SPP Ambiguity requires urgent clarification by FAR Management, page-4

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Sojourner

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13/01/20

00:13

Post #: 42343687
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Originally posted by Dodgey72 ↑

I am a long termshareholder of FAR (since Sep 2007) and first time poster on HC, having watchedfrom the sideline for years.

I am unwilling toparticipate in the SPP unless FAR Management urgently clarify discrepancies intheir announcements to the ASX in December.

Announcement 1: 12 Dec 2019 - Equity raising tocomplete FAR's funding plan for Sangomar

"The shares issued under the Placement areconditional upon gaining shareholder approval at a General
Meeting to be held on or around 16 January 2020 and on the receipt ofa credit approved Term Sheet
for anunderwritten US$350 million senior debt facility by 31 December 2019."

Announcement 2: 24 Dec 2019 - Sangomar FieldDevelopment, FID and Financing Update

"FAR is pursuing a senior secured Reserve BasedLending (RBL) facility from a number of financial
institutions including, as previously announced,Macquarie Bank. Negotiations are continuing and the
Company is pleased with the material progressthat has been made in the past weeks, including
agreement on aninitial facility limit of US$300 millionand a long-form term sheet."

Questions I want clarified by FAR Management toconsider participation in the SPP:

Please explain the US$50M discrepancy in the announcement on 12 Dec (US$350M) to 24 Dec (US$300M).

Was a credit approved Term Sheet received by 31 December 2019, and if so, for how much?

If the credit approved term sheet was NOT received by 31 Dec, have the funds from the A$146M 'conditional' placement been lost due to a breach of the conditions? I see 2 potential breaches:

the date of 31 Dec not being met;

the amount of US$350 not met as US$50M short.

I have invested aconsiderable amount of my 'hard earned' over the past 12 years. I do not likethe taste of this material dilution, yet I cannot justify chipping in moremoney until these fundamental questions are answered. The risk profile is FARtoo high with this ambiguity.

Management need tomake an announcement before the SPP closes IMO, otherwise shareholders have notbeen provided adequate information to make a informed decision.

I do wonder whatdisclosure obligations Management have here. I do not feel I, or my fellowshareholders have been provided key information as outlined by my questionsabove to make a decision wrt the SPP.

Happy to standcorrected if I have missed anything here....

Expand

I've raised the issue here a few times and even I am somewhat surprised at the lack of interest in discussing this issue. I'm glad to hear that there is still some willing to ask the tough critical questions given it's their hard earned dough at stake and which FAR is asking shareholders to put more into.

It seems FAR's Dear Leader has just not considered shareholders worthy of being informed and many holders have just accepted it. Some are still referring to it as a 'successful capital raising' which is what the Dear Leader called it, despite the deadline being missed.

The third bank was supposedly getting it approved last week... yet we've heard nothing.

Either management just have no respect for holders to let them know what's going on despite passing the can around for more cash, or the third bank has said 'no', and it's triggered a complete collapse in the financing strategy and now they're busy scrambling to try to salvage what's left of the wreckage.

Either way, it would've been good if the market was informed. Imagine that.
FAR Price at posting: 4.3¢ Sentiment: Sell Disclosure: Not Held
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