10 Jan RNS19 Jan 2024 22:49
Caught up a bit, and the 10 Jan RNS is an interesting one.
Who are these people that are referred to within it please?
" Moreover, in calls with certain shareholders to see if there were alternatives to alleviate the Company's serious liquidity issues, shareholders were clear that they had no alternative financing proposals for the Company to consider."
It does seem that they are currently beholder to Anavio. Until they can extricate themselves from the 5 borrowings from Anavio, they are effectively held to ransome by them as they have the right of first refusal on any other borrowing requests. I can see 19.7 million dollars was borrowed, then 15 million, and then 3.5 which was amended to 4 million dollars and then 2.5 million dollars, but I'm missing one, can anyone assist please? I see the total is supposed to be around 135 million dollars o/s overall, is that correct? and I assume that due to the forbearance agreement, interest payments at a minimum, or may be repayments per se have been suspended at the present time.
They state they have taken outside legal advice at all necessary junctures. They are therefore not on some frolic of their own, they have covered their backs with independent legal advice, which has no doubt also included expert financial advice, so quite honestly, trying to take any legal initiative against the company looks like a dead duck to me, they will have covered their backs, and as I said earlier, it will prove mightily expensive, and who is going to stump up for that, you are talking what could be in to the hundreds of thousands, and in doing that, if you run the company to court, the company is then involved in further legal expenditure itself, which means in effect, the action you take only serves to hurt yourselves, as they will inevitably fold if money is spent on expensive litigation, so give that some thought. Look what happened with Quindell, and the SFO, it ended up with no findings from recollection against the company.
I would have thought it far more prudent to submit a list of detailed questions to the company, especially regarding how they extract themselves from the contractual obligations they have cornered themselves in to with Anavio by giving them first refusal every time on any further financing. How do they intend to extract themselves from that, and where, if anywhere is there the possibility of further financing? I note they have mooted the possibility of an equity placing through shareholders.
The American side is clearly a mess which needs disposing of quickly. It may be that if that is determined quite quickly, if I've grasped the side of that correctly, that the potential JV partner might re-appear, but they need to get their house in order quickly, and the appointment of the new bods looks like a positive move.
I see Yellow Jersey are PR, yawn yawn! They came in recently on eurasia and put a list of S/Hs questions to the Board, some of which were answered. my views.
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