RE: AEX & QFI12 Feb 2023 13:01
@KevR, I was in Syme, but not when the CLNs were agreed but followed, some are called Death Spiral Loans, which I guess depends on the companies share price trend, and the reputation of the loan providers, those who will convert to loans quickly. Usually there is an option to pay back in cash before conversion, but in Symes case that was unlikely, the price appeared to be pushed down, shares converted by loaner, followed by a good share price recover, then the drift down..then repeat....
QFI, have used CLN, better did not notice the dump and pump are around conversion, maybe it was there, just note a level I noticed..At the time it was new to me, never heard of death spirals until syme.
Syme, made out the their 1st CLN provider, was the best choice from a number of offers, but it was not long before they took another to pay off the 1st..
Inteestingly I was reading TM1 have taken out similar, with Macquarie Bank Limited ("MBL") and Atlas Capital Markets LLC ("ACM"). The interest rates incurred dont look not so bad, but they are already converting, in small amounts £30k and £70k so far, after loaning the 1st £500k tranch.. So an orderly sale to market,
but there followed a 40m volume day ???
So there is £400k left to convert, calculations based on 1p share price, thats 40m shares to convert.. So is that is 40m..
Obviously a baseless observation at the moment, as its over my head..
But suggests TM1 are not able to pay back the £500k, quick enough to deter the loaners from converting, or maybe the loaners are sharks....
But looks like they took a deal that did not protect the share holders, if the 40m volume is related to the loaners
One to watch, for dumps and pumps...
Just seen the large Volume..
https://invst.ly/-9am8
https://invst.ly/-9ami