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Was expecting the RNS to be released by now. Wonder what's causing the delay. Thoughts?
Orlm...
Why?
The company statement 14 April says: "... To date the Company has already received funding of £1.54m under the existing arrangement, the balance of £6.46m will be advanced in 3 equal monthly instalments commencing April 2021. All other terms of the Convertible Loan Notes remain unchanged..."
What is there to anticipate, or not understand?
The dilution element of it!
Orlm
OK, but we can figure that out, assuming new stock from the CLNs are issued at 2p, we know the amount outstanding, £6.46m, so we're talking around 322m new shares... between now and end June.
Of course any positive news before then could lift the share price and reduce that amount...
But remember, capital for emerging companies is not free, and I would be much less comfortable having any significant debt at this stage of NAPS progress. It would no doubt be much more expensive.
As I have said before it's all upside, in '000's of %, in my view. There is plenty of room for many players in this business.
The point is, we shouldn't have to make vwap assumptions or estimate what's likely to happen from April to June. I don't think it's even safe to assume 2p conversions for each of the next 2 major tranches in May and June as the vwap has so far fallen each month since the process began, dropping to lows of 1.93p end April from lows of 2.1p end March.
That's why I want to see clear communication and real numbers with every conversion. It's an easy update for them to provide every 28 days or so. Based on recent observations in avg s/p decline, this could be played down to around 1.65p by the time the process is over if there's nothing to maintain buoyancy. Dilution at these levels would be much greater of course.
I don't disagree on the point around debt burden and cost of capital, but a bit of extra effort wouldn't go amiss to guide everyone through the process a bit better.
Agree with most of that, Djp57.
Equity sooner than debt most days of the week. Not that I ever liked the CLN route. But we obviously didn't have much choice.
Even in the days when credit is still relatively cheap, rolling it over can prove otherwise. Personally I'll be a lot happier when this particular agreement is out of the way. But if N & G remain significant shareholders, that will demonstrate a huge show of support.
Don't like the idea of too many players in the game, but MVR/NAPS do still have two USPs . 1. Their audio/visual app - everyone else is either doing one or the other . 2. Broadway musicals - let's hope they have been working with JGO behind the scenes to hit the world come the Autumn.
Only 7 weeks left for the final conversions you would hope this is factored in by the new bigger investors fingers crossed .
Napster had a big increase in user numbers in 2020 , could they have had a bigger increase since then ? the board would have been aiming at the quickest way to profit which jumps at a fair rate if their numbers increase . soon find out end of June . good luck.