Reposting RKB’s message - value19 Nov 2018 09:26
Final 6 weeks of 2018
The final six weeks of 2018 are going to be very interesting.
Next Tuesday 20th November the Court in Ivrea will have a first hearing on our appeal to the Land Auction. This is because the Auctioneer accepted an offer of only €1,958,374 million when the Land (which was originally worth €20 million) was down valued to €3.86 million by a Court appointed surveyor and then the Auctioneer for reasons not disclosed (yet) put the price at €2.61 million and then setting bids at 75% of €2.61 million. We also have an unsecured creditor position for about 94% of any other funds liquidated (over and above our first charge on the Land for €2.68 million) and the Court has assessed this at €8.21 million. So whatever happens with Mediapolis we are getting either the Land or our First Charge in full of €2.68 million and also a fair bit of our unsecured €8.21 million creditor position.
Euro Bonds: This is at present worth a lot more than most realise. We have outstanding about €6.4 million Euro Bonds and we know Eufingest have 43.48% of the Euro Bonds. The value of the Euro Bonds as at 31/12/17 was €6.292 million and we only charge 1% interest so this would only have increased by about €62,920 in 2018 if taken to the end of this year when Bond Holders who want to convert will convert (so €6.4 million covers the interest)
As we have been informed on numerous occasions that Eufingest hold 43.48% of the outstanding Euro Bonds (which technically should be referred to as Zero Rate Convertible Bond 2015) then Eufingest have about €2,735,762. As we know that the Bonds convert at 3.76p or 4.234 Euro Cents and as Eufingest were instrumental in their support it is 100% certain they will convert. Using 4.234 Euro Cents they would get about 64,614,114 shares. Using a GBP to Euro of 1 : 1.10 and a conversion of 3.76p Eufingest would get about 66,145,106 shares.
Taking an average you could say Eufingest on conversion of their Euro Bonds would receive about 65 million shares and at our nominal share capital of 0.25p it would cost Our Company £162,500. This would wipe out just the Eufingest portion of the Euro Bonds of €2,735,762. When all Bond Holders convert (as they will do) we save a small fortune as we would only issue about 150 million shares which would cost Our Company about £375,000 (not millions!)
Soon the Penny (or four) will drop and when FG announces at the end of November how many Bond Holders are converting we will be removing at a stroke a large part of our Debt.
RKB
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