RE: Block seller/buyer4 Oct 2023 12:24
When Trevor resigned as a director of FAB, he no longer became interested in those shares held by FAB and his holding was adjusted by the RNS at the time. That said, he was replaced as director of FAB by a family member.
It is my belief that Trevor is considered a 'concert party' to those FAB shares and so therefore his combined holding remains at circa 29%. I know that others on here disagree with that opinion. That is fair enough and I respect that.
Now we know that the Finals ending 31/12/22 showed that Trevor had CLN's outstanding to the value of £217,784 and that the last ones converted were at 1.5p and 2p. So, assuming those outstanding are at 2p and higher, the maximum to convert would be 10, 889,200 (if all were at 2p). Now in normal circumstances, Trevor would sell shares in blocks and then convert that total in shares, thus maintaining his holding and pocketing the difference in financial value. That is totally acceptable to me, as we avoid placings where placees flip for a quick turn.
Now here is where I speculate and it is just speculation. By FAB selling their shares, they obviously benefit to the value of those shares. So what if Trevor converted CLN's to the value of those FAB shares? That would keep his total holding (personal + concert party) the same, whilst allowing FAB to have greater working capital. It would also provide IQAI with working capital to the value of those converted CLN's.
That said, If I was Trevor I would still sell my personal shares and convert in the normal way. However, doing it the way I speculate, the combined FAB + personal holding remains at circa 29% and both FAB and IQAI have an inflow of working capital.
Thoughts anyone?
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