RE: Rights Issue28 Sep 2022 21:58
so back to the rights issue. as has been said, it's no surprise, as some form of funding was essential in the absence of licence fee income and whilst were were hoping something might have been imminent in the regard, that hope was based more on optimism that any real belief in my case.what i do find interesting is that they have gone down the rights issue route.although the announcement makes it crystal clear that most other forms of finance were not available (no IIs were going to get involved with us in our present circumstances and previous biddable mates seem to have been frightened off) they could perhaps have gone for CLNs or outright loans. perhaps potential interest charges made these unviable and i suppose there is not much point in swapping one loan for another, although refinancing in that way is not uncommon. anyway,by going down the rights issue route, mellon and associates are in essence betting on the future s/p performance to cover their investment. if the s/p goes down they go down with us and if we go into administration they will (i assume ) have no priority over anyone else and presumably no security over any assets (e.g. fortacin's IP).so just possibly this route indicted some confidence in the long term prospects.i appreciate this may be a somewhat questionable analysis, but if one is looking to find any positives in the situation,this is the best i can come up with. im not going to dwell on the dilution aspect as it is what it is and all non qualifying holders(as well as those who do not subscribe, (which i expect will be many in number) are going to be significantly diluted.the best i am now hoping for is that, first, the rights issue gets approved and second, the funds raised after paying off the loans are sufficient to keep us going until some positive news impacts the s/p and breaks this spiral of decline e.as you say Bignose, there are news events expected in the relatively near future. it would be funny if they all got announced at beginning of january,eh!
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