Now I Wonder10 Feb 2020 06:54
Now I Wonder
As we all know FG converted some of the Bonds in December 2018. €2.1 million of the Bonds were converted at 4.234 euro cents or about 3.76p and FG issued the Bond Holders 50,992,826 shares. I believe this was an excellent conversion rate as it was 500% of the mid-market price in the ten working days immediately prior to the date of the Conversion Notice being 28 September 2018, and the actual average was 0.752 pence per share converted from sterling into Euros at the Company's reasonable assessment of the mid-market exchange rate on that date.
So in late September we had an average share price of about 0.752p and 500% of that is 3.76p (0.752 * 5 = 3.76p)
Now although our Bonds are priced in Euros, for this Post “Now I wonder” I would prefer to use the calculations in £.
So if £1 million of Bonds had been converted in December 2018 at the 3.76p then 26,595,745 shares would have been issued.
Now if you were to take the average 10 day share price as at 31st December 2019 (before the drop in January) then the conversion rate would have been 1.55p (0.31p * 5 = 1.55p) and if £1 million of Bonds had been converted basically one year after the previous conversions then they would have received about 64,724,919 shares and not the equivalent of 26,595,745 shares.
We all know our share price for “unknown reasons” (hint ForCrowd selling maybe) has remained at or below 0.25p the whole of January. Due to the spread this makes the current “10 day average” (at 7/02/20 as above) work out at about 1.17p (0.234p * 5 = 1.17p) and for £1 million of Bond Conversions this would equate to about 85,470,085 shares.
FG returned to Clear Leisure on 31st July 2015 and we had just over 210 million shares in issue, not billions and at time of Posting only 662 million shares in issue. FG has in my opinion always been reluctant to issue shares and does not do WARRANTS. I always knew that Eufingest could control OUR COMPANY with their much need Loans and their Bonds. FG had the upper-hand to force legally the interest rate on the Bonds down in steps from 9.5% to 7% to 1% and the redemption date from 2015 to 2017 to 2018 to 2022.
Now you may think Eufingest are on our side but are they (he)? Look at it from their (his) point of view. Eufingest could have agreed to convert their Bonds and got some shares in December 2018 but what they managed to achieved was that €2.1 million of Bonds got converted and only 51 million shares were issued. If using an exchange rate of €1.2 to £1 then their Bonds of technically €3 million but €3.1 million including interest would be about £2,583,000 and at December 2018 they would have received about 68,705,674 shares (£2,583,000 / 3.76p) But using the most recent average of 1.17p Eufingest would receive 220,797,721 shares (£2,583,000 / 1.17p)
Now does that make you wonder?
RKB
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