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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?
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