Yes we do have a choice and that is to vote know. Basically if S/H allow this deal to go through, then you can kiss your shares good buy, and any voice in the company that you still have. The response to save KEY have been great however we want as many S/H to exercise there right to say NO to this dodgy deal.
Below are a few key points in the event that anyone out there thinks this is a favourable deal for KEY & its S/H:
- S/H will be diluted 4:1 ? KEY currently has 216,047,707 million shares, after the Zeta deal KEY will have 973,661,357
- KEY is essentially paying $30m for Zeta Petroleum ? a company with 3 assets in Romania (Bobocu 100% WI but has a farm-in interest of around 50% from COE- Jimbolia 50% WI ? Padureni 12.5% WI ? the star in this very ordinary stable is Bobocu which has gas reserves up to 58Bcf only!
- KEY board sold 15% of the 2 Trillion Bcf Nyuni project to Aminex for $3m ? (15% of 2 trillion Bcf is 300b Bcf ? so why would KEY off load it for $3m & pay 10 x that amount for Zeta Petroleum which only has 54Bcf!
- If this private company Zeta Petroleum has such great assets & looks like a good deal ? why wouldn?t Cooper Energy who has $90m + in the bank & already has a 17.1% stake in Zeta buy them out?
- Zetas balance sheet looks to be holding around 2 million pounds of debt
- KEY will still not have any cash in the bank after this deal ? so the options moving forward to develop the remainder of its core assets is liquidation or another capital raising
- KEY directors didn?t take up rights last capital raising ? doesn?t give you a great degree of comfort of what they think of the future of the company
Two capital raisings to drill Lindsey however this still hasn?t happened
- Currently we have 4 directors ? after the Zeta deal KEY will have a total of 5 directors (3 Zeta & 2 KEY) ? If this is a KEY acquisition why are we giving up control and why is the most experienced oilman (Ken Russell) moving on? Surely if this was an exciting deal Ken would stick around and take up to a $100m+ market cap company
Of course the above mentioned is the tip of the iceberg and we could all go on and on. I am sure that you are all disgusted in the manner in which the KEY board have treated its S/H with absolute contempt, whilst paying Ken $300k+ per year.
If you haven?t already sent through an email with your details and holders please do so to the following - [email protected]
This isn?t over by a long shot and if you are wandering what that noise is, it isn?t the fat lady singing, just Ken and the board squealing like greedy pigs that the farmers are coming to reclaim their hard earned bacon!
KEY Price at posting:
2.9¢ Sentiment: Hold Disclosure: Held
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