Concorde Oil and Gas Plc

Massive potential dilution at CDEP. Currently there are 180.8M shares in issue and 113M are to be issued at 0.9p, valuing the existing business at GBP1.63M. However $39M worth of convertible loan notes (which at $1.95 to GBP1 equates to GBP20M) can be converted into 2.22Bn shares at a cost of 0.9p per share. If fully converted this would give Altium 93% of the shares.

I doubt this would be permitted on AIM, so if the company moves to AIM this may place a natural ceiling on Altium's share.

On share price, the overhang created by the Altium convertible loan stock will presumably cap the share price at under 1p. The fact that the Altium loan notes have to be redeemed within 1 year implies that: either a re-financing is anticipated; or the Macquire money will be used to pay off the Altium debt; or Altium will take the business private by exercising their conversion option.

I can't immeadiately see anything much in this for shareholders, although I note that SVE bought in at under 0.5p so should make a profit whatever the outcome.