The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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It’s all positive Spary ....except the balance sheet .
But maybe that will change?
Now I Wonder
We had an RNS today about a small €150K loan from Eufingest and our Website has the information on it already. It is good to know that our Website is updated in a timely manner regardless if it is perceived as positive or negative.
Having information for current and possible future shareholders available is always advisable. Thank you.
RKB
Thats good, I like that.
RKB
Drip drip drip ...
Now I Wonder
I Posted on the 10th Feb 2020 at 6:54am about Bond Conversions and I used a calculation of £ and not € and said that in December 2018 Bonds were converted at 3.76p and at that particular time £1 million of Bonds were converted into 26,595,745 shares.
I then said if £1 million of Bonds could had been converted on 7th February
2020 then they would receive 85,470,085 shares.
Today Monday 17th February 2020 is the turning point and the maximum number of shares that would be issued for £1 million of Bonds would be 90,293,454 and if our spread remains at 0.2p – 0.25p for the whole of this week then it would not change the 90,293,454 calculation.
If FG is looking to issue a Bond Holders Conversion Notice it would have to be issued no later than a week today to ensure that “The Bond Holders” receive the maximum number of shares. By next Monday if the spread remains at 0.2 – 0.25p then it drops below 90 million shares per £1 million of Bonds.
Now I wonder if FG is going to issue a Bond Conversion or is he going to use the 395,573,824 current share authority to buy a few “watery” assets?
RKB
Now I Wonder
As we all know FG converted some of the Bonds in December 2018. €2.1 million of the Bonds were converted at 4.234 euro cents or about 3.76p and FG issued the Bond Holders 50,992,826 shares. I believe this was an excellent conversion rate as it was 500% of the mid-market price in the ten working days immediately prior to the date of the Conversion Notice being 28 September 2018, and the actual average was 0.752 pence per share converted from sterling into Euros at the Company's reasonable assessment of the mid-market exchange rate on that date.
So in late September we had an average share price of about 0.752p and 500% of that is 3.76p (0.752 * 5 = 3.76p)
Now although our Bonds are priced in Euros, for this Post “Now I wonder” I would prefer to use the calculations in £.
So if £1 million of Bonds had been converted in December 2018 at the 3.76p then 26,595,745 shares would have been issued.
Now if you were to take the average 10 day share price as at 31st December 2019 (before the drop in January) then the conversion rate would have been 1.55p (0.31p * 5 = 1.55p) and if £1 million of Bonds had been converted basically one year after the previous conversions then they would have received about 64,724,919 shares and not the equivalent of 26,595,745 shares.
We all know our share price for “unknown reasons” (hint ForCrowd selling maybe) has remained at or below 0.25p the whole of January. Due to the spread this makes the current “10 day average” (at 7/02/20 as above) work out at about 1.17p (0.234p * 5 = 1.17p) and for £1 million of Bond Conversions this would equate to about 85,470,085 shares.
FG returned to Clear Leisure on 31st July 2015 and we had just over 210 million shares in issue, not billions and at time of Posting only 662 million shares in issue. FG has in my opinion always been reluctant to issue shares and does not do WARRANTS. I always knew that Eufingest could control OUR COMPANY with their much need Loans and their Bonds. FG had the upper-hand to force legally the interest rate on the Bonds down in steps from 9.5% to 7% to 1% and the redemption date from 2015 to 2017 to 2018 to 2022.
Now you may think Eufingest are on our side but are they (he)? Look at it from their (his) point of view. Eufingest could have agreed to convert their Bonds and got some shares in December 2018 but what they managed to achieved was that €2.1 million of Bonds got converted and only 51 million shares were issued. If using an exchange rate of €1.2 to £1 then their Bonds of technically €3 million but €3.1 million including interest would be about £2,583,000 and at December 2018 they would have received about 68,705,674 shares (£2,583,000 / 3.76p) But using the most recent average of 1.17p Eufingest would receive 220,797,721 shares (£2,583,000 / 1.17p)
Now does that make you wonder?
RKB