I must admit it looks very suss from a while back. WS left the board because of all the road blocks put in the way of drilling. They didn't consult when they did and in the emantime lost the Whicher contract because they didn't purchase the required equipment. No doubt Cygnet have another plan and the sell off of the gear will be to fund a purchase into another asset. I wonder what inspiration they will bring with the next one? It all looks a tad orchestrated. They also have done quite nicely with the extension on the CN's and also some cash and options thrown in for good measure.
Of course the shareholders are between a rock and a hard place because at todays shareprice Cygnet clients can convert another 100m shares and basically have around 60% of the company.
I think that there will possibly be legal challenge to the selling of the rig and drill equipment until after the rig ownership is sorted. I am pretty confident that a lot of the gear belongs to Strange Investments and therefore cannot be sold.
One thing is for certain. If a chance is given in the future to remove this board then that chance must be taken.
Interestingly is that the CLRS inventor was going to call an EGM a week or so back but was then given a big salary by the board not to. Games played behind the backs of shareholders once more. I guess people who invested in the CLRS technology are as frustrated and disappointed as those of us who invested in the GT3000 technology. The only ones making money out of this company are the board, management and select employees.
As frustrating as it is I still remain hopeful that this can be turned around.
CKK Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held
