Basically he is buying 8.5% of the company for £5 million with an option to buy more at a price yet to be determined but more shares would be issued to augment that giving him about 25% of the company at 4.5p if that was the price that was determined but the £10 million is only an option he has agreed to put in £5 million.
No 111,111,111 shares @ 4.5p = £5 million Shares to be issued so at today’s price he is already in profit So really this is more dilution of our company prepare for a fall in sp when they are issued in the next few days
RNS IF ONLY we could get one it might spike the sp but with so many of us sitting on a loss if not all of us it would not last long unless it is something big. I am at a loss to know what is going on what are all the staff doing.
On the plus side 20% share buy back should be good long term but what happens to the remaining 10% that is being sold could cause a a pull back as we do not know how many will finish up back on the market .