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Post by nbk on Jun 23, 2022 8:17:55 GMT
Proposal from C****c has just been published. Some quite big demands being asked of debenture holders. 16 pg doc, so a decent review needed.... I've had a read through the document. The jist is that the debt burden is too great to repay - even over an 18 year period. So all capital will become shares at £10 a pop (if you had £5,000 invested you'll get 500 shares) and your interest is kept separate and will be repaid within the next 18 months. As a shareholder you'll have the opportunity to hold on for dear life and you might be able to get your money back (or more) at an unspecified future event date. The £10 price is based on a recent capital raising earlier this year but that might have been an EIS investment (does anyone know?) I don't know which way to vote. Actually, you might have to wait 30 months before getting your interest paid - the deadline in 31 Dec 2024. The Jan 2022 fundraise at £10/share was not EIS eligible. Although I'd prefer to get paid capital and interest now, I actually don't mind having my capital converted to shares - I think the potential future for the company is quite positive and I strongly support the concept. My main concerns are :... - Getting no interest on the interest earned so far - effectively this is a 0% loan for upto 30 months - Why are we being asked to relinquish all our security when the interest is yet to be paid - we should still hold some to cover that - Why not offer the shares being converted from capital at a discount to the £10 offer - this could be an alternative as not paying interest on the interest - Option to convert interest into shares not being done as tax would be due - why not convert interest into shares for funds in ISAs or SIPPs (where no tax would be due) - What happens in Dec 2024 if still no funds to pay interest (we have no security to enforce) - Why not commit to a discounted share offer price in the future to pay interest - No details on what the senior debt holder (Scottish Enterprise) has agreed to - will they be offering a 0% loan for 30 months ? - Funds held in an ISA now will be converted to shares and dumped out of the ISA (losing ISA benefits), no details on if this amount can be restored/reused in a flexible way by a Customer
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Post by failedtheturingtest on Jun 29, 2022 17:13:09 GMT
I just listened to their presentation, and I wasn't impressed. It seemed short on detail about the reasons for the problems experienced to date, it failed to reassure me that those problems were fully resolved and that there would be fewer delivery problems in the future, and I didn't find their description of the prospects of the 'top-co' convincing. They talked about various potentials and enquiries, but the potentials didn't sound solid enough to me based on the information that they provided. If they weren't already holding my money, I wouldn't have chosen to invest in their top-co based on that presentation.
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Steerpike
Member of DD Central
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Post by Steerpike on Jul 18, 2022 17:51:09 GMT
I asked Abundance why I am not being given a discount or some other sort of recompense for allowing my interest to be used as an unsecured 30 month loan at zero percent interest and after a few days I got a long reply basically reiterating that the £10 share price is a good deal and offering no answer to my question.
On 15th only 63.4% had voted in favour and 3.4% against, so it was still quite a bit short of the 75% required, that may have changed by now.
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Post by peer2beer on Jan 12, 2023 20:56:07 GMT
Investors in this company are now holding shares with a face plate value of £10.
Slower than hoped project but soon to be making loads of chemicals and money.
New plant in the offing in Speyside and future success 100% guaranteed!
If it doesn't work out (in a few years) there's always the loss relief to offset other capital gains
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jester
Member of DD Central
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Post by jester on Oct 13, 2023 15:44:30 GMT
An update provided which is absolutely glowing in positivity about the landmarks they have reached and their huge potential moving forward ....
Yet no mention of how they intend to ever convert out "shares" into any meaningful cash to repay any of our investment!
Is there even a plan for how we can ever actually sell them at all???
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Steerpike
Member of DD Central
Posts: 1,977
Likes: 1,687
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Post by Steerpike on Oct 13, 2023 15:57:25 GMT
An update provided which is absolutely glowing in positivity about the landmarks they have reached and their huge potential moving forward .... Yet no mention of how they intend to ever convert out "shares" into any meaningful cash to repay any of our investment! Is there even a plan for how we can ever actually sell them at all??? Indeed, as well as no share sale in sight, the fundraising next year is for "growth" and so it seems very unlikely that the December 2024 obligation for interest payment will be met. The good news is that there may still be hope of some sort of return in the future.
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Post by peer2beer on Nov 17, 2023 20:33:07 GMT
I read the update and I'm relieved that the business seems to have legs and is finally producing - maybe even make some money.
But it seems like it'll be a long hold for us investors. No chance of selling anytime soon.
The capital raise will be interesting, what value will our £10 shares be at?
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Post by annoyed1986 on Feb 29, 2024 9:45:55 GMT
The latest update suggests this company is going places.
But the funding round to raise the money to pay us back is in October, call me sceptical but that sounds too late to meet the December deadline.
I also wonder how much a share will be worth in this company once all the funding rounds this year dilute us into oblivion.
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Post by peer2beer on Feb 29, 2024 11:20:31 GMT
The latest update suggests this company is going places. But the funding round to raise the money to pay us back is in October, call me sceptical but that sounds too late to meet the December deadline. I also wonder how much a share will be worth in this company once all the funding rounds this year dilute us into oblivion. I read the update too and was encouraged with what they said. They seem to be spending this year looking for investment/funding and the company is still sucking in money instead of generating profit. I think that i would not invest my own money know, but Abundance investors are in it for the long haul. Fingers crossed for our cash return around Xmas - I don't want any more shares.
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