Nobody knows when they will convert any of the notes. Also for what reason.
It says repayment due at the end of the five year term. Subject to share holders approval at a GM. Only 29.9 to be issued at anyone time.
SO it's not of any worry to me at these levels. All companies raise capital at certain points. All depends what they planning to RTO into here and it's value. If they are creating value I've got no problems with that side of things.
The Loan Notes are unsecured, interest free with a five-year term, with repayment due at the end of term. Subject to approval of the Company's shareholders at a general meeting to be convened (the "General Meeting"), the Loan Notes will also have conversion rights, at the option of the lender at any time, at a price of 0.05 pence per ordinary share, with C4 agreeing to a cap of 29.9% of the issued ordinary share capital at any point in time.
Taken from rns.
Exactly the point I was making. Buying as close to conversion price as possible. They can only convert 29.9 percent at anyone time. However if the cap had risen from 1m to 10s of millions. Would you really begrudge them the conversion?. Not all raises are bad for companies. It all depends on the road map and what they do with them funds moving forward to create even more value for shareholders.
There is also a 5 year ceiling on the conversion so it's not really and any detriment at this moment in time.
The cap is so low that it is relevant , in that you are buying shares at huge discount and free float will quickly disappear on Volume. Look at the two bits today and a few others nearly 100 m out if free float in a blink of a eye .
Two chunky buys today. Bodes well for up coming news.
I think once all is revealed it's going to be pretty hard to accumulate stock.
Imvho the time to buy is now as close to placing price as possible. You have to remember that this has fallen from 1.84p. On the hope of a deal.
The new board are Heavy hitters J parsons took sou from 2m to 800 m cap. Irg also going up some 10000 percent. One of the directors is extremely wealthy. This gives the company something it has allways struggled with. Raising finance and credibility.
They have assets that some was hoping they was going to be reversed into ADL. They have other assets with the sale of sou assets.
What better place to put them. A company with 10 m in accredited losses. It's the vehicle of choice.
If this company had done this debt restructuring with a 80 m cap I'd be very worried. But not here at 1m cap. The time to buy is now. The vote will go through that I have no doubt about. So for me it a extremely strong BUY....