Reach actually triggered PN17 based on 31.12.22 QR which was released on 28.2.23 but didn't announce it until 3.4.23. On 29.3.23 debt conversion into 1 billion shares is already the first step to rectify the PN17 situation.
This HK controlling shareholder is actually interested in the 60% Kazakhstan subsidiary owned by Reach where he already holds the remaining 40%. Now he controls 100% of the Kazakhstan subsidiary.
Reach being in the red since inception, any promise of turn around depends on the any major potential oil find or efficiency in Kazakhstan contracted area. So far can't see any . It has not been making money since 2014, even at 2018 when oil price slightly recovered. This business are based on other peoples money to keep going. Good gamble?
@TheContrarian that makes me wonder... why so hard? its not deep sea right? on land some more.. should be easy??? Can you share me your thoughts on this?
I think new management know very well that REACH would be faced PN17. They together with earlier management could request extension of time to announce it. Their priority first is to complete new issuance of share at the price of 20C.
They knew the share price would drop and they are about to work together with syndicates to buy more at the very low low price. If today still hit and closed at 5.5c like yesterday then the price could go back high at 7C. Just look n c.
Emir Oil , Kazachztan oil field cannot break even for the last 10 years , the debt conversion is due to the fact that interest rate still has room to rise . To think that opec cuts is positive is wishful thinking. Short term shock results in the oil price increase, long them fact is the OPEC+ inventory is seeing a 10% increase since FEB. Meaning demand is not as high as expected. China is demand might be increasing but it has its own stock pile reserves and it chooses to get it from Russia mainly at a lower price. Remember to Reach , oil is not making money yet but equity share holders money is easier to accumulate. Some one needs to look at its breakeven potential and their PN17 recovery reports. Until then gamblers know when to walk away or to run. Good luck
Oil price is bullish, but Reach is not able to deliver goo QR report for the past one year when oil price at 70 to 110 usd. some company boss do value creation, company make good profit, share price up up up . Then got some evil company do value desstruction....share price down down, comp cant generate cash flow and profit. only good in screwing minority share holder. Lousy management. Mark my words la, PP till total share 6 B then 20 to 1 share consolidation.
This came after the listing of 1.03 billion shares in Reach Energy slated for SRL at 20 sen apiece, as part of the company’s debt settlement exercise to settle RM206.51 million or 76% of the debt it owes to SRL.
In a statement, Reach Energy noted that it completed the exemption of SRL and Cheung Siu Fai — SRL's sole director and owner — from their obligation to undertake a mandatory takeover offer for the company’s remaining shares.
“The completion of the proposed debt settlement also marked SRL’s entry into a shareholder loan facility agreement to make available a shareholder loan facility of up to US$5 million or RM22.87 million to the company,” it said, adding that 89.07% or RM20.37 million will be used for working capital.
Many continues to rant KLSE never protects investors, already put it to PN17 still hot, gamblers will be gamblers, some win some will loose. You make a choice going from 0.05 to 0.07 or 0.05 to 0.03?
Sources say several suitors are keen to explore the prospect of taking over the concession, which was valued at close to USD300 Million in 2016. The concession, called the Emir-Oil LLP,spans six oilfields in an area of 847 sq kilometers.
" The suitors are keen on the asset and aware that more money had to be ploughed in to enhance production. But they feel that oil price will be able to sustain at above USD 70 per barrel and the Reach Energy concession has a low production cost," Says a source.
" Moreover, the current controlling shareholders of the concession, who also control Reach Energy, want to exit the exploration and production of the O & G business. They used to own and operate the oilfield until Reach Energy`s previous shareholders acquired a 60 % stake in the concession in 2016."
According to sources, the company has since recapitalized following the conversion of the debt owning to MIEH via the issuance of new shares.
"Reach Energy slipped into PN17 status based on the unaudited results for the period ended December 2022. The debt-to-equity exercise was only completed in March this year," says a source.
If the sale of the Emir-Oil concession materialises, Reach Energy will be a cash company with no assets. However, the amount of cash in the company from the sale of the Kazakstan asset will be far from the 75 sen per share that early investors paid when it was listed as a SPAC.
The above statement by the sources is based on the assumption, that the concession, which was valued at close to USD300 Million in 2016. But now already 2023 and the oil price at USD 80 - 86 per barrel. You can now imagined the asset value in 2023.
That is why Super Racer Ltd (SRL) willing to take up 1.03 billion new shares at an issue price of 20 sen apiece as they know there is an interested buyer already for the kazakstan asset and upon completion of the asset sale, they can generate cash value more than 75 sen per share.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 2904 views | 2 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
billionman
828 posts
Posted by billionman > 2023-04-05 07:22 | Report Abuse
opportunities all are plan.to push price for somebody synd to amass.....hahahaaa