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Mxc largely ‘took the risk’ and provided most cash when the banks were, I think, on IDE’s backs. Hailed as progress for shareholders - no outside lender causing problems.
They’ve sought dispensations before from making an offer, from memory.
Whether in the planning or not, they finish up pretty much owning the company. But say they won’t take it private (yet) I sort of expected they would at some stage.
As a larger by comparison Mxc shareholder, I have no reason to complain. Wheeler dealers. I think I feel it’s a fair result for IDE, too, as do a few buyers just now.
Mxc a ‘mysterious’ crew though. No doubt in my mind their end game is to mastermind a sale of some sort, Mxc ( and us ) take a hopeful up to 40% premium, and partners and concert party take their rewards through Mxc, when Smith and partner Weaver retire, and close down Mxc as they said they are working towards.
Just to correct that they will hold 83.9% post conversion - strange that the other two large CLN holders don’t what to convert but they either want better terms or are willing to wait another year or so to see if results continue to improve?
Thanks for providing a summary. The RNS was slightly convoluted for this time in the morning. I think their end game -as promised to MXC shareholders - is a full return of their money invested. I'm not sure what that equates to but significant increase to where they will stand post reorganisation.
Lots to digest but I read it was IDE repaying back 70% of the total outstanding MXC debt in exchange for 16.4 million shares at 89.2p post 1 for 100 consolidation? I guess that’s not too bad a deal in current financial markets? They will hold 89% of the share issue but not make a takeover? Can’t think of any other companies which should a large shareholder - what’s their end game??
Thanks - some people think they can post what they want on a BB thread but the truth is you cannot - as once in a while the company might read the thread or a post might get reported. Anyway I just hope the conversion price is higher than the current share price!!
Maybe not related party but conflict of interests - anyway, you know what I mean.
I am taking the view there will be a vote on debt for equity. This would seem a related party transaction as far as Smith Mxc and Smith IDE is concerned. I wonder the extent to which that may have implications.
Can’t discuss, because above my pay grade, and they will anyway take due notice of any legalities that may arise.
Doesn’t take me anywhere, but I think you mean is it Kestrel?
This is at least some of theirs, isn’t it?
“On 7 June 2021 £2,397,519 of the unsecured convertible loan notes issued in August 2018 were converted into 95,900,760 Ordinary shares of 2.5p each, at a conversion price of 2.5p per share. “
Is this the same seller(s) re recent holding RNS? Not good - hope it’s not because they know the D4E conversion price which I hope is north of 1p - just have to ride out the selling storm …
Results are like buses. You wait months, then two come along at once.
Good to see the cash balance currently over £1 million and company positive about uplift in revenue in 2923 and beyond - the share price weakness appears to be due to 1-2 major sellers as per the latest holding RNS - so now we wait for details of the capital restructure (they did this with Helphire/Redde and the share price subsequently recovered from 1p to 17p - not saying it will happen here but sentiment at least might change with most of the debt removed)
So it looks as though we’ll be getting an agenda of resolutions, and a vote. Can’t say I’m looking forward to it, but I accept it as necessar, inevitable, and we’ll get it out of the way.
Thank god! Will digest the rest of the interims later
https://www.lse.co.uk/rns/IDE/interim-results-4fqw5zf5wnkd1qj.html
It is the intention of the Group, following the release of these interim results, to call a General Meeting in order to allow a share capital reorganisation, and to convert the majority of the outstanding loan notes into equity, allowing the Group to reduce the indebtedness of the to an appropriate level.
Bit basic, but I read that as Smith Mxc saying I want to cash in. Smith IDE says I’m thinking about it. How can we work it. Seems we’re a bit stuck.
Then the options. Convert and go from there. Raise some cash from institutions. Non starter. Get a loan, pay off Mxc, and leave that with IDE.
Interim results tomorrow then (if same as last year)?
Well results are out - will read though later - won’t comment on the 1 trade lol
Well this is about the eight time they've declared mission accomplished so we'll see.
However revenue, gross profit and EBITDA all increasing seems to be a step in the right direction.
Might send another email tomorrow if no news - I am quite aware that a number of audit firms have vacancies to fill - must be all the people who decided not to come back after the pandemic!!
Once again the end of the month hangs like the sword of Damocles.
Let's hope they also announce a new auditor in the process.
Understood - any way some decent trades today and the share price is holding up well - just need some news now - codes or no codes lol
I'm not having a go at you, but this has been mentioned so many times and it never ends up with RNSs here.
Except that it has happen on shares I hold a few times - who in their right mind trades for one share? We know results are due but obviously I was wrong on this occasion
Wow, that theory is still being peddled. You'd think after the millionth time of it not being true people would give up on it. :)
Agree - plus these codes only happen probably half the time (but who buys one share?). Added anyway just in case lol