RE: DEATH SPIRAL FINANCE INFO... reposted....28 Sep 2023 20:33
Oh dear....
Did we forget to look further in the Death Spiral Finance RNS about WARRANTS.....
The principal amount of each Advance is deemed to have been established with an accrued premium of 4.5% on the relevant drawdown date (i.e., a fee of 4.5% is incurred on each drawdown which will be added to the principal sum to be repaid).
On each drawdown date the Investors will also be granted warrants to subscribe for ordinary shares. Each Investor will be granted such number of warrants as is equal to 33% (in aggregate) of the relevant advance divided by the applicable Reference Price for that advance. In respect of the First Tranche the Investors will be granted 1,125,895,598 warrants. The warrants are exercisable at a premium of 140% of the 5-day average VWAP prior to the relevant drawdown for a period of 36 months from the relevant date of grant.
As is customary, the Loan contains certain default provisions.
WARRANTS ON WIKI...
Stock warrants are financial instruments that give investors the right but not the obligation to purchase company stock at a specific price within a specified time period. They are issued by companies as part of corporate transactions, usually to attract investors. When a warrant is exercised, the company issues new shares, increasing the total number of shares outstanding, which has a dilutive effect. Warrants can be bought and sold on the secondary market up until expiry.
So, looks like it may not be shorting by DSF Co.'s (they) that's the problem (although UKOG is probably being shorted by others) it's the warrants that if/when exercised will mean many Billions of shares flooding the market maybe that's why the SP is constantly dropping, more shares flooding the market than can be soaked up by naive Investors 🤔 perhaps they can forward sell the options shares, either way it's not favourable to UKOG investors as is confirmed by the SP in continued free fall 🤔
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