NEW, Will the Nomad perform it’s legal duty?

NEW, Will the Nomad perform it’s legal duty?

Another week, another monumental cock up by the NEW board of directors.

It’s difficult to believe how badly they are actually getting things.

The latest RNS confirms that at the EGM investors were mislead about the BOD’s pay and loan arrangements.

Despite swearing blind that they would issue an open offer, underwritten to the tune of £1.5 by Cornhill at .05p a share. They have announced an open offer at .09p a share to raise £3.5m.

Also apparently they have to raise £3.5m to prevent the company from going under, despite being happy with £1.5m only 2 months ago.

They seem happy to pay £750k to Cornhill, despite the fact that its Cornhill who needs the shares, due to their own scheming and greed.

On top of all this, the BOD themselves don’t want to/haven’t got the confidence to buy shares in the open offer….

But the above is only the backdrop for the real story.

Will Beaumont Cornish actually perform its duty? 

Let’s be clear about this, the duty of a Nomad is to ensure that the company meets its requirements to the London Stock Exchange.

New World Oil and Gas are clearly stating in an RNS that only registered holders of shares (750m of them)  can take part in the open offer.

The London Stock Exchange are equally clear, ALL holders of NEW shares, whether settled or unsettled have full rights and can take part in the open offer(common guidance is at least 2000m of these shares).

Brokers are equally unclear. There is one broker who says that unsettled shares can take part in the open offer. One broker who says that they can’t and more alarmingly one broker, whom I have x million shares with who can’t tell me either way and can’t tell me whether the shares are settled or not, because they can’t reconcile their own internal share situation……

The Nomad MUST act.

They have a legal, licensed duty to ensure that NEW comply with the guidelines and rules of the London Stock Exchange and the Board of Directors are NOT.

I will certainly be ringing the Nomad on Monday and writing to them(for evidence) to ensure that the NEW open offer does not go ahead in its present form.

On a brighter note. The LSE statement that unsettled shares should have all the rights attached to settled shares, must surely mean that a 10% holding of unsettled shares should be sufficient to hold an EGM?

The Board of Directors will be hiding behind Jersey Law, but my understanding is that London Stock Exchange Rules trumps this and hopefully the BOD can be kicked out to do a job they are capable of….(I’ll leave any suggestions for this to readers).