Going to shed some light on a couple of articles that reference the same ongoing Supreme Court case in New York that I believe is very similar to how our story has unfolded in facing an impending TO bid at an undervalued valuation.
https://digit.fyi/fanduel-founders-and-former-employees-to-sue-over-rigged-deal/
https://www.google.com/amp/s/www.legalsportsreport.com/38437/fanduel-founders-sue-in-ny-court/amp/
I can accept rough macro/ geo political environments, probably the toughest the LNG Industry has ever faced, playing its role in our misfortune. All US developers are hurting as evidenced by Tellurian’s big staff cuts and failure to conclude its 5mt MOU with India’s Petronet... simply no urgency for buyers to lock in long term contracts until flood of supply dries up and spot pricing flies again (over next year or 2). However, LNG LTD’s managerial skills have been poor, we’ve been deceived, possibly dodgy dealings behind closed doors, while the Company has certainly not acted in the best interests of shareholders to maximise share value! Unacceptable!
FANDUEL’s CEO, Board of Directors and wealthy private equity investors are being sued (by founders, early investors, 100 former employees) and accused of colluding to undervalue the company by billions ahead of its merger with Paddy Power Betfair. I feel our CEO/ Board could be deliberately undervaluing the company (for their own financial gains in the future) and if Baupost approves this TO bid, it’s safe to ascertain collusion is involved with all in bed with LNG9!
AndyB, Vasso you are indeed correct with your concerns about Company misappropriation of capital! I’ve been combing through past reports and their figures certainly don’t appear to balance and I mean off by a long, long way. Books needs to be investigated!
I’ve found no evidence that we ever filed with the SEC despite personally being informed and reading announcements insinuating the process had already begun. I’ve unearthed filings from Cheniere, Next Decade, Tellurian etc on the US SEC Government website but not LNG LTD. “ I may be wrong “ but if another holder could cross check and verify for me, that would be great.
Would like to share my latest mail to MH which addresses my concerns.
Micah,
Would like explanations for the following questions;
1. How did the company come to value our assets, approvals etc at US $.13? Has independent valuations been carried out?
2. I have been unable to locate any filings with SEC referencing our intent to redomicile. Would like confirmation/ receipt of the filing?
3. Why was Bear Head overlooked and not put up for sale? We acquired the land for USD $11m on the 27th Aug 2014 (equivalent to approx AUD $16.6m today), I’m sure the site would of gone up in value since then while the proceeds from the sale would of kept us fueled for another couple of Quarters at least! In turn we could of immediately gone to work on raising additional capital and maintained our focus on Magnolia. We sold Fisherman’s Landing so why is this scenario any different?
4. Now wish to address a matter in respect to seemingly missing capital that needs to be accounted for. Our past debt free, cash positions at specific times dating back to 2014 reads as follows;
Oct 31 2014 - $60.4m
Dec 31 2014 - $53.2m
Feb 28 2015 - $47m
Mar 31 2015 - $41.2m
Jun 30 2015 - $47m
Oct 31 2015 - $149m
Jan 1 2016 - $114m
Mar 31 2016 - $85.8m
Jun 30 2016 - $71.4m
Sept 30 2016 - $61.7m
On May 20th 2015 the company raised $174m... If you add that amount to the $47m balance as at Jun 30 = Approx $221. So between June 30 2015 and Oct 31 2015,
$72m was spent (in 4 months)... please explain the break down of how that capital was dispersed?
5. What’s Baupost’s stance on the TO? Is there any opportunity for counter bids against another company/ companies? Likelihood?
Our US listing timeline debacle;
On the 4th of March 2015, the Company first announced its intentions to list on a US stock exchange, “ the Company is pleased to announce that the LNGL Board has reviewed options submitted by five investment banks and advises that LNGL will likely list on an appropriate US exchange near the time of commencement of full construction of the Magnolia LNG project, resulting in a dual listing with its existing shares on the ASX. The Company’s American Depositary Receipts (ADRs) are already traded on the OTC International platform in the United States (US) under the symbol LNGLY, and a dual listing is the logical next step.
At the end of 2015 our company had $114m in the bank! yet no concrete decision made by years end to begin filing process with US SEC.
July 13th 2017 Investor conference call... Key points stated by GV;
- Board has given approval to evaluate moving to a US stock exchange.
- If all goes well and we do approve it, I think that timing would be right around the time of AGM in Nov, subject to regulatory timing in the US and Australia.
- will not cost us a lot of money.
- the redomicile will be,
“ a little longer than overnight but a pretty quick transfer from one market to the other.
- so in discussing this with the board and key constituents, it made a lot of sense to evaluate.
- we’ve talked to a few firms that have done it successfully.
In the Sept 2017 Quarterly Highlights,
“ A decision was made to suspend the Company’s U.S. redomiciling and listing efforts to a time when maximum value can be achieved for shareholders. “ Would of thought GV that listing in the US would of achieved just that?! In addition to this statement...
“ LNGL’s Board remains fully committed to redomiciling the Company to the U.S., but at the same time, recognizes the utmost importance of maintaining the focus on offtake and strengthening the Company’s cash position with a goal of increased liquidity. In addition, the completion of regulatory requirements associated with the redomiciling was taking longer than expected leading to an extended project timeline. “
When these
“ contradictory/ contrasting “ statements were released, our cash position was at $38.2m by close of Sept.
On May 22nd 2019 during an investor conference call, Tim asked GV, “ wouldn’t it be beneficial to redomicile to the US and maximise shareholder value? “ In which case GVs word for word response was, “ the US listing is always on the boards agenda. In fact, we have a board meeting this week and I’m sure we will discuss it there, can’t say more than that. I guess what I would like to do is ask you a question, do you think the vast majority of Australian shareholders feel like it’s a good idea to move to the US? “ Could not believe a CEO who we look to for guidance, direction and answers would ask a shareholder what his thoughts were! Share price was .37c!
July 22nd 2019 - “
The Board of Directors believes listing on the NASDAQ may deliver significant benefits for the Company’s shareholders (100% correct - a sudden epiphany over a 4-5yr evaluation to come to that conclusion?!) including: “
• Aligning with LNGL’s current 100% North American LNG project development and operational management focus;
• Attracting and increasing awareness of LNGL with North American investors who are familiar with the LNG industry and have significant capital to deploy to such assets;
• Improving valuation and better trading liquidity given the current valuations for LNGL’s peers, all of which are U.S. listed LNG companies;
• Increasing the attractiveness of LNGL to potential pfuture business partners;
• Enabling demand from investors who are not able to invest in equities listed outside of the U.S.; and
• Retaining and attracting outstanding talent.
Your words to me on the 21st Nov 2019, “ One of the reasons we are redomiciling is
to access a larger group of investors in the US that have a history of investing in LNG! “ 100% correct again, it took rocket science over 4-5yrs to figure that one out! Also on Sept 6 2019 MH says, “ Redomiciling has not been approved by shareholders. Once that happens, I think the time between de-listing on the ASX and re-listing on the NASDAQ will be quite short, days if not a weekend.
When did shareholders ever get the opportunity to vote on such a vitally important move??
All the bullet points above were blaringly obvious back in 2016, 2017, 2018, yet CEO/ Board did absolutely nothing, remained silent, kept going about day to day business while keeping shareholders in the dark and engaged in believing in the wonderful shovel ready, de-risked story we had been sold while delivering insignificant returns to their loyal supporters! Inexcusable. Management knew a US listing would unlock and maximise share value yet chose to take no action! Why remains the mystery.....
When LNG LTD announced its decision to finally list in the US on July 22 2019, this decision was made at a position when our capital was at its lowest point since March 2014 with our cash position at $15m! We closed June 2018 with $21.8m in cash with roughly 3 Quarters left till our liquidity runs dry. The truth is, you and I both know our Company never had intentions to transfer over to US at that stage of the game and when Mr Mott remarked that the Company was confident in raising additional capital at the AGM in Nov..... this was not true, in fact deceiving!
Would like answers please Micah, the truth. Shareholders have the right to know!
Cheers.
Jordan.
It’s strange because when the TO BID announcement was released, I had a crack at GV/ Board through correspondence with MH and although he has conspicuously sidestepped/ avoided answering important, straight forward questions I’ve posed since (questions 1- 4 holders have the right knowing answers to), he’s surprisingly still responding while trying to remain professional. I feel he is on the defensive, if his team were innocent what’s their to hide??
We must stand our ground, I do not wish to let this mob get away with daylight robbery! Would like to gather thoughts from long term investors like Timbo, MrWalker, Possum, including any shareholders who are not only supportive behind rejecting this insulting initial TO bid price but should we not receive a meaningful, true, acceptable valuation of our company or the TO fails to materialise, happy assessing possible action holding CEO/ Board accountable. Exploring the possibilities should be happening now - please reach out to me at
[email protected]
Once we happily say goodbye to LNG LTD for life,
I’m keeping a very close eye on Tellurian! Having crashed from a yearly high of USD $8.69 on Jan 13 20’ to a low of $.87c on March 9, I believe this presents a great opportunity to jump back on the LNG bandwagon & begin to recoup those rough losses, if you got the guts!
Represented by a true world class team in Chairman Charif Souki, the founder of Cheniere and pioneer of US liquefaction exporting. Vice Chairman Martin Houston - former COO & member of the board for BG over 32yrs. He got approached to be CEO in 2012, turning it down, before BG got taken over by Shell on Feb 15 2016 in an acquisition worth USD $70B! BG had a major LNG business and was the largest supplier of LNG to the US. CEO Meg Gentle is a sharp, smart woman with a real fiesty, edge about her!
The Company has already attracted Oil & Gas major Total, in which it’s subsidiaries Total Delaware and Total Gas & Power Nth America already entered into definitive agreements for the purchase of 1mt and for Total to invest $500m. In addition, Total has entered into a SPA to lift a further 1.5mt from their offtake volumes. Tellurian is also working hard to finalise a 2.5b investment allowing Petronet, India’s premier infrastructure company & leading LNG importer, to lift 5mt over 40yrs. Tellurian only needs 12mt of the proposed 27.5mt to reach FID... if this 5mt MOU turns into a SPA, that’s 7.5mt banked with relative certainty IMO to reel in the remaining required buyers. This team means business!!
Let’s keep persevering!
Best.
JK.
