannot be trusted at best,so why would you invest here?

[swizz] 28/3/2013 08:13

Any views on the loan repayment deal? - Looks to be fairly well structured and also linked new shares at 5P a 51% premium, GL S

[janeann] 27/3/2013 13:06

well i will watch with interest; I wont re calculate my break even price after the last lot i sold, but i now consider my residual holding pretty much as lost money; but kept them 'just in case'. Good luck!
j

[davidosh] 27/3/2013 11:06

Well any company trading at such a deep discount to tangible assets has to have completely lost investor confidence and I suspect those who could sell out have already done so over the last year or so.

There needs to be radical change here. Consistant updates ,timing of them and the format are crucial. I am on the warpath so expect to see something very soon for better or for worse as they say !!

[janeann] 27/3/2013 07:46

davidosh; nothing new with with this company. In my view they have never been transparent in their communication and many shareholders have lost confidence in the company and what they actually put in their RNS's.

Good luck ( and I still hold - unfortunately)

janeann