Andalas Energy & Power (LON: ADL). What’s going on within and out-side of the company? It would seem that there’s a very slow tick up of the SP underfoot. News has been reaching ‘Yours Truly’ that Andalas are the target company of at least one and possibly ‘others’ who are sniffing around to take full Board control of the Company. I won’t go into each individual group as they may or may not be in direct talks with ADL. What I will do is disclose my take on one of the groups who HAVE made an approach (I believe pre or during Colter drill) and are in contact with some of the Major Share-holders.
It could be about to hot up at Andalas Energy. Now the emphasis is on ‘could’. So I’d ask investors/traders to keep that word in mind. There’s reasons for that. The chief one being the corporate world of ‘wheels & deals’ doesn’t run to the time-line of you/me, it can get and does get snagged up in back-room compliance/negotiation. That is to say nothing is certain until it’s what’s known in corporate speak as ‘Inked‘. (Signed sealed & delivered).
What I do know from my research is that a group have approached the ADL Board, seeking a corporate takeover via the introduction of $10M of assets/cash. It’s known as a ‘Plug & Play’ package, if that deal happened then ADL would have rocketed upwards, probably over 1p. For whatever reason/s those talks petered out but I can now exclusively reveal that those talks have been reignited with ADL Major Shareholders. Whispers are again surfacing that Major shareholders are now aware and have been approached for the 1st time by well-known successful corporates with a proven track record not only with the drill bit but with increasing SP value for their share-holders.
Major shareholders were not informed by the Board of ADL on the first approach. I have an ‘idea’ of the names of those corporates having had many cagey conversations with various market sources. The asset/s from one of the groups are rumoured to be Cuban/Mexican. I can’t confirm that but what I can confirm is that predatory moves are almost certainly going on in the back-ground. At what stage they are and if they’ll ever come to fruition is as I said further up in this piece subject to ‘back-room compliance/negotiation’. Nothing is certain until it’s ‘Inked‘ .
‘Plug & Play‘ as some will recall is what was used on a company called IRG which had a meteoric rise when the new board and initial investment/assets was announced. For a ‘plug and play’ to work any investment group have to find a relatively low value m/cap company £1-4M, to offer the financiers potential multiple returns on initial investment just as IRG did. ADL has a current m/cap of £1.5M , the listing on the exchange itself is worth £600/800K. Cash at hand is circa £500K. Ergo it doesn’t take much to realise why ADL are being targeted, either officially or unofficially. But ‘Target’ they are. Companies at shell value can, on a slither of good news spike, secondly there’s always predatory action in the back-ground that can also re-rate the shell. Hence why I took a ‘slug‘ of shares. Even on no news ADL will slowly tick up.
So, bearing in mind how convoluted and difficult it is to predict with any degree of certainty the outcome of back channel discussions, I think it’s well worth a small punt.
As I see it the main sticking point to any deal getting Inked is the current Board who like all corporates don’t want to get off the gravy train unless their nest is feathered with downy £50 notes. I’ve tried to contact the CEO Simon Gorringe many, many times, he has thus failed/refused to make contact. Contact I might add with one of his small Major share-holders. That tells me that Simon is the sticking point to any deal. If you’re reading this Mr Gorringe, then do the right thing for share-holders. Get in-touch with the Cuban/Mexican Plug & Play group and take the deal!
Worth a small punt!