#New world silly buggers…..

So NEW has issued the RNS that they dreaded, The Williams now hold over 30% of the company and its settled in the crest account.




RNS “On 8 May 2015, the Company received a communication from Jon Rhodri Williams, Christopher Williams and Judith Mary Williams (the "Parties") purporting to be a letter of requisition, and claiming an aggregate holding of 342,328,669 ordinary shares in the Company.…the Company is treating the Parties' requisition as invalid as the Parties have failed to satisfy the criteria of either article 89”



And then we have…todays holding RNS which states that the Williams really did have 342m shares and now had 250m…..



This seems strange either they had the shares as a holding before or they didn’t. My understanding is that they didn’t have them settled and that the 250m are settled now and the rest will settle by end of play today….RNS tomorrow then. No shares have been sold by the Williams its purely a very disingenuous and misleading, not to mention false way of reporting by the company. We don’t really expect much more from them though.



The NEW BOD knows this means an end to their existence, the only question is when and whether they go out with an ounce of grace and decency.

The blocking vote at the meeting means that the placement will NOT now happen, it really is inconceivable that the BOD will get 300m yes votes…
An EGM can now be called under Jersey Law in June to have a vote of no confidence in the BOD and to sack the lot of them…


The question is really around what happens now.

Well we have two scenario’s.



Scenario 1 is that the BOD follow through with their open offer, given that Chris would have to be stupid not to take shares at 0.05p he will certainly take up his allocation IMHO. Many of the other holders will also take their allocation leaving, if they are lucky 800m to 1bn shares for Cornhill. Will this be enough to cover all the forward sold shares from the now not to happen placing? I doubt it.




Scenario 2 is that the BOD don’t attempt the open offer, they submit to the overwhelming view of shareholders and raise the funds at a much higher price with far less dilution.  Major share squeeze occurs and the SP rises well above 1p.

There isn’t really much else that can happen, yes we might have an offer the company, yes due to a vastly incorrect share register the court might decide that no vote can be taken immediately.




However, under no circumstances, can those that forward sold their shares, close all of their shorts on time.




The rise will happen...Thanks flip floppers...