RE: Documents filed @ companies house9 Sep 2021 00:56
Soooo what’s happened with CLN.. tradEcho transactions.. warrants
Right ….AIMHO …
Negma we’re issued 840 mill shares at something like 0.32p
That is the total dept converted to shares to cover the loan
However,
Negma started selling, dropping the sp, and continued to sell.
These sells at a continual lower sp means the the total shares issued no longer covers the 100% of the debt
So AZ had two options. With a £5mill loan from NEGMA and still £2mill to settle (the balance between the Money Negma generated by selling the shares and the cash value of the loan)
Firstly he could issue more shares to cover another £2mill but this time the price of the shares would be in the 0.2’s.. you can see why they call CLN death spiral loans.
Secondly pay the outstanding sum in cash (hence the Arc arranged loan)
With the balance to FB, but that’s another matter,
So these TradEcho trades are both coming as buys and sell transactions
Basically, Negma selling to MM directly via tradEcho.
MM then passing them onto ii who are buying, again via tradEcho platform.
Now these warrants and additional optional loan
The warrants can be transferred into shares (up to 3 years) once the loan is finalised,
That’s the £5mill loan as the £2 mill is optional.
Since the terms of the warrants is 20% of the possible £7mill, that means money generated will be £1.5 mill. The family office will pay full share price plus 30%, sp being 6 day weighted average
This is why the £2 mill is optional, they may not take it if the warrants are taken up.
If not we have the loan, to take up the full 10% of the fintech bank…
As I said all in my humble/ honest opinion
Take it or leave it, not bothered .. but bought today … tick tock
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