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RMP ENERGY INC T.RMP

"Iron Bridge Resources Inc, formerly RMP Energy Inc is a crude oil and natural gas company engaged in the exploration for, development and production of natural gas, crude oil and natural gas liquids in Western Canada."


TSX:RMP - Post by User

Comment by Seppelton Jan 16, 2017 8:35pm
252 Views
Post# 25715351

RE:He was forced out

RE:He was forced outI am not sure he was forced out, Mustang. But if that's the case, why not to force the chairman and the entire board to retire as well.

This is a tightly knit team without major additions to the board since 2011. I doubt, a new board member can stir up things that easy. The rest of the gang, including the Chairman and CEO, could argue that 7.5% doesn't buy you a business, make an offer if you want to rule. Besides, Josh accepted 60,000 options for the privilege.
 
Unlike it's many peers in the Montney, this Board has failed to issue equity in early 2015. Then again in mid 2016 the Board was caught sleeping by bankers and failed to raise a small amount to get off the hook. Six board members making about $100K each (fees and share rewards) couldn't arrange and back up a small offering (~$15-$20 mm) to tackle a $105 mm draw vs $100 mm line issue. Instead, they opted for strategic alternatives and ended up rush selling their most advanced property for a very low price according to the Market (shares collapsed shortly after the sale).
And if not enough, the board rewarded the CEO and themselves with very generous options. 
 
There is also lack of open communication, leaving shareholders wondering how the company will finance $45 mm capex, whereand how many wells will be drilled and how many brought to production in Q1.
 
Again, I am not sure what is the exact cause of CEO suddenly retiring. As many other things, this co is a mystery and far from being shareholder friendly.
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