Jigsaw almost completed5 Mar 2021 08:38
Jigsaw almost completed
All LTH know that Eufingest have supported us all these years. They provided the funds so that Clear Leisure could survive and for their loyal support and assistance it is now time for them to reap some of the benefit. Without Eufingest Francesco would not have been able to pursue the Sipiem court case, which all LTH will know is only one week away.
I have posted many times about our Bonds and how Francesco managed to exchange some of them for I believe about 93% discount (FG issued only 51 million shares at nominal value of £127,482 for €2.1 million of Bonds)
Eufingest now have loans converted into Bonds worth of about £3.1 million (€3,423,707) and these Bonds are convertible at 1p (just like the John Story placing price) Eufingest also have €3 million of the zero-coupon Bonds.
Currently I calculate FG has the Authority to issue about 365 million shares.
Hypothetically before the High Court of Venice result of the Sipiem Court Case (determination is issued next week) Eufingest could convert all their £3.1 million of “New” Bonds. This would result in Eufingest receiving 310 million shares.
What would be LTH’s view be on Eufingest converting £3.1 million of Bonds? Ok say the share price is “only” 4p on this news then their shares are worth say, £12.4 million. That is an increase of £9.3 million.
Eufigest currently have about 86 million shares. For years they have been 1p or less but at 1p they are worth about £860K but if we are at “only” 4p they are worth £3.44 million or an increase of £2.58 million.
Then on a favourable Venice High Court Result FG could repay the outstanding Zero Bonds and Eufingest would have no debt with us but plenty of shares worth (in the above calculations) about £15.84 million.
Then we have John Story who could exercise his warrants and Clear Leisure would receive £2 million cash. John would then have 200 million shares, paid £3 million and worth at “only” 4p £8 million (£5 million gain)
Then you have the recent placee who paid £680,000 for 111 million shares, which at “only” 4p are worth about £4,533,333 a gain of £3.85 million.
If John Story were to exercise his warrants, then Francesco would have in total £3.68 million cash (£680,000 + £1 million + £2 million)
Any funds received from Sipiem High Court could be used to settle the remaining €3 million & €1 million Bonds. The company would be debt free with lots of cash in the Bank like the £3.68 million above and whatever is left over from the Court Case.
In my calculations I said “only” 4p. You have to do your own calculations, but I am not SNP more likely a small c conservative.
RKB
PS If Eufingest convert and John Story exercises his warrants there would then be about 1,186 million shares and if share price was “only” 4p then we have a Market Capt. of about £47.5 million. You would normally expect a share price to decrease if there are more shares in issue, but Clear Leisure is not a normal share
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