EISB.L Share Chat (EISB)

Burt you lying bastard, cost me an arm and leg

Undone by a stupid and conniving CEO! He obviously would not listen to any advice given him and then blithely did an interview one month before the company filed for administration without any word or hint that the company was in any trouble. In fact he said things looked good. Tony Burt as good as lied to the market but it’s what happens on AIM time and time again so if you invest in other stocks on AIM you just have to accept they’re all economic with the truth. Putting it mildly.

A great product undone by a stubborn and arrogant CEO. Would not stomach anyone questioning or casting doubt on his business plan. V V sad

28 August 2024

East Imperial plc

("East Imperial" or the "Company")

General Meeting and Creditors' Meeting - Appointment of Joint Liquidators

Further to the Company's announcement on 12 August 2024, East Imperial, the former global purveyor of super-premium beverages, announces that:

1. a general meeting of shareholders of the Company was held virtually on 28 August 2024 at 9.00AM and passed as an ordinary resolution that the Company be wound-up voluntarily, and passed 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 was held virtually on 28 August at 9.30 AM where the nomination of the joint liquidators and the basis of their remuneration was agreed unanimously. It was further agreed unanimously that no liquidation committee be established.

Application will be made to cancel the Company's listing on the Equity Shares (Transition) category of the Official List, and shareholders will receive further information directly from the joint liquidators referred to above.

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.

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

I would argue where is the value in the listed company? The brand is owned by the Singapore company, now in the hands of INL I believe. The NZ company has been put into liquidation, and any assets will be sold locally by Deloitte, presumably into whatever phoenix rises from the ashes.

Given that EI has always been contracted produced, I'd imagine that INL is seeking to do a deal locally in NZ with a contract producer who, in my experience, also have a route to market already established in both on/off trades.

I received a corporate action asking ti vote for the company to be wound up voluntarily a nd for Begbies Traynor to be appointed to handle the process. I have voted against this as the liquidator is awful and will seek to extract all the value for themselves rather than shareholders. I have suggested they appoint a different company and suggest others do the same.

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.

The NZ trading company was put into liquidation by INL, as was their right as a shareholder so any conversation about early liquidation is rather mute.

I'm not sure about NZ law, but assume it would operate the same way as the UK. The only reason by TB would be barred as being a director would be a unfavourable report from the liquidators, which the NZ version of the UK Sec of State for BEIS would then sanction a disqualification, and the potentially ensuing court action which might follow. That is quite a lengthy process.

In terms of assets, there probably isn't much stock left, so most value would be good-will. The brand of course is not held within the NZ trading company and is presumably already under control of INL, so I am sure the market will see East Imperial as a brand rise like a phoenix.

INL isn't a drinks manufacturer, so will probably sign a deal with a contract filler in NZ and then sign a distribution deal with someone. One would hope and assume that will mean that TB is no way involved, not that it changes anything when it comes to shareholders. It is done.

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

Found this an interesting read

Risks For A Director Of Closing A Company Prematurely

Risks for a Director of closing a company go both ways. There are risks for not closing a company and going into liquidation. There are also risks for a director personally going into liquidation. This article will consider both angles.

For a director concerned about the risk of closing a company down and going into liquidation, the reality is the risk of not going into liquidation generally is greater than the risks associated with actually going into liquidation.

Few directors are likely to opt for insolvent liquidation as a choice made with haste or prematurely. It is perhaps the last thing they would wish to do. Most directors would much rather try to save the company rather than prematurely shut it down. For those reasons, there would be few (if any) cases in which a director has been successfully sued for prematurely putting a company into liquidation in breach of duty.

The risk of course, if a director prematurely shuts a company down, would be a loss of an opportunity that the company might survive and avoid insolvent liquidation with the benefits of future success that the company may have.

Putting a company therefore into liquidation prematurely is an unlikely event, rather like the prospect of a liquidator meeting a happy creditor. It generally is axiomatic that it does not happen.

Correction:

Reported in May 2023 for the year ended December 2022, so no idea what the position is now.

Now that the liquidation process is potentially underway it will expose any wrong doings and if found it may still lead to legal actions, and this is not the best times to be a director past or present. You never know what might turn up on the books.

Reported in May 2023 that Net assets were £3.19m, that after current liabilities and non current liabilities were deducted. No idea what they are now due to the silence and long drawn out path to liquidation which to me now looked planned. TB will not if I am right be able to be a director in the UK for 5 years and will be barred from being part of anything remotely associated with East Imperial going forward.

Very surprised that a placing or open offer was not done as we are talking around £2.5m, even though I respect it would have been heavy dilution, but the directors were of the opinion based on their last comedy video that break even was around the corner . I do not believe for one moment that any rescue package was undertaken and that there was another plan away from the UK being hatched. Straight to liquidation before even attempting administration is again suspect.

INL that's name to remember for the future.

Interesting that this has been liquidated and not gone into administration. Would anyone like to guess how much the assets are worth?

That’s confirmed now. NZ subsidiary in liquidation- https://app.companiesoffice.govt.nz/companies/app/ui/pages/companies/4115480