New World Oil Share Discussion Threads

[pumped and dumped] 21/9/2016 18:01

GET OUT QUICK

SELL

[hedgehog 100] 04/9/2016 17:54

Big Sofa wants to list, hence the RTO arrangement with NEW, and NEW has the cash, so it makes sense to borrow from NEW rather than a bank.

The term 'cash burn' has negative connotations, but I make a distinction between unavoidable cash burning for existing business, and discretionary spending for expansion.

Biotech is a very sentiment-dependent sector, and it can turn rapidly.

Big Sofa in contrast should be able to deliver rising turnover and profits.

Incidentally, Adam Reynolds' last RTO, CPT (Concepta), hit 21p in early trading on Friday, compared to its placing and open offer price of 7.5p in July.

CPT is in the health sector, but isn't a biotech.

In contrast, the share price performance of recent Jim Mellon biotech RTO SALV (Salvarx) has been disappointing so far.

[aggieuk] 04/9/2016 07:46

No traditional means as in bank loans or private investors. I'm moderately ok with this as it is, but I'm just getting slightly uneasy over the amount of money pouring out and the close periods of time between such loans. They are burning it faster than we can loan it. I just can't wait to get the fundraising out the way and see what the market thinks of the deal. But I must say I was disappointed it wasn't biotech though.

[hedgehog 100] 03/9/2016 15:31

Aggiek,

By 'traditional means' do you mean IPOs (initial public offerings)?

RTOs are an alternative route to market to IPOs and in general I think that they outperform IPOs on average. They're a good way for the incoming business to introduce itself to the stockmarket, and to get its story out. The typical strategy is to get the share price up very well in the first year or two, and then to raise more funds at a much higher level to further invest into and expand the business.

Big Sofa has a track-record of profitability, and is investing into its business to expand. I'm happy that Adam Reynolds knows what he's doing.

[aggieuk] 01/9/2016 21:54

I'm just not liking the amount of money they require plus another £109k on top of the £1mill if they were so successful why not go and get funding by the traditional means? Don't get me wrong I hope we do very well but I'm getting nervous with the amount of money being chucked at them.

[hedgehog 100] 01/9/2016 16:00

NEW's RTO update today makes its Big Sofa RTO sound very exciting indeed.

And NEW will have around 45% of the enlarged equity prior to any associated fundraising.

From NEW's current market cap. of £2.85M. there looks to be lots of upside.

[aggieuk] 01/9/2016 15:06

New World Oil & Gas Update on Big Sofa and AGMRNS Number : 6245INew World Oil & Gas1 September 2016New World Oil and Gas plc("New World" or the "Company")Update on Big Sofa and AGMFurther to the announcement on 9 May 2016, regarding the possible acquisition of Big Sofa Limited ("Big Sofa"), a company operating primarily in the high growth area of video analytics, the Company is pleased to provide an update on progress to date and other matters.Progress with the reverse takeover of Big SofaThe Company is continuing to make good progress with the possible reverse takeover of Big Sofa and the Board remains of the view that this acquisition is an attractive proposition for New World shareholders. Big Sofa is continuing to win new mandates from a number of leading companies and is expanding internationally, particularly in the United States where a number of its important clients are based. Big Sofa is now becoming increasingly well-established within the fast growing global video insight and analytics sector. The company has also recently made a number of key appointments and is therefore now well-resourced to capitalise on its recent contract wins and convert a number of new business opportunities. Further details on the company's progress and operations can be found on the Big Sofa website at www.bigsofa.co.uk.New World expects to provide a further update on the transaction in due course.Further loan to Big SofaGiven the progress that Big Sofa has made to date, the Board has decided to provide Big Sofa with a further loan of GBP100,000, in addition to the GBP500,000 already advanced as announced on 19 July 2016, and on the same terms, in order to provide additional working capital to support this rapid growth.Oil and gas licencesAs previously reported, the Company's only remaining oil and gas asset is the Blue Creek Production Sharing Agreement in Belize, which is due to expire on 31 October 2016. The Board confirms that the Company is currently seeking to dispose or relinquish this asset. The Company has also commenced the process of dissolving the subsidiaries associated with its Danish licences which were relinquished in September 2015.As announced on 9 May 2016, trading in the Company's shares were suspended given that the possible acquisition of Big Sofa (the "Acquisition") would amount to a reverse takeover under the AIM Rules, pending the publication of the required AIM admission document or confirmation that the Acquisition is not proceeding.Upon completion of any disposal or expiry of the Company's existing oil and gas assets prior to the Acquisition, the Company will become an AIM Rule 15 cash shell.Annual General MeetingA notice convening an Annual General Meeting ("AGM") of the Company will be sent to shareholders shortly and a copy of this notice will be made available on the Company's website at www.nwoilgas.com. The principal purpose of the AGM will be for shareholders to approve the Report and Accounts for the year to 31 December 2015 (which are also available on the Company's website), and approve the adoption of a new set of articles which are more appropriate for the Company going

[aggieuk] 07/8/2016 08:10

Zzz zzz zzz this is really getting boring now. I hope they are working feverishly behind the scenes to give us something to be happy about...

[hedgehog 100] 21/7/2016 16:52

19/07/2016 11:40 UKREG New World Oil & Gas Update on Big Sofa Limited

"The Board is pleased to announce that the second tranche of the loan to Big Sofa Limited ("Big Sofa") for working capital purposes, as described in the Company's announcement of 9 May 2016 and approved by shareholders at the Company's EGM on 17 June 2016, has now been drawn down in full. The Board is pleased with the progress that is being made by Big Sofa as regards current trading and the implementation of its strategic plan and can also confirm that the work with regard to its proposed acquisition by the Company is progressing well.

The Board is also pleased to report that Nicholas Lee has been appointed as Chairman of New World with immediate effect."

[gta5] 13/7/2016 09:49

good riddance to bad rubbish.

[adred] 12/7/2016 20:44

Yes, well done Ben Turney

[andy] 12/7/2016 19:13

Agreed

Well done Ben Turney.

[gheebee] 26/6/2016 14:30

They have to convene a General Meeting to table the 2105 Accounts by the end of July (7 months after closure, it's in the Law). No extra expense there then.

Article 40.9 prevents the Company from making a director a payment for loss of office, unless such payment is approved by an ordinary resolution in general meeting. Can't see that happening.

Three less wage packets trumps your bluffer's hand.

[r ball] 23/6/2016 17:04

Wow. More expense of an EGM. If I was one of the original directors I would be v.v. happy that somebody has just offered me a get out of jail card.

I wonder what their notice pay is (well you can find out from the re-admission document of what 4 years ago).

[hedgehog 100] 13/5/2016 15:46

Thanks too to RichGas on LSE for this recent relevant Amazon news:

"Tuesday 10 May 2016 15.01 BST

Amazon launches YouTube-style video service

Web users with Amazon account can now upload their own videos to the Video Direct platform

Amazon is launching a YouTube-style video service allowing its customers to post clips, widening its growing competition with Google across online video.

From Tuesday, anyone with an Amazon account can upload videos they have made or own the rights to on to the company’s Video Direct service.

The videos can be free with providers taking a cut of ad revenue, offered for rent or purchase, put on a subscription channel or made available only to people paying for Amazon’s Prime packages.

Users who make the videos available on Prime will be paid based on their performance out of a $1m pot, under a system similar to the way Amazon pays some self-publishing ebook writers. ..."

[r ball] 12/5/2016 20:18

time will tell.

[hedgehog 100] 12/5/2016 18:40

I would say that any pre-tax profit for a development stage technology company is a bonus, and in this case the profit isn't negligible: i.e. £299K. in the year ending 30th. April 2014, on turnover of £1.54M.

The gearing can be explained by investment into the company's business, and will be eliminated by NEW's cash after the RTO into NEW.

With better funding, a public listing, and a strengthened management team, business and profitability could potentially ramp up very nicely in the medium term, making the current valuation look like a bargain.

To summarise the deal:

• Big Sofa is an exciting and profitable technology company with blue chip clients.

• NEW will have a nice big chunk of the enlarged equity: i.e. 45% (prior to the fundraising), not far short of the 49% maximum for a RTO.

• Big Sofa itself is being acquired for shares only rather than any cash element, so with NEW's existing resources, the fundraising shouldn't need to be too large.

• NEW has plenty of cash, so it makes sense to RTO (reverse takeover) a company that needs cash, i.e. a synergy between the two.
OPTI, which ten-bagged, and many of the most successful RTOs, were also in need of cash.

It looks like Adam Reynolds has delivered a cracking RTO, so thanks and well done is in order.

[r ball] 12/5/2016 17:16

normally failure to file accounts suggests funding problem. no wonder they have to get News money. nobody else would lend to them and why should they. this is a shoddy deal for suspended shareholders from a company bled dry by current and former management.

[hedgehog 100] 12/5/2016 15:18

To put late accounts into context -

Uber successful global concierge company Quintessentially's accounts were recently filed nine months late:

"Need that table, ticket, or rare item? Meet Aaron Simpson the upmarket fixer who knows the habits of the super rich
By Sarah Bridge for The Mail on Sunday
Published: 22:02, 5 September 2015 | Updated: 10:37, 7 September 2015"
... It set up hundreds of businesses, covering everything from wine and fitness to education. That model is being restructured, which Simpson says is why accounts were filed nine months late. ‘Give me a break,’ he says. ‘I’ve waited six months for my tax refund.’ ...
While the concierge business has about £18.6 million in sales and makes £1 million in annual profit, these other activities mean the group’s total turnover is £65 million and it makes £4 million a year. ... "