I'm assuming it would be converted as I don't see Bigsofa having the money to repay it unless they can do that if they come to market through another vehicle and raise funds.
As no one knows what this potential legal case is about its difficult to say what will happen. I'm still thinking we are bit close to the point of is it worth trying to recover the remaining funds. It would surely end up in court and what cash is left would be burnt up trying to prove if it is fraudulent money or not.
I suspect a clearer picture will happen in the next two weeks but I'm preparing for delist unfortunately.
".. and we keep our investment in them then we could potentially sell it for multiples down the line."
goooba, at the moment there is only a loan, not an equity stake in bigsofa. so even if bigsofa soared, there would be no multiples for new.
so a first step would have to be converting the 'short term' loans to bigsofa into longer term *equity* of some kind, e.g. converting to CLNs?
but that would of course be much more risky for the remaining assets of new than simply hanging onto the secured debt -- i don't know what the legal position might be for new BoD to gamble some remaining assets on a higher risk of non-return, when new already knows it faces potential legals challenge by others to recover monies; perhaps BoD might be advised, more prudent to keep debt which is supposedly secured?)
be interested to hear a view from someone with more legal background than myself.
Grumpy I think the way back is unlikely as the company would need to have a minimum amount of money to relist as it would be a "new" company in effect. I cant recall now but I think companies now need a minimum of £3m to get onto AIM casino. Unless NEW made a lot of money from investments off the market and then managed to get that money together to re-join. That would be a very long investment.
Basically if this delists I very much doubt we will see anything back or if we are lucky to survive and invest the remaining funds wisely then one day we might get a payday.
The general feel I get from TW/Doc was that Bigsofa is a hot deal so if they do come to market with another company and we keep our investment in them then we could potentially sell it for multiples down the line. You could potentially have a dormant company with minimal overheads being run privately while the investment grows but this is a very long process and a number things need to line up. Especially the potential legal case not coming to anything.
I have a small hope of a NOMAD stepping in to keep us listed but I feel the potential legal case and past history is going to put them off. All hangs on Adam/Nick contacts and if they want to save this company now.
De-listing companies to life again is not AR specialist area, however, what better way to enhance ones business CV envelope further. If he see's potential, and he would have already explored the possibilities with his business contacts, then walking might not inevitable.
What i would say is, be prepared to accept very little of your investment back. If i was AR - i'd be looking to wind this in and move on with a more receptive shareholder base. Talk about looking a gift horse in the mouth. This had multi bagger written all over it. It's a massive mess now. Return cash and move on.
So are there no rules to stop people with holding important information at board meetings or indeed actually telling lies at them?
We still don't know what's occurred here but it appears the nomad would have known and appears this info was not given to the new BOD when asked.
Makes a complete mockery of due diligence and could end up costing us pi's big time.
If that's the case then it may technically not be wrong but karma is a wonderful thing.
At present I don't know who's at fault but if it is down to the nomad...then I would advise anyone investing in any company that has them as a nomad. How can one find out a list of companies they are nomads for?
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