Tomco Energy Share Discussion Threads

[1dutchman] 02/8/2022 12:24

Still, it is entertaining. And I am curious as to how SB's secretive 'Canadian billionaire brothers' will play into this. The thought that comes to mind when names aren't forthcoming is something that feels a bit like 'pump and dump'. And Utah oil sands have seen a lot of that activity over the years. Still, who knows? Perhaps we just have to wait a bit longer (and pay a lot more) in order to see that queue of buyers for marine diesel forming in the middle of the Utah desert.

[1dutchman] 02/8/2022 12:11

That said, I don’t see a scenario where Tom fails on the grounds of ‘going concern’. This story will run on and on with JP as a willing puppet. SB has seen how easy it is to fool Tom’s board and investors into writing cheques and he wants to have more control over the source of that easy money. I suspect he tried and failed to trade Greenfield equity for Tom equity as the Board got queasy and made it contingent. But SB now has Tom over a barrel with the $1.5mm loan. Think about it. It is a pretty cheap price for gaining control over a listed company, but that’s effectively what happens if that loan converts to shares (20%?), because there are no other large shareholders. He might even sweeten it and add some cash (30%?) to make it look better. CORT is dead, who knows whether in situ goes forward, but with Tom in his pocket SB no doubt has numerous other hopeless new technologies he’d like to roll out and fund through naive investors. CORT was just the beginning…..

[1dutchman] 02/8/2022 12:07

Gents - I think you’ve hit the nail on the head re: Tom and its relationship with SB / Valkor. SB has been calling the shots for more than two years now and all of Tom’s investor’s money over that period has gone straight into his pockets. Clever lad. Valkor’s position in Greenfield became unnecessary because SB has positioned so that Tom depends on Valkor for implementing any of the potential income streams. And Tom investors pick up all the bills.

[fenners66] 02/8/2022 09:50

The RNS said the loan was unsecured.
However it also says that the extensions , we predicted from the start, are dependent upon mutual agreement.
So either TOM pays up , or Valkor can call in the loan whenever they want.

It looks as though Valkor has determined that 2% per month is what they can get out of TOM - so I guess they will continue to do so , until they determine TOM's shareholders have had enough, then they could just force TOM into the courts.

I am reading the 2% per month being a clue to the loan principal , fees 15% and monthly interest all rolling up and compounding monthly.

Again there is little detail from TOM's disclosure - poor since this is a material number to TOM - but if it compounds then Valkor are already charging in excess of $35k a month.

[lopodop] 02/8/2022 07:58

TD
In the event of TOM's failure, Valkor will have protected its position and planned for this eventuality - of course!

[lopodop] 02/8/2022 07:45

And if / when the music stops, JP will conveniently be the fall guy and the non execs will exit quietly hoping very much that the City chaps will be oblivious to TOM's misadventures. After all JP is the chief and the experienced non execs will try to absolve themselves - nothing to do with us. For the moment TOM claims it can keep going although investors may appreciate the directors agreeing to a remuneration moratorium yet the Valkor interest time bomb ticks away and it becomes more improbable that there is any funding package.

[the diddymen] 02/8/2022 07:28

Lopo, I agree re SB/Valkor but I do not recall seeing whether there was security over the loan. If there is none and TOM becomes insolvent Valkor will line up with other unsecured creditors.

[fenners66] 02/8/2022 00:26

Valkor have been playing TOM like a fish for the last couple of years.

Valkor got nowhere with PQE's Cort plant despite their involvement.
A desperate TOM came along and Valkor offered a JV
So long as TOM paid $1.5m for Valkor to work on PQE's plant (which went back all spruced up to PQE).
When the cash was used up , it exits the JV so that it could continue to sell services or lend funds to TOM at arms length, had it remained a partner it would have been asked to put its own cash in.

Funds TOM to pay a deposit on some land , with the recycled $1.5m TOM paid it.
Charges 28% on the same cash , until such time as IT decides its had enough.

No need to actually do any drilling etc for TOM they are on to about $420k a year in interest .....

They know there is very little chance of TOM ever getting the $200m to fund a Cort plant , but more so they do not have to commit a cent to the fantasy now they are out of the JV.

Let TOM run themselves into the ground with that one.

[lopodop] 01/8/2022 18:46

TD
Do you not think SB saw JP coming and allowed him to be played out on a 'line'. At the end of the day, whenever that becomes official, SB will have had his fun with a bunch of crazy Brits and be able to enforce any deal that he considers will be in his best interests. Time may be scarce for shareholders and the raising of any further paltry sum to keep TOM in funds may be irrelevant.

[the diddymen] 01/8/2022 18:17

lopo - in regard to the Valkor loan I do not think the details of the security have ever been disclosed. Sometimes businesses take risks. I am sure that TOMCO will have sufficient cash for their basic operating costs. The question if they do not raise funding for their core business objectives is whether shareholders will be prepared to finance future on going costs.

[lopodop] 01/8/2022 16:00

VAUCH
Do you have the feeling that you've been 'had'? You are not alone by the way! Just how long can the BOD and Strand Harrison allow JP to 'spin' this roll over yarn. If TOMCO cannot meet its liabilities, to all intents and purposes it is game over notwithstanding it has a few quid in the bank to meet administrative costs.

[lopodop] 01/8/2022 08:47

DAMAC
REFERENCE YOUR CONTRIBUTION YESTERDAY, your predictions are usually incorrect - are you not misleading the others? Also has JP spoken with you about the present impasse?

[fenners66] 01/8/2022 08:10

AS forecast when they first organised the loan .

Another self-imposed deadline missed.

Imagine trying to work with this company , when they never make a deadline ?

Extend , extend etc. until Valkor has had enough , then what?

I note they still do not explain how much is due now , principal , fees and rolled up interest , should already be over
$1.8m and rising by the day.

As for not giving any guidance on any potential funding........ no surprise there.

[the diddymen] 01/8/2022 07:52

No great surprises in today's RNS. An opportunity missed to update shareholders on the critical financing package.

[goulding1215] 01/8/2022 07:49

The finance has been in the pipe-line (so to speak), for some time now, but it would help if there was a reason why the delay, it would be better received by shareholders to understand the delays. I suspect the permits, however it could be some other development. Ainho

Damac, hope your enthusiasm is justified!

[talais] 01/8/2022 07:28

When or if we get funding, will the agreement of the funding allow us to use the money to pay back a debt, I am not sure it will, it may have to come from the oil revenue,

[ducky fuzz] 01/8/2022 07:21

Hi vauch .. totally expected. It's no big deal. As I said I think the next duck in the row is the production well permits. Nothing will happen till we get those.

[talais] 01/8/2022 07:20

I agree, we need more meat on the bone, come on board.

[vauch] 01/8/2022 07:18

Toilet message.
John Potter and team this is not the RNS we are expecting now from the company that we are told is so close to financial completion.
At this stage this is very disappointing.

[talais] 01/8/2022 07:06

RNS as expected.

[talais] 31/7/2022 20:36

If we don't get an RNS tomorrow I personally will see that as a positive. Gla

[damac] 31/7/2022 19:40

Ducky, I only really drink on special occasions, choosing a beverage that befits the event.

[ajj2003] 31/7/2022 19:39

Good things do happen the those that wait, just look at the Lionesses tonight ;)Well deserved and our time very soon ;)

[ducky fuzz] 31/7/2022 18:05

I still think the delay in funding is down to the potential funders wanting to see
the production well permits.

[ducky fuzz] 31/7/2022 18:03

Hi vauch .. I do think I'm right re delay rns tomorrow. I'm just being a realist.