1. Most Discussed
  2. Gainers & Losers
OBJ 3.0¢

Convertible notes and Monarch

  1. Woody2

    384 Posts.
    In trying to understand this convertible note issue in the qrtly:
    Screen Shot 2015-01-31 at 4.21.25 pm.png

    Monarch were in the T20 list for 2012 and 2013 with 11,875,765 fully paid shares. I couldn't find anything identifying the note holders other than the mention in 2012:

    Convertible notes 2012.png

    and in 2013
    Convertible notes 2013.png

    However in 2014 it gets a bit better airing:
    Borrowings 2014.png
    and then some further explanation and taking up of interest owed

    Note terms 2014.png

    So my take on any merit in Monarch's claim would in part depend on which party had to give notice to extend. Monarch is obviously claiming now that the $140,000 should (have) converted at $0.003 to 46.66m shares (currently about 3% of issued). The wording says that "the Company may convert..." suggests the option is at the Company's discretion not the note holder.

    2013 did not recognise any interest component and I don't see how $190,000 in 2009 @ 10%pa can now be taken up as $43,250 interest.

    Also an interesting alternative to claim damages of share value either at 4/6/12 which was $0.017 ($759,220) or current market value $3,796,100. Bit of a difference.

    Monarch do not appear on T20 list as at Sept 2014.

Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.


Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.