Shareprohet article - part 228 Dec 2018 22:51
However, if Vast doesn’t get its mits on the outstanding $5.5 million from the Mercuria facility within 30 days of the loan, then it becomes convertible at either 0.59p per share (fat chance….) or at 92% of the 5-day volume-weighted average share price on AIM “during a specified period”.
So in other words, in the absence of this $5.5 million turning up within 30 days, Vast’s shares are an obvious sell. With the shares currently at 0.36p we are even given a target price:
…..the Funder may postpone the funding of the second tranche of the Convertible Securities in the event that the market price of the Shares is below a specified level being 0.2p for any two consecutive trading days during the term of the Agreement and, should the price of the Shares remain below that level, elect not to fund the second tranche.
Of course, that is at the funder’s election and is not, therefore, an obligation – although a nominal price of 0.1p would, I suggest, make it more likely that Bergen will hold fire at 0.2p. And there is a constraint that Vast needs to have authority to issue conversion shares, which may limit the damage.
We are told that there are no warrants involved in this deal – and thank goodness for that, given the company’s history! We are also given the usual assurance that Bargen is contractually forbidden from short-selling the stock, but with 68 million shares in hand and plenty of T+ opportunities, I can’t see that as any reassurance at all.
The company tells us that:
we are cognisant of our previous statements that we would avoid raising finance through convertible securities with a conversion price linked to the share price at the date of conversion. We have only undertaken this transaction as a short-term bridge of a limited size pending the receipt of the expected $5.5 million Tranche B pre-payment finance from Mercuria, which we are expecting to complete within the 30-day period prior to the conversion rights on the Convertible Securities becoming effective. Should conversion rights nevertheless be triggered, then the maximum dilution will be limited by our existing authorities, and any issues beyond that will require as stated above the approval of new authorities by Shareholders.
??...so that's alright then! Well done to the Nomad - our good friend Roland "fatty"Cornish for that.
The first tranche was handed over last night – as per the no-one-is-watching o’clock RNS at 5.30pm when everyone was out doing their Christmas shopping. So Monday 21 January is the key date – after which, if this $5.5 million hasn’t appeared, Vast shares are an automatic sell.
Indeed, if I held the shares now, I wouldn’t wait.VAST
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