The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
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Nothing temporary aboutc this. It’s finished and will either be delisted or sold very soon for peanuts. One again retail investors shafted by poor management. Lied to, market sensitive info withheld last year, and latest presentation giving a heavily skewed version of where reality lies for this company. Anyway, another lesson learned.
Temporary Suspension
Something positive on its way ?
Worth a cheeky £1000 punt at open ?
At 750k m/cap it’s just too cheap
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.
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.
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
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.
So if it's all rosey in Garden and they only need £500-750k to B/E why have INL suddenly pulled the trigger, a bust up with Burt or a case of take out the prey whilst it's injured. There could be plenty of twists and turns here, we know there are still in discussions with lenders and has someone has rightly said, this could be Burt holding a gun to his own head.
What a crazy, very unfortunate 'pickle' we're in; to put it mildly!?! Suspension come Monday looks a dead cert I'd say, whilst shennighams & desperate efforts are made to solve this mess, in the hope to come up with a solution & continue trading in the future.
TB to come out fighting, two falls, a knockout or
a submission to decide the winner. Apologies, but the weather's finally nice & some levity needed to compensate the situation!
Who knows, clutching at straws maybe but could the Chinese INL & last fundraisers Galaxy etc come to a compromise, negotiation, the former be paid off partly, & go to own the Asia 'arm' of East Imperial. And maybe even some future fortunes( % ?) of the USA to compensate if ever that becomes very successful.
And the further raise by way of existing " large shsreholders"
I've listened to that interview by TB a month or so ago & his actual words are, as previous posters have suggested are " A major group of shareholders that remain very supportive, large shareholders, their preference as is ours, to further to continue to explore...." 4mins in on interview & later " great strategic partner in China there now starting making some headway with Galaxy Entertainment in Macau..." etc
Could
Daft question but from what I've read these notes aren't due for redemption before 2025 so how can they suddenly want their money?
Why wouldn’t this be bought out ??
Perfectly put MM. What happens next all depends if Burt is involved with pulling the rug. I've always had the impression that Burt had regrets about being listed, interestingly this question was asked in the last interview so clearly I wasn't on my own. If Burt is involved (I think he is) then they will let this fall into admin and we know the rest. However if this is a INL trying to kill the prey whilst it's injured then Burt will obviously want to put up a fight, you aren't going to simply hand over your baby. Can Burt find the money? There's no coincidences here, the Director leaving and that funding RNS from Thursday.
Top, sorry to hear your situation here, hoping you can recoup losses in good time if that does materialise.
Key point here will be if TB has reached an agreement with INL behind scenes.
If he has, IMHO this is finished. If he hasn't and there's hostility between the two parties, then what's to say they can't get raise sufficient equity.
In his last video he mentions this has some 'large investors' and seems reluctant to carry out any dilutive fundraise, preferring additional gearing which is of course a massive risk to a business like this.
If what he says in his videi is true, i'm sure those same investors will be contemplating to treat their existing investment as a sunk cost, or stump up financing to give this business the level of funding it needs to finally reach profitability.
GLA, AIMHO, DYOR.
Morning xviolet, thanks for the kind words. No one else to blame only me, I left a fundamental principle of multiple low cost shares and was drawn in by the potential of the company. I still can’t believe Burt will take this lying down. Desperate times call for desperate measures and if he’s genuine he will find the money to pay them off. What’s 2.5/3mil in business. I feel a dilution is possible, additional shares allocated for the company to survive. I can’t see Burt throwing away 75% of his holding.
I see a short term suspension of shares very soon which will afford time for someone to time 3mil down the back of the sofa. Here’s hoping. Have a great weekend all, it’s only money
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.