Member Info for win4call

The stock has been issued - we’ve had the holdings RNS for both institutions.

We don’t know what amount has already been sold and won’t be told I suspect.

I think the chances of any changes to the terms are slim to none.

Jimzi, agree the BoD can’t be blamed for Covid.

A ‘normal’ CLN type facility provides a fixed sum for variable number of shares and generally results in a SP crashing as more and more shares get issued.

We have a facility that provided a fixed number of shares for variable sum. I guess the BOD was hoping that they could keep the SP above nominal and there was a chance, with positive news flow, that they’d get somewhere near the 1.75 million the facility was expected to provide.

It was always going to be a battle keeping the SP up against these type of instos with that number of shares to dump every month but sadly the news flow has been disastrous so far. The likelihood of receiving drastically reduced sums from this financing coupled with the wider impacts of Covid make it pretty clear why they’ve delayed paying the CULN till next year.

All in all, a right dog’s dinner. F up Fowler is going to have to come up with one hell of an update in a few weeks or we’ll be stuck at this level or worse for quite some time.

Reading the RNS again makes me now think I’ve been talking bollards an this deal is way worse than I thought.

If our monthly payment requires a benchmark price of 13.625p to get 100% of the money then an alternative way to look at this is that 5.5p is only 40% of that price. Therefore do we only get 40% of the payment due.

On that basis, instead of getting 1.75 million for the 14million shares we’d be looking at 700k.

Remember that this was to repay the 1.5 million loan ! 14 million shares for 700k and still 800k short !

Lord only knows how the calculation would work. In my simplistic world, if the 10 day low price was 11.375p then the proportionate difference between that and 13.625p would be 12.5p and hence this would match the ‘notional’ issue price and we would get our expected monthly amount.

A 10 day average of 5.5 p would mean a calculated price of 9.5625 p and we would only get approx 75% of our payment.

Like I say, heavily caveated that I am applying my simple assumption of the formula and it’s likely Fowler has agreed something way more complicated that is not in our favour.

Jimzi ,RNS states :

Under the EPSA, in each calendar month, the Investor will make a payment to the Company calculated as 1/12 of the Subscription Amount adjusted by the proportionate difference between the Market Price (being the volume weighted average price of the lowest 10 days in the month of settlement) and the benchmark price of 13.625p ("Benchmark Price").

I read that as the instos pay us an amount calculated on a price somewhere between 13.625 and the lowest 10days price.

Given the round sells today, it does look like someone has dumped half a million shares and YA / Rivers would seem likely candidate. So murky !

Foxy - not clear to me why our insto friends would dump at this level. The low price helps with lowering the price they pay each month for the 14 million they have on 12 month terms but they’ll still have ended up paying more than this price so dumping at a loss surely ?

DHC , the existing CULN being extended till next year is not, so far as we know, with YA / Rivers and was issued in 2013.

I would expect any terms different to the existing eg. Coupon etc would have to be declared.

Couldn’t really see any other option given the circumstances.

Sadly it just means that , not only have we kicked the can down the road again but it is now a bigger can. Kicking bigger cans generally means more pain.

DHC.

One point to clarify, YA and Rivers have 11 monthly payments to make , not necessarily conversions.

In this case they got a fixed number of shares for a variable price ,unlike normal scenarios where they hand over a fixed amount of cash for a variable number of shares.

Conversion wise, who knows - they could be selling by the bucket load at the moment or could be sitting on them whilst the price makes the payments lower. There have been no holdings RNS’s to indicate they are heavily selling but again, I don’t put too much trust in these being a true indicator.

Good luck with your trading elsewhere.

Slippers - good point. So they took 1.5 million of the loan facility available and redeemed a quarter of the CULN , approx 560k.

Whether they’ll use any of the rest of the loan proceeds to redeem the CULN remains to be seen.

Remember also, there was the placing last year to pay for the screening equipment which we should now have been paid for so that should be money in the bank.

Still have the feeling that we continue to run off Wonga finance, robbing Peter to pay Paul and that the BOD will continue to use equity base funding in ever more creative ways.

Whilst it can be seen now how bad this finance deal was, the alternative wasn’t a great position.

We had a 2.25 million of CULN to repay by June. This has been hanging over the company for years with the conversion price dropping lower and lower until hitting nominal.

We’d be royally stuffed now if the financing hadn’t been sorted and we were faced with finding that sort of money by June.

To be fair, this falls when an RNS is issued so maybe best to keep quiet.

The only news I think would make a difference would be sacking of YA and River financing but that ain’t gonna happen so will be a millstone round the neck for at least 12 months, probably more.

Some here will be able to start thinking about the 10 year party.

Not sold enough to notify by RNS though apparently, if you believe these things are ever properly accounted for.

Time to start researching potential good recovery stocks, as there’s potentially plenty.

This isn’t one.

Maybe time to be off out .

Sadly, the pen works fine when it comes to signing up with Darwin, YA , Riverfort etc.

Value destroying finance not being anywhere nearly matched with value enhancing contracts.

I guess this shows why there are rarely any director buys.

The market has as much contempt for shares and shareholders in this company as the BOD and prices accordingly. Why would they buy something they’re happy to trash.

That’s because Pete is just so unlucky, not his fault all these things happen.

Anyway, it’ll be shareholders that feel the pain - no need to cut salaries just yet.

I wouldn’t say fooked but it don’t look great.

We have the rest of the CULN amount to repay by June, and we took out a 1.5 m loan supposedly to repay that, although as ever PF was vague with his words so there’s no guarantee they’ll use the loan for that purpose.

We issued shares, the payments for which were to repay the loan but we’re not going to get as much as we need. We can drawdown further on the loan but just means more to repay.

Looks like PF will have no choice but to be throwing out even more millions of shares and might even have to change nominal.

So the current ‘large’ CULN which is due to be repaid by June has 10p conversion price. That is being repaid in tranches.

The latest financing facility stated :

The Company can if it wishes, elect to convert any of its monthly payments or amounts due by issuing the Investor with a convertible note giving conversion rights equal to the amount concerned, in which case the Investor will have 12 months to convert the note into ordinary shares of the Company at the lower of 14.54p or the 90% 5 day volume weighted average price immediately preceding the date of such notice.

So PF can skip a repayment - let’s say £100k - and issue a £100k CULN convertible on the terms above. Highly unlikely to be 14.54p (god knows where he keeps getting these figures from to stick in as some sort of tempter when we all know they won’t be paying that).