RTO reality19 Jan 2024 08:43
For those of you not quite understanding the reality of RTO's of distressed companies, take a look at MUST, this has been suspended looking for an RTO for ages. At it's suspension price it was valued at £3.15m, today's RNS suggests a value of £1m given in the share issue to the RTO target.
" This ratio has been calculated on the basis of a valuation of GBP1,000,000 of MUST,"
DKE has £900k of debts, so a £1m price tag would be wiped out by the loan (and there would be more costs laid on top of that).
The thing is MUST was listed on the LSE Main Market and in the energy sector, so if there was a green energy company out there looking for a main market listing MUST would have been first port of call, as there would not need to be a change of sector and tax losses could have been utilised. MUST have some infamous Directors though that have made the gravy train lifestyle their own, on the MUST BoD and several other Company BoDs.
Caveat Emptor...