EISB.L Share Chat (EISB)

Thank you for your responses. aloosemarble.

I guess this goes to show the nature of the man Tony Burt and how he has got himself added to the pariah list for future investments.

I do wish it were possible these directors were made to repay their earnings for overseeing such an absolute shambles. There's a public video of TB lieing through his teeth before (or during) this going bust, and what made me smile especially, is the company who he used for the interview are on the list of creditors awaiting some form of proceeds from the liquidation!

Couldn't make this up!

Sadly I'm not up to speed on the process / legal side. If I recall, the shares in the Singapore company were put on the line if the loan note was called by INL and couldn't be repaid. As it couldn't be, the shares themselves were transferred to INL, so I guess as it wasn't a cash transaction, the value side is largely irrelevant.

Of course, as shareholders in the PLC, what do we own a share of? Shares in the UK holding company, which in turns holds shares in the NZ trading company, which is in administration. Even if the brand did have some value, without a successful trading company, it arguably isn't worth much in reality, let alone on paper.

I would not expect to get anything out of the process once Deloitte have had their fees.

Where do you think this leaves shareholders of the PLC? I am guessing the only thing of value, Brand and IP have transferred to INL, with a valuation of roughly 2.3 million? But would they not have to undertake an appraisal given if it was worth more, Shareholders would have some entitlement?

A new website. The brand is owned by the Chinese, but a local company in NZ has the rights to produce & sell East Imperial products anywhere in the world. TB is gone, nothing to do with the new company, who contract produced East Imperial products previously.

New or old website?: https://eastimperial.co.nz/

Burt you lying bastard, cost me an arm and leg

Do you think we will get to the day of vote in these circumstances TL82? The latest RNS suggested talks were still ongoing, so could this be TB enforcing a deadline for 'supportive' shareholders to put up or shut up?

It’s mandatory process

Is someone able to explain the reason that shareholders are being given the right to vote on this, given that creditors will get to vote on the same morning and have superiority?

To me, a shareholder vote for yes, is like Turkeys voting for Christmas, and a vote for no is going to be overridden by the creditors?

The BOD must think this is some sort of comedy act, if they are trying to twist someone's arm to put up some money.

What ever happens with this vote we will end up with either nothing or very little. Burt the berk

TL82

Thanks for the advice. I looked up on Trustpilot for the reviews on BT and I was shocked. Loads of 5/5 especially from clients or those they have worked on projects with. However, and this is interesting, that those who have been waiting as creditors or shareholders gave 1/5. There is nothing in between like 2,3, or 4/5. So I can only deduce they are bigging themselves up with the 5/5s, while the 1/5s are actually trying to get the truth out there.

I have been sent a message to vote for or against the liquidators and I have voted against their acting as liquidators for EISB. The whole issue has been a complete mess.

I warned long ago that the CEO was a moron and the company on a fast track to administration.

So many people warned about the CEO and this company, myself included. I lost money, but got a lot out . Hardly surprising that those who were singing its praises from the roof tops, and so heavily criticized those who like me were sounding the alert, are now very conspicuous by their absence. A warning for us all concerning these boards

The most significant asset is intangible, that being the East Imperial Brand.

The 2022 accounts valued this at 2.2million, which is coincidentally the value of the INL loan that was secured upon it, but some of Burt's shareholding in the PLC was also added as collateral (likely as a sweetner to cover the expected accrued interest on loan notes)

Bermele paid £24.5 million for this company 3 years ago. Since then annual revenue growth has increased to a position that East Imperial was forecast to be cash flow break even in Q4 2024. This is clearly a significant financial milestone for any startup and especially for the shareholders.

Question though, is this brand really worth only 2.2 million though? 10% of what it was 3 years ago, despite the significant growth journey it has been on, especially in the US?

That's the big question likely to be asked by the substantial shareholders.

So my guess now is that INL must have confirmed a breach had taken place and believed that their total amount owed was never going to get paid back. Creditors' voluntary liquidation is confirmation for me that shareholders will get nothing back and that what is left will just about get the creditors at least something. INL must of have thought something is better than nothing, but the speed at which this has been done is why I am suspicious of the whole episode.

So the total assets haven't been disclosed.... hmm

What's the end game for the Chinese here?

Today 11:43

RNS Number : 1080A

East Imperial PLC

12 August 2024

12 August 2024

East Imperial plc

("East Imperial" or the "Company")

General Meeting and Creditors' Meeting - Proposed appointment of Joint Liquidators

Further to the Company's announcement on 31 July 2024, East Imperial, the former global purveyor of super-premium beverages, announces that the Board of Directors met on 9 August 2024 and concluded that the necessary steps be taken to place the Company into creditors' voluntary liquidation.

Accordingly, it was resolved, inter alia, that:

1. a general meeting of shareholders of the Company be convened to be held on 28 August 2024 at 9.00AM to consider and, if thought fit, pass as an ordinary resolution that the Company be wound-up voluntarily, and pass as a special resolution that David Rubin and Asher Miller of Begbies Traynor (London) LLP be appointed as joint liquidators; and

2. a meeting of creditors be convened to be held on 28 August at 9.30 AM where decisions will be sought from the creditors to decide on the nomination of the joint liquidators and the basis of their remuneration, and whether a liquidation committee be established.

Both meetings will be held virtually and formal notices of both meetings have been sent to each respective shareholder and creditor of the Company.

The results of these meetings will be announced on 28 August 2024.

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

First liquidators report is avilable to those interested:

https://app.companiesoffice.govt.nz/companies/app/ui/pages/companies/4115480/37032594/entityFilingRequirement?backurl=%2Fcompanies%2Fapp%2Fui%2Fpages%2Fcompanies%2F4115480%2Fdocuments

Interesting the liquidators indicate the company was still trading until very recently and manufacturing ceased in April 2024. That seems to conflict with what some people seem to have been told by the BOD.

Never secure a company on a loan. This happened to me before and lost all the money I had invested.

Fascinating. thanks for sharing TL. i'm still surprised TB lost control or was prepared to lose control of the company.

i'm not as clued up as TL but I just assumed TB was calling the bluff of his creditors - and is continuing to do so. I guess not if they can accomplish a t/o.

anyway lets just wait and watch and see.

Dan1605 - do you know for certain some have started legal proceedings? I’d be interested in exploring a collective action with others if it comes to that but at the moment we still have no idea what’s happening

Accounts also overdue according to company house...

Several investors have started legal proceedings against both the company and a sperate case against Tony Burt.

* follow

Absolutely no idea what’s happening. Never envisaged us waiting almost 3 months for further news so I’m not sure if this is good or bad in terms of INL. Sure everyone hopes there is a way forward but I think we all just need put out of our misery at this stage!

Anyone any clue as to what is going on with EISB pls?

No great surprise surely. No one wants to be associated with a company that went bust

Jaron Berkhemer seems to have removed his East Imperial experience from Linked in but Jenifer Jaber is still there.

Does Example 4 apply to us here? Would be great to offset loss against income

https://www.gov.uk/government/publications/negligible-value-claims-and-income-tax-losses-on-disposals-of-shares-you-have-subscribed-for-in-qualifying-trading-companies-hs286-self-assessment-he/hs286-negligible-value-claims-and-income-tax-losses-on-disposals-of-shares-you-have-subscribed-for-in-qualifying-trading-companies-2024

Hi all, this looks like a bad situation and i had a fair amount invested here from a couple of years back.

Hoping to pick the brains of the experienced...... If the company goes into liquidation - do we lose all of our money. Or are we able to claim back some of this loss as part of Tax relief?

Thanks

They had been in discussions with a range of potential sources of finance in the U.K, N.Z, Asia & the US over the last few months, which effectively ended with the Redemption Notice demanding immediate repayment.

An update will be forthcoming as the situation becomes clearer, particularly as regards the future intentions of INL Investments.

CC, thanks for clarifying on the "ceased trading" item and also the social media post.

Hope something good comes of all this, for those with a stake. People don't deserve to be shafted in such a fashion.

Lost count of the numbers of times I’ve read that since Friday evening but without any details from the company it’s difficult to piece together

Dave82 don't worry my friend, will put your mind at rest later.

I have been here before and not saying two situations are alike, but the last one was worse than this but we knew more detail. This one surprisingly is not yet details are few and far between.

Is this paragraph from July 17th 2023 hold any clues especially the first stipulation?

The Subscription Agreement also contains certain covenants in favour of WHI in respect of (i) the Company incurring financial indebtedness in excess of £50,000 without the prior written consent of WHI, excluding the 2025 Convertible Loan Notes, (ii) amalgamation, demerger, merger or corporate reconstruction of the Company, excluding a change of control or other acquisition of interests in the Company by WHI or third parties, without the prior written consent of WHI, (iii) issuing shares or share capital (or any instrument convertible into shares or share capital) to any person, other than pursuant to options or warrants which are outstanding at the First Completion or pursuant to a bona fide employee share or share option scheme, without the prior written consent of WHI, other than in respect of repaying all or any amounts due under the 2025 Convertible Loan Notes, (iv) the appointment of new Directors of the Company without the prior written consent of WHI, other than to replace an existing Director, (v) any substantial change to the general nature or scope of its business as carried out on at the date of First Completion and (vi) entry into a material acquisition or corporate joint venture transaction, excluding for the avoidance of doubt the acquisition of trading stock in the ordinary course of business and distribution or equivalent commercial agreements in the ordinary course of business, without the prior written consent of WHI.

Countingcards- it sounds like you still have some hope of a resolution to the benefit of shareholders?

Awaiting an RNS where it reveals TB has an interest in the new company that now owns the East Imperial assets.

A business called 'ITS' followed the same sort of scenario a year ago, however they sold the assets off to a new business at a substantial discount to NAV.

One of the substantial shareholders of the new business was the existing CEO of the PLC. And now they are even trying to get listed again! Wonder what chumps will end up carrying the bag there!

Sad to see this go under, here in the Bermele days but sold not long after the re- admission. The progress of sales were too slow and I recall the Bod at loggerheads. ATB

Hey CC, just to echo your point a business that has ceased trading is usually more forthcoming than what EISB appear to be.

They haven't updated social media to this effect yet, but given they have customers and suppliers who could of course suffer from this fallout, maybe they are doing the necessities behind closed doors?

IMO - when the death spiral finance was issued last year, that was the point people should have had alarm bells ringing. The fact they raised in Jan circa 350k, from some party, makes you wonder what that party was being told. It was at 1.1p also...

They have also undertaken a subdivision to raise below 1p PAR. So raising equity to repay the debt was surely an option?

This stinks unfortunately, but it is legal. I've seen it happen so many times. It's why the LSE/AIM will become a pariah IMO.

Countingcards, it is over. The company has gone bust (ceased trading) because on a monthly basis it spends more than it earns in revenue. This has been the case with this company for the past decade since it was founded. Burt never managed to come up with a viable business plan and was too stubborn to change. Since listing in 2021 he spent £9m of investors money. The company said after the January fundraise that the £300k it has raised would keep it gong until April. Well we are in April now and the company as it warned has once again run out of money. It is a shame because it has a super product. Unfortunately, the quality of the product was not matched by similar quality among the top management of the company.

This was put out 2 hours ago on twitter which is slightly confusing if the company has ceased trading. Should they still be tweeting?

East Imperial - Premium Tonic Waters & Mixers

@East_Imperial

·

2h

We're delighted to announce that #EastImperial is now served at Understory, San Diego. A revolutionary luxury lounge bar at the heart of the Del Mar Sky Deck. #EISB #AsServedAt

No one shareholder is in possession of all the facts. What we do now see is that there is the possibility that TB and INL had planned this from last year, because as of Friday afternoon we have no idea why all of a sudden they call in the CLN . If Burt only a month ago was saying we are close to break even and especially by Q4 2024, and they were getting business in the USA, albeit we not sure at what levels those deal were really worth then the Chinese would have been aware of this, so why pull the rug now? Has their been a default? If not then why take the entire company down if the Chinese were always after the Singapore arm of the business. That is clear as it was stated in the CLN notes. TB shares will go over to them as well, and which means he stays in the game in some capacity.

No one likes losing money and its best to remain positive for other things, but the speed this has been conducted at does raise questions. I personally have to believe that no attempts were ever made to find other sources of debr financing and that this was the route carefully planned from last year. What else are we to think?

Sorry for your loss Toplocks , Lessons Learnt 🤔

It was finished in 2022! They have kept the shocking truth being said but the facts on figures and reality were there in black and white but the management were only in the UK market to try last chance saloon to extract cash to fill Burts personal dreams but he was a dreamer and too obstinate to realise his dream was just not possible in large form.

It’s terrible how a NZ company can list and hide facts to keep taking money from UK investors. It won’t be properly investigated to hold BOD to account and the Chinese will ensure Burt gets payback imo.

Shocking and anyone with considerable cash in here should form a group to go after BOD to ensure they also pay the price properly for what they have knowingly done and hidden over this last period to try escape.

They have announced as of 7.57am in 2nd RNS that they ceased trading and have appointed an administrator.

It looks like Burt wants a lock in, a after hours RNS and a suspension request.

If this isn't suspended on Monday this may well go completely wild

some will say it is just to let some people out.

but it could be a very mad day.

In the loan subscription agreement, is there any clause which allows WHI to call in their debt earlier than the redemption date? I imagine there will be, such as if East Imperial have defaulted on an interest payment, or if there is a high liklihood the companys future ability to make repayments of interest, is highly detrimented.

The subscription agreement; should outline this.

AIMHO, DYOR,GLA.

Https://www.londonstockexchange.com/news-article/EISB/funding-update-issue-of-ps2-2m-convertible-loan/16042661

Appeared Funding Update RNS of 17 July 2023, approved at The General Meeting of 4 August 2023. Annual 10% interest payable. There's mention in link ofcourse of appointment of a Director to East Imperial's board

That's how I understand it jyee, I can't see anywhere where it says they can be redeemed earlier.

If I understand it, it says nothing can be done done for 12 months from the loan note date. that's June or July this year

Newgrange

I made a point that I did have an investment over 10 years ago which was suspended with the threat of administration looming. It came back 13 times the suspension price a month later and ended 4 years of constant torture, and a shocking profit. This is not suspended nor in administration thankfully. Initial surprise is always there but then by going through old news with fine comb it starts to slowly make some sense. I am hoping they are using the weekend to thrash out something.

What is becoming clear is that East Imperial have an excellent product despite what a few say here and it has won industry awards but the opposite of that is finance always seems to be an issue, or logistics, or especially people leaving. Something is stalling the process and it needs attention and quick.

There's still hope here although the RNS is obviously concerning. If TB can stay his hand regarding suspension then the RNS is more likely to be a ploy rather than a genuine statement of intent. It's always harder to come back from suspension, better not to suspend if possible. That's my experience anyway.

I'm still hopeful until/unless there is concrete evidence to the contrary.

GLA

I think you are getting closer to the truth CC, was there a bust up between Burt and Ngai? Ngai resigns and INL decide to pull the plug because they no longer have a representative. There was no buy order though, there was a large sell order on the day of the funding RNS because I watched Marex walk the price down so someone was aware of the redemption.

(cont'd)

There are several reasons you call in a redemption notice and one of them is a default, or is that Horace Ngai resigning has triggered this situation? He was the representation from INL and has this upset them 24 hours later? What caused his resignation and then the subsequent chain of events.

Also consider on the news of the resignation there was not much activity in the market, but then also when news of possible funding update was announced there was a run of buying. One could argue shorts closing which would tie up with the negative vibes we see on here towards EISB everyday, but then its hard to short something like this, or its buying in anticipation of further news. Afterall as I said before why was this not suspended or placed into administration immediately, since EISB confirmed they were unable to pay back their instalments to INL.

17 July 2023

Jason Ieong, CEO of WHI, said:

"Being a leading distributor of Imported Spirits & Wines in China, we are excited to extend our business relationship with East Imperial, the global purveyor of ultra-premium beverages. With our support, we believe East Imperial will be able to fast-track its global development in all strategic markets and capitalize the premiumization trend in the beverage category globally."

So, I am slightly confused without more detail how we have got to yesterday:

East Imperial plc, the global purveyor of super-premium beverages, has today received a Redemption Notice from INL Investment Limited ("INL") issued in connection with a Convertible Note Instrument dated 7 August 2023 (the 'Loan Notes') and a Deed of Share Charge dated 16 October 2023, first announced on 17 July 2023. Under the terms of the Redemption Notice, INL seeks immediate redemption of its Loan Notes totalling £2.2million, together with all interest due under the Loan Notes.

With all the openings we are getting in the USA, has this been where the larger focus has been and expenditure which has made INL think twice?

Another thing and I know others will think I am clutching at straws, but if this was over then they would have called suspension last thing yesterday, OR they would have confirmed they had breached solvency and gone into administration immediately. All that has been said is on the 11th of April 2024:

“The Company has been in discussions with a wide range of potential sources of finance, including debt funders, over the last few months to seek to provide the working capital required for the continuation and development of the business.” So were EISB aware of a brewing situation for some time.

The next day we get:

The Company is unable to meet this redemption liability and therefore the board is now in discussions with professional advisors in connection the Company's possible administration or liquidation, and with the FCA regarding the potential suspension of trading of the Company's shares on the Main Market of the London Stock Exchange.

To me last year BODs were telling us this was the only option we had, and we should vote it through and then it got voted through. This after the messy boardroom fiasco and Taylor Partners messing with selling into the market 2022-23.

Assets will viewed to be worth the same value, if not less, than the debt of circa 2.5million IMO.

INL's notes were secured on the singapore incorporated operating subsidiary and also all of TB's shares.

Given his shares look like they are worth less than toilet paper, the singapore operating subsidiary must be the crown jewels.

What else does the company own that should be taken into consideration? There must be something as why would TB need to pledge his shares as security?

In the interview only a month ago Burt made a statement that the Chinese were supportive. The timing of the RNS yesterday was no coincidence, a strange RNS to release if you ask me. We know the company were in discussions to raise funds so why release a "nothing" RNS. What's done is done but you can't help but feel this is a big stitch up with Bert involved, I have good friends with significant holdings and it makes me sick to the stomach to think this has been set up by the company. What are the assets worth? Hopefully some funds get distributed to shareholders.

This evening's RNS suggests a war between TB and INL. Its not his first either.

I just don't know if he's thrown in the towel or playing games with them.

I very much doubt Burt will still be there if the Chinese end up buying it. He's proved beyond all doubt he's not a capable businessman. My guess is - a wild one I admit - that the recently departed Chinese sales rep will end up being appointed the new CEO or head of an Asian arm of what ever EISB ends up being called. Probably a million miles off as usual. Just relieved I didn't throw more in here when the sp was hovering around the 2.5p only a few months ago. Since early Jan it is down over 90%. I always live in hope these minnows can survive and stick two fingers up to the establishment but they rarely do. When there is something worth having the iis get it by hook or by crook. In this case the inept CEO played right into their hands. The Chinese got their man on the inside and have seen this collapse from a bird's eye view. They probably knew they were on to a winner over a year ago.

What a bugger. Only hope is they actually buy it out but I don't see why they need to bother now. They'll end up being given it.

As I said. Chinese will end up owning this and Tony will probably still be there.

Sorry to hear that Toplocks. I know those are the breaks but they never feel good. As you say live and learn. I know I didn't lose much this time but it still hurts - feeling cheated. Feeling stupid. But actually I don't regret buying this stock - I only buy stocks I like. And I stick with that. I've been self employed for years so I know how hard it is to get a business going, that why I was a supporter here. Anyway, money comes and goes. And as you say, Live and learn. And takecare.

Hi Spank

Yes as deep as the titanic I’m afraid. You live and learn. I’m still hopeful there may be some rescue package so as they say it’s not over till the f*t lady sings, although I can hear her warming up in the next room

sorry for those losing money but i made my opinion very clear here for last year and a bit. they had failed to change tact to higher volume lower margins with a cheaper product outlook. this cottage style mantra of ultra premium around the world without a lot to **** in was a dreadful business plan. burt has been at this for nearly 10 years prior to coming to uk market to milk it. problem is he was 10 years too late and uk market now doesn’t play ball like it did.

you cannot say you will possible become profitable in a year or so when your whole business plan revolves around investment for growth. it will never make a profit on this current business plan and i said that ages ago.

it was doomed unfortunately to ever succeed when it started to lose mcap it couldn’t raise to carry on. i hasten to say covid shipping prices did kill it quicker but it was going to die.

fevertree cheaper and frankly nicer!

aberdeenman again finds another howler of a company lol 😂

The whole thing stinks. The fact that this dropped yesterday suggests insiders knew, Burt covered himself by releasing the funding RNS. He never wanted this on AIM, the last interview gave that away. Why pull the trigger now, a day after the company announced they're still in talks over funding.

Spank.theMonkey

Appreciate your reply. Not saying it will happen, but I have been here before in another situation ironically around 10 years ago. After absolute pain for 4 years not only got initial investment back but also profit. As I said it may not happen here but will see how this plays out.

Inevitable situation really, especially back when the death spiral finance was issued. There was no way existing shareholders would ever have a part of this as a profitable, cash generative business. The new owners will though IMHO.

Farewell to my £4.9k - and that was when the share price was at .5p.

Burt is a stupid see you next Tuesday. Oh well another one down the drain.

Spank...

it was worth a small punt....I've seen worse. And made and lost money on worse.

anyway its possible TB is bluffing his creditors....like putting a gun to his own head

not a great tactic but lets see how it all goes.

Toplocks - I hope you're not too deep in this, all the best.

East Imperial plc, the global purveyor of super-premium beverages, has today received a Redemption Notice from INL Investment Limited ("INL") issued in connection with a Convertible Note Instrument dated 7 August 2023 (the 'Loan Notes') and a Deed of Share Charge dated 16 October 2023, first announced on 17 July 2023. Under the terms of the Redemption Notice, INL seeks immediate redemption of its Loan Notes totalling £2.2million, together with all interest due under the Loan Notes.

The Company is unable to meet this redemption liability and therefore the board is now in discussions with professional advisors in connection the Company's possible administration or liquidation, and with the FCA regarding the potential suspension of trading of the Company's shares on the Main Market of the London Stock Exchange.

Still waiting to see what happens Toplocks.

Feels like the company is in a death spiral....

Don’t miss the boat Spank. There’s a few also jumping in. A nice 1mill buy, well done on that one.

Where those buys yesterday?

I suppose demand is there at the right price.

hopefully its the same with finance - the demand is there, but the price?.....well that is going to be the sticking point. and will be extremely interesting....

otherwise...this is the end.....

If all is so well with the company why are the shares down 30% today and languishing at all time lows?

If that is the case Toplocks, why does the share price keep falling to dramatically?

Hi 007

I value your opinion. I’m seeing the finance deal/ restructuring has already been done behind the scenes. A different company and therefore the board member no longer needs to be part of the board. It happens all the time. New finance deal, new board member. Watch this space, an RNS very soon imho

Its not listed on AIM roger

Burt is clearly a very difficult individual to work with and given his lack of managerial and strategic skills I think it’s a great shame he hasn’t gone instead of the intl ii rep.

Another AIM failure. This will be bust in another two or three months unless good sales results can be released. If sales were going well why would this chap have resigned. Think it’s all over myself.

Hi Watty

Like you I’m in it for the long term. Wish I had some spare cash, I would really fill my boots here. This is just the very painful dept period a company has to endure to become successful. Let’s hope one day we will see break even and strong growth

From July last year. Does this mean if they can't pay the loan that the company is secured on , the Chinese investor ends up getting it.

Proposed issue of GBP2.2 million of 10% Secured Convertible Loan Notes to strategic investor WHI in two tranches of GBP1,466,666.67 and GBP733,333.33 respectively.

-- The net proceeds of the issue of the 2025 Convertible Loan Notes will provide much needed additional working capital to support the Company's plans for continued expansion.

-- The 2025 Convertible Loan Notes will be secured by way of a debenture which contains fixed and floating charges over the assets of the Company; security to be granted over the Company's wholly owned Singapore incorporated subsidiary; and a charge to be granted over up to 75 per cent. of the ordinary shares of GBP0.01 each in the capital of the Company ("Ordinary Shares") held by the Company's chief executive officer, Tony Burt.