up protherics
19 Dec 2016
Long term borrowings Can anyone shed more light on the following.The last set of results indicated that they have long term borrowings of approximately 2 million.Does anyone know if this is a bank facility. Also does the company own its premises or is it simply leased.
up protherics
19 Dec 2016
Re: Financing You don't think a placing, rights issue, open offer or tender offer may have been more prudent. After all we are currently down over 60% from when this was announced.I cannot see why a bridging loan would have been more expensive with nine million wiped from the market cap and who knows how many more share will be converted with the price at this level.Also you have a nice Christmas yourself. Good will to yourself..Who knows we may come back in the new year and read that the company has been taken private with the help of funding from Darwin
erdec
19 Dec 2016
Re: Financing Regards financing, bridging loans from banks are expensive and not easily obtained hence p2p and p2b are the vogue. Not defending Darwin but if paid off quickly would be the cheapest option.
erdec
19 Dec 2016
Re: Financing Come on up less of the dic it`s xmas don`t you know The i is well away from the e on my keyboard Merry xmas.
up protherics
19 Dec 2016
Re: Financing I have just read Erdics note from the chairman.. So if it is true they may have done us all a favour by raising fund in this way.One small point is that 33 million is worth a lot in the grand scheme of things..Still cant see why no bank would give them a bridging loan
up protherics
19 Dec 2016
Re: Financing I have been doing some research re Darwin..Unfortunately I have not found one positive remark.. INMO it is becoming more clear that the company could not raise funds else where to keep the business solvent.It now looks like even the banks would not give them an overdraft secured against the DPD saleI recently invested in this and have been caught out like so many other investors.The only positive I can see is that there is little debt so if this is suspended we should get back something.( For me this is starting to look like Sefton Resources )Lets hope there is a positive RNS shortly and not some pathetic comical one involving a cartoon.We may get lucky with a complete takeover bid coming in.
erdec
19 Dec 2016
email reply from chairman. Something along the lines we were thinking tot. With thanks to lse poster.I wrote over the weekend how id received an email back from the chairman, David Bailey to my forthright views on their decision to take finance from Darwin.I feel more assured and will be topping up my holding first thing.This is what he wrote
ear Mr xxxxxI have been forwarded your letter. It is very disappointing and frustrating to the Board that the sale of the payments division has not been finalised on the timetable we expected, and that we have had to find some bridge finance to ensure the company can complete the transaction. we explored all possible opportunities and frankly the Darwin convertible was, in our opinion, the least damaging to the shareholders interests. if we can complete the sale early in the New Year we hope to be able to get rid of the convertible by redeeming it. it would still be expensive finance..but cheaper than the alternatives that were available. The business is making good progress as we tried to explain.. and there will be further announcements demonstrating both commercial and geographic development very soon. the requirement to advise the market as soon as we knew regarding the payment sale delay meant that PR in regard to other news is still awaiting sign off from the other parties.As an owner of 33m shares personally I fully appreciate your frustration, but I am hopeful that the business we are building can and will significantly reward us both over time.kind regardsDavid Bailey (Chairman)
up protherics
14 Dec 2016
Re: Future Thanks for that EwanHopefully deals will be struck in the near future and this level of price will be long forgotten
Ewan Hoosami
14 Dec 2016
Re: Future I guess the worst case scenario is that the DPD sale keeps getting delayed and ever more shares are issued at ever lower prices until all the loan notes are redeemed. Already it would need 420m shares at 90% of today's closing price to redeem the whole loan compared to the 254m in the RNS example.To be fair I don't see how the company could have finalised the sale while negotiating to bring on board a major partner. If this can be done successfully it could result in a better price and pave the way for the sale to go through. The company's use of Darwin rather than PrimaryBid or a rights issue suggests a certain confidence that they can tie things up quickly and buy back the outstanding loan notes.Things may get bumpy in the short term, but I was happy to buy a few yesterday as the signs look good to me. But it's all just my take on things and I wouldn't want to say we've bottomed out just yet.
up protherics
13 Dec 2016
Finance Death Spiral Can someone please confirm something for me.Has Proxama entered into an agreement that in effect finishes them as a company. Surely the board isn't that inept.. This is definitely beginning to look like a criminal offence has taken place.Lets hope its not, but todays price is clear manipulation and not in a good way..Also have I read this correctly that conversion cannot take place for at least 20 days and even then it works on a average price prior to conversion over those 20 day
up protherics
13 Dec 2016
Re: Convertables If it does transpire that the lower the share price the more shares Darwin can aquire. Then the answer is play them at their own game.The stock needs to bought rather than sold and as a starting point the Directors/employees could actively purchase shares.Also maybe the FSA could look to see who is behind any shorting. Which certainly seems to be the case today.I think people have forgot as to why they invested in the first pla
up protherics
13 Dec 2016
Re: Future Thanks for that EwanIn your opinion what could we be looking at ( worst case scenario ). Also does the company have a window to repay the convertables before conversion.Thank
Ewan Hoosami
13 Dec 2016
Re: Future Hi up.Think you've misread the bit about the conversion price. Dilution likely to be much greater than the 15% stated in the RNS unless sale of the payments division completes sooner rather than later.---------- -------The Convertible Loan Notes are convertible at Darwin's election into new ordinary shares of 0.01p each in Proxama ("Ordinary Shares"
at a conversion price of the lesser of: (i) 1.24875p per new Ordinary Share or 90% of the arithmetic average of five daily volume weighted average share price calculations selected by Darwin out of the twenty trading days prior to conver
highlander1970
13 Dec 2016
Re: Never before... just doing some research on this one as it caught my eye with the movement this morning. Sorry to see LTH's taking such a beating as this, I know the feeling!I do note however that the loan notes are not secured which, in this current market is not the norm so my thinking is that they fully expect the sale to go through early next year and for there to be a significant appreciation in the SP to be able to convert the warrants.I am going to continue my research for now but I may dip my toe in here when the dust settles a bit.GLAH
up protherics
13 Dec 2016
Re: Future Whatever was the circumstances behind this.. A couple of positives we can draw on is that the conversion price is 1.24 and no coupon is payable.. There is even an option for the company to repay them at any point.As I mentioned in my previous post a full takeover must be very likely now.I was a holder of Cyprotex until its recent takeover. They raised considerable funds 3 years ago to finance expansion via the convertible route. They also raised funds at the same time via loan notes. Basically inmo they were caught out,The convertables were issued at a conversion price of 6 pence . Which was where the stock was trading at that time. They also carried a coupon of 5%The loan notes were pegged at 6 pence and went up in value in line with the share price. So in essence the loan increased as the share price increased.In summary this is a good deal INMO as the lender clearly expects the share price to be north of 1.24 in the near future.
