Convertible Loan Notes12 Dec 2024 13:53
A year ago the company was limited in ways of raising funds due to the constraints when listed on the standard London Stock Exchange. The regulations state you are only allowed funding up to 20% maximum of the share capital per annum.
The previous management then structured the entry of the new Tesla trio by way of funding of a CLN. The loan was made up of new and existing shareholders totalling £2.4 million, once converted this would account for 6,875,142 shares. This is what TF has repeatedly been highlighting as a problem however, all the long term and educated shareholders understood this and it’s already been factored in to the SP.
As I have previously mentioned, because I had been supportive in the company I was offered to take part and this equates to 28% of my total shareholding.
The key point is that the CLN is an UNSECURED LOAN and the holders are very much in the hands of the DGI management. There is no coupon and therefore can only be triggered by a move to AIM or a prospectus document.
The company is now in a lot stronger position as they have a number of different funding avenues available to them which in turn can benefit its shareholders.
I would not be surprised if the CLN’s are not triggered for a very long time, if at all. I would say that there is a strong possibility that at some time in the future the loan might just be paid back to the lenders with some kind of premium. I’m sure that this will be negotiated in the best interests of everyone involved.
Due to recent activities I beleive that certain posters are working on behalf of parties such as PH and will now be holding my cards very close to my chest. On that note I would like to caveat my recent statement regarding a single investor on the recent raise until a tr1 is received.
StayLong.