Evolution Evolution
Update
The company is about to move into its next and most likely the last evolutionary stage. It appears to be on the homeward stretch where decisions have to be made about what to do with the Kilimanjaro-sized mountain of cash.
Over the years, the company has experienced some trying times working in a business environment where the ground always seems to be shifting. Perpetual delays, late payment or no payment, squabbling over minutia, changes of the rules and attempts to change the wording of the gas sales agreement or production sales agreement are a major concern.
The company has learned to keep a low profile whilst still getting the job done. It has even changed its name to an Energy company so as not to offend.
What this recent seismic shift at the board level tells us is that the voice of the majority is being heard. We witnessed a silent vote of non confidence with the last Substantial Issuer Bid where 18 733 386 shares voted to depart and 60% of those shares are still here.
The following realities have set in
- the company may not receive regulatory approval for a sale
- the company may not receive a license extension
- shareholders want nothing to do with the acquisition of a risk
- shareholders want direct access to their own money
- institutional investors are fearful of illiquid trading stocks
- the Lyons Trust wants direct access to their own money
- shareholders need an " exit " made available to them.
This last evolutionary denouement stage may have to involve another " Substantial Issuer Bid" and /or a significant increase in the dividend payment.
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