Having watched the Sirius/York Potash story unfold over the last few years some research into 'capitalist' structures eg Companies listed on AIM and other fledgling Corporations, it has been quite interesting to follow one or two other companies to compare progress, ethics and performance. Apart from Igas and Gabriel Resources, the only other company that touched a nerve was and is Active Energy Group (AEG). This interested me mostly because of its political context, seeking growth within the Ukraine and of course as an alternative energy source. (not forgetting the bio-mass plant at Doncaster)
Whilst many of the fracking companies have been beseiged by the anti-frackers, envrionmentalists and concerned communities, and joined by the anti-capitalist, occupy, anti-govt, anti-trident, anti anything and everything mob (hurrah might I add) the predominantly anti-capitalist message seems to be emerging louder than anything else. So, this begs the question (for us mere mortals) is Capitalism and are all Captains of Industry the true scourge of the Earth?
Active Energy Group is in the business of supplying wood chip for the MDF market in Eastern Europe and also developing bio-fuel and 'forrestry asset development'. http://www.active-energy.com/. Run by a 'three man' band the Executives of AEG have had to react and be pretty flexible and dynamic in adapting and securing their business base line in seeking new resources. Anyhow it has been a rather un-interesting twelve months watching this Co and nowt much seemed to be going on until a couple of days ago when the share price leaped over 140% (from 3 p to 9p) on news of a £ 300mil offer for a piece of land; and then quickly fell the next day following rumours of an investigation into the 'offer'. One investor thought it prudent to ask CEO Richard Spinks a few canny questions; and his response republished here makes for some, imo, interesting and heart-warming reading: (Nicked from LSE :-)
"The RNS stated there were ‘three conditional offers, in aggregate amounting to approximately $300 million’, which is causing confusion. Did that mean three separate offers each covering the entire 108,000 hectares, or three separate offers covering parts of the 108,000 hectares?
THE STATEMENT IS AS WORDED, IN SO MUCH AS THE COMPANY HAS RECEIVED, FOLLOWING IT'S PRE-MARKETING ROADSHOW, THREE SEPARATE OFFERS WHICH WHEN TOTALLED ARE CURRENTLY VALUED AT APPROXIMATELY $300M. WHETHER THE COMPANY, BEING KAQUO, NOT AEG, OF WHICH AEG IS A SHAREHOLDER (45%) AND HAS THREE BOARD SEATS (OF 7), WILL ACCEPT AT THE FIRST OFFER STAGE WITHOUT FURTHER NEGOTIATION, I WOULD SUGGEST IS VERY UNLIKELY. YOU MIGHT REASONABLY EXPECT US TO FURTHER NEGOTIATE A STRONGER POSITION ON BEHALF OF ALL OF THE STAKEHOLDERS OF KAQUO AND THEREFORE THESE CONDITIONAL OFFERS SUBJECT TO NEGOTIATION ON BOTH SIDES AND FURTHER DUE DILIGENCE MAY CHANGE OVER TIME. THIS IS BY DEFINITION A MOVING FEAST AS IT IS A NEGOTIATION. I AM UNABLE TO SAY MORE AT THIS STAGE BUT WILL MAKE TIMELY ANNOUNCEMENTS AS REQUIRED.
I, and many others, are finding it difficult to understand why three separate offers for the same property would be added together to get the headline figure of $300 million.
I AM NOT SURE I UNDERSTAND YOUR QUESTION, HAVING BEEN SITTING HERE SINCE 2.30AM WITH JETLAG AND WORKLOAD, BUT I WILL ATTEMPT TO COMMENT. THE RNS WHICH WAS ISSUED WAS ISSUED IN ORDER TO ENSURE THAT OUR SHAREHOLDERS, NONE OF WHOM ATTENDED THE KAQUO ECONOMIC DEVELOPMENT CONFERENCE HERE IN EDMONTON ON TUESDAY, HAD THE SAME LEVEL OF KNOWLEDGE AS THE PEOPLE WHO DID ATTEND THE CONFERENCE BEING FIRST NATIONS AND METIS LEADERSHIP, IN A PRIVATE VENUE, WITH RESTRICTED ACCESS FOR THE REASONS OUTLINED ABOVE.
THERE WAS NO ATTEMPT OR DESIRE ON THE PART OF THE COMPANY TO EXCITE OR ENCOURAGE ANY KIND OF CONFIDENCE OVER AND ABOVE THAT WHICH MAY HAVE EXISTED PRIOR TO THE RNS, HOWEVER, WE MUST ENSURE EQUAL KNOWLEDGE OF POTENTIALLY PRICE SENSITIVE INFORMATION AND NOTWITHSTANDING TIME ZONE ISSUES, WE DID OUR BEST TO ENSURE THAT THIS WAS THE CASE AND ARE MORE THAN COMFORTABLE THAT THIS IS THE SITUATION.
REGARDING THE 3 OFFERS/1 PROPERTY QUESTION, IT IS POSSIBLE THAT YOU ARE READING MORE INTO THIS THAN NEED BE. WE WERE IN AN ENVIRONMENT, AT THE SUMMIT, WITH OUR ABORIGINAL GROUPS AND OTHERS FROM ACROSS CANADA WHO WERE AT THE CONFERENCE TO SEE WHAT KAQUO WAS DOING AND HOW IT MIGHT BENEFIT THEM ALSO AND WERE NOT ABLE TO BELIEVE THAT ANY KIND OF FUNDING WOULD EVER BE AVAILABLE TO THEM AS ABORIGINAL GROUPS."
BASED ON THAT I DECIDED TO GIVE, WITHOUT DETAILS OF ANY KIND, REASSURANCE THAT IN FACT THEY COULD HAVE HOPE AND CONFIDENCE THAT WITH OUR HELP THERE WAS A FUTURE FOR THEM AND THAT WE HAD REPRESENTED THE METIS INTERNATIONALLY AND TO INTERNATIONAL FUNDING ORGANISATIONS AND RECEIVED INITIAL OFFERS TO THE VALUE HEADLINED AS YOU DESCRIBE IT.
WE RELEASED IN THE RNS THE INFORMATION TO ALL SHAREHOLDERS AND POTENTIAL INVESTORS, THAT WAS DISCLOSED IN PRIVATE WITH ABORIGINAL GROUPS IN CANADA, AT THE SUMMIT EVENT, IN VERY SUBJECTIVE TERMS, IN A CLOSED ENVIRONMENT WITH PEOPLE WHO ARE NOT INVESTORS AND VERY MANY OF WHOM IN FACT MAY NOT YET HAVE REGULAR ACCESS TO INTERNET, OR MOBILE TELEPHONE SIGNAL; AS YOU WILL BE ABLE TO SEE FOR YOURSELF, ON THE VIDEO RECORDING OF THE ENTIRE CONFERENCE WHICH SHOULD BE UP ON THE AEG WEBSITE WITHIN THE COMING TEN DAYS, SOMETHING THAT AGAIN, WE WERE ABSOLUTELY NOT REQUIRED TO DO, BUT OUT OF A DESIRE TO BRING OUR SHAREHOLDERS ALONG WITH US AS WE GROW, I INSISTED UPON MAKING POSSIBLE; I AM SURE IT WILL FASCINATE YOU WHEN YOU SEE IT.
Any clarification you feel able to give would be much appreciated and I would be most grateful if you could confirm whether your reply can be shared with other shareholders on bulletin boards or whether you would wish it kept confidential. I have no wish to cause you embarrassment by passing on any comments you might make without your express permission.
I APPRECIATE YOUR ASKING FOR PERMISSION TO SHARE MY COMMENTS. I AM NOT AVERSE TO THIS IF IT IMPROVES TRANSPARENCY AND IS EITHER QUOTED VERBATIM AND ATTRIBUTED TO YOUR HAVING CONTACTED ME TO ASK QUESTIONS AND GIVEN THE CAVEAT THAT ANY INFORMATION GIVEN WAS ALREADY IN THE PUBLIC DOMAIN AND THAT I WAS NOT WILLING TO GIVE ANY INFORMATION THAT WAS NOT ALREADY AVAILABLE IN THE MARKET. IN ADDITION THAT I GAVE YOU SUCH PERMISSION BASED ON YOUR DESIRE AND MY UNDERSTANDING TO GAIN CLARITY ON WHAT IN HINDSIGHT COULD BE A DIFFICULT RNS TO UNDERSTAND WITHOUT FURTHER CLARIFICATION.
You have my extreme sympathies. Business was starting to pick up nicely in the Ukraine and the Russians decided to invade the Crimea resulting in the loss of your home. Then seven years of hard work in Canada seems threatened by a couple of complaints. Might I respectfully suggest that you do not buy lottery tickets any time soon.
I ONLY BACK MYSELF AND MY TEAM AND ON THAT BASIS LOTTERY TICKETS AND CASINOS ARE NOT REQUIRED, OUR PEOPLE ARE OUTSTANDING AND THEIR COMMITMENT CANNOT BE MATCHED IN MY EXPERIENCE BY ANY GROUP OF PEOPLE WITH WHOM I MAY HAVE HAD THE POORTUNITY TO WORK IN THE PAST. I CAN BUY ANOTHER HOME, AND MY FAMILY, FOR NOW AT LEAST ARE SAFE AND I VERY MUCH VALUE YOUR KIND WORDS ON THIS SUBJECT; THANK YOU.
Nothing worthwhile comes without a struggle and your shareholders appreciate the great efforts put into the company by you and your team.
THIS IS THE MOST IMPORTANT THING OF ALL, OTHERWISE, WHY BOTHER.
a little bit more :-) https://www.youtube.com/watch?v=-oNMJyimD-w