Tomco Energy Share Discussion Threads

[damac] 27/8/2021 12:39

Bingo! 😎

Why do all the preparatory legal work on formalising a deal to acquire 100% of Greenfield if there was still doubt that the finance could be secured?

[jaynealex] 27/8/2021 12:37

So they must have the finance in the bag otherwise why do the deal., Because no finance , no deal ,nothing changes

[ducky fuzz] 27/8/2021 12:37

Really appreciate your input damac .. thanks very much.

[jaynealex] 27/8/2021 12:35

Thanks Damac ...missed that point ...Tom only acquire greenfield if they get the finance

[damac] 27/8/2021 12:31

Jaynealex,

If Greenfield fail to raise the finance Valkor would still have 50% in Greenfield ergo 50% of the multi-site license.

If Tomco were to hand over 29% of Tomco to Valkor without the funding clause they run the risk Tomco of giving away a third of the company for nothing and Valkor would have 50% in Greenfield and 29% in Tomco should the funding fail to materialise.

Edit: That clause is definitely in place to protect Tomco.

[damac] 27/8/2021 12:07

As for the 2nd part of your post Fenners, the answer to that, which again, to me, will be indicated by purchasing the initial 10% of Tar Sands II, would be Greenfield will have already given potential lenders all the relevant information required on the points you raise. Just because we haven’t had sight of it doesn’t mean it doesn’t exist.

They have been in discussions with potential lenders since the start of the year. Last I heard there were 5 lenders all wanting a piece of the action, take that with a pinch of salt if you want.

[damac] 27/8/2021 12:07

Fenners,

I posted….. “
The ‘3 year’ inclusion in yesterday’s RNS is solely relating to an arbitrary end date of the acquisition agreement and not inferring that it could now take 3 years to secure funding.”

“End date of the acquisition agreement” clearly means ending by whatever circumstance, successful acquisition or unsuccessful.

[jaynealex] 27/8/2021 12:06

Interesting Valkor only get the acquisition shares if Tom / greenfield get the finance to go forward with a lease and plant ...

Why put that in

Why didn't Valkor just take the shares ...at least you got a share in the licences which must have a value

If Greenfield can't raise finance , Valkor get nothing

So Tom insisted on the clause because if they don't get the finance , Greenfield is worthless .... Not totally true because it's got the unlimited licences

There's such an information void

Roll on next week.

[jaynealex] 27/8/2021 12:01

Valid points fenners ...we are all waiting with bated breath ...there are so many possibilities by the end of next week we should know more ...should do !! But who knows

[fenners66] 27/8/2021 11:37

damac, whilst you refer to the 3 years as an arbitrary end date , you have not added in the RNS possibility that it does Not happen at all.

If the financing is not agreed , then the merger /acquisition does not happen.

Whilst the inferred success of the trial as mentioned so far looks optimistic, the lack of actual detail, what run rate BPD did they achieve , how long did they keep that run rate up, what has happened to the plant , what infrastructure do they have / need, what actual management will there be in place etc etc. at essentially a very late stage in the process (before the supposed deadline for the 10%) gives me concern that they do not have a convincing argument for financiers.

Essentially if you had the greenest , simplest , least polluting , most innovative , oil production in the world , you would want everyone to know ; not just a niche of investors on a BB that seem to have to piece it all together themselves; so that you can have financiers fighting over themselves to offer the best deal.

[jaynealex] 27/8/2021 11:11

Well it will be a very expectant Tuesday / Wednesday !!

[vauch] 27/8/2021 10:54

Just a long weekend ahead so most must be traveling as naff all trades on most stocks today

[jaynealex] 27/8/2021 10:53

Well looks like everyone is holding their breath

[ducky fuzz] 27/8/2021 09:24

Don't be stupid Tal .. of course they will LOL.

[talais] 27/8/2021 09:09

I wonder if petroteq will release news before Tomco,

[jaynealex] 27/8/2021 09:07

Agree ref the 10% deposit being the indicator Damac ...now just a matter of days till we know ...

[damac] 27/8/2021 08:29

If anyone still has any misunderstanding of the ‘3 year’ reference in yesterday’s RNS, consider the following.

As per the Conditional Site Purchase Arrangement (RNS 09/06/21), Greenfield MUST complete the purchase of the entire Tar Sands II site by the 31st December 2022 (16 months from now). The funds required to purchase the remaining 90% of the site are included in the $110m being sought from lenders. Therefore in the most extreme case, which I’m sure is going to be anything but, finance must be secured by end of December 2022.

The ‘3 year’ inclusion in yesterday’s RNS is solely relating to an arbitrary end date of the acquisition agreement and not inferring that it could now take 3 years to secure funding. As I have said many times before, the initial purchase of 10% of Tar Sands II will be the indicator that the further funding required is being signed off.

[jaynealex] 26/8/2021 16:53

Hi Damac ,just back

Let's wait and see what happens next week ref the 10% deposit on the lease ...Tom need that lease or we're basically a shell ( well not quite ) holding licences looking to be bought out ...no finance , no useable leases , no production

If we pay the 10% and get the lease , we can move forward ...will Valkor engineers help us ....I think they will prioritise their own leases first ...but with a 29% interest one assumes they would cooperate with another oil engineering company building the plant for Tom

My gut feel stands ..Valkor have crunched the numbers and have decided to go it alone ...paying 2 m a plant delivers more profit to Valkor than proceeding with the greenfield licences and taking only 50%

I was going to say , the 29% option is a throw of the dice to get their " dead money" back ...but surely the key players must know exactly what is happening reference paying the 10% and getting the long term finance . Perhaps the terms are harsh impacting profitability etc all leading to Valkors exit

But only time will tell ..right now it's speculation / gut feel.

Lets be fair no one saw that RNS coming , although I did ask back in June why Valkor needed Tom

Next week will be enlightening !

Best of luck to the LTHs !

[lopodop] 26/8/2021 16:04

Never thought SB would go down this route - excellent news - brilliant coup and very well executed.

[ducky fuzz] 26/8/2021 15:51

Hi g .. give you a lol for that comment.

[goulding1215] 26/8/2021 15:49

29% is 1 percent short of a take-over bid. What if they start buying shares when in the company, they could go for a management buy-out. Just a thought.

[the diddymen] 26/8/2021 14:31

A quick placing for some short term pocket money?

[vauch] 26/8/2021 14:13

When will PQE be trading again, and how will being suspended affect shorts

[goulding1215] 26/8/2021 13:50

I will bet you never thought of that one lopodop! Be good if SB takes over AS CEO, brings value to the BOD, apart from, logically, being based in the USA.

[goulding1215] 26/8/2021 13:37

Well, I hope that Stephen Byle comes onto the BOD as the CEO. After all he has done the majority of the work so far. Should double the share price if nothing else.