Member Info for Dave82

That’s confirmed now. NZ subsidiary in liquidation- https://app.companiesoffice.govt.nz/companies/app/ui/pages/companies/4115480

When did NZ go into liquidation? News to me but i wouldn't know where to access this information - is there an NZ equivalent of Companies House?

Dan1605 - do you know for certain some have started legal proceedings? I’d be interested in exploring a collective action with others if it comes to that but at the moment we still have no idea what’s happening

Good post TL82 and i'm sure most will agree with what you said.

There does seem to be some appetite for a collective action should minor shareholders be shafted.

You mentioned about the value of the shares on a going concern basis - would you care to share any thoughts? No problem if not. I was working on the basis on a break even revenue of approx £6m per annum and even at a fairly conservative revenue multiple i'd have thought the valuation should be £10m+, so a share price at least 10 times higher than when it was suspended. That's possibly ultra conservative as if break even was actually achieved and revenue continued growing at the rate it apparently was, i could have seen multiples of this being achieved

Absolutely no idea what’s happening. Never envisaged us waiting almost 3 months for further news so I’m not sure if this is good or bad in terms of INL. Sure everyone hopes there is a way forward but I think we all just need put out of our misery at this stage!

I took the RNS to mean that the company had stopped trading, not just that the shares had been suspended. However, I’ve seen emails from TB, I think post that RNS, where he notes that the RNS meant that trading in the shares had stopped and that the directors were taking advice about continuing to trade in the different jurisdictions in which the company operates. I’ve also seen an email from TB suggesting that the directors expected INL to appoint an administrator. To me that suggests it was actually a hostile act by INL and not orchestrated with TBs involvement but perhaps that’s just me being naive and hoping there is still some kind of resolution for shareholders. I guess we’re all just in the dark until the next RNS is released

Wondering if people have any updated views on what might be happening?

I understand that discussions with finance providers stopped almost immediately after the redemption notice but given the company is technically insolvent, and without an administrator or liquidator appointed, TB and other directors should be running things now to achieve the best outcome for creditors. That would surely involve continuing such discussions to see if there is someone out there that can provide the necessary finance and effectively step into the shoes of INL (perhaps an American investor would have been more suited) with INL being repaid.

Perhaps what is happening is that they are preparing things for a quick pre-pack admin with an administrator to be appointed to carry out a quick sale post appointment, in which case it really does look like we've all been stitched up

Lost count of the numbers of times I’ve read that since Friday evening but without any details from the company it’s difficult to piece together

Countingcards- it sounds like you still have some hope of a resolution to the benefit of shareholders?

Dan1605 - if you don’t mind also sharing with me at djzfraser at hotmail dot com that would be appreciated

Not just Bed and ISA trades? Good opportunity to get shares into an ISA at the start of the tax year and take advantage of low price

It’s surprising how many posters comment about this being an AIM share. Do some basic research and you’ll realise it’s on the main market. It doesn’t surprise me that there’s little volume at the moment. I know a lot of investors, representing a fairly significant proportion of shares not held by management or institutions, are sitting tight for the long term, myself included

If you read the RNS properly you'll realise they only had the ability to raise a small amount more on a non pre emptive basis, so to raise substantially more would have required going to existing shareholders, a more costly and time consuming exercise. Clearly additional funds could have been sought say last summer but at that time the directors obviously were working towards breaking even in H1 2024, so didn't think additional funds were required. Keep in mind that any additional funds at that time would likely have been dilutive as well. Post Xmas there has obviously been a discovery of a hole in the finances, hence the FD getting pushed, and this definitely should not have happened if everyone had their eyes on the ball. Tricky with a streamlined team and the stage the company is at and we don't, and probably won't get, full details on exactly what has happened. Short term there is likely to be quite a bit of dilution, especially when the CLNs convert as well (assuming they do) but long term i still see a lot of value in the company. Talk of administration, and a buyer waiting for this is silly, especially since the business would likely be split in two with the Asian side going to the CLN holders

Seems fairly obvious to me what has happened. FD has been telling TB all is fine, expect to break even in Q2 24. TB communicates this pre xmas in telephone type interview then post Xmas the FD tells TB there’s actually an impending short term cash flow issue. TB probably furious and embarrassed. Need to raise cash very quickly so can only be done at a ridiculously low price. Causes short term crash in share price. FD has to go as a result

Perhaps the social media team was on holiday!

From the last 3 days:

https://twitter.com/East_Imperial/status/1711631533511991581

https://twitter.com/East_Imperial/status/1711992714588221756

https://twitter.com/East_Imperial/status/1712355059776852096

Have to admit I don't really understand what the company is doing here.

The positive news flow, albeit mostly on Twitter, has effectively stopped and up to this point there has really been nothing in an RNS to actually confirm any real numbers or progress. Hardly surprising that the share price is steadily decling but i'd be surprised if they are happy with this. We (including Tony Burt) need the share price to rise at a decent rate over the next 6-9 months to minimise dilution on the conversion of the loan notes, assuming this actually happens, so continuing to release a few positive lines on Twitter every few days seems like a no brainer just to evidence some sort of momentum.

Perhaps the social media team are on holiday?!

Nice to see Tony Burt sticking two fingers up to Taylor Partners as well!!

https://twitter.com/East_Imperial/status/1691346773678133248?s=20

Good to see confirmation this morning that Taylor Partners have sole their entire holding and are completely out.

Onwards and upwards we go!

Https://twitter.com/east_imperial/status/1686278242687176704?s=46

Great exposure for the brand!

Good to see such a positive view on things!

I think long term holders are going to be very well rewarded over the years to come. In terms of the debt, my understanding of the conversion terms is that they can't convert for at least 12 months - have i got this wrong?

"The Convertible Loan Note Instrument gives the holders of the 2025 Convertible Loan Notes the right to convert.......... at any time after the expiry of the 12 month period commencing on the date of the Convertible Loan Note Instrument until the redemption of the 2025 Convertible Loan Notes in accordance with the terms of the Convertible Loan Note instrument."