By Nigel Somerville, the Deputy Sheriff of AIM | Friday 2 December 2016
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.
Oh dear. Oh dearie me. With the share price of embattled AIM-listed CloudTag (CTAG) still coming down faster than a Waseem Shakoor post on the LSE CTAG BB, the bid price has dropped to just 5.25p last seen. If my maths is right, L1’s outstanding loan notes can’t all be converted until after the forthcoming EGM (assuming that shareholders approve the relevant resolutions). Even then, it looks as though Tranche 2 is in danger of not being convertible if the bid price falls much further. Perhaps the Nomad, Cairn Financial, might wish to have the matter clarified to the market.