well here we are6 Mar 2019 20:23
What does all this mean? It means that in order for EHGOS to be able to see value out of their loans and Nuuco (owned by David Sefton is now the Executive Chairman of Widecells) get to convert the loan option into a 29.99% stake to cement control of the company they need (a) a market in which EHGOS can sell their stock into and (b) in fact in order to convert on Nuuco’s part their option on the loan stock, they need, as it stands today, a rising share price. The plain maths are that their £585,000 loan option converted at 0.25p per share (the price available over the next 7 days) results in 234m new shares – way over the 29.99% enlarged equity level that is the bid barrier. If this was converted at say 0.5p however then 117m shares are issued – near the enlarged 29.99% count.
The next week will be key to see the conversion notices and volumes converted into stock by EHGOS (and their resultant stock holdings thereof). A drying up of liquidity and back to 0.25p is the last thing they or the new Executive Board want to see from what we can see. Once we get through the 15th March the 0.25p conversion option (ref last 15 days lowest VWAP closing price) disappears and dilution (pending the share price over the next 7 days) levels diminish. We are buyers sub 0.5p.