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Operations.
IMHO, INL secured the crown jewels when the Loan Notes were issued last year. East Imperial has struggled to find ways of raising capital to repay the debt, and so will now need to hand over the keys to INL.
Don't be suprised to see current BOD retain cushty packages, whilst shareholders take the hit.
My understang is that INL hold a charge on the Singapore Operating Sub and majority of TB's shares.
Will they sell this to recover their debt (I don't think so) or take full control of the operati
TB is employed by the trading company, so no guarantees about his future - that will be determined by whoever the eventual owner is.
The listed company owns the shares in the trading company, so you would think there is some value there in a trade sell. I suspect the directors of the listed company will probably try and sell the NZ trading business as a pre-pack.
Does that mean assets will be sold to the highest bidder and then what ever is left after the loan is paid off - if there is anything left - is divvied out to share holders? Personally think this is a write off but at least the idiot Tony Burt will hopefully be out of a job too. F..ing clown and bare faced liar. Should not be trusted in any business position again.
A fellow investor has received a letter from his broker stating the company has being put into liquidation. This is more favourable to shareholders than adminstration but the chances of getting anything back is slim.
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.
If INL haven't called in an administrator yet, it should fall onto the directors to decide. If external funding isn't possible & considering the debts who would, then administration is the only option available. One assumes the administrators would try and sell the shares in the trading company to an interested party.
They are obviously still selling product, as keeping the company trading, and a semblance of business as usual, keeping the lights on etc is essential to getting 'value' for the shareholders.
Likely backs to the wall, stringent working capital management, delaying/reducing opex items, ie. remuneration of directors and marketing expenditure.
No news to suggest INL have appointed adminstrators yet.
I was involved in a similar company a few years ago, which was at a similiar point to this. It managed to get a placing done and has >10 bagged from the distressed price it was at. It went on to cashflow break even and continue to further grow revenues expotentially.
Big difference here, is that it has this ugly death spiral finance around its neck... if they can refinance that and get some fresh capital, they can pull off a miracle but I really feel there's a shafting in place for PI.
All very quiet, the company still has a duty to release the accounts that were due in April. The question is, how is the company continuing to survive when cash was due to run out in April?
Feels like there are a lot of posters on this board wishing that East Imperial shares were not suspended from trading so that they can add to their holdings.
What's stopping them from refinancing the debt, paying of the INL loan, then getting a placing done?
They are in the strongest position they have ever been operationally, surely they can put together some simple cashflow forecasts to demonstrate this to aspiring lenders.
If the INL demand for repayment is hostile, which people seem to be alluding to, then surely TB isn't going to just give away all his shares and the singapore operating sub, without exhausting all avenues of raising finance.
I'm personally of the belief that an underhand tactic is on the way, as usually happens in these scenarios. But if something positive does happen, then I would be very very suprised...
Well if we end up with anything out of this shambles it will come as a pleasant surprise is all I can say.
Seems like it was a fairly strong brand - that's why I invested - and had decent placements in numerous territories. Burt clearly can't run a company so the best possible end game would be a buy out. Might only be for a couple of million quid but i think most share holders are so sick of being lied to by Burt they'd approve it and TTMAR
All websites are ok and New Zealand seems to be the best one.
https://www.eastimperial.nz/products/grapefruit-soda?variant=36329456468127
I took the RNS to mean that the company had stopped trading, not just that the shares had been suspended. However, I’ve seen emails from TB, I think post that RNS, where he notes that the RNS meant that trading in the shares had stopped and that the directors were taking advice about continuing to trade in the different jurisdictions in which the company operates. I’ve also seen an email from TB suggesting that the directors expected INL to appoint an administrator. To me that suggests it was actually a hostile act by INL and not orchestrated with TBs involvement but perhaps that’s just me being naive and hoping there is still some kind of resolution for shareholders. I guess we’re all just in the dark until the next RNS is released
Is the company trading or not? This is what the rns said on the 15th April.
Further to the Company's announcement dated 12 April 2024, East Imperial, the global purveyor of super-premium beverages, has requested and been granted a suspension in trading of its shares on the Main Market for listed securities with effect from Monday 15 April 2024.
The Company has ceased trading, and the board has resolved to seek the appointment of an Administrator or a Liquidator to the Company.
The board will provide an update to shareholders as soon as possible.
Thats correct its only the share trading that has stopped. I had that in an email for clarification.
How can this be? Burt himself stated the company has stopped trading....
Business is still the same as pre-suspension
Your posts here MM92 are hugely appreciated. Thank you.
It’s galling that there was little or no indication of what was coming from Burt in the most recent interview. Shabby behaviour. Just shabby and grubby.
Per the RNS on 17 July 2023:
On the earlier of (i) First Completion and (ii) the Business Day falling within 45 days following the date of the Subscription Agreement, the Company's obligations under the 2025 Convertible Loan Notes will also be secured by (1) a share charge to be granted over the entire issued share capital of East Imperial Pte. Ltd, the Company's wholly owned Singapore incorporated subsidiary (the "Singapore Share Charge") and (2) a share charge (the "TB Share Charge") to be granted over: (a) on the date of creation of such TB Share Charge, 75% of the Ordinary Shares registered in the name of Anthony Burt (or a nominee thereof); (b) following the first business day occurring after First Completion when the 10 day VWAP per Ordinary Share is equal to or greater than £0.05 but less than £0.075, 50% of the Ordinary Shares registered in the name of Anthony Burt (or a nominee thereof); (c) following the first business day occurring after First Completion when the 10 day VWAP per Ordinary Share is equal to or greater than £0.075 but less than £0.10, 25% of the Ordinary Shares registered in the name of Anthony Burt (or a nominee thereof); and (d) following the first business day occurring after First Completion when the 10 day VWAP per Ordinary Share is equal to or greater than £0.10, 0% of the Ordinary Shares registered in the name of Anthony Burt (or a nominee thereof) (at which time the TB Share Charge shall terminate and be released in accordance with its terms).
This means only the CEO's shares are up as collateral, and the SG business.
Question is if they have said they're taking his shares, who is running the business in the interests of the shareholders?
There have been no updates and nothing public to say that the business has stopped trading. All we have had is a TEMPORARY share suspention amid continued activity from employees over social media. At the same time, it is POSSIBLE that administration or liquidation will occur, but again we have heard nothing.
I note that the lender can't crystallise until 14 August per the terms of the deal. So anything prior to that will be a decision taken by management and the board, rather than forced by the lender, given that we were told explicitly that the business still had working capital in the 11 April RNS.
The business tended to run with assets well in excess of the ~2m owed under the terms of the note, so there should be assets remaining for shareholders even in the even of liquidation.
Whatever happens, I will be watching developments very closely.
They’ve stopped trading as per the RNS.
Unless there’s a last minute offer to buy EISB it’s definitely game over.
Thanks for latest insights guys, I found a link lately & made some written notes from it, but it seems I can't open today. It's from drinks business .com 16th April. It states "Forced into rescue discussions will see it fall into liquidation or administration. Last August INL Investments backed East Imperial through the issue of convertible loan notes. Last week's update said it issued a convertible note instrument to East Imperial in August & a deed of share charge in October"
My point is, I am not aware we were informed that a ' share of deed charge' was linked to this convertible loan. I've never heard of this share of deed charge and it's not pretty reading; it's a security interest over East Imperial's shares apparently.
Not of huge significance now given our current situation, but I wonder if there'll stick to issuing the Full Year's Results next couple of days & maybe at the same time, we'll hear the latest on INL's intentions.
Good stuff MM92
I’ve written this off already but if by some miracle share holders walked away with something that would be quite a result.
Do you think there is any chance at all that someone might throw in a low ball offer to buy EISB?