RE: MC £0.6m / Cash £1.9m / + Assets £3m+7 Mar 2021 12:34
Up until 2016 it was laid out as such::
" The accreted principal amount per CZDP be reset to US$1.28. In the event that aggregate distributions equal to the aggregate CZDP accreted principal amount (US$1.28 per CZDP) have not been made to the holders of the CZDPs ("CZDP Shareholders") by 31 December 2017, the remaining aggregate undistributed accreted principal amount shall increase at an accrued rate of return of 5% p.a. from 1 January 2018 and at an accrued rate of return of 10% p.a. from 1 January 2019 until repaid through distributions to CZDP Shareholders;
· Origo's ordinary shareholders ("Ordinary Shareholders") to receive a proportion of all future distributions alongside CZDP Shareholders, pro rata as follows:
- in respect of the first US$40 million of distributions, 87.5% to CZDP Shareholders and 12.5% to Ordinary Shareholders;
- in respect of the next US$40 million of distributions, 70% to CZDP Shareholders and 30% to Ordinary Shareholders;
- in respect of distributions in excess of US$80 million:
o until such time as distributions equal to the accreted capital amount have been made to the CZDP Shareholders, 30% to CZDP Shareholders and 70% to Ordinary Shareholders; and
o thereafter, 100% to Ordinary Shareholders.
From 2016:
The Proposals would restructure the convertible zero dividend preference shares ("CZDPs") and would provide Origo with greater flexibility to implement its orderly realisation strategy with a view to maximising value on behalf of Origo's shareholders. The key elements of the Proposals include the following:
· The removal of the requirement for the Company to redeem US$12 million CZDPs and the removal of any final CZDP redemption date.
· The accreted principal amount per CZDP be reset to US$1.0526. No rate of return on the CZDPs will begin to accrete until 1 January 2018. In respect of each CZDP still in issue on 1 January 2018, its principal amount of US$1.0526 shall be subject to the accretion of a rate of return equal to 4% per annum from 1 January 2018 to the date on which such CZDP is redeemed. Such return will accrue on a simple and not compound basis.
· Origo's ordinary shareholders ("Ordinary Shareholders") to receive a proportion of all future distributions alongside CZDP Shareholders, as follows:
- in respect of the first US$15 million of distributions, 80% to CZDP Shareholders and 20% to Ordinary Shareholders;
- in respect of distributions in excess of US$15 million:
o until such time as all CZDPs have been redeemed in full, 44% to CZDP Shareholders and 56% to Ordinary Shareholders; and
o thereafter, 100% to Ordinary Shareholders.
In Short...
The company need to redeem $15m at a 20/80% split with the ZDPF's and then this becomes attractive. Ords would be entitled to £2.2m if the $15m was raised.
Hence... why it has a 0.9m mcap!!
Hope this helps.
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