A Businessday article published last week cast doubts over the announced investments of Milost Global in Japaul Oil and Resort Savings and Loans. The Media Company quipped at the implausible nature of the deal as it could not reconcile the amount of money being lined up for investment in these companies with the actual equity issued or authorized.
The result was a massive sell-off of Japaul shares leading to over 50% drop last week and making it the worst performer. As expected, the folks at Japaul did not find this funny and have issued an official statement in reaction to the “negative press”. Japaul responded via their CEO, Paul Jegede.
Japaul Oil Chairman, Jegede Paul, stated, “We informed the Regulatory Authorities that we have signed Milost Equity Subscription Agreement (MESA 1) and Milost has not asked for any upfront fees from us until disbursement takes place, even the facilitation fees to Palewater who are advisers to the transaction is technically agreed to be paid when we start to drawdown on the facility despite agreement signed.
An escrow account agreement is being worked upon to trigger the drawdown on the facility. We don’t really know where the dailies got their variables that do not add up mathematically about Milost math. They should have watched and see what happens about the issue of performance. This Newspaper Article against Milost has been wrongly perceived by the investing public and this is terribly affecting our share price on the Stock Market.
This is simply sad. Milost currently holds no shares in Japaul as yet as we are awaiting regulatory approval, I just wonder how would it then be said that it is involved in a pumping and dump scheme in Japaul shares and the financing is provided in single tranches of between $1 to $5 million until our share price recovers. How will it reach high prices when we are receiving unfair reporting by one Nigerian media outlet that purports lies and in real fact is that we have opened our doors for the media to call us and verify facts before going to print.
The media needs us and we also need it and we can’t be seen fighting each other, after all we are all Nigerians. It’s sad because since the BusinessDay publication, our share price has plummeted over 100% and the news was misconstrued opinions that remain false and unfounded.”
Not to be left out, the folks at Femab Properties, another company hoping to benefit from the Milost funding also had something to say about the “negative press”
Femab Properties CEO, Abiodun Aguda, stated, “This is the first time we have the opportunity to access funds that can truly support our business both from collateral perspective, financing structure and tenor. The MILOST funding structure truly allows growth and development which Nigerian businesses and Africa needs.
The Press is therefore advised to seek for knowledge to properly understand the financing model of MILOST, speak with the beneficiaries directly and avoid misleading the teeming public through uninformed reporting.”
And yes, you guessed right, the Chairman of Resort Savings and Loans also chimed it at the rebuke of the Businessday article
Senator Sunday Fajinmi, Chairman of Resort Savings and Loans, stated, “It is sad to realise that a few grumbling, half educated individuals are against the recovery of Nigerian economy through resuscitation of dying businesses. The publication is just a promotion of corruption in some aspects of yellow journalism in our country that has propagated the popular PHD syndrome. Milost Global Inc. of USA has been verified to be a very credible investor in developing economies like Nigeria. Their track record which speaks for itself, attest only to their credibility. Their understanding of peculiarity of developing economies in Private Equity financing is amazing when compared to others who are the paymasters of the journalist, the author of the fake news. These enemies of progress should look for better work to do as the Nigeria economy needs more friendly and understanding finance engineering organisations like Milost Global Inc. Be warned! as Nigeria belongs to all of us!”
Even Primewater view had something to say too
Primewaterview CEO, Harold Nzekwe, stated, “Primewaterview is stronger today because of the timely investment from Milost. Once you understand the structure of their financing you will realize that it is a win-win for all the parties. The Nigerian economy needs foreign direct investment from serious investors such as Milost in order for the economy to grow.”
And what about Milost? Milost’s Managing Partner attempted to reassure the market;
Kim Freeman, Managing Partner & CEO of Milost, stated, “Nigeria has the largest economy in Africa that is growing rapidly and Milost wants to be instrumental in sustaining this growth. Our MESA fund is an innovative facility that allows a company to not only reach its true market value but also to achieve its vision of a larger more vertically diversified company through acquisitions and organic growth.”
And In Case You Missed It, the founder of Milost also issued a long press release explaining their Messianic Strategy for Nigeria.