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Yes and No - because the £5m or so from those remaining warrants are desperately needed by PK to balance his shaky books. They would also have decimated shareholders further through dilution - not that PK has ever cared about shareholders.

As it is, having run Mast (and now QDE) into the ground, he's in a bind he can't get out of.

Its not really in the same sector pete. 'energy' maybe. But developing new technology with its own risks and completely different to PK's bog standard Delboy business. Your 55% is a flea-sized bounce from a long term low. Even so, ACF has a much stronger balance sheet than poor church mouse Pieter K so a better chance of surviving.

Usual Roast Numpty drivel. Accepting that Crowe has apparently been experiencing staff shortages, It is nevertheless inconceivable that an auditor suddenly drops performing an audit the day before a deadline or that PK didn't know something was up. Preparing annual accounts before publication goes through a process involving formal board meetings and meetings/communication with auditors probably over weeks when any problems would be thrashed out. Much more likely is that Crowe wouldn't sign off the 'going concern' reassurance after prior years when Mast's list of ways it would escape from then insolvency turned out not to happen, and given that anyone could forecast another state of insolvency as at end December. PK is apparently saying any new auditor even if found wouldn't complete before the financial half-year, and if so its unlikely any deals, funding, warrants et al would be signed - all adding to existing danger of going bust.

The trouble is Maidit, that to be 'a lot stronger' QDE needs a massive injection of capital, to give it a balance sheet that will reassure any partners to sign up with it. More than 6 'partners' and at least one reputable broker Krugel has trumpeted since listing have walked away after doing due diligence - which should have told anyone that Mast, now QDE, isn't viable. Look at my AI post earlier which lists what 'partners' will have seen from DD, and the legal covenants and constraints they will have put in place to protect themselves. Even if a white knight were to come along willing to take on what paltry business Krugel has and put up the at least £5 million it would need, he will want it at a rock bottom price, and dilute existing shareholders even more drastically than the part-failed warrants scam has done. That Krugel resorted to that scam should have told you everything.

As it is, having had his long standing auditor walk away, even in the unlikely event he has an excuse, is the death knell for anyone thinking of partnering with him from now on.

I think it means they can only count on the stage 1 which has apparently now been received - or has it ? - or will lawyers be drafted in to retrieve it for the misled placees ?

That sounds pre-consolidation Steve - ie at 160p in todays QDE money

Yes it seems unlikely Krugel will get his latest money grab. Its inconceivable that the 2.6p placees would have signed up only a short time ago if he had told them there were disagreements over the audit, which must have been ongoing for a long time. An auditor wouldn't contemplate resigning at such short notice before the deadline given the serious consequences without discussing it in depth with the co. If Krugel had told the placees, would they have coughed up knowing the risk of suspension ? As it is I can see litigation lawyers (not to mention criminal lawyers) sharpening their pencils and drooling over the cigars they can now get in. And the restructuring announcement is loaded with conditions. Opinion is still sell, even if you can't.

Shows you have to be careful of AI. Looks like QDE 'planted' this with Investegate. AI repeats what others post.

" Quantum Data Energy PLC (QDE) has requested a temporary suspension of its listing and trading on the London Stock Exchange, effective May 1, 2026, due to an amended equity raise strategy. This suspension follows strict regulatory requirements, as the company needed to publish audited results, or face automatic suspension.

Investegate

That's a slithery mis-statement. The suspension wasn't because of 'an amended equity raise strategy'. That had to follow the real reason, which was the accounts couldn't be published on time- so an immediate suspension was mandatory and so the equity raise listing can't be completed. And of course every suspended co pretends it will be 'temporary'

But bearing in mind the circumstances which obviously concerns the long experienced auditor thinking there's something wrong, (probably won't sign off the 'going concern bit) how can PK know how long it will last . Even if a new auditor is found and taking a look will sign up, there's no knowing what it will decide to do and how long it will take.

+3

He seems to have a mental, learning, or personality problem - probably all three. Either way - for hi s own good quite apart from for others, he needs to be removed from these investment boards. I've never come across someone who can't hoist in the verifiable facts ands figures he's been shown. He just rabbits on like someone in a cardboard box - repeating after repeating what he thinks some fairy godmother is going to give him. He's obviously lost a real packet somewhere and the mental shock has damaged his brain. On top he doesn't seem able to learn or accept his mistakes - a real personality defect.

I think yes - eventually

QDE or MAST Has never been able to be shorted. And no 'new' broker would sign up QDE when its long standing old one resigned a few months ago - with no announcement. On top, no reputable broker (or PR firm) has ever wanted to touch QDE or its mentor Kibo - only the bucket shops (and the ignorant clowns at Sunday Roas) who come and go. Fortified is only there to protect its parent (Riverfort's) loan to QDE. When that is cleared, it will also clear off.

Today is last chance for remaining mugs to clear off too.

More AI in answer to my question yesterday re danger of bankruptcy/administration.

Would you like to analyze how the security and covenants of QDE's parent-level debt are structured to see if creditors can force administration?

At the parent level, Quantum Data Energy PLC (QDE) operates with a "capital-light" model that relies on high-interest bridge facilities and convertibles rather than traditional long-term corporate bonds. Because QDE’s primary value is tied up in minority stakes of project-level Special Purpose Vehicles (SPVs), creditors have structured their security to ensure they can bypass the SPV ring-fencing if QDE fails to pay.

🔒 Parent-Level Debt Structure & Security

RiverFort Facility (Principal Security): The primary corporate-level debt is a loan facility (originally for up to £4m) with RiverFort Global Opportunities.

Security: This is typically secured by a Fixed and Floating Charge over the assets of the parent company, including its equity stakes in all project SPVs (like its 35% stake in Bordesley).

Priority: While the debt is technically at the "parent" level, the floating charge gives the lender a "Qualifying Floating Charge" (QFC), allowing them to bypass court proceedings and appoint an administrator directly if a default occurs.

Convertible Loan Notes (CLNs): QDE recently utilized an interest-free £350,000 CLN with Big Sky Management as a working capital bridge. (N0 RNS !)

Trigger: If the planned equity fundraise fails to complete within a specified window (typically 90 days), these notes become repayable in cash, creating an immediate liquidity "crunch" point.

+4

🚩 Key Covenants & Administration Triggers

Creditors can force administration if QDE hits any of the following "red line" triggers:

Reporting Default: The suspension of shares on 1 May 2026 due to the resignation of auditors and failure to publish audited accounts is a standard "Event of Default" in most UK commercial loan agreements.

Balance Sheet Insolvency: With a reported Debt-to-Equity ratio of -274.41%, QDE technically meets the legal definition of insolvency where liabilities exceed assets. A creditor can use this as grounds to petition the court for an administration order even if the company is still paying its bills day-to-day.

Cross-Default Clauses: If QDE defaults on its corporate bridge loans, it may trigger "cross-default" provisions in its SPV-level agreements, allowing project partners or project-level banks to seize control of the power plants themselves, effectively stripping the parent company of its only future revenue sources.

+4

⚖️ Can Creditors Force Administration?

Yes. Under the Insolvency Act 1986, a Qualifying Floating Charge Holder (QFCH) like RiverFort has the power to appoint an administrator without a court order if the charge becomes "enforceable" (i.e., a covenant is breached).

Red Flags galore here. Only a fool won't get out today.

In answer to a question

You are correct. QDE’s operational assets are held inside ring-fenced Special Purpose Vehicles (SPVs) that carry their own heavy debt loads and are shared with outside joint-venture partners.

Because QDE only holds minority or partial equity stakes in these vehicles (such as its 35% stake in the Bordesley project), the parent company cannot freely use the SPVs' physical assets or cash flows to cover its own separate corporate borrowings.

The structural risks this creates for QDE include:

⚠️ The SPV Trap & Asset Separation

Ring-Fencing: The physical power generation assets belong to the SPVs, not QDE directly. If QDE defaults on its own corporate debt, its lenders cannot easily seize the physical power plants.

Partner Claims: Outside partners (like Power Balancing Services, which holds 65% of Bordesley) have the primary claim on project revenues. QDE only receives residual cash after project debts and partner splits are fully paid.

Over-Leveraged Assets: Because the SPVs themselves utilize commercial bank debt to fund construction, the net equity value of QDE's percentage stake in those vehicles is heavily diluted.

📉 Parent Company Balance Sheet Insolvency

Negative Equity: Financial tracking platforms highlight that QDE has been operating with negative shareholder equity (meaning its total corporate liabilities exceed its total assets).

Debt-to-Asset Ratio: QDE's own corporate borrowings are not sufficiently collateralised by its slice of the SPV equities, creating a severe risk of balance sheet insolvency regardless of whether the physical plants are operating.

Default Exposure: Without direct access to project cash, QDE is entirely reliant on continuous, highly dilutive equity raises or short-term bridge loans just to pay its corporate staff, listing fees, and head office debts.

Simply Wall Street

With the stock currently suspended and no fresh equity capital easily accessible on the open market, this severe imbalance between corporate debt and illiquid SPV holdings is the primary driver of bankruptcy fears.

Another question I'll ask tomorrow

Would you like to analyze how the security and covenants of QDE's parent-level debt are structured to see if creditors can force administration?

Meanwhile dear holders - Sweet Dreams

Might be. But it would be by another chancer , and why would he take on all QDE's debts ? If he waited for administration, he'd get it all for even fewer peanuts. As ever, mug punters would lose everything. What Krugel has obscured is that these peakers, more than 650 of them, are two a penny and tossed around between hundreds of delboys. That he's (maybe was) the only listed one only means listing is too expensive for the business. Krugel (aka Kibo) had to go for a listing because he had no money otherwise.

Bearing in mind a suspension isn't particularly good for a company's reputation (not that QDE's could be much lower), and is hardly reassuring for any one thinking of collaborating with it, the pressure on Krugel to accept whatever Crowe wanted to say re its audit must have been pretty high. So that he couldn't accept it shows the issue must be pretty serious. Last chance to avoid the ramifications tomorrow.

To where you can 'average down' to zero probably

Its the fca we need on the case. The warrants scam was reported to them in detail. But they couldn't be bothered - maybe because their disclaimer in the 2021 listing doc was enough to warn punters that 'on their own heads be' whatever happens

There's no nomad NMH. That's why there could be disagreements between Krugel's version and the auditor's. And there's no place for anyone to 'stand' between a company and its auditor - who is there to objectively check a company's financial transactions and situation. Given that QDE's 'business' is conducted partly with legally separate 'special purpose vehicles' (an arrangement which hid, eg Enron's true financial situation from investors before it went bust ) an auditor will be especially diligent. Contrary to Monty's opinion, I think there are many issues that complicate a company like QDE which owns only part of its 'projects', has no direct control of a major part of its business, and has a CEO who has never explained its true structure to investors.

QDE is not worth 2.5p. Its net assets on the audit will not be more than £4-5 million - and of that most is fixed plant and equipment - ie it will be technically insolvent (not enough liquid assets to pay creditors) - ie net assets per share around 1.5p, but the vital liquid assets per share will be less and possibly negative. Admittedly about £2 million has been raised so far this year (after fees) but will have gone on overheads and contributions to Hindlip and Bordersley. Nothing from Pyebridge as I've shown earlier. So to gamble on coming back after suspension at more than you might get tomorrow is crazy. That's even if the audit shows nothing seriously wrong - which it sounds as if there is.

As for the future. This will put off any potential partner for any new projects (let alone AI) even before that such projects wouldn't sign with a cash strapped company. I've always seen the future for this co is either running out of customers and eventual bankruptcy, or a complete clear out of Krugel, a credible, honest, new boss, and lots more cash raised to create a proper balance sheet. Either of those will almost certainly wipe out current shareholders

As usual, this announcement is a Krugel smoke and mirror show. "Quantum Data Energy PLC (LSE: QDE) is a UK-based, revenue generating, independent energy company"

QDE, the parent company listed, does not generate ANY revenue to speak of. The only revenue is generated by Pyebridge, who until its c £1.75million loan outstanding from Riverfort is paid off, can not pay more than a small part of its (if any) up to QDE, and that not until Riverfort has agreed after a Pyebridge financial year end has been audited to show there is enough free cash to do so, and paid as a taxable dividend. It means in practice until 2029, when current revenues could theoretically have enabled Pyebridge to pay off Riverforts loan, QDE will get little income to speak of. For similar reasons it can not expect any income from Hindlip or Bordersley until before 2028, and then not very much.

So to claim QDE itself is 'revenue generating' is a porkie (and not even a pie)