Worthington Group Forum

One does not have to look Forward to the Frankfurt listing, as they already were listed last week under the Symbol 095. By the way on Friday was not trading in Frankfurt they had reunificatin

Taking this from the financials: In addition warrants to subscribe for 35,090,378 ordinary shares at a price of 5p each are outstanding at 31 March 2014. These warrants are exercisable between 6 August 2017 and 6 September 2018 subject to shareholder approval of a share capital re-organisation. This would mean, that within 3 years the present O/S would be diluted by 184 % because somebody is sitting on Warrants at a price of 0.05 which is equivalent to £ 1’754’518.—However at present the intrinsic value of those Warrants is roughly 35 Mio. And then there is another one, smaller but as well heavy: As at 31 March 2014 options were outstanding in respect of a total of 3,935,671 new ordinary 10p shares exercisable at a price of 11p. These options are exercisable until 30 August 2018. This would mean, that for the execution of those options roughly 433.000 £ will be paid versus an intrinsic value of today of £ 4.7 Mio. So, when the company during the restructuring cycle saw the value, why then such Warrants? Taking the 35 Mio Warrants and 3.9 Mio Warrants we are talking about a coming dilution within 3 years of 39 Mio shares or 205 % dilution. When doing the mathematics it is always wise to read the balance sheet. Now you can come and say, yes but this will only happen in 2017/2018 then I have to tell you, it doesn’t matter because those Warrants at £ 0.05 and £ 0.11 are in the books. So it matters when you talk about valuation. 19 Mio shs. times 1.30 = 24.7 Mio Capitalisation 57.9 Mio shs times 1.30 = 75 Mio Capitalisation Rather a big difference, isnt’it?

LET'S DO A BREAKDOWN BASED ON THE BALANCE-SHEET

News Coming: They are already in Frankfurt as secondary listed

Buying versus Selling Power: Friday showed a buying power of 811.000 Shares versus sellingpower of 640.000 Shares. Roughly 762.000 were so-called ping pont trades. What does it mean all: If a stock with a stronger buying power is collapsing then it is obvious that the so-called up-tick trades took overhand. Besides Stop-losses - shorting with up ticks.

The best what could happen for WRN to settle around £ 1.-- and then consolidate up to the day when a lot of things are becoming clearer. Otherwise the stock will come under attack again and those doing it are the Boys playing in another league. Just mark my words.

This board is strange. When somebody Comes out which doesn't fit the positive thinking a treat Comes out the he or she could be reported. Reporting is one Thing but then in Forums everybody is allowed to issue his or her free opinion. Being criticial does not mean a basher and being only bullish does not mean one is pumper. Having said this: If People all over hurra because of the CBS announcment, then they certainly did not do their homework. This deal of £ 12.5 Mio has Zero Value and it will have Zero Value as Long as CBS or WRN if merged, cannot come up with the 60 Mio plus Money. Because if it cannot be financed, CBS is worthless. I just recommend to read everything in connex with CBS. Conclusion: It can become bullish if and when either CBS or WRN can line up those funds - not before.

REF.FINANCING. There is only one solution to it. WRN is doing the financing for CBS but then they will have and get 100 % control. If this happens, then WRN will create value through revenues from the Oil and Gas sales and of course from the value of the underlying proven reserves. In short: It is WRN who will have to raise all those Millions in the years ahead and if I Interpret the presentation from CBS right, then we are talking about 30 Mio in the first 3 years and another 38 Mio shortly after those 3 years. A lot of Money, if you ask.

REF. FINANCING: On Friday, the stock took a beating and rightly so. Why: The announcment does not make sense. For their stake they must pay £ 12.5 Mio, however CBS has no Money and if CBS has no Money they cannot execute their business-plan and if they cannot execute their Business plan, they will lose the concessions and so on and so on. Further the Statement says, that CBS would get listed in 2015. How they want to get listed if they have no Money and as I said, if they have no Money, then the stake from WRN is worthless.

RE: Frankfurt Listing. On Friday was a Holiday in Germany - Reunification