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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?
It seems you can't post links, but if you look up the linkedin of US Regional Sales Director Jenifer Jaber you can see that she has posted and tagged the company two days ago.
While the company jhas not confirmed whether it is still operating, it appears from LinkedIn that it is in some form, at least in the US:
[LINK REMOVED]
This lack of formal communication raises questions over the fiduciary responsibilities of the board and management to shareholders.
The CEO may even be playing some sort of game of chicken with INL, knowing that they wont recover all their money if they liquidate as most of the business's value is as an ongoing concern. Although while opaque, this might actually be the best route for shareholders.
In any case, I am watching developments very closely and will certainly be in touch with the FCA's Market Integrity Unit and admiinstrator / liquidator if one is appointed if necessary, depending on the outcome.
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
Thanks for the update Dave. There's a difference between administration and liquidation, liquidation means there is a chance of some return, administration, zero. Another coincidence (not) is that the results were due this month. This will be taken into admin with TB and INL riding off into the sunset.
Troa, posted on Adfvn this morning the following; 'I emailed TB yesterday TB & received this message. The Company's shares are temporarily suspended on the London Stock Exchsnge & the company has stopped trading. We expect an Administrator to be appointed by INL Investments Ltd to seek to sell assets to allow INL loan to be repaid.
We will update shareholders as soon as possible.'
One wonders whether they have enough assets to cover the loan?
I hold the view they will be working with WHI to take control of the operations of the business. I suspect zero return for shareholders. TB will keep his job and likely some form of equity stake in the new business as a sweetner.
They have technically been insolvent ever since the Loan Notes were issued by WHI. That was the point when they handed over the keys to the business. From then, it was just a waiting game, until the business ran out of funds. Not sure how they got away with the c 350k fundraise in January, or if that Investor held on to their shares... i suspect they didn't and some poor sod ended up with the paper on the secondary market.
Stitched up like kippers.
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
Wondering if people have any updated views on what might be happening?
I understand that discussions with finance providers stopped almost immediately after the redemption notice but given the company is technically insolvent, and without an administrator or liquidator appointed, TB and other directors should be running things now to achieve the best outcome for creditors. That would surely involve continuing such discussions to see if there is someone out there that can provide the necessary finance and effectively step into the shoes of INL (perhaps an American investor would have been more suited) with INL being repaid.
Perhaps what is happening is that they are preparing things for a quick pre-pack admin with an administrator to be appointed to carry out a quick sale post appointment, in which case it really does look like we've all been stitched up
Can you please share with me too
Battyscott8765@gmail.com
Just sent you the email thread mate
Hi @dan1605. I’d appreciate if you would forward to me please. kthanley1@hotmail.com thank you in advance :)
Zero empathy
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?
I should of added that they are technically insolvent and their assets may have fallen below the required £700lk requirement for the LSE threshold, given the current actions by INL.