Before providing investment capital to any public company an astute investor will consider both the integrity and ability of that company and controlling parties including executives.
Planet Gas established a private company by the name of Callabonna Uranium. On the 25th September Callabonna Uranium merged with a public company by the name of MKY Resources (MKY). The result of this merger was the formation of a public company by the name Callabonna Uranium(CUU). This provided a mechanism for Planet Gas to peruse the interest of the public investor through CUU.
The party selected by Planet Gas to represent their interests and exercise control in CUU is Peter Nightingale. Peter Nightingale is a senior director of both CUU and PGS. Peter Nightingale is a substantial shareholder in PGS. Peter Nightingale has recently secured options in CUU that when exercised will make him a substantial shareholder.
I would strongly suggest all potential investors thoroughly investigate the events surrounding this associated company before considering initial or further investment in PGS.
Consider the news released to market before the merger, the timing of the news the merger and the drilling program, the speed at which Peter Nightingale provided himself with 22M options with no achievement to justify this action, the complete loss of investor confidence expressed by investors through the market in only 2 months and of course the 50% reduction in share price and investor capital in only 2 months.
If these actions and results support confidence and trust in this company and an individual who is largely responsible for the direction and management of that company you have nothing to worry about.
For me these actions and results most certainly do not establish either trust or confidence and as a result I would avoid any associated company.
PGS Price at posting:
15.0¢ Sentiment: None Disclosure: Not Held
