Whilst it is understandable that investors are annoyed, concerned and disappointed at the share performance it amazes me how certain bloggers on this site spend all their time and effort talking down their share price. If I owned a house and wished to sell it would I keep telling everybody what a dump it is. So I believe that many bloggers here have the intention of driving this share price down. I too am unhappy with Share price but am hoping for some good news and can only believe TORs recent comments that he expects to be able to open up to Market on deal terms in a couple of weeks or a month. I agree with Lerrab that Providence have some great assets and hopefully within the difficult climate can get the ball rolling. We shall know shortly. So lets try and be positive
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
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
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
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
Hello Phonner. Believe your explanation is correct. Brokers get a whole load of money on deposit for a couple of weeks and earn interest. Total number of shares after placement and rights ussue will be 65m + 65m + 14.4m i.e aprox 145m shares
Hello Sharemate. You are correct that share dillution unfair but the best way to deal with it is to purchase shares in rights issue, apply for excess allotment and purchase additional shares in open market so as not to suffer dilution. This is what I have done to protect against dillution. Whether it is a good idea or not we shall see.
Believe the 20 shares is only applicable to the number of shares left over after 14.4m offered in 1:4.4 rights issue. However the documentation sent by Brokers is very confusing I aggree
Presently circa 65m. Approx 55M with Large Investors and 10M with retail. Following Placement 1:1 i.e. 65m New Shares an additional 10M Shares will be available to Large Investors i.e. 65m-55m =10M. Then we have Rights issue 1:4.4 = 14.4 M shares. So If Sequa/Spainda is farminee and has been buying in the market prior to Placement Announcement we could see Sapinda/Sequa (if the farminee) take lets say 15% of the shares in Providence. Expect a deal announcement the week following Rights issue