Sdx Energy Share Discussion Threads

[winnet] 18/9/2024 13:37

Thanks, both, you have slightly differing perspectives on what could happen... To be fair to the directors, they had to roll over the loan and to be fair Aelph would have wanted some guarantee they'll get their money back.

What's done is done, but let's hope it's onward and upward from these terrible lows. The RNS was a good first step, I hope you both agree.

[roman2325] 18/9/2024 13:29

Winnet - Aleph (as I explained before) will have the first call on SDX assets if SDX are in default. Why should they be sold to the highest bidder, when it is SDX who effectively own them? They would only need be sold if the funds were to be redistributed over and above what is owed to Aleph (first creditor), which is highly unlikely to be the case.

To be clear: the equity holders (at the bottom of the creditor stack) agreed to this deal by entrusting the board to do 'the right thing' on their behalf. Hence why I repeatedly said the board needs to be held accountable - they signed away the company when they rolled over the deal

[littlened] 18/9/2024 13:28

The liquidator would be in charge of disposals of the secured assets and distribute the loan value to Aleph.The balance of other assets would be sold in a fire sale and Aleph would take whatever is due as shareholders.Its a messy outcome,much better for Aleph to support SDX in its ventures assuming their ventures pay off.If the huge gas find becomes reality then all is well in this best of all worlds

[winnet] 18/9/2024 13:18

How would insolvency work then, Ned? SDX defaults and Aleph has the assets as collateral. Would they have to be sold to the highest bidder for Aelph to get their cash [I am out of my depth on insolvency law I am afraid!]

[littlened] 18/9/2024 13:13

The loan is being extended for a year so lots of water under the bridge by then.In any case Aleph are also shareholders so insolvency is not in their interests and they cant take more than 15% on conversion due to takeover rules.

[winnet] 18/9/2024 12:45

"with the company's bullish announcement, triggering a near 10% a surge in the share price to 2.3 pence"

Who writes this sh!t? The spread is nearly 10% FFS!

[winnet] 18/9/2024 12:23

i think NEO means, they'll just default on the loan and come in and take all the equity.

A lot can happen before then and anybody, like me, buying today, has a high chance of a return in anything other a doomsday scenario. IMO

[littlened] 18/9/2024 11:43

You may be right NEO but how much will they have to pay,that is the crucial question ?

[neo26] 18/9/2024 11:23

Imho in 12 months aleph will own sdx on the cheap.

[jas2022] 18/9/2024 10:02

Good to see jay has kept to form and decimated yet another share price in his tenure.....

[winnet] 18/9/2024 09:05

neo, the interest rate in the same. As I said in my post, the assets are now secured against it!

[neo26] 18/9/2024 08:56

WinnetNo the terms are not the same, this time aleph has secured loan against sdx assests.Last results they had 4.2m dollars in the bank where has it gone?

[tnt99] 18/9/2024 08:43

Better profits in Morocco with gas starved Europe the right strategy plus solar renewable energy projects a no brainer as the sun always shines there and the new tech in this field are way more efficient in converting the energy

[winnet] 18/9/2024 08:33

The cash on WG is probably going to be used to cover G&A going forward and their strategy is to farm out or share the risk, on the Morrocco wells. Entirely sensible strategy to build value and develop strong local partnerships.

We don't know the cash position today [unless you have access to the bank account], but SD completion will almost certainly remove any going concern worries. They have also said they can now get cash out of Egypt [well, Ned said that, but floating controls are in place, so likely].

I am not concerned about the money. Aelph has rolled over the loan the same terms and presumably would have had access to the books before doing so. Yes, there is a horrendous insolvency clause in there, but that's the risk-reward play at 2.2p!

[neo26] 18/9/2024 08:21

WinnetIt doesnt concern you that they cant fund cheap wells in morrocco now even when they can take cash out of egypt?

[winnet] 18/9/2024 07:59

You'll see in the results, Neo. But I can guarantee, whatever the position is, you won't like it!

I placed an order for some more this morning.

[neo26] 18/9/2024 07:51

They running out of gas to feed offtakers and its telling they need funds to drill more wells. Where is the cash going?

[winnet] 18/9/2024 06:55

Roman - ONHYM doesn't hate them enough to use their pipeline! - The Company is waiting for the approval from Office National des Hydrocarbures et des Mines ("ONHYM") to tie-in an existing ONHYM-owned well to the Company's pipeline, which would bring proven gas reserves online in the near term. SDX would share the gas sales revenue with ONHYM.

[tnt99] 18/9/2024 06:45

At last some news from sdx think it should be the start of the new strategy Hopefully the sale of the remaining Egyptian assets are still on the table But no news yet!!??

[winnet] 13/9/2024 13:54

I would also add, airplanes and zoom are a "thing".

[littlened] 13/9/2024 11:24

Yes I do,I have met CFO and he told me that this is what they are doing

[roman2325] 13/9/2024 11:05

Ned - you have no idea what you are talking about

[littlened] 13/9/2024 11:00

Roman,this is exactly what they are doing now