RE: Rns14 Dec 2023 22:09
Just written an essay and then lost it before it posted....
The AGM is about several extreme things for fire fighting.
1. There is no RTO in the pipeline and that figures as the negative net assets make it an awful SPAC.
2. The lender has realised it is best to lose some of their loan than all of it and agreed to not charge any more interest on the pared back loan, a pretty desperate measure.
3. Chesterfield are going to get their loan repaid in shares at 0.65p, just for clarity this means they will be issued 76,923,076 shares and at the current share price some 7.7% of the original value. They loaned £500k and will get back £38.5k of stock (at current price), really desperate and wouldn't happen unless there was a Director involved (Geoffrey Dart).
4. The Company were unable to issue more shares as they had reached their max headroom, so they needed an AGM to get authorisation to allot more shares to raise finance. The fact there hasn't been an AGM for so long speaks volumes.
5. The share has a nominal value of 0.1p, so with the current SP at half of that the Company are unable to do a fundraise. they would have to issue shares at 0.1p and no-one would be willing to pay that at this time.
6. To counter this they will do a share reconstruction, they will do a reverse share split, eg for every 10 shares you currently own you will receive 1, the value of the company won't change so the share would be worth 10 times the current value (say 0.5p), that would then give them a chance to raise at say 0.3p and that would be above the nominal value, but of course be 0.03p in today's money.
Please, please Caveat Emptor!
Sign In
Follow the stocks
