Member Info for mcmullank

Share holders get £50,000. Would rather see the company wound up than accept this proposal. Will be voting against it at the coming shareholders meeting.

0 or damn near it. 1 to 1000 consolidation is OTT, so much for the 10p per share agreement. Investors getting to purchase shares at 88% discount to current value and existing small shareholders not getting to participate is criminal.

equates to capital raising at the current equivalent of 0.2p

Fcuked

The circular to shareholders will detail the consolidation of the shares and the price at which the investors will be buying the new ordinary shares at for the 12.5m fund raiser. If the price is significantly higher than 20p per share then we should see the price rise. At the same time, if they are issued at par then the price will fall.

Robbers!

now short on over 1/2m shares with the latest sell at 1.7. How much lower than 1.7p do they expect this to go?

565 shares!

Better by the even bigger on of £10.45 for a massive 545 shares. Surely someone in the know!!

Based on the SOA, they now have had their week for issuing the shareholder circular. Maybe sometime later today we will get the announcement.

On total trades of less than £200

You are correct!! However if the issued price of the new ordinary shares is 10p then this becomes £375,000 and I make that 97.5%. In regards to the placement price, I think we will see the shares being placed at a price higher than the nominal 10p value alloted to the ordinary shares as the company will want to ensure that they have the flexibility of being able to issue more shares in the future and they would be handtied if they issued at 10p and the price dropped. I think we will see a minimum issue price of 20p and possibly higher vis-a-vis JJB.

So re-reading the document and seeing that the company intend to re-organise the capital structure. The preference shareholders are getting the current equivalent of 37.5m shares worth £750,000 for their initial investment of £15m. This is going to result in a loss of 80% of their original investment which is still more than the creditors are being asked to take. As for the placement price, we will have to see the particulars of the shareholder circular when it is published within the next week.

For the preference shareholders to burden the same percentage write-downs as other creditors, the share price would have to reach 92p

Are being asked to accept 3.75m shares for their £15m investment. This equates to £75k at current share price. I cannot see them accepting this unless they think that the shares will be worth considerably more. Also interesting that the share placement is now for 12.5m and not 10m. On a point of note, the earlier post stating paying 5m for 21m debt reduction is not actually accurate. The company will be paying 4.99m to release the 21m Non Group Company and £10k to release £100m of Group Company debts.

2.02 - 2.07

This is hypothetical calculations based on the number of shares being issued and the benefits being realised from the SOA. If either of these is less than expected then the per share benefit to the company is correspondingly reduced. What cannot be denied is that the company will be in a stronger financial position if it raises the £10m and reduces the majority of their debt by 76.5%. Now how many shares this will involve is the unknown for everyone.

My opinion has always been that we will see the liabilities reduced on the basis that the company will go out of business otherwise. The £10m from the investor group will happen at 10p and the takeover will be pitched at 10p. This lets the investor group exit with no loss on their recent capital injection and recover some of their original investment which would have otherwise been written off and may already written down on their books which would lead to them showing a profit on the takeover (albeit less than the losses previously written off).

Almost :) you need to add the current market cap to this as well. £97m /500m shares = 19.4

I was only looking at the cost per share of the benefits. If we were wanting to do the dilutive calc. if would be the current market cap - 5m + 17m from placing and preference equity conversion / 500m shares. Leaves a diluted Share worth ........ 4.4p again this is not taking into account the SOA benefits if they come to pass.