GTT "came on board" as underwriters of the 1 for 1 rights issue middle of last year. That CR was very well supported by retail shareholders and with the underwriting from GTT $800K was raised. The then management [Hudson] saw fit to issue a supplementary placement to GTT for a further $300K [making it a total of 300 million shares issued to GTT Ventures]the need to do so was never satisfactorily explained. However ...SOC, as a result, was debt free and sufficiently cashed up.
What followed next was a complete travesty....
A series of price sensitive announcements followed in quick succession and SOC's share price began to rally ...on record volumes for this company.... except, when the share price rose from 0.002 [the issue price for the CR] to 0.004 it was GTT Ventures which sold into that rally. GTT Ventures holding of SOC dwindled to 5 million shares. It was admitted to me personally by Benjamin Amzalak and Simon Bird that this was the case ... and it was later confirmed when the register of SOC was examined. So... it was the actions of GTT Ventures which crushed the share price and returned SOC to the status of a completely unloved penny dreadful. What you say in your sentence is only partially true. A lot of damage had already been done to the company but not all the damage that could be done. GTT's actions continued the process of damaging the company.
Then, only a few months later... when GTT Ventures controlled 2 board seats .... SOC management put forward a set of resolutions which, if passed, would have allowed for a massive dilution of retail shareholders, who were excluded from the CR, and that dilution was at the same old price of 0.002 [as a maximum .. it possibly could have gone through even lower].... also the little matter of about 7% of the company was to be given away as free shares to everyone in the office except the tea lady. That share price was the direct result of GTT Ventures capitalizing on having been granted so many shares in the earlier rights issue. It is crystal clear from this bit of the history that with corporate supporters like GTT Ventures, SOC retail holders do not need enemies.
Your sentence regards drilling....
Current management has released only one announcement about drilling... that being the co-operative drilling grant with the NSW government to drill at Halls Peak. This grant was awarded to SOC long before GTT Ventures "came aboard". While they have had complete control of the SOC board ... several months already... not a peep out of them. No drill plans, no funding plans, no specific direction offered for the company. Even this current CR is devoid of concrete plans. I can only assume it is because they actually do not have any qualifications suitable for an exploration company and that is the explanation why they continue to be so mute about drilling and exploration.
Finally your opening sentence...
I think it is plain for all to see that they will need more than a bit of "advice over a cup of coffee" to run SOC as an exploration company.
So that is my opinion .... however I welcome your arguments which can prove I am incorrect in my assessment.
SOC Price at posting:
0.2¢ Sentiment: Hold Disclosure: Held
