Providence Resources Forum

It is a fine line. But what is wrong with a company buying shares in another company and in parallel investing own funds in a project with the same company. Insider trading I believe would be considered if domeone bought shares on the back of information eg A director, friend of Director. I may be wrong but I would say the former is ok but not great in front of public

Not sure about that one spuddy, is there not a conflict of interest between them participating in the deal and owning shares which will appreciate?

Morning Lerrab

Do not think it would be illegal for Farminee to buy shares in Providence. For Directors etc it would be. However in case that Farminee opted to buy shares they may use a front company or it could be officially part if deal

lf segua bought shares in pvr it will be seen as insider trading if the price goes up

Hello there Mmmmm. Think 20 times shareholding offer is only theoretical maximum. It only applies to excess shares not alloted of the 14.4m offered in the rights issue. A good way for stockbrokers to earn money by having investors deposit funds in advance of rights issue

Hello there Sharemate. I would say it is legal if agreed by majority of shareholders - which it will be i.e big institutional shareholders. Unfair but legal!!. Probably done as well to allow certain parties to become shareholders in Providence

Sorry but can someone please explain, if the institutional shares are over subscribed how can people buy 20x there original shareholding?

Hi Spuddy, do you think what pvr done is legal by not allowing public to participate and dilute there holdings

Preferred to buy extra shares than be dilluted. Think a deal is already done just waiting share placement and rights issue. Landsdowne might sell there 20 percent of Barryroe and may opt to get a drill on Amergin as part of deal. All this will benefit fastnet with licenses nearby. Strong buyer in Fastnet yesterday. Think fastnet will look to drill deep kinsale as well pnce rig confirmed. If Sequa/sapinda taking shsres in Providence believe the farm in terms will be quite ok. If we get cash to allow us move on with Spanish Point then things could really start to move
Good Luck to All

Hi Spuddy and I think you have the number of shares that will be in issue after the placement spot on. It really is a massive dilution of the small shareholder and places the institutional investors as the main stack holders of the company, just as the farmout is to announced. As you say the only way to protect yourself is to buy the same number of shares that you already have, which you may still be able to do, as not everyone will take up the offer. I suppose the only up side from a small shareholders point of view is that the institutional investor will bring more stability to the share price, but you are really left feeling that the big boys have being allowed into the game just as it is about to start, and in one way I hope that is right, as at least we will get some benefit from it, but of course only half of what we should be getting.