How Bergen works
I am surprised that even the so called SI's, who have risk management, and equity trading on their LinkedIn resume have little understanding how the Bergen deal with Anteo works.
it's all very simple so let me explain it to them.
Bergen will make an initial upfront investment of US$1.5 million immediately and US$0.5 million in 120 days, each by way of an interest-free unsecured convertible security with a 24 month maturity.
Bergen may also invest up to a further US$4.5 million in Anteo’s equity over the next 24 months by mutual consent of Bergen and the company.
The conversion price of the convertible notes will be the lesser of 92% of the VWAP of the company's shares during a specified period immediately prior to the date of the issuance, or 140% of the average of daily VWAP for 20 trading days prior to the date of execution of the agreement.
we see by the appendix 3b 30th March http://www.asx.com.au/asxpdf/20160330/pdf/43650fm8yls6f6.pdf that Bergen actually bought 1.768,00 convertible notes at $1.00 each usd.
This would ,we are told , if converted at the time would be equivalent to 42,438,446 shares
They weren't of course because Bergen would not rush into convert, when they have all the powers needed to manipulate the sp price to suit them.
Bergen have 24 months in which to choose a time to convert.
The most that they will ever pay is "140% of the average of daily VWAP for 20 trading days prior to the date of execution of the agreement." which was March 2nd . Anteo have already worked that out for us and said it is equivalent to 42,438,446 shares. So that is the minimum number of shares that Bergen will get no matter what the sp is at any time over the next 2 years.
However, Bergern, can choose at any time any 5 day Vwap to convert all or part of those 1,768,00 Con Notes.
The lower the SP, the more shares they get. However, they may decide to wait till the sp is well north of 10 c (assuming that they think it will get that high) and take their minimum allotment of 42,438,446 shares and make a instant and sure profit.
But these companies don't think like that.
They need to show fairly quick returns on their investment, so research will tell you death financing usually involves the Con Note Investor guaranteeing his profit by manipulation the SP downwards and then converting into many more shares, and then, with the help of company announcements, manipulate the sp back up to sell into.
The con note holders may borrow shares to short and thus they make double whammy by returning those shares at a lower price.
Bergen were also given 10 million shares as a commencement fee, remember, so they can also use to help move the sp down.
And of course, this sort of manipulation will continue as long as Bergen is still financing Anteo.
Shareholders are just mug spectators.
I have just realised that Anteo's philosophical conversion of Bergen's 1,768,000 CN's if done on 2nd March would amount to 42,438,446 shares, is not done on the 140% vwap of preceding 20 days but the previous 5day vwap.
if done on the preceding 20 day vwap, they would only be entitled to just over half that at approx 24,000,000.
You can see why a lower sp price when converting can be very lucrative for Bergen.
they get almost twice the amount of shares at the present sp.
For all the investors who have no clue Bergern were given 12, 149,156 shares at commencement of agreement.
4,649,156 commencement shares and 7,500,000 collateral shares.
There has been no notification that any of their, 1,7680,000 convertible notes have been converted.
of course, given Anteo's poor disclosure record, there no certainty that that is the case, but you expect some to be converted soon.
Or are they waiting till a quarterly with DiaSource accounts are released, that will really disappoint and thus get shares cheaper?
Looks to me like Bergen maybe at work here, to run the sp down to 3- 3.5.
Could be someone selling for a tax loss but that would mean one of the Adorites has had a capital gain and that looks a stretch, judging by their stock picks (jk)
I suspect that Bergen will need to convert some of the Con notes before end of the quarter as they will be issuing another $500,000 usd worth of CN's shortly.
Also, if my prediction that Richard Martin retires within next 3 months he will want to be selling and not loaning shares.
I can see Bergen getting 70 -90 million shares, with the weakening $aud and become the major shareholder of Anteo.
God help Anteo then :(
Bergen have converted their first convertible not yesterday and somehow the clappers think this is a good sign!.
They have converted 5,777,000 shares at .035 cents. which is supposedly 92% of 5 day vwap.
They must have put the request in a day or two earlier to get that .035 figure.
Now the question one has to ask, why they only convert 5.77 million and not a whole lot more , because as the hotcrapper adorites will tell you, this is screaming value at 4-5 cents!
the Answer is SIMPLE!
Bergen are in it to make a profit and not take a risk.
they feel confident that they can offload 5.77 million shares above .035 cents.
They don't feel confident that thy can offload more and in fact, if they had converted 20 or even 40 million, they would be at a risk to lose money should the sp fall below ,035.
Bergern would rather convert in drips and sell in drips when confidence is high.If the price does go up , they would rather convert at a higher price than take the risk of converting all at .035 and being at risk of losing money.
Anyway, loving the confidence in the Adorites!.
Seems they have all come out of their sulking holes to celebrate their losses.
Wait till the reality of the Annual report and the Cap raise needed before Xmas.
(A fact not escaping Bergen)
My prediction of Bergen getting 70-90 million ado shares has been proved spot on.
In somewhat of a dodgy announcement, Anteo announces the full conversion of the remaining convertible notes at a very skimpy price of .036 cents!
Seems to belie the VWAP arrangement they were supposed to have.
Bergen have just been issued with another 78 million shares.
Interesting times for shareholders
Looks to me like Bergen could have sold upto another 25M shares since their last notice. A new notice is way overdue.
The Adorites have helped them out big time by buying from them. Crazy to buy when you know they are selling.
They would have been better forcing Bergen to sell at a loss and then pick them up, imo
I feel, it's just a matter of time before It is announced Bergen are issued another Convertible note. This time shares will be converted for 3c or less imo.
Mind you, that is still overvaluing the company.
Big Day yesterday for Anteo. 23M shares sold in 1 day is a record.
With only a .04c spread so it looks to be an arrangement by Bergen and First Cape for First Cape to buy Bergen shares with a floor price of .039. First Cape had about the same 60M shares loaned out (shorted) as Bergen had left to unload, so really quite convenient.
This is obviously a end of 1 cycle and beginning of another.
Anteo need more money to pay off the Diasource vendors, and it seems to me, that Bergen will provide most of that capital in the form of a convertible note, just like last time.
First Cape may then lend shares out to be shorted again, or they may let Bergen do it, driving the sp down to 3c or less, Bergen will convert and SP will be stuck in the mud.
First Cape have to lend shares out to protect their investment from Bergen. . It was a smart move to short 90M shares after the acquisition, selling all the way down from 7.5 c to 4 c. It could've even been in collusion with Bergen, doing Bergen's work by lowering the SP to allow Bergen to get as many shares as possible, when they converted the note. Which they did for .035c.
First Cape make money to pay for their contribution to the Cap raise @.075, as they knew that once Bergen was involved, their investment was at risk.
The question is, are they intending to repeat the same pattern again, and what will the SP look like when done!
First Cape may not feel the need to short further, unless they have to contribute some cash for the Diasource vendors.
However, they don't want to be caught holding 160M shares either, if they become worthless.
As I have said all along, once Bergen get involved, Mug shareholders are just onlookers.
The other sure thing is Mix&Go is a dud.
Philips rejected it, as did BBI, as has probably IMRA and Cook and the numerous other companies who tried Mix&Go. The battery tech guys have left the company but Anteo don't want the market to know that.
You will never get rid of Richard Martin as he represents the largest Shareholder, and he is the only thing stopping shares being worth zero.
If he sells out, then be very alarmed indeed ..
All IMO DYOR
LOL. David Sietsma otherwise known as DS on HC announces to ASX and the market, he sold over 50M shares.(The SI Can't fill a form correctly).
Then tells HC adorites , he only sold 10M.
Needs to make a proper correction to the ASX.
Bergen release their selling down figures to the 10Th dec of another 22M shares.
That left them with 47M less the activity over the last 2 days which would be substantially theirs. Another 30M.
Leaves them with 17M shares.
What price will they accept for these, I wonder?
Actually, I read the announcement incorrectly. they sold 37M up to the 10th leaving them 32M less what they sold yesterday.
So still got 26M left.
Could David Siestma aka DS selling stock in Anteo to participate in CR of Sienna Diagnostics??