RE: Needs investigating29 Apr 2024 18:28
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.