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Cloudbuy – has Chairman Ronald Duncan’s EFH margin call finally been triggered? What now?

By Nigel Somerville, the Deputy Sheriff of AIM | Wednesday 2 September 2015


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Last year Ronald Duncan, Chairman of AIM-listed Cloudbuy (CBUY) did a deal involving a non-recourse sale and repurchase agreement with Equities First Holdings LLC (EFH), which was presented to the market so as to look like a loan. These deals typically have a margin call trigger written into the contract, and our understanding is that in this case the phone rings if the average closing mid-price over three days falls below 19.5p. As of yesterday’s close, that condition looks to have been met.


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