Westminster Share Discussion Threads

[only1gibbo] 28/4/2018 23:30

I don't think they would have too much difficulty raising the cash even via equity (although that would obviously be at a discount to the market price), I just don't think that is the route they will go.

Whilst I am sure that the CLN holders will want to renegotiate terms that are more favourable to them, you are ignoring the bargaining chip held by the Company. I could equally argue WSG could provide evidence of the progress / status of the ME contract. At which point it could ask them if they want the cash now or roll over with a conversion price of say 40p. If the evidence is there to support it, I am sure the holders would accept such terms. In reality, I suspect that any such roll over will maintain the status quo with merely the maturity date changing.

It might also be worth noting that there is precedent for extending the term of the CLNs. These very CLNs, issued 19 June 2013, were themselves originally due for settlement on 19 June 2016. They were extended to 19 June 2018 on 22 April 2015.

[threeputt] 28/4/2018 20:40

either way I imagine some holders won't want to stick around and take the risk, without a contract I see only one way for the share price here

[graham1ty] 28/4/2018 20:18

Of course they would like to repay. The terms are not great. But the reality is, barring the contract, they will not be able to

[youkme] 28/4/2018 19:51

"This fundraising will take into account the June 2018 repayment date of the convertible loan notes."

WSG want to repay. But points noted

[graham1ty] 28/4/2018 19:47

I agree with Gibbo. With no contract, it would be very difficult to raise £2.2m.

I suspect the loan note holder will roll over, either for a fee, or more likely by insisting on an improvement of the terms of the CULN. This could either be by rolling over into an entirely new CULN, or extending and altering the terms of the current CULN. The Loan Note holder has the upper hand in the negotiations, so how about altering them so they are Convertible at say 25p ?

[youkme] 28/4/2018 19:33

Graham- there was only one of us using obscenities.

only1gibbo- thanks for your take on it. But I fail to see how what I have said is incorrect. With the share price as is, WSG will have to raise money to repay. I had not considered the roll over prospect, so point taken and accepted. The poster who said that they can concert at 35p (no matter what the price) was incorrect and I merely corrected that.
WSg have already indicated that they would repay this in June in one of their own RNS

[only1gibbo] 28/4/2018 19:15

Actually, it isn't a fact. The terms of the CLNs are:

"Company can force conversion if the share price is > 65p for 15 working days after 19 June 2016. Company can make repayment without penalty if the share price is > 42p for 15 working days after 19 June 2016."

As we are 7 weeks away from the maturity date, with the possibility of announcing a significant contract in the meantime, it is still quite possible that the share price could exceed 65p for more than 15 days before then, leaving the company with the option of forcing conversion. However unlikely you think that is, it is still a real possibility and therefore it is incorrect to state that it is a fact. You should not mislead people.

Furthermore, even in the event that the ME contract is not signed prior to that date, and the previously announced financing package (which we are told will take care of the CLNs) is therefore delayed further, it still does not follow that the CLNs will necessarily need to be cash settled.

It is quite possible, in fact I would venture quite probable, that the CLNs will be rolled over / extended for a further period of time. By doing so, the holders of the CLNs would maintain their conversion option, with the potential share price gains when the contract is announced, whilst earning a healthy (currently 10%) return pa, and also having a fixed and floating charge over the assets of the company as security. (Just I case it isn't obvious, that is little downside risk, with huge upside potential whilst earning 10% in the meantime). Given that the company has no other debt, I suspect it will not find that a difficult task to achieve.

Your implication that the Company is somewhat in dire financial straights and therefore in urgent need of dilutive fund raising is disingenuous at best.

[graham1ty] 28/4/2018 18:59

Youkme, the exchange between yrself and tax is getting out of hand. As originator of this BB, perhaps time to block him.

I do not like blocking posters as it is a free board for everyone, but extreme obscenities have no place. Let tax post on Someuwins thread if he wants an outlet for his bile

[youkme] 28/4/2018 16:09

Like I said to previous question. Convert at or above but not below

[balaura] 28/4/2018 13:19

Not if the share price is higher than 35p. In this case the investors will get shares.

[youkme] 27/4/2018 23:46

£2.2million needs reaying June 2018. FACT

[youkme] 27/4/2018 23:35

clearly more interested in me than wsg? whats all that about
Thought you gone?

[youkme] 27/4/2018 23:12

What. FFS understand how this works and stop misleading people.
Conversation price is irrelevant unless the share price is at or above it.
You are dangerous and should be LSE with the rest of the idiots or are you already? Tosh uses uneducated language like you

[tax dodge] 27/4/2018 23:09

Last message for the night numb nutsExplain how it works with the conversion price. Use google if you have to. So chuffed for your exwife. No doubt she will happily pay you half of her inheritance just so she doesn't have to hear you go on and the kids will be so much better off for it xx

[youkme] 27/4/2018 23:01

£2.2Million in June though. Just in case some rampers think different

[tax dodge] 27/4/2018 23:00

Mr keyboard warrior wants to meet up. HahahahahaHow blads your skin crawling tonightHahahahahaha

[youkme] 27/4/2018 23:00

lol. Thats class tax.

One day, one day lol. I'll be back tomorrow though, if thats ok?

[youkme] 27/4/2018 22:57

hen your blood pressure has returned to normal from someone that doesn't bother you, would you like to meet up for a pint some time lol

[youkme] 27/4/2018 22:55

Why don't you phone Tom Monday. Just ask
I'll take your apology on Tuesday lets say?

[tax dodge] 27/4/2018 22:52

Back on google

[youkme] 27/4/2018 22:51

At or above. You need to look at yourself.