Dilution - The Facts18 Jan 2016 18:50
YA Global - (see RNS dated 4th January, paragraph 4) have an existing agreement with PTV agreed in 2014 where a total of £1.8 million can be drawn down by PTV (in bite sized chunks of around £50-70000 each time) and then converted into shares; which as we know YAG then sell into the market = yet more dilution every time. On this RNS it states that £1,111,282 was already drawn out of the £1,800,000 originally available; leaving £688,718 that could still be drawn as of 4 January. Since then, of course, they've been busy at it again with more drawn downs and then convertion into shares which they've sold. Tonight's RNS (as well as those during the day today) confirm that YAG had another draw down of £51,189 since 4 Jan which converted into 3,400,000 shares which they again sold per today's earlier RNS. So £688,718 - 51,189 = £637529 which is the sum that the company can still draw down from YAG and convert into more shares to be sold. Lots more. So YAG are by no means gone from PTV as many are stating here. Don't be fooled by that!
CSS Alpha Fund's similar type of convertible loan share arrangement is nearing its end or has ended. Note that the company says in tonight's RNS 'the company is actively seeking alternative sources of funding' so it's probably lining up another CSS Alpha type arrangement either with them or another one of those convertible loan business and that simply means yet more loans converted to shares which are sold leading to ever increasing dilution.
Assets V Liabilities
Anyone in any doubt as to the financial health of PTV should read (again and again) RNS dated 23 December. Scroll down to the Pro Forma accounts at the bottom and give yourself a right good old pinch! Consolidated Balance Sheet as at 30 June 2015 shows Total Assets (which have not been verified or audited!) of $ 1,566,000 and LIABILITIES of $6,522,000. Yes that RIGHT the Liabilities are (allegedly) nearly 6 times the Assets in June 2015. What are they now? The issue here is very simple. No matter who tries to muscle in and try to gain a sufficient holding to try and get rid of the BoD; the fact remains that a magician will not be able to get rid of those Liabilities. At any moment; the BoD could simply place the business into Administration wiping out shareholders in a click of a finger. Read this RNS in more detail as well as the history chain of the other RNS and you will see that PTV has provided guarantees to all and sundry over the liabilities of Digitek. So it's on the hook for Digitek's debts and won't be able to rid itself of that as the Digitek loan holders have now voted TWICE NO to converting the liabilities into equity.
Nothing more to be said except be very careful of those trying to casually ignore these vital issues and make out all that is needed is for a sufficient number of people to try to get rid of the BoD. Might manage that eventually but the Liabilities dwarfing the Assets is a mountain