no posts, page-43

re: shore shoring up! Hi jfc,

The calculation does indeed appear correct, but the notice is clear in demonstrating 3 categories of interest:
1)
restricted shares;
2)
ordinary shares (ie: without restriction); and
3)
options.

Running a line through the AR02, Peter Shore held 578,000 shares under the Loan Share Plan. Today's Disclosure announcement lists these shares in the same column as the "Restricted Ordinary Shares".

On this basis, I would lean to Peter Shore having bought 230,000 shares under the Loan Share Plan which means the UEC (as the share custodian) actually bought the shares, rather than Peter himself. Of course, Peter has a prospective liability back to UEC (ie: to pay for the shares in due course), but in the mean time, he actually has no real risk liability.

My reasoning on this:
1)
the Loan Share Plan is an interest free plan to eligible employees /Directors (AR02, page 8);
2)
the Loan Share Plan is a non-recourse loan facility (AR02, page 8) - presumably to the individual; and
3)
included as a Receivable in non-current assets is an amount of $1.119m (previously, $1.633m).

Why is 3) of any interest to us?

Because of the information included at Note 9 to the Accounts.

Accordicng to Note 9, all of the $1.119m is accounted for by the Loan Share Plan, except that this actually invovles a written down amount.

According to Note 9, the Loan Share Plan is structured on the following basis:
1)
other receivables - loan share plan = $3.485m;
2)
less - provision for doubtful and other receivables = $2.366m;
3)
equals - net amount receivable under the loan share plan = $1.119m.

On this basis, it is UEC that appears to be taking the risk with the 230,000 shares bought @29.74c. Not Peter Shore.

If Peter Shore was actually confident in the future uptake of UEC, then presumably:
1)
he would have bought with his own money (ie: without restrictions);
2)
he would have risked his own money (instead of all the risk being borne by UEC); and
3)
the Loan Share Plan would not be structured on an interest free, non-recourse basis where all of the downside remains with UEC, rather than with the individual).