BNN Technology Share Discussion Threads

[savagedstock] 25/10/2017 20:57

just for some background info...
1. it would be impossible to use the BNN shares as collateral to repay the debt. It is not 'credible' or 'marginable' - even if someone takes it on, they will give no more than 1% against it. That's the problem with these types of market size companies. If he can get 10%, then assuming 40p requote, he can just about pay it back. 2. The Company would be crazy to let him margin his shares. That would mean a 12% overhang, so its better to buy him out through a friendly investor and repay him the proceeds less the 500K. 3. the problem is what is the sanction if he does not pay by the due date? What will the sanction be then? This brings you to the heart of the problem of Corporate Governance - is the Board string enough to deal with it? Although I do not have an interest in BNN, my inkling is that this is the point the Chairman will need to address with the Institutional Investors - you certainly do not want holders like Capital dumping on the way to the exits...If I was the NOMAD I would not be letting this requote until I was 100% satisfied that the Company could deal with the ex CEO...

[wetwestwales] 25/10/2017 20:41

Lots of interest in DM shares and position for one simple reason. We have been in limbo for 7 weeks (and more to come) with our investments because an allegation was made against DM by the departing CFO. PwC have investigated. No report published. No allegation details published. BNN have sent DM to HK and off the Board. That means "guilty". But, to avoid embarrassment and bad publicity (and details of his 10yr globetrotting "expenses") DM "agrees to repay" £500k in 2 months. A feat he has not achieved before. So, all investors who have been pumping cash into DJI/BNN now see DM has been living high life on investors credit card, case (effectively) proven. And that is the point. Next is speculation about whether he will repay £500k or not, and how he could. Hence £30m shares sales etc. Overall, we have hope for long term, but thanks to DM (alleged and unanswered) personal lifestyle choices, we have all been shafted and effects are last 7 weeks and for sometime in future. And that's why we are all focussing ("jumpy") about DM.

[andy] 25/10/2017 20:27

newman,

Me neither, some people seem very jumpy when the subject is broached, I wonder why?

[newmanontheblock] 25/10/2017 20:25

Not quite sure why people are concentrating on mercer's shares?!

[andy] 25/10/2017 20:23

and1125 Oct '17 - 16:02 - 8190 of 8194 0 0
Andy! You’ve completely miss read genesis post..he’s suggesting that BNN would take some of DM’s stock against the value of the loan or he could approach a bank to gain a loan against his stock,

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Ok, I would suggest it could have been better worded.


So what you're saying he is suggesting is DM will hand over x number of shares worth £500,000 in lieu of actual cash? Is that correct?


So, just for arguments sake, say the stock resumes at 40p, you are saying he would hand over 1,250,000 shares to BNN? Then what happens if the stock subsequently falls to, say, 20p? That would mean the collateral would be insufficient to cover the loan!


How will BNN then recover their funds?


And if he can just walk up and easily get a bank loan, why has he not done that, why has he postponed repaying the loan so far?

[andy] 25/10/2017 20:09

amylolly125 Oct '17 - 15:16 - 8188 of 8193 0 0
Andy Rules are .... not rules is ... for someone so knowledgeable this surprises me!

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I don't claim to be knowledgeable, I just express my opinion.

I often make typos, but can you please direct me to the post you are referring to?

[savagedstock] 25/10/2017 17:03

there are strict rules on selling by shareholders who have above a certain percantage. Key trigger levels are 3% and 10%. If you own above 10%, you must notify immediately if you have sold shares. You keep notifying until your holding drops below 3%. This also applies to any personal financial planning you might do, like placing shares in Trusts etc. EVerything has to be disclosed.
Hope this helps

[and11] 25/10/2017 16:40

agree With you Ayesha4! Looking for strong rns’s within the coming weeks from the Chairman, on new appointments, revenue/ growth in Q3, details of the way forward for BNN with expectations of revenues v current forecasts, new agreements & the potential future listing of BNN on the Nasdaq which is his stomping ground...Onwards we go..GLA

[ayesha4] 25/10/2017 16:28

Dont worry about the loan. Stop your bickering. We are looking at end Nov/early Dec trading at this stage. Hopefully should emerge a stronger company. Darren will be working hard to get the deals we need him for. The cash was real. The deals were real. The revenue was real. Onwards and upwards.

[and11] 25/10/2017 16:02

Andy! You’ve completely miss read genesis post..he’s suggesting that BNN would take some of DM’s stock against the value of the loan or he could approach a bank to gain a loan against his stock, but the bank would charge him interest for the loan..blimey! Really wasn’t that difficult to grasp Andy....😎

[redhill9] 25/10/2017 15:48

Andy25 Oct '17 - 14:30 - 8186 of 8188 0 0
redhill9,

Thanks for the partonising response, I am fortunate to have someone as knowledgeable as your self here to guide me and point out my "ignorance"!

You're welcome :-}

Try to think before you post - if you don't know something don't guess or pretend you do know.

[amylolly1] 25/10/2017 15:16

Andy Rules are .... not rules is ... for someone so knowledgeable this surprises me!

[andy] 25/10/2017 14:37

GENISES25 Oct '17 - 13:09 - 8185 of 8186 1 0


The company can exchange the loan for shares if required,,!!


Hang on, so DM owes BNN money, and they give him more BNN shares and write off their loan to him, is that your idea?

Are you serious?



"Mercer won’t need to sell on the open market or have all his shares as collateral on a new loan with a bank which pays interest!! Cheeky sod".


How do you know DM "won't need to sell on the open market" exactly please? Has he told you, or are you hoping?


I sincerely doubt a bank would take BNN stock as collateral for a loan, particularly after the suspension.



"on a new loan with a bank which pays interest!!"

Please tell me which bank gives you a loan and then pays you interest? I'll be straight there!

[andy] 25/10/2017 14:30

redhill9,

Thanks for the partonising response, I am fortunate to have someone as knowledgeable as your self here to guide me and point out my "ignorance"!

[genises] 25/10/2017 13:09

The company can exchange the loan for shares if required,,!!
Mercer won’t need to sell on the open market or have all his shares as collateral on a new loan with a bank which pays interest!! Cheeky sod.

[redhill9] 25/10/2017 11:38

Andy, Rules on director/employee share dealing is something I happen to know about having had to manage such situations in my work. Your comments on this subject seem to be based on ignorance, mine are based on knowledge and fact.

[andy] 25/10/2017 11:23

and11,

Yes and as he has previously extended repayment of the loan, I wonder how he might raise funds to repay it on time now, which I think he will?


Selling some shares must surely be a possibility don't you think?


I'm not even sure he'll be restricted in buying or selling to be honest, it's not a given.

[and11] 25/10/2017 11:09

Andy, as stated in the rns DM will pay back the loan by year end! I’m sure this has been agreed by the Chairman & by DM prior to the rns otherwise why state it..

[andy] 25/10/2017 10:55

and11,

So are you suggesting that if he needs to sell shares to pay back the loan to BNN, they will deny it?

And if he has no other way of raising the funds, what then?

Will they take him to court?

Come on!

[and11] 25/10/2017 10:48

Andy, assumption’s being made here. DM holds about 12% of the stock around 30million shares. I would find it highly unlikely that the Chairman or the board would allow any trading by DM unless cleared by the board & imho this will be written as conditional terms in his contract for his new role within BNN...logical really...😎 as the Chairman stated in his rns. All about corporate governance

[andy] 25/10/2017 10:30

redhill,

You are making assumptions there, and stating them as facts!

Firstly, let's deal with his loan issue. I am suggesting that a possible solution would be to sell some of his shares to the value of the loan, and pay it back that way. Are you seriously suggesting the company would block such a move?

And if you are, and he says he cannot pay it back any other way, what then?


"In most companies all senior employees also have to seek permission to deal in a company's shares."

What you don't know are the specifics in THIS CASE!



"Also, any employee who has share price sensitive information is additionally restricted"

As far as I'm concerned, this is plain wrong, as directors will ALWAYS have share price sensitive information not in the public domain, especially a company actively doing deals.

They are not allowed to deal in "closed periods" (there are exceptions), I suggest you check the AIM rulebook.

[charlesdarcy] 25/10/2017 10:14

Redhill
That was my point , restrictions will be needed as he has proved he can be reckless towards the company

[redhill9] 25/10/2017 09:55

Andy25 Oct '17 - 09:50 - 8176 of 8176 0 0
Andy - 24 Oct 2017 - 09:24:36 - 8126 of 8176 BNN Technology plc - BNN

DM will pay the loan back IMO, how many shares does he have?

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Charles,

Agreed, hence my comment in the post above.

And now he's not th CEO nor on the BOD he can sell without notifying!

No he can't. It isn't only board directors who have restrictions on when they can sell shares. In most companies all senior employees also have to seek permission to deal in a company's shares. Also, any employee who has share price sensitive information is additionally restricted, which will presumably include DM in his new role even if not on the BoD.

[andy] 25/10/2017 09:50

Andy - 24 Oct 2017 - 09:24:36 - 8126 of 8176 BNN Technology plc - BNN

DM will pay the loan back IMO, how many shares does he have?

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Charles,

Agreed, hence my comment in the post above.

And now he's not th CEO nor on the BOD he can sell without notifying!

[highasakite] 25/10/2017 09:36

If and when trading resumes it will tank. Q3 trading on its knees.