TXO Forum

bother, another bust ex AIM company

Hi all, sorry for sounding a bit simple but I purchased 1,020,400 of these shares last week costing me around £500.00. On the basis of the changes to the company how many shares will I have now and what price do we need to reopen at for me to break even ?

Trapped as you say with a tiny holding agreed. Nothing anyone says now makes a blind bit of difference, so why the bearish amongst us continue to be rude and arrogant is beyond me. Everyone is entitled to their own viewpoint.

For the record I have a small holding in TXO. Whilst it is fairly insignificant I would prefer not to lose it, and have outlined why I think I won't.

Note: OTR have received an offer of 300,000 Euros for a stake of just 3% of OTR, and I have assumed in my last post that TXO could sell 5% of OTR (from the 30% they now hold) for the same 300k Euro price.

Looking now at Assets (gross assets to be more precise), I have attributed the following fairly modest approximate values, based on TXO accounts, RNS statements and the more recent GBG charge secured on around 13% of GBG. I arrive at a 'gross' asset value total of £3.8m by adding the GBG stake (35.7%) worth c.£1.5m, to the ORS stake (25%) worth c. £0.3m, to the OTR stake (30%) worth £1.45m, to the TOG stake (19%) worth a nominal £0.1m, to ATHABASCA stake (19%) worth an estimated £0.3m. The total comes to £3.7m, which ties in fairly closely with the £3.4m figure shown in the last accounts. The positive thing which emerges is the substantially better NAV created as a result of the reduction in the CLN debt which now stands at just £509k. These CLNs are due for repayment in October 2015. As a result, I estimate the NAV at £3.2m which is far higher than the closing market cap. at suspension. Accordingly I don't expect them to have any problem raising £0.5m cash for working capital in a reconstruction. This combined with any cash received from selling the ORS stake and a bit of OTR would give them around £1m to return to market with and barely dilute shareholders at all.

Looking at the 21/01 Financing Update RNS the total o/s unsecured CLNs as of today appear to total a fairly modest £509k. I have not counted the Oct.2016 CLN = £500k as this is fully secured by a charge on GBG shares equivalent to 13% of GBG. It is inconceivable that the holder of this £500k note would swap the note for TXO shares anytime soon. If I held the note I would never convert, preferring instead to sell the GBG state to recover the 'loan'. Accordingly it won't become an issue or debt for TXO for a long time if ever. It is, however, unacceptable that TXO shareholders have not been given a corresponding Note or similar by GBG verifying the debt owed to TXO for the issue of the Oct.2016 Loan Note. It is a strange 3 Way deal, but as it stands GBG owe TXO £500k in respect of the money they drew down directly from the CLN Facility.

First let it be clear: nothing said on these boards really matters now the company is suspended. However, despite everyone slamming Baldwin as a liar and rogue it should be noted that if discovered to be it would mark the end as his career of a Company Director. Accordingly it would be a very dangerous career move to fabricate the contents of RNSs which are run past and checked by a Nomad for accuracy. The Nomad would want to see verification of all statements made. Accordingly it is very likely true that all these Investee Companies exist and suggesting they don't is utter nonsense. They have probably had $400k offered for their ORS stake and if still on the table will now have to accept it. Similarly, based on an offer OTR have received for 3% of the company, TXO may be able to sell up to a third of their 30% stake in OTR for circa £600k. That would go a long way to resolving their immediate funding issues, and securing the proceeds has been interrupted in untimely fashion by the resignation of the Nomad. This has obviously prompted them to consider their position more generally hence the reconstruction proposition. CLN holders will not be happy to hold notes in an unlisted entity and will want some acceptable resolution within the next month. I can't imagine them having a big problem finding a new Nomad although four weeks due diligence is required, making the 1 months notice given by Northland an impossible time frame. There had apparently been ongoing issues between Northland and TXO which culminated (presumably) in the RNSs of 21/01 being the final straw. A couple of fairly minor issues was enough, it seems, to enrage Northland enough to resign prior to the issue of corrections on 23/01. Obviously TXO did not fully appreciate the critical importance of the Nomad and paid the ultimate price for their arrogance in this respect. That said TXO could be a very lucrative contract, fees wise, for a new Nomad, especially when one considers the prospect of Athabasca being brought to IPO later this year.

cannot sell or buy any

nice tick up - loads of 1 and 2 trades - news imminent?