quob wants (needs?) to raise money and also dan needs to raise money.
so quob, which needs extra cash, offers to lend cash that it's already a bit short of, to dan, in order that dan can use that money to buy extra shares in quob so that quob then gets that as extra funding... tad incestuous...
Your invaluable commentary added today, I'm sure would be welcome on another bb where most DAN shareholders are. Unfortunately unless you hold and can verify a holding in DAN you are unlikely to gain access.
Keep up the good work here though, it is nice to see activity every other week :)
"in addition to the funding options outlined above, QPE has discussed with DS&C a £2m bond that can be converted into DS&C equity at any time over the next 5 years. This conversion is proposed to be at a price of 1p per share, or lower if further equity is raised by DS&C at any time during this 5 year period. FCA approval would of course be required prior to any conversion, but not prior to issue of the bond. The bond may be combined with either of the other two funding options or can stand as an independent deal. The bond would be for the sole purpose of enabling DS&C to take up their previously agreed option to purchase QPE shares at a price of £10 per share, to a total value of £2m. Considering that the most recent circa £4m of equity released by QPE is priced at £15 per share, to not take up this option to purchase at £10 per share would obviously be a wasted opportunity for DS&C to generate potential profit. The opportunity to take up QPE’s bond option shall shortly lapse if not taken up by DS&C."
.... weird .... so although dan is clearly strapped for cash and is meant to be cost-cutting and focusing on turning its core business around, in the meantime quob is also trying to encourage dan to borrow an extra two million pounds, not in order to develop dan businesses, but simply to give quob an extra two million financing by buying quob shares at £2.
would have thought shareholders here might be better off having the company wound up, so they have have their money back, if there's any left over, then make their own choice whether or not they want to invest their cash into RTs quob park estate.
the other proposed financings via equity from quob seem to rely not only on FCA approval, which probably should not be relied on, but also on those currently holding debt in dan agreeing to give up their debt in exchange for equity in dan at 1p price. i'm unclear why a debt holder would want to do that, given that at present they are ahead of the shareholders in the queue to get any monies back.
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