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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.
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.
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.
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 :)
Can you also share with me please
Barryscott8765@gmail.com
Dan1605 - if you don’t mind also sharing with me at djzfraser at hotmail dot com that would be appreciated
I bet the old FD has some stories to tell, he resigned in Feb so not too long ago. There's some ambiguity around that funding RNS on Thursday, why bother releasing that.
Yeah CC, as I say, something not feeling quite right here...
I saw the announcement of a new customer in the US on X, shortly after they indicated they had ceased trading. Is that a marketing gaff by a junior member of staff I wonder?
This feels like a right AIM con job... and this one has a main listing!
Just sent over mate
Dan if you could send onto bould12345 and its hot with a mail and com. Just in case its blocked here. Appreciated.
I have been in touch with Tony Burt who replied only yesterday stating he would inform the market of the developments and asked for questions. Considering what has been released today this looks like complete BS. He did not come across as a guy who had just lost his business, in fact quite the opposite. The whole thing is stitch up but unfortunately for Burt he's left a trail in his wake. I don't think he ever intended to leave the market, I would good money on INL offering the cash required for full control of the business and old Tone just couldn't resist. Happy to share the emails with anybody who wants them but I would be following this up.
MrMagorium
You are raising exactly some of the points I have been asking today. The same video should be investigated as he clearly stated break even by the end of the year or before. Loan notes being called within the year, and no reason given as to why? No indication of any issues with INL in the video.
Either he is talking BS about large supportive shareholders, one of which is Aviva with around 8-9%. I have been onto Allenby but not getting any reply yet. You can understand a slow death and one could argue this is what has been happening here, and all the signs were there etc, but a sudden one especially with a company who already partner's and without much explanation is not adding up.
BS8765, agreed. 4.42pm announcement of potential suspension then pre market Monday closed down completely. This is severe and if the CLN redemption has created an insolvent situation then you would be trying to use time to see if there were backers. Either they have backers who do not want TB at the helm and that then means BODs are not fulfilling their responsibilities to shareholders. Yet I also have to say that 4 mins after suspension this morning they were tweeting about a new win in the USA! This is why I question "ceased trading" as in the shares? or ceased as in completely as a going concern.
I know might say forget it and move on. I reminded myself this morning of the similar situation 10 years ago, and there shouts of "its bust" "you have lost everything " and yet it came back 13 times the suspension price. Not saying anything like that here but this does not add up.
Something is going on here IMO...Just watched his March video again.
How can a company which is just about to become cash flow break even, run out of money and then announce administration, with loan notes called in less than one year from when they were issued.
On companies house, I see they had a subdivision of shares approved earlier in the year, so they can raise below a penny if in dire straits... and if you watch his last video, he mentions 'large supportive shareholders' who are interested in further debt finance... what was the Enterprise Value here 5 mil? And debt (+ accrued interest) 2.4mil. So just shy of 50% gearing and they wanted more debt ! That sounds dodgey for a start!
If I had a substantial amount in this, I would be asking big big questions...
Very suspicious
RNS late Thursday
RNS end of play Friday
Suspended Monday and into administration
This Process takes a lot longer than 2 days